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LANSING (WWJ) – Michigan could be out $400 million a week in federal funds if the nation hits its debt limit and can’t pay its bills.

State budget director John Nixon is hopeful that Congress and the White House can reach an agreement to lift the federal debt ceiling — but he’s not sure how Michigan will make payments to food stamp and welfare recipients and Medicaid providers if the federal government defaults. Nearly half of Michigan’s $45 billion budget is supported by federal funds.

Comments
  1. Jill Hood Wrenbeck says:

    Hold the phone for just one second please. Didn’t the governor just claim to save “the state’s taxpayers” $77 million by dropping every family using food stamps and cash assistance (welfare) over 2 years on September 1st? And now he tells us that’s not exactly all of the state’s money? Really?!

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