Gov. Whitmer, legislative leaders deliver Bipartisan FY27 Budget 

Saving Michiganders Money

The budget will lower costs and put money back in people’s pockets, including:

• $200 million to continue free school meals for all 1.4 million public school students, saving families around $1,000 per year, per child, and valuable time every morning.

• Continuing the Working Families Tax Credit, sending an average of nearly $3,900 in tax relief to 665,000 families.

• Rolling back the retirement tax completely, saving 500,000 seniors an average of $1,000 a year.

• Continuing tax exemptions on:

• Tips (saving 300,000 workers $400 a year),

• Overtime (saving 500,000 workers $500 a year),

• Social Security (saving 40,000 seniors $500 a year)

• $5 million for water affordability, helping families pay their bills and avoiding water shut offs.

• $5 million for weatherization to help families lower their utility bills.

Every Kid Reads, Eats, and Succeeds 

The budget includes targeted funding to help every child read. Additionally, the budget continues record investments in education, setting students up to succeed from pre-K through postsecondary education:

Literacy

• $502 million to support student literacy and achievement:

• $96.1 million to make free pre-K for all available to an estimated 68,000 children through the Great Start Readiness program, saving families $14,000 per year.

• $135 million to support students and parents with expanded before- and after-school programming.

• $50 million for high-impact tutoring to provide students with individualized, structured, evidence-based interventions, helping them catch up and get back on track.

• $50 million to provide grants to school districts, helping them purchase and implement high-quality literacy programs.

• $75 million to continue implementing LETRS training, which trains educators in the “science of reading”—including strategies like phonics— as an instructional method for use in classrooms statewide.

• $33 million to fund regional support for families of young children and expand the Michigan Learning Channel.

• $10.5 million to hire additional regional literacy coaches who assist teachers in developing and implementing instructional strategies for pupils in grades pre-K to 5. With this increase, total funding for literacy coaches is $52.5 million which supports 420 coaches across the state, an increase of 327 coaches since the Governor took office.

• $7.6 million to support Literacy Essentials and comprehensive professional learning about the science of reading for educators at all grade levels.

• $9.6 million to support adult education and help more Michiganders get good-paying jobs.

K-12 Education

• $325 million to support school operations through a 2.5% increase in base per-pupil funding—an additional $250 per student, for a total of $10,300 per pupil. The per-pupil funding represents a 31% increase since the Governor took office. These funds are invested into every student, in every school, to lower class sizes, buy new textbooks and install the latest equipment in classrooms and science labs.

• $123 million to continue expanded support for special education students – a 7.3% increase in the state allocation.

• $278 million, to provide a 20% increase in funding to support academically at-risk students and English language learners, and a 10% increase in funding to support career and technical education students, and students in rural school districts. This budget moves to a true weighted foundation allowance formula that recognizes that higher-needs students require more resources.

• Up to $321 million to support student wellness through continuation of mental health and safety grants to districts. This represents a twelvefold increase in mental health and safety funding since the Governor took office.

• $125 million to reimburse districts with exorbitant transportation costs, allowing them to devote more resources to the classroom.

• $30 million to support early learning partnerships, ensuring students and families access to high-quality early learning and updated GSRP programs statewide.

• $40 million to reimburse eligible districts for dual enrollment costs, incentivizing districts to encourage more students to pursue college credit while still in high school.

• $2.4 million increase for Early On services, bringing total funding to $26.1 million. Early On is Michigan’s system that connects families of infants and toddlers from birth to age three who have, or are at risk for, developmental delays or disabilities with coordinated social, health, and educational services to support early development.

Higher Education 

• $2.2 billion to sustain university and community college operations—advancing Michigan’s Sixty by 30 goal of having 60% of working adults with a degree or skills certificate by 2030.

• $532 million, and more than $1.7 billion to date, for the Michigan Achievement Scholarship, which provides a tuition free pathway for full-time community college students through the community college guarantee, and up to $27,500 for full-time students at public or private 4-year universities. More than 106,300 students have been awarded the Michigan Achievement Scholarship since its inception in 2024, and 128,000 students are expected to benefit each year once the program is fully implemented.

• $25 million to support expanding Michigan Reconnect to adult learners ages 21 and older, giving adult learners a tuition-free pathway to earn an associate degree or skilled trades certificate. More than 66,500 students have enrolled in community college with Michigan Reconnect since it was created in 2021.

• $1.3 billion in total capital outlay project authorizations for 27 of the state’s higher education institutions, with a state cost participation of $524.3 million.

Protecting Medicaid 

The budget funds initiatives to protect access to health care and ensure the future sustainability of Medicaid, including:

Protecting Medicaid

• $185 million to stabilize Medicaid funding, protecting access to health care for eligible Michiganders through efficiency savings identified in collaboration with stakeholders to address costs, increase accountability and align resource effectiveness while maintaining sustainability of services.

