Michigan lawmaker moves to shut down 'guardrail-free' cash handout program for new mothers

A Michigan state lawmaker is taking aim at a taxpayer-funded cash assistance program for pregnant mothers, calling it "bad policy" and demanding changes to how millions of dollars are distributed.

"The reason I don't think it's good policy is because we are asking taxpayers to put money on the table with no guardrails, with no independent analysis of whether it is actually accomplishing anything," House Oversight Committee Chairman Rep. Jay DeBoyer, R-Clay Township, told Fox News Digital.

The pushback intensified last week when Michigan House Republicans demanded a rigorous inspection of the initiative, aggressively questioning its long-term benefits and sounding the alarm over how state funds are being allocated. While the program previously enjoyed bipartisan support across three state budgets — earning praise from Democratic Gov. Gretchen Whitmer and some GOP lawmakers — a growing faction of Republicans are now levying sharp criticism.

Michigan House Republican Leader Matt Hall, R-Richland Township, has also slammed the initiative, previously labeling it "a scam."

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The initiative is designed to issue a "no-strings-attached" $1,500 cash payment to expectant mothers, followed by $500 per month during the child's first year.

"The problem that I think exists, the thing that red flags me the most, is that you can spend it on anything," DeBoyer said. "That's just a social welfare program. You're just saying, 'Here's money to make your economic condition better,' right? So the question is, should we do that in perpetuity?"

The scrutiny boiled over during a June 2 House Oversight Committee hearing, where GOP lawmakers targeted "Rx Kids"—an initiative billed as the nation's largest citywide cash aid program for prenatal and infant care. The intense debate over the merits of the program has been escalating for months, with House Republicans previously characterizing the measure as a "cash-for-votes scheme."

DeBoyer challenged assertions made by Dr. Mona Hanna, the co-director of the program, who has argued that Rx Kids should not be classified as a traditional guaranteed income program.

The lawmaker pointed to the state's Department of Health and Human Services Temporary Assistance for Needy Families (TANF) plan, which explicitly notes that a "guaranteed income program is a cash payment provided on a regular basis to members of a community with no strings attached and no work requirement," listing Rx Kids payments as a direct example.

"So which one is it? And that's when I really started to get skeptical," DeBoyer told Fox News Digital. "So what are you trying to hide, right? Why are you giving me a half-truth, or are you just ignorant?"

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According to the Rx Kids website, the initiative distinguishes its model from standard guaranteed income by framing it as a "child allowance" consisting of "targeted, life-course investments." The program notes these funds "focus specifically on pregnancy, infancy, and childhood — periods when resources matter most for brain development, health, and long-term outcomes."

Similar basic income experiments have launched nationwide, utilizing a mix of public taxpayer funds and private donations. However, several programs have been forced to halt operations following legal challenges from Republican officials who object to no-strings-attached cash distributions.

Responding to DeBoyer’s criticisms, H. Luke Shaefer, a key architect of the program and a professor at the University of Michigan, told Fox News Digital on Wednesday that the lawmaker is standing on an "island." Shaefer emphasized that the measure historically received broad bipartisan backing in the legislature, including strong support from lawmakers representing Michigan's Upper Peninsula.

First launched as a pilot program in Flint in January 2024, Rx Kids has since expanded to several municipalities across the state, including Detroit. To date, more than 12,000 families have received upwards of $42 million in direct support.

DeBoyer also set his sights on the program’s administrative overhead. Rx Kids is led by Michigan State University (MSU) and administered by GiveDirectly, a nonprofit specializing in direct cash transfers. The program has raised nearly $400 million in total commitments from a blend of state, municipal, and philanthropic funding.

"By the way, the Department of Health and Human Services manages those programs, for the most part," DeBoyer argued. "Why are we paying $45 million for someone else to manage a program when we have an entity in the state that already does this?"

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Dr. Hanna, who serves as the associate dean for public health at MSU, countered DeBoyer's concerns in a statement to Fox News Digital, stressing that the program operates with high efficiency and rigorous oversight.

"Funds are distributed through established systems with extensive safeguards, eligibility verification, fraud prevention protocols, auditing processes, data-use agreements, and independent oversight," Hanna said.

"The program also had two previous years of state funding. When you consider the 5–6 years of state funding, the administration of the program is about $7–8M/year," she continued, noting that Rx Kids is a public-private partnership that has leveraged nearly $90 million from non-state philanthropic sources. 

"The overwhelming majority of funding supports families directly — approximately 15% of state funds support the administration of the program — that is an incredible level of efficiency," Hanna added.