Federal Block Grant Award Summary

The Centers for Medicare and Medicaid Services (CMS) awarded the Michigan Department of Health and Human Services a Medicaid entitlement block grant of $16.07 billion effective October 1, 2025 through September 30, 2026 under the Grants to States for Medicaid program (CFDA 93.778). This award provides financial assistance to Michigan to fund medical assistance payments on behalf of eligible low-income populations, including cash assistance recipients, children, pregnant women, elderly individuals, and other categorically-eligible groups who meet specified income and resource requirements. The funding enables the state to cover essential healthcare services, including medical payments, Medicare premiums, copayments, and deductibles for qualified beneficiaries.

As the prime recipient, MDHHS typically functions as a pass-through entity, sub-awarding portions of the grant to local health departments, nonprofit organizations, community-based service providers, and Medicaid-participating healthcare providers to deliver medical assistance services at the community level. The quarterly allocation structure allows Michigan to submit estimates of needed funds to ensure timely availability of medical assistance to eligible individuals. Recipients qualify for assistance based on state-established requirements and may apply for medical assistance at any time through state and local welfare agencies operating under an HHS-approved Medicaid State Plan.