Cash for Newborns Comes to Kalamazoo, Muskegon, Jackson and More

A program that puts cash directly into the hands of pregnant women and new mothers is expanding across West Michigan this summer. Rx Kids announced its largest expansion to date, adding 20 new communities to its service area including locations in Kalamazoo, Calhoun, Kent, and Muskegon counties.

The program gives mothers $1,500 once during mid-pregnancy, then $500 per month during infancy. There are no strings attached and the money is not taxed. Mothers can use the cash for groceries, clothing, housing, transportation, or any other need.

"I think everybody who works in healthcare and public health wishes that we had something that we could do to treat that root cause that makes it really hard for kids to grow up healthy and successful," Dr. Mona Hanna said.

Dr. Mona Hanna is a pediatrician and associate dean of public health at Michigan State University. She founded Rx Kids in January 2024. The program became the United States first community-wide prenatal and infant cash program. It is led by MSU's College of Human Medicine and administered by GiveDirectly, an international nonprofit that specializes in direct cash delivery.

The program started in Flint and then came to Kalamazoo. Now it is expanding to more communities across the state.

What Is Happening This Summer

Enrollment opens June 1, 2026 for the following Kalamazoo County communities:

  • City of Galesburg
  • Oshtemo Township
  • Wakeshma Township

Enrollment also opens June 1 for Muskegon County communities including the City of Muskegon and City of Muskegon Heights. Jackson County communities including the City of Jackson and Blackman Charter Township also begin enrollment June 1.

Enrollment opens July 1, 2026 for Calhoun County communities including Albion, Battle Creek, Springfield, and Sheridan Township. Kent County ZIP code 49507 also begins enrollment July 1.

Additional communities in Genesee County and Wayne County will launch Rx Kids later this summer. More details will be announced soon.

Why Mothers Need It

"Families struggle the most actually around the time they have a baby because income drops and expenses rise," said Dr. Mona.

Dr. Mona told News Channel 3 that it is a simple formula backed by research that gives babies a better lifelong trajectory. The formula works by easing some of the additional stress felt by many parents during the newborn stage.

The program's impact is being documented with research published by the American Journal of Public Health. The research shows:

  • Notable reduction in postpartum depression
  • 91 percent reduction in evictions among participating families
  • Increased ability to purchase nutritious food and baby supplies

The W.E. Upjohn Institute has also tracked the benefit, particularly to local economies.

The Kalamazoo County Launch

The Stryker Johnston Foundation and Kalamazoo Community Foundation are supporting the Kalamazoo County expansion. Cradle Kalamazoo has served as the local community champion for the City of Kalamazoo since its inception and will extend its role to the new communities.

Mothers in Kalamazoo County will receive the prenatal-plus-12-month version of the program. The program will reach approximately 280 births each year.

Funding and Partners

In October 2025, the legislature passed a bipartisan budget investing $250 million over three years. This investment complements annual state TANF and private funds to expand this proven and efficient maternal and infant health program across Michigan.

The program is a public-private partnership. State funding matches funding raised through community nonprofits, foundations, health systems, and businesses. In communities with strong local giving, the partnership works like a match made in Heaven.

What Communities Need to Do

Communities apply through a comprehensive, open application process. Statewide outreach ensures communities across Michigan are aware of the opportunity.

Communities were selected based on demonstrated need. Indicators include Medicaid birth rates, child poverty levels, and maternal and infant health outcomes.

As a public-private partnership, applicant communities are also required to secure local match funding. This funding comes through philanthropic, business, health system, or individual support.

Coldwater Decision

In Branch County, the City of Coldwater had the opportunity to apply for Rx Kids but passed on it. At a February 9 city council meeting, a motion to apply for a three-year program was not supported by the board.

According to the city's attorney Amanda O'Boyle, they would need to bring approximately $110,000 in local match funds to the table in the first year. In exchange, they would receive roughly $900,000 in state matching funds.

"Obviously, a nice program. The question is what our general tax dollars go on. That's a good question for each of us to decide," a council member said during the discussion.

Unlike many Rx Kids communities that have been able to raise local match money through established nonprofits or foundations, Coldwater did not find a local organization to serve as its community champion. This means the match would have had to come directly from residents.

Looking Ahead

Dr. Mona Hanna notes that the demand for the program far outpaces what is currently being funded by the state. The program's long-term growth depends on several factors including sustained state investment.

In December 2025, the program lost approximately $15 million in state funds through what Dr. Mona described as a clawback. The program's future depends on restoration of previously cancelled funds, continued annual TANF support, and strong enrollment across communities.

"Overwhelmingly, we hear especially families want this and communities want this. But it's hard, because you still have to have other dollars to make it possible," Dr. Hanna said.

The latest expansion indicates that more growth could be possible, but it is not promised.