Michigan Legislation Aims to Preserve Cash Payments for State Government

Bill would require all state agencies to accept cash without additional fees

Published on Mar. 7, 2026

A bill making its way through the Michigan House would amend the state's Management and Budget Act to require all state agencies that accept payments to always provide a cash payment option, without any additional fees. The legislation is being introduced by State Representative Brad Paquette as a safeguard against the trend towards a cashless society.

Why it matters

As more businesses and services move towards digital and card-based payments, there are concerns that certain populations, such as the unbanked or underbanked, could be left behind without access to cash payment options. This legislation aims to ensure the state government remains accessible to all residents, regardless of their preferred payment method.

The details

The proposed bill would mandate that any state agency accepting payments must allow customers to pay in cash, with no additional fees or surcharges. Representative Paquette cited the growing prevalence of credit card swipe fees and the rise of AI-powered kiosks as driving factors behind the need for this legislation, as he wants to protect the ability of Michiganders to use cash when conducting business with the state.

  • The bill received testimony in a House committee last week.
  • If passed, the legislation would have no estimated financial impact on the state of Michigan.

The players

Brad Paquette

A Michigan State Representative who introduced the bill to require state agencies to accept cash payments.

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What they’re saying

“We're moving toward a cashless society. Everything's pointing that direction. With AI and kiosks, we want to make sure that cash is always going to be accepted by the state of Michigan. Especially when we have swipe fees that are taking a percentage out of every dollar every single day and credit card companies make big bucks off that. I've got a lot of people that really, really want to keep cash.”

— Brad Paquette, State Representative (wsjm.com)

What’s next

The bill must still pass through additional House committees and the full state legislature before being signed into law by the governor.

The takeaway

This legislation aims to preserve cash as a payment option for Michiganders conducting business with the state government, ensuring accessibility for all residents in the face of growing digital payment trends.