Implementing H.R. 1

• $184.3 million general fund to prepare our state to meet new, burdensome federal requirements that make it harder to access food and health care:

• $94.3 million in increased SNAP administrative cost-sharing, which increased from 50% to 75%.

• $40 million for staffing, administration and implementation oversight efforts.

• $31.5 million in workforce investments to help Michiganders maintain access to health care and SNAP, including funding for workforce training and expansion of registered apprenticeship opportunities.

• $20 million, in a supplemental, for community health navigators to help individuals who are subject to new eligibility requirements demonstrate compliance and maintain coverage.

Supporting Healthy Communities

• $351.9 million to maintain direct care worker wages, consistent with the Jan. 1, 2027, and prior year statewide minimum wage increases and provide paid sick leave.

• $31 million general fund–$25 million ongoing and $6 million one-time–to expand behavioral health care and capacity through the new state psychiatric hospital, which is anticipated to open in October 2026.

• $116.2 million in funding to continue the Healthy Moms, Healthy Babies program which helps new and expectant mothers receive the care they need and reduce racial disparities in infant and maternal mortality. The program has supported more than 313,100 families since 2020.

• $10 million to support nursing home staffing and improve care for nursing home residents.

• $1.3 million investment in the autism navigator program to help individuals with autism and their families.

Fixing Michigan’s Roads

The budget continues fixing state and local roads across Michigan, powered by the roads deal signed into law by Governor Whitmer last fall alongside the FY26 budget. This budget includes:

• $52.7M additional for roads and bridges, to save drivers time behind the wheel and money on repairs, while also supporting an estimated 30,500 good-paying construction jobs annually.

• $123.8 million increase in state and federal support for transit and rail programs, including a $33.4 million increase in Local Bus Operating assistance for local transit agencies. This adds to the $44.9 million FY26 increase for Local Bus Operating approved last fall, for a total of $305 million – a combined 34% increase.

• $16.5 million to support a critical highway rail grade crossing project in Trenton to improve travel time and ensure safer commutes for first responders and vehicle traffic.

• $7.5 in rural jobs and capital investment to provide critical investment support for rural businesses throughout the state.
• Creating Jobs & Growing the Economy 

The budget makes investments to create good-paying jobs, continue to grow and diversify Michigan’s economy, and build stronger, more vibrant communities, including:

Growing Our Economy

• $68.5 million in funding for Michigan small business, community growth and entrepreneurship to support small business, grow Michigan’s economy and strengthen our entrepreneurial and innovation ecosystem.

• Since 2019, $476.7 million for business attraction and revitalization efforts have supported 22,300 projected jobs and leveraged nearly $9.8 billion in private investment across Michigan communities.

• $100 million in total investments in entrepreneurs and innovators since 2019 has spurred $12.6 billion in new industry investment and advanced Michigan’s position in key sectors.

• $9 million in continued funding for the Pure Michigan campaign, which fuels tourism, supports local businesses, and strengthens Michigan’s economy. The Pure Michigan campaign has generated an estimated $9.9 billion in ad-influenced visitor spending across the state since 2019.

• $2 million to promote Michigan as a destination for special events, including national conventions, conferences, and major sporting competitions.

• $5.3 million to coordinate port activity, administer grants, and position Michigan to attract federal and private investment through the establishment of a Maritime and Port Facility Office.

• $2.3 million for the Office of Rural Prosperity to support economic growth and infrastructure projects in rural communities.

• $4 million for the Rural Development Fund Grant Program to expand grant opportunities that enhance rural community infrastructure.

High-Tech Jobs

• $15.9 million to support Michigan science, technology, engineering, and mathematics (MiSTEM) programs which will increase the number of students who are college- and career-ready upon high school graduation and promote degree attainment in STEM fields.

• $1 million investment supporting the Office of Future Mobility and Electrification, advancing aviation and drone initiatives that drive innovation, economic growtha nd workforce development.

• $3.5 million to grow the maritime manufacturing sector and strengthen the state’s defense industry, creating good-paying jobs, fostering innovation and attracting new investment.

• $3.5 million to support the Michigan Office of Defense and Aerospace Innovation, advancing programs that foster innovation, create jobs and grow Michigan’s defense and aerospace industries.

Workforce Development

• $35 million to attract, recruit, retain and support high-quality professionals in our early childhood education workforce.

• $14.5 million for Going Pro to help Michigan employers train and retain workers, offering on-the-job experience, apprenticeships, and classroom instruction that lead to industry-recognized credentials.

• $152.2 million in continued support for Michigan Rehabilitation Services, to help individuals with disabilities prepare for, obtain and maintain employment. Since 2019, Michigan Rehabilitation Services has supported more than 105,000 individuals with disabilities in securing or retaining employment.

• $2.3 million to continue the Community and Worker Economic Transition program, assisting workers and businesses affected by industry shifts to connect with retraining, job placement, and economic transition resources.