Michigan lawmakers spar over Rx Kids program amid oversight concerns

By Elyse Apel
The Center Square

Michigan lawmakers are sparring over the future of the state’s Rx Kids program, a cash-assistance initiative that has received more than $300 million in taxpayer funding so far.

Republicans are raising concerns about oversight, accountability and long-term costs, while Democrats and program supporters argue the initiative is helping Michigan families.

These concerns came to a head during a hearing in the Michigan House Oversight Committee, chaired by Rep. Jay DeBoyer, R-Clay Township. Rx Kids founder and director Dr. Mona Hanna, a professor at Michigan State University’s College of Human Medicine, defended the program’s approach during testimony before the committee.

“Why are families so grateful? It’s because the period of childbirth is the most economically vulnerable in the life course,” Hanna said. “This is a program built on trust, trusting women, trusting mothers, trusting families to best fit their needs.”

Launched in Flint in 2024, Rx Kids has since expanded to more than 60 Michigan cities, counties and communities. The first-in-the-nation program, which describes itself as “universal and unconditional,” provides cash payments during pregnancy and after childbirth without restrictions on how recipients spend the money.

It was passed under Democratic leadership in the legislature, but with bipartisan support. Since then, though, Republicans are raising some concerns about the program.

During the hearing, they questioned whether the program provides sufficient oversight of taxpayer dollars. Another issue was concerns over whether Rx Kids duplicates existing assistance programs like the Supplemental Nutrition Assistance Program, the Michigan Department of Health and Human Services’ diaper program, utility and rent assistance through the Michigan State Housing Development Authority, and more.

“Many of these existing programs have verification standards for how recipients use funds so taxpayers have assurances that waste and abuse isn’t occurring with available dollars,” DeBoyer said. “What we heard from Dr. Hanna is that this program just trusts recipients in how best to use those dollars. That creates the potential for problems and doesn’t respect taxpayers.”

According to testimony from Hanna, the program has secured more than 150 grants and raised more than $86 million in private funding. It has also received funding through the federal Temporary Assistance for Needy Families program and the Healthy Michigan Fund. In total, Rx Kids has received more than $300 million in taxpayer funding through those existing programs.

DeBoyer expressed particular concern with the program’s funding and a potential lack of oversight.

“There is a long history of social welfare programs that expand and expand and don’t have a lot of downstream results or stray from their original purpose,” DeBoyer said. “We must ensure taxpayer-funded programs are effective and sustainable, instead of a pathway to big government bloat.”

Democratic lawmakers pushed back on Republicans’ criticisms during the hearing.

Rep. Laurie Pohutsky, D-Livonia, criticized the tone of some questioning and defended participating families.

“I am really uncomfortable with how we behaved in front of the parents and their babies who are here,” Pohutsky said. “I personally can’t imagine finally having trust in a government program just to be told you can’t be trusted with that program.”

Committee Republicans also questioned overhead in the program.

Hanna testified that about 85% of state funding goes directly to participating families, while roughly 15% supports administration, staffing, customer service, marketing and other operational expenses.

DeBoyer noted that administrative costs have exceeded $40 million since the program’s launch and cited reports that public funds have been used for outside organizations and promotional efforts.

“Every legislator wants to support successful families and healthy children in communities across the state,” DeBoyer said. “When we look into these expenditures and how this program operates, we’re coming at it as legislators who have a responsibility to taxpayers.”

Republicans further raised concerns about the program’s long-term goals, in particular referencing previous comments by Hanna regarding hopes to expand Rx Kids.

“Dr. Hanna has stated it’s a long-term desire to extend this to an unconditional payment plan that supports families that have children up to age 18, which would recklessly add billions of dollars to budget commitments,” DeBoyer said.

According to Rx Kids’ website, through the program, pregnant women can receive $1,500 during pregnancy, while babies receive $500 a month for a varying length of time of between six and 12 months. Thousands of families have enrolled in the program since 2024.

The application, which is meant to take “about 30 minutes to complete,” can be viewed in English, Spanish, or Arabic. Eligibility only requires applicants live in a participating community, be an adult, and at least 16 weeks pregnant.

House Republicans have questioned those requirements, labeling the program a “cash for votes” scheme.

“Democrats sent ‘unconditional cash’ to everyone from illegals to rich families to see if it would increase voter turnout in Michigan’s bluest communities, and when it worked, they increased it tenfold immediately,” Michigan House Republicans said in February, when the program first began receiving scrutiny. “Michigan taxpayers are being forced to buy Democrat votes in Democrat strongholds by funding unconditional cash payments to people regardless of their income or citizenship status.”

Hanna testified during the hearing that no taxpayer dollars are going to illegal immigrants, instead those participants in the program are funded via private donations.

“No state funds go to undocumented immigrants—none,” she said.

Following the hearing, House Democrats accused Republicans of targeting a program designed to help struggling families.

“Democrats trust moms,” House Democrats said in a statement following the hearing. “Republicans want to gaslight you into thinking the affordability crisis is a hoax. They also want folks to believe the life-saving program Rx Kids is harmful. But no one’s falling for their lies. Rx Kids helps families get the breathing room they need.”

Michigan House Speaker Matt Hall, R-Richland Township, has previously criticized the initiative, calling Rx Kids “a scam.”