LANSING — Governor Gretchen Whitmer signed the 2025-2026 state budgets after long negotiations and a continuing resolution that allowed for more time to get a deal finalized. According to a release from the Governor’s Office, the fiscal year 2026 (FY26) budget secures sustainable, long-term funding to fix Michigan’s state and local roads, tax cuts for seniors and working families, protections for core health care services, funding for public safety, investments in Michigan’s air, land, and water, and commonsense changes to improve government efficiency. The FY26 budget totals $81 billion, including a general fund total of $14.1 billion.
What They’re Saying
Governor Whitmer
“This balanced budget delivers on the kitchen table issues that make a real difference in people’s lives. Our budget fixes the damn roads, cuts taxes for seniors and working families, funds first responders, secures core health care services that millions of Michiganders rely on, protects our air, lakes, and land, and increases government efficiency to saves taxpayers time and money. I’m so grateful to legislators on both sides of the aisle for coming together to get this done. Amidst so much uncertainty caused by a chaotic tariff strategy and a national government shutdown, Michigan is showing everyone how to get things done. In the weeks and months ahead, we will build on this momentum and come together on commonsense tools to create and retain good-paying jobs.”
Senate Majority Leader Winnie Brinks
“While this budget cycle featured unprecedented challenges, it also provided us the opportunity to show the rest of the country what leadership can look like in divisive political times. The result: a bipartisan budget that fixes our roads, strengthens public schools, protects health care access, and insulates us from some of the toughest federal cuts. Michiganders and their communities stand to benefit both immediately and into the future because of groundwork we are laying today.”
Speaker of the House Matt Hall
“People are frustrated when they struggle to pay their bills while the government burns through billions of dollars of their money like it’s nothing. Our state government spending has grown way beyond its means, and it’s time to rein it in. This budget makes a significant difference in eliminating waste, fraud and abuse to lower state spending and give the taxpayers better value for their dollars. That’s how we were finally able to get our local roads fixed and pass the public safety trust fund, all while eliminating taxes on tips, overtime and social security. You can do a lot when you take the time to evaluate state spending and set better priorities.”
State Budget Director Jen Flood
“In Michigan, we’re proving that both sides can come together to do hard things, and I’m proud of the budget. It fixes the damn roads, protects Medicaid coverage for more than 2 million Michiganders, and invests in our kids from pre-k through college. At a time when families are dealing with higher costs, this budget builds on our record of fiscal responsibility by paying down debt and cutting taxes for seniors and working families.”
Brent Pilarski, Business Manager, Michigan Laborers District Council (LiUNA MI)
“The bipartisan, forward looking, state budget that the legislature passed and the Governor has signed delivers real results for Michiganders. Investing an additional nearly $2 billion annually in sustainable long-term road funding creates economic security for business expansion and careers in the construction industry. This budget demonstrates commitment to funding Michigan’s infrastructure and keeping skilled building tradesman employed in Michigan for decades to come.”
Dr. Mona Hanna, director of Rx Kids and associate dean of public health at Michigan State University College of Human Medicine
Thanks to strong bipartisan leadership, thousands of Michigan babies will now have access to the resources they need to grow up healthy, secure, and supported from the very beginning. This is a cutting-edge program that will propel the next generation and is a pillar of Governor Whitmer’s legacy.”
Budget Details: No Tax on Tips, Overtime, Social Security Highlighted
- Continuing to roll back the retirement tax on seniors, saving 500,000 households an average of $1,000 a year.
- Continuing to deliver the Working Families Tax Credit, Michigan’s match of the federal Earned Income Tax Credit (EITC), putting an average combined refund of $3,500 in the pockets of 650,000 families.
- Eliminating state taxes on tips, overtime pay, and Social Security income, saving hundreds of thousands of seniors and working families money on their taxes every year.
- Nearly $2 billion in ongoing resources for improving state and local roads when fully implemented over the next four years, with significant new ongoing investments in bridges and public transit.
- $417 million for water infrastructure initiatives to strengthen local systems and replace lead service lines.
- $59.4 million to support Michigan’s business attraction and community revitalization programs to incentivize job creation, investment, and the revitalization of blighted properties.
- $439.1 million for workforce development programs and grants, including training opportunities for youth, dislocated workers, and underserved populations, to build pathways into good-paying jobs.
- $1.6 billion in revenue sharing to continue support for all cities, villages, townships, and counties across the state, helping them provide services, including first responders, transportation, and water infrastructure, as well as placemaking and recreation.
- $95 million for new local public safety focused programs to provide cities, villages, townships, and counties with additional resources for law enforcement, prosecution, and other public safety related recruitment, retention, training, and firefighting equipment needs, as well as to support community violence intervention efforts.
- $26 million for capital improvements and infrastructure projects at Selfridge Air National Guard Base, bringing the total investments for base improvements since FY23 to over $60 million, which has been crucial in the state’s efforts to secure new aircraft at the base.
- $29.8 billion to continue core Medicaid services.
- More than $150 million to support communities recovering from the northern Michigan ice storm, including $14 million for reforestation, a $10 million deposit to the Disaster and Emergency Contingency Fund, and $137 million in federal FEMA resources.
- $157 million for customer delivery services, ensuring residents can access Department of State branch office services, driver’s licenses, state IDs, and vehicle registrations efficiently.
- $2.1 million for state archives, preserving government records and Michigan history.
