Michigan House Bill HB4805

Michigan 2025-2026 Regular Session

• Introduced: 8/26/25
• Refer: 8/26/25
• Report Pass: 11/6/25
• Engrossed: 1/14/26
• Refer: 1/21/26
• Report Pass: 2/4/26

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).

Summary

HB 4805 amends Michigan’s Children’s Trust Fund law to change how much money may be disbursed from the fund each fiscal year. The bill keeps the fund as a charitable and educational endowment in the Department of Treasury and continues to direct revenue into it from income tax checkoff appropriations, certain vehicle code revenues, child abuse and neglect prevention act funding, and playground equipment safety fines. It also preserves the State Treasurer’s authority to invest the fund, while requiring compliance with Michigan’s divestment-from-terror law. The main policy change is to increase the allowable annual disbursement rate tied to the fund’s 12-quarter rolling average. Under the bill, the existing 4.25% disbursement framework continues through fiscal year 2017, then rises to up to 5% beginning in fiscal year 2018 if the fund’s rolling average reaches at least $23.5 million; otherwise the 4.25% rate continues. Beginning in fiscal year 2025, the bill raises the allowable disbursement to up to 8% of the rolling average. Gifts and donations remain separately available for appropriation and are excluded from the asset calculation for the rolling-average disbursement formula. The bill also requires the Treasurer to provide annual accounting reports to the legislative appropriations committees, including details on interest, earnings, and the effect of expanded investment options.

Impact

HB 4805 would amend section 1 of 1982 PA 249, changing the statutory distribution formula for the Children’s Trust Fund and thereby affecting how much money can be spent on child abuse and neglect prevention programs. It would not create a new program, but it would alter the fund’s fiscal structure, investment authority, and reporting requirements under MCL 21.171. The bill also interacts with the child abuse and neglect prevention act, the income tax act, the Michigan vehicle code, the playground equipment safety act, and the state’s divestment-from-terror law.

Sentiment

The available voting history suggests broad support for the bill. It was reported from committee without amendment on a 5-0 vote and later passed the House on third reading by a wide margin, 101-8, with immediate effect. No committee transcript is available, but the strong vote totals indicate the measure was generally viewed favorably as a funding and investment update for the Children’s Trust Fund.

Contention

The principal policy question appears to be the size and timing of the increase in annual disbursements from the trust fund. Supporters likely viewed the higher payout cap as a way to make more money available for child abuse and neglect prevention programs, while any concerns would center on whether increasing disbursements from 4.25% to 5% and later 8% could reduce long-term fund stability. Another possible point of concern is the reliance on a rolling-average threshold of $23.5 million to trigger the higher payout rate, which ties spending flexibility to fund performance. The recorded votes do not show major controversy, but the 8 dissenting House votes suggest some members may have been uneasy about the larger future draw on the endowment.