LANSING, Mich. March 9, 2023 — Gov. Gretchen Witmer signed two different bills into law this week — House Bill 4001 and House Bill 4016. These two bills focus on the economic well-being for both Michiganders and the state, by allocating much needed funds and providing financial relief to residents.
“A lot of hard work went into passing these laws — and the governor’s signature is the official mark of change,” said state Rep. Amos O’Neal (D-Saginaw). “The Lowering MI Costs plan will put hard-earned money back in Michiganders’ pockets by repealing the retirement tax and raising the working families tax credit. These bills demonstrate Democrats’ commitment to crafting bipartisan legislation to help all Michiganders. Today marks a terrific day of positive change.”
HB 4001 will increase the working families tax credit and repeal the retirement tax. The bill will help low-income families, as well as retirees on fixed incomes, to be able to afford basic necessities such as food, utilities and other living expenses. The repeal of the retirement tax will bring more than 500,000 households an average of $1,000 a year. The increase of the working families tax credit to 30% of the federal Earned Income Tax Credit will give back an average $750 in tax credits to those who qualify. Both measures will put millions of dollars back into the Michigan economy and local communities.
HB 4016 contains a wide variety of crucial funding allocations, including economic development investments and the disbursement of American Rescue Plan Act (ARPA) dollars that, if not distributed soon, could be returned to Washington, D.C. It also includes $75 million of ARPA funds allocated to hospital staffing grants and $67 million of ARPA funds for health workforce grants, totaling $142 million.
“The budget supplemental allocates $10 million to Michigan for wetlands restoration and $7.9 million for disaster recovery,” O’Neal added. “These funds are important for our children and grandchildren. Not only that, this supplemental funding also makes historic investments in hospitals and health-care workers, ensuring health-care providers can maintain safe staffing ratios to guarantee the care Michiganders need and deserve.”