Michigan Budget Passed
Michigan Lawmakers Approve $75.2 Billion Bipartisan Budget with No New Taxes, Boosting Education
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Key Points
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The budget includes specific line-item allocations beyond the headline totals, including $325 million to support school operations, $200 million to continue free school meals, and $321 million for school district mental health and safety grants.
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The plan provides about $2.2 billion in funding for public university and community college operations as part of ongoing higher-education support.
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Per-pupil funding would rise by about $250, increasing the level to roughly $10,300 per student (in addition to the stated 2.5% increase).
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The general fund is reduced by about $859 million compared with the prior year, even as the budget preserves the rainy-day fund and avoids new taxes.
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The budget shifts some school aid funding to help cover higher education costs, signaling a reallocation of the school aid budget to support colleges.
Michigan lawmakers approved a $75.2 billion state budget after an all-night session, sending the bipartisan spending plan to Governor Gretchen Whitmer's desk, according to CBS News. The budget covers fiscal years 2026-27 and is about $1 billion less than the prior year's $81 billion package — with no new taxes and no cuts to the state's rainy-day fund.
The vote ended a two-year streak of missing the July 1 deadline, WXYZ reported. Legislative leaders from both parties joined Whitmer in celebrating the deal as a sign that bipartisan governing is still possible in Michigan.
Education Gets the Biggest Slice of Spending
Schools are the clear winner in this budget. The plan puts $19.8 billion into school aid — the largest single funding category, according to CBS News. Per-pupil funding rises by $250, bringing the total to roughly $10,300 per student. That's a 2.5% increase over the current year.
Beyond the per-pupil bump, the budget adds $325 million to support school operations and $200 million to keep school meals free for students, Click On Detroit reported. Districts will also get $321 million in mental health and safety grants — money meant to help schools address student well-being and campus security.
General Fund Shrinks by Nearly $860 Million
The general fund comes in at $14.1 billion — a drop of about $859 million from the prior year, according to WXYZ. Lawmakers framed the cut as a sign of fiscal discipline. The budget lives within the state's means, they said, without raising taxes or fees on residents.
The rainy-day fund stays untouched. That reserve exists to cover shortfalls in bad economic years. Keeping it intact was a priority for both parties, Click On Detroit noted. Officials said the approach reflects a shift toward leaner government spending after several years of large pandemic-era budgets.
Higher Education and Childcare Get Targeted Boosts
Public universities and community colleges will receive about $2.2 billion combined for operations, CBS News reported. Some of that money comes from a shift in the school aid budget — redirecting K-12 funds to help cover college costs. It's a reallocation that signals a broader view of what
The budget also expands the Tri-Share childcare program and raises wages for direct care workers, according to WHMI. Free pre-K continues under the new plan. Lawmakers also included a low-income housing tax credit and new anti-lobbyist retirement rules as part of the broader policy package.
Bipartisan Deal Ends Two Years of Missed Deadlines
Michigan missed the July 1 budget deadline in both 2023 and 2024. This year, lawmakers pushed through the night to break that streak, My U.P. Now reported. Governor Whitmer, Senate Majority Leader Winnie Brinks, and House Speaker Matt Hall all appeared together to announce the deal — a rare show of unity in a closely divided statehouse.
The budget also includes targeted funding for the Upper Peninsula, My U.P. Now noted. Officials described the final package as proof that divided government can still deliver results. The bill now heads to Whitmer for her signature.
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