LANSING, Mich. – Michigan Community Action (MCA), the state association for the 27 Community Action Agencies (CAAs) across Michigan, is raising concern about the threat of cuts to critical constituent assistance federal funding in House Bill 4706, the proposed Michigan state budget.

At the federal level, Community Action programs and efforts have historically received strong bipartisan support. In the U.S. House FY2026 Labor-HHS bill, CAAs’ core funding, the Community Services Block Grant (CSBG), received a $5 million increase. The bill also funds a $10 million increase in funding for the Low-Income Home Energy Assistance Program and a $1 million increase in Rural Community Development, while maintaining funding for Head Start and community economic development initiatives.

Despite strong support from Congressional Republicans, Michigan HB 4706 includes a $5 million (20%) cut to the federally-funded CSBG and a $5 million (13%) cut to Weatherization. With the budget deadline just over a week away, CAAs have already begun to plan for the potential of staff layoffs and the elimination of key services which would impact more than 250,000 residents who receive life-changing support every day from their local agencies.

MCA Executive Director Brian McGrain issued the following statement:

“CSBG and Weatherization programs receive bipartisan support in Congress and are designed to be a flexible source of federal funds for local anti-poverty programs. Turning away these federal dollars does not save Michigan a dime. Instead, it rips away critical support from hardworking residents and families and sends it to other states, leaving Michigan in the dust.

“Michigan’s 27 CAAs show up every day for people in our communities who need support and guidance, working hard to ensure residents receive critical resources to lift themselves out of poverty. For decades, Community Action has been about offering a hand up and not a hand out. And if there was ever a time we needed our lawmakers to show up with that helping hand, it’s right now.”

Last week, MCA delivered letters to key lawmakers outlining what is at stake for CAAs and thousands of residents in every corner of the state. View the letters here.