Michigan House Bill HB4805

Michigan 2025-2026 Regular Session

• Introduced: 8/26/25
• Refer: 8/26/25

Caption

Children: other; rolling average amount for disbursement under the children’s trust fund; increase. Amends sec. 1 of 1982 PA 249 (MCL 21.171).

Impact

The implications of HB 4805 are significant for state law as it not only modifies how funds are allocated but also emphasizes a growing commitment to supporting child welfare initiatives. By allowing a greater percentage of funds to be available for disbursement, the state aims to enhance its capacity to respond to the needs of children in various programs related to safety and preventive measures against neglect and abuse. Hence, the bill potentially increases the funding available for child-related programs, facilitating better outcomes for vulnerable populations.

Summary

House Bill 4805 proposes amendments to the existing framework of the state's children's trust fund, established under 1982 PA 249. The primary aim of this bill is to adjust the parameters surrounding the disbursement of funds from this trust. Specifically, it outlines that beginning in fiscal year 2025, up to 8% of the 12-quarter rolling average of the fund must be made available for disbursement, whereas previously, only a maximum of 5% was allowed. This change is designed to provide increased financial resources for programs aimed at children's welfare and development within Michigan.

Contention

However, this bill has sparked discussions regarding the level of financial oversight and the management of such trust funds. Opponents express concerns about the long-term sustainability of the trust, particularly whether the increased disbursement limits will affect the overall capital of the fund in future years. Furthermore, there are worries about how the funds will be managed and monitored to ensure they effectively support intended beneficiaries without misappropriation or financial mismanagement.