Whitmer signs bill killing asset test for food aid; GOP calls it 'food stamps for rich'

Lansing — Michigan Gov. Gretchen Whitmer signed a bill into law Wednesday that will remove asset tests for food assistance eligibility, a requirement that was put in place under Republican former Gov. Rick Snyder.

Michigan is the 36th state to eliminate the asset test for food assistance, cash assistance or emergency relief. The benchmark was eased but not completely eliminated by Whitmer in 2019 through administrative powers.

The legislation signed Wednesday, which passed the Senate 25-13 and the House 56-53, eliminates the asset test requirement altogether.

"Food benefits must be accessible for Michiganders who need them without illogical tradeoffs," Whitmer said in a statement Wednesday. "I am proud to get this done and grateful for all the organizations, advocates, and legislators — including Senator Irwin — who fought hard to make it happen.”

Whitmer's Department of Health and Human Services raised the asset test benchmark to $15,000 in late 2019. Prior to that, the limit for Supplemental Nutrition and Assistance Program (SNAP) was $5,000. The asset limit is separate from federal income limit requirements, which are based on the federal poverty level.

The Michigan League for Public Policy on Wednesday estimated the elimination of the asset test would help more than 700,000 Michigan households receiving SNAP by eliminating the red tape surrounding the application process. The repeal of the 2012 law is not expected to have an impact on the state budget since it relies on federal funds.

“Our safety net works better if it can catch people before they hit the ground," state Sen. Jeff Irwin, D-Ann Arbor, said in a statement. "Now, families who face financial difficulties won’t be required to deplete all their savings and risk losing everything before they can get food assistance."

House Republican Leader Matt Hall criticized the bill's signing, arguing it would allow "lottery winners" and "millionaires" to receive food assistance. The Richland Republican noted the requirement was put in place after a Bay County man received food stamps after winning a $2 million lottery prize.

"Offering food stamps to the rich does nothing to put food on the tables of Michiganders in need," Hall said in a statement.

Staff Writer Craig Mauger contributed.

eleblanc@detroitnews.com