Michigan lawmakers on Friday broke a monthslong stalemate to pass a sweeping state budget.
“Senate Democrats worked across the aisle to get the job done and deliver another responsible budget that boosts public education, invests in our aging roads, and protects access to healthcare, all while mitigating the worst effects of the devastating federal cuts,” Democratic Senate Majority Leader Winnie Brinks said.
The budget totals at least $75.9 billion, down from fiscal 2025’s $82.5 billion, which had been criticized for ballooning by about 39% since the start of the pandemic. The development marks the first time in at least a decade that state lawmakers reduced the overall appropriations to state departments, after Republicans took control of the state House in the 2024 elections and shifted the balance of power.
However, the total topline number is likely higher, sitting at just under $81 billion, according to the Detroit Free Press. A House Fiscal Agency report indicated the $75 billion figure artificially reduced the way billions in federal funding are accounted for by moving Medicaid money to contingency funds, under which they are not included in the budget total.
The budget announced early Friday morning came after the state was forced to pass a roughly $1.6 billion continuation budget earlier this week to avert a shutdown. The one-week deal gave lawmakers who had missed an initial July deadline, along with subsequent cutoffs, working space to finalize a budget deal between the state House and Senate, as Michigan was the only state left without a budget passed for the next fiscal year.
The latest budget includes over $21 billion in education funding, up slightly from 2025. Another key part of the measure on Gov. Gretchen Whitmer’s (D-MI) desk for final approval is a 24% wholesale tax on marijuana. The tax plan is expected to contribute $420 million annually to Whitmer’s long-watched efforts to fix state roads.
While Republicans saw some losses in the funding fight, including failure to obtain steeper cuts and language that would have prohibited departments from using state funds for “diversity, equity, and inclusion initiatives or programs,” the budget received bipartisan praise.
“This budget proves government can be responsible with taxpayer dollars while still delivering the resources our families, students, and communities depend on,” GOP House Appropriations Chairwoman Ann Bollin said in a statement after the final votes.
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Whitmer is expected to sign off on the budget agreement.
“I ran for office in large part because I wanted to fix the damn roads,” she said in a statement early Friday morning. “With this budget, we’re locking in a significant, bipartisan investment to fix state and local roads for decades to come, creating and protecting thousands of jobs in the process.”
