Michigan Department of Insurance and Financial Services (DIFS) will see a modest funding boost after lawmakers scrapped earlier plans for deep cuts.
The state’s new budget, signed for fiscal year 2025-2026, sets the Department of Insurance and Financial Services at $79.4 mn, according to an Oct. 2 analysis of the omnibus appropriations bill.
The measure marks a $785,000 increase. It includes $330,000 more for attorney general services, reflecting a rise in civil and criminal cases referred by the department, and a $995,000 economic adjustment.
Lawmakers also removed $500,000 in one-time funds tied to an auto insurance study and a consumer outreach campaign.
The budget fight was contentious. The Michigan House initially advanced a plan cutting $5.2 mn from DIFS, which Director Anita Fox warned would undermine oversight.
Senate lawmakers pushed a smaller reduction of about $570,000. Gov. Gretchen Whitmer’s office, by contrast, had backed an increase of $1.6 mn.
House Republicans had pitched the original budget as a 3.7% overall spending reduction compared with the current year.
That plan was ultimately pared back in negotiations, shifting to a modest increase for DIFS instead of a significant rollback.
The department relies almost entirely on industry fees and fines for funding. In the 2024-2025 fiscal year, those sources provided 98% of its budget, a trend consistent with prior years, according to Michigan House Fiscal Agency records.
The mission of the Michigan Department of Insurance and Financial Services (DIFS) is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries.
In addition, the Department provides consumer protection, outreach, and financial empowerment and education services to Michigan residents.
DIFS regulates banks, credit unions, insurance companies, insurance agents, insurance agencies, mortgage licensees, and consumer finance-related entities.
