Michigan legislature passes $75.2B state budget
By Elyse Apel | The Center Square
(The Center Square) – After missing the state’s July 1 budget deadline, Michigan lawmakers approved a bipartisan budget.
Following a nearly 24-hour legislative session, lawmakers gave final approval to the fiscal year 2026-27 budget. They also passed more than 60 bills during the overnight session.
The bills now head to Gov. Gretchen Whitmer, who is expected to sign the budget into law.
The fiscal year 2026-27 budget totals about $75.2 billion, down from roughly $76 billion in the 2025-2026 fiscal year. Of the overall budget, the separate School Aid budget accounts for roughly $22.9 billion.
Republicans applauded the reduction in overall spending.
“Michigan families expect their government to live within its means, spend responsibly, and focus on results,” said Rep. Ann Bollin, R-Brighton Township, in a statement. “We held the line against tax increases, protected our rainy-day fund, reduced spending compared to last year, and advanced reforms that will make government more accountable to the people it serves.”
Democrats emphasized continued investments in education, health care and social programs.
“This budget focuses on what matters most to the people of Michigan, and the investments speak for themselves,” said Sen. Sarah Anthony, D-Lansing, in a statement. “These are the types of results we can accomplish when we craft a budget centered in empathy, equity, and dignity for the Michiganders we serve.”
This budget comes after the legislature officially missed the statutory July 1 deadline for approving the budget for the second year in a row. Unlike last year, however, lawmakers approved the budget months before the Oct. 1 start of the new fiscal year.
House Republicans are touting the budget as fiscally responsible, noting it includes no new statewide taxes or fee increases and preserves the state’s rainy-day fund.
“For years, the answer in Lansing was always the same: spend more, hire more and grow government,” said Majority Floor Leader Bryan Posthumus, R-Rockford. “House Republicans rejected that mindset. We cut spending for the second straight year because taxpayers dont need a bigger government, they need a government that works for them.”
Republicans also highlighted provisions in the budget aimed at reducing government spending and increasing oversight, including eliminating vacant state positions, strengthening oversight for Medicaid and food assistance programs, requiring state departments to develop return-to-office plans, and implementing additional safeguards intended to prevent fraud in child care assistance programs.
On the other hand, Senate Democrats emphasized the budget’s protections of Medicaid and food assistance benefits, continued funding for free school meals, universal prekindergarten, tax credits for working families and seniors, and drinking water grants.
They also highlighted a $250 increase in per-pupil funding, bringing the state’s education allowance to a record $10,300 – or a 2.5% increase over the previous year.
“I’m proud of the funding priorities we’ve carried through every one of our Senate Majority budgets, with record investments and better support for our students and teachers,” said Sen. Darrin Camilleri, D-Trenton. “And after decades of disinvestment, and years of work to build them back up, we’re finally delivering predictable, long-term weighted funding for our schools.”
Advocates applauded this increase in student funding, which also includes $135 million for afterschool and summer programming.
“This year’s budget required difficult decisions, but one thing has been clear throughout the process: support for Michigan’s children and families is bipartisan,” said Michigan Afterschool Partnership Executive Director Erin Skene-Pratt in a statement.
The budget bills were bipartisan and required months of negotiations between the Republican-controlled House and Democrat-controlled Senate.
Earlier this year, House Republicans approved a $75.8 billion spending proposal, while Whitmer and Senate Democrats backed budgets totaling about $88.1 billion. The final budget fell below all those proposals.
Elyse Apel, a graduate of Hillsdale College, is a reporter for The Center Square covering Minnesota and Michigan. Her work has appeared in a range of national outlets, including the Washington Examiner, The American Spectator, and The Daily Wire.