Office of Global Michigan tells House subcommittee federal grants, not state dollars, drive newcomer services

LANSING — Officials from the Office of Global Michigan told the House Oversight Subcommittee on Corporate Subsidies and State Investments that federal grants, not state general funds, are the primary source for refugee-resettlement assistance and related newcomer services in Michigan.

"The annual investment from the feds is approximately $40 million," Poppy Hernandez, executive director of the Office of Global Michigan, said in testimony to the subcommittee. She told members that roughly half of that federal funding supports unaccompanied refugee minors and that the remaining federal dollars largely fund cash and medical assistance administered through the Department of Health and Human Services.

Hernandez provided the subcommittee with recent state appropriation amounts for the office: $1.4 million in fiscal 2023, $4.5 million in fiscal 2024, $7 million in fiscal 2025 and $4 million in fiscal 2026. She said state dollars were used primarily to implement a statewide meaningful language-access public act, to fund community-based organizations, to expand legal services and to support stakeholder engagement.

Those state appropriations, Hernandez said, were intended to help Michigan broaden local capacity: "In 2022, newcomers were concentrated in nine counties and served largely by five resettlement partners. By 2024 we were working in 69 counties and had partnered with over 60 community-based organizations," she said.

Why it matters: committee members pressed the office on whether these federal funds could be reallocated to other populations such as single mothers, elderly residents or veterans. Hernandez repeatedly told the panel federal awarding rules constrain the state’s ability to repurpose those dollars and that the office implements federal guidance rather than setting eligibility policy.

"Those dollars come to us with high levels of federal regulation," Hernandez said. "There is no opportunity to repurpose those dollars." She added that decisions about repurposing or broader policy changes are matters for the Legislature.

Questions about who receives assistance and program outcomes

Members sought additional data about how many newcomers receive assistance and whether recipients achieve self-sufficiency after brief subsidy periods. Hernandez said the office does not deliver direct services and therefore does not maintain a single, statewide count of all individuals who receive federal benefits; instead, the office funds and coordinates community-based partners.

"We don't directly fund any newcomer populations; we fund local community-based organizations," Hernandez told the panel and offered to provide the committee with more precise counts and pilot-program outcome data.

Hernandez described the newcomer rental-subsidy program as a pilot that is no longer accepting applicants and said eligibility verification requires assessing every person in a household. She also said the office is preparing and can deliver outcome data showing whether participants remained employed or became self-sufficient after program participation.

Eligibility, asylum and refugee pathways

Committee members asked about the practical differences between refugees and asylees. Hernandez warned that eligibility depends on immigration status and individual circumstances and stressed the office follows federal eligibility rules. "Both have legal status and both have eligibility to work," she said, but added that the pathways and benefits can differ and that DHS caseworkers determine many program eligibilities.

Tensions over enforcement and community fear

The panel also heard a more politically charged exchange about enforcement and community trust. A minority vice chair said immigrants in Michigan have reason to fear immigration enforcement and alleged ICE has engaged in wrongful detention thousands of times since October. "People are living in actual terror because of what is happening," the member said.

Hernandez said the office hears "hyper cautiousness" from immigrant communities and that media coverage can exacerbate fear, but she emphasized the state's role is to serve residents within the constraints of federal law.

Follow-ups and next steps

Hernandez and Jana Hicks, director of legislative affairs at the Michigan Department of Labor and Economic Opportunity, told the subcommittee they would follow up with requested counts, pilot evaluation outcomes and additional program data. No substantive votes on policy or funding changes occurred at the hearing; the committee approved the minutes and later excused absent members by unanimous consent before adjourning.

The subcommittee requested further written information on the number of people served and the results of the newcomer rental-subsidy pilot. The committee adjourned after the office agreed to provide that data to members.