House Appropriations Chair Rep. Ann Bollin this week held a hearing to review how the Michigan Department of Health and Human Services (MDHHS) is administering $173 million in new federal grant funding awarded to Michigan through the Rural Health Transformation (RHT) program.

The RHT program was created under the One Big Beautiful Bill Act of 2025 to improve health care access and outcomes in rural communities. States were authorized to apply for a share of $50 billion in federal funding nationwide over the next five years.

Bollin said the purpose of the hearing was to get an overview of the program developed by MDHHS and ensure the funding is being used in a way that delivers meaningful, measurable improvements for rural communities, where residents often struggle to access affordable and reliable health care.

“This is an opportunity to do something truly transformational. This is a significant investment, and I want to make sure it truly helps people in rural Michigan,” said Bollin, R-Brighton Township. “My goal is to make sure these dollars are spent wisely, transparently, and in ways that actually improve access to care for the people who need it most.”

Bollin raised concerns that MDHHS plans to withhold nearly $19 million from Michigan’s RHT allocation for administrative costs, including approximately $2 million for salaries, benefits, and travel for 12 new state positions.

Bollin also emphasized the importance of establishing clear performance metrics so lawmakers and taxpayers can evaluate whether the program is achieving its intended outcomes.

“There must be clear benchmarks for success,” Bollin said. “Without measurable results, there’s no way to know if this money is actually improving health care access in rural communities.”

Bollin further raised concerns about how MDHHS has defined which communities are eligible to apply for RHT grants. Under the department’s current framework, even large urban counties such as Wayne County could qualify for funding – potentially diverting resources away from truly rural communities that the program was intended to support and that are counting on this funding to address longstanding access gaps.

“When funding meant for rural health is stretched so broadly that major metropolitan areas can compete for it, we risk diluting its impact,” Bollin said. “We need to make sure rural communities aren’t pushed to the back of the line.”

In addition, Bollin expressed concern that MDHHS appears reluctant to pursue policy changes that could allow Michigan to qualify for a larger share of RHT funding. One such option discussed during the hearing included removing soda from eligibility under the Supplemental Nutrition Assistance Program (SNAP), a change Bollin said could improve health outcomes while strengthening Michigan’s competitiveness for future federal funding.

“If there are reasonable policy changes that could bring more resources into Michigan and promote better health outcomes, they should be seriously considered,” Bollin said.

Bollin said House budget subcommittees will continue holding hearings on the RHT program as it moves forward and pledged ongoing legislative oversight to ensure the funding is used effectively and responsibly.

“This is just the beginning of the oversight process,” Bollin said. “The Legislature has a responsibility to make sure rural communities see real results from this investment.”