Amanda Forrester / news@whmi.com

Governor Gretchen Whitmer signed the budget for fiscal year 2026 passed by the Michigan legislators Tuesday.

The budget totals $81 billion, including a general fund of $14.1 billion.

Speaker Matt Hall and Majority Leader Winnie Brinks agreed to pass legislation that would support the creation and retention of “good-paying, high-skill” jobs in Michigan before the end of the calendar year as part of the budget deal.

“This balanced budget delivers on the kitchen table issues that make a real difference in people’s lives,” Whitmer said. “Our budget fixes the damn roads, cuts taxes for seniors and working families, funds first responders, secures core health services that millions of Michiganders rely on, protects our air, lakes and land and increases government efficiency to save 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.”

Many state lawmakers, both Democrats and Republicans, said it was vital for both sides to make concessions to meet the needs of Michiganders and get a budget that worked for everyone.

“This budget represents our joint priorities with record investments in education; support for our law enforcement; putting Michigan families first; and fixing the damn roads,” State Rep Ann Bollin (R-Brighton Twp.), Chair of the House Appropriations Committee, said. “I am grateful for the collaboration and bipartisan effort to deliver a budget that is fiscally responsible and responsive to the needs of people and businesses across Michigan.”

Increased per-pupil funding and free breakfast and lunch for all Pre-K-12 public school students were among the items in the budget. Multiple districts across the listening area extended free breakfast and lunch through the end of October to give legislators time to finalize the budget.

A breakdown of the budget is below:

Lowering Costs, Fixing Roads, Creating Jobs, Growing Michigan’s Economy

Lowering Costs & Cutting Taxes
· 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.

Fixing the Damn Roads (and more)

· 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.

· $322.4 million for airport safety and improvement projects, ensuring safe and modern aviation infrastructure across Michigan.

· $53.2 million for transportation economic development, promoting road and infrastructure projects that support job growth and business investment.

· $50 million for the Michigan Housing and Community Development Fund to support affordable housing needs and to revitalize downtown areas and adjacent neighborhoods in Michigan.

· $40 million for rail grade separation projects to improve safety and reduce traffic congestion.

Growing Our Economy

· $59.4 million to support Michigan’s business attraction and community revitalization programs to incentivize job creation, investment, and the revitalization of blighted properties.

· $56.5 million to support job creation services, entrepreneurship, and defense and aerospace innovation to support new and emerging business growth in key industries.

· $13.4 million in support of arts and cultural institutions that bring inspiration, creativity and vibrancy to communities across the state, making them unique and desirable places to work, live and raise a family.

· $17 million to continue the iconic Pure Michigan campaign to fuel tourism, support local businesses, and strengthen Michigan’s economy.

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

· $1.4 million for the rural development fund grant program, sustaining land-based industries and rural infrastructure.

Workers and Small Businesses

· $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.

· $188.8 million for Michigan Rehabilitation Services, helping individuals with disabilities prepare for, obtain, and maintain employment.

· $31.8 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.

· $25.2 million for 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.

· $5 million to address workforce needs across the state by filling talent gaps in key industries, expanding pre-apprenticeships and registered apprenticeships, and supporting employer-led collaboratives and other innovative job creation strategies.

Leveling the Playing Field

· $236 million for Michigan Indigent Defense Commission grants, which supports local trial courts and expands access to counsel for low-income defendants and improves fairness in Michigan’s justice system.

· $30.3 million for specialized services grants, which provide transit support for seniors and people with disabilities.

· $3 million for financial literacy program supported with philanthropic funds to empower residents with the financial knowledge they need to manage and secure their future.

Safe, Healthy Communities

The FY26 budget strengthens the foundations of Michigan’s communities by investing in public safety, making health care more affordable and accessible, and protecting natural resources. These investments keep neighborhoods safe, ensure families can get the care they need, and preserve Michigan’s land and water for future generations:

Protecting Public Safety

· $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.

· Funding to sustain 2,000 uniformed personnel in the Michigan State Police, ensuring strong law enforcement and patrol services that provide highway safety, traffic enforcement, and emergency response services across Michigan.

· $51.7 million for forensic science operations, supporting crime lab services like DNA testing, toxicology, firearms, and trace evidence analysis that help solve cases across the state.

· $45 million for regulation of insurance companies and financial institutions to ensure fair practices, protect consumers, and maintain stability in Michigan’s insurance and banking system.

· $44 million for statewide judicial information systems, including a $2 million increase to support the continued migration of trial courts to the statewide case management system, supporting improved data collection and reliability, streamlined trial court operations, and reduced local government costs.

· $32.1 million for additional negotiated wage increase, above standard cost-of-living increases, for corrections officers and supervisory ranks, increasing their quality of life and financial stability and recognizing them for the difficult jobs they do.

· $31.1 million to raise wages for non-supervisory enlisted positions (troopers and sergeants) in the Michigan State Police.

· $29.9 million for the Criminal Justice Information Center, which manages criminal history records and background checks used by courts, employers, and law enforcement agencies.

· $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.

· $20.1 million for drug treatment, mental health, and veterans' courts, providing alternatives to incarceration that connect people with treatment and reduce recidivism.

· $19.6 million for complaint investigation and enforcement, supporting staff to investigate and resolve civil rights violations.

· $17.9 million for consumer protection and services staff who investigate complaints, assist residents in disputes with insurers or lenders, and improve financial literacy.

· $13.3 million for in-service training, administered through the Michigan Commission on Law Enforcement Standards, to support training for law enforcement officers statewide.

· $10.5 million, including a $400,000 increase, to support access for low-income litigants in civil court matters, including assistance via local Self-Help Centers, legal aid organizations, and the online Michigan Legal Help website.

· $9.9 million for liquor law enforcement grants to help local police and the Liquor Control Commission ensure safety and compliance with state liquor laws.

· $2.3 million for firefighter training grants, helping local fire departments improve safety and emergency response through professional training.

· $1.9 million to support victims’ needs early in their interactions with the criminal justice system while also building partnerships with community organizations in support of victim advocacy.

Ensuring Health Care is Affordable and Accessible

· $29.8 billion to continue core Medicaid services, including:
· $14.5 billion for physical health managed care.
· $5.5 billion for mental and behavioral health.
· $4.5 billion in continued Medicaid funding for programs that help seniors and people with disabilities remain in their homes and communities for as long as possible and ensure that nursing home care is available when necessary.

· $1.8 billion to continue support for community and behavioral health programs, including autism services, community supports, and Certified Community Behavioral Health Clinics.

· $430.3 million in continued funding for Children’s Special Health Care Services, providing treatment and advocacy for children with chronic or complex conditions.

· $428.2 million in continued support for family health services including dental care, immunizations, pregnancy prevention, and prenatal outreach to ensure children and families have access to care.

· $193.4 million in continued support for epidemiology, EMS, and laboratory services, including healthy homes programs and lead prevention to protect families from environmental and health threats.

· $162.3 million, including new one-time funding of $6.8 million, for crime victim services, domestic violence prevention, and human trafficking intervention, supporting survivors and ensuring safe recovery.

· $124.6 million in continued support for aging services like community programs, senior nutrition, and respite care, helping Michigan’s seniors live independently.

· $107.6 million for the operation of Michigan veteran homes that provide long-term skilled nursing care for veterans.

· $11.2 million for the Michigan National Guard Member Benefit Fund, which reallocates existing resources to provide funding for the existing tuition benefits program and support new childcare and health care programs for National Guard members.

· $8.5 million for counties and veterans service organizations to connect Michigan veterans with federal and state benefits. Additionally, veterans organizations are supported with $5 million in new dollars for facility upgrades and improvements.

Protecting Michigan’s Air, Land, and Water

· 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.

· $129 million for local infrastructure projects supported by a federal grant.

· $83.3 million for water quality programs that protect Michigan’s rivers, lakes, and groundwater.

· $77.6 million for the Renew Michigan program, supporting contaminated site remediation and cleanup, brownfield redevelopment, solid waste management, recycling, and sustainability projects.

· $66.8 million for forest resource management, including reporting on acres harvested, timber sales, and revenue generated from state forestlands.

· $40.2 million for drinking water and environmental health programs to safeguard public health.

· $25.2 million for wildfire and hazard response, with authority to use federal funds for prevention and suppression through national compacts.

· $25.1 million for materials management programs, including recycling and waste reduction.

· $5.9 million for invasive species prevention and control, supporting grants for detection, eradication, and rapid response to protect Michigan’s forests, lakes, and wildlife.

· $5 million one-time investment to advance water affordability.

· $4.1 million for environmental stewardship through the Michigan Agriculture Environmental Assurance Program to promote sustainable farming practices.

· $3 million for local conservation districts, supporting technical assistance and conservation programs in communities.

· $1.4 million for the qualified forest program to encourage private forestland stewardship and keep land in active use.

Making Government Work Better

The FY26 budget ensures state government is efficient, effective, and accountable. By modernizing technology, maintaining facilities, and building long-term fiscal stability, Michigan is delivering better services, saving taxpayer dollars, and preparing for the future:

· $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.

· $111 million for building operations and property management, maintaining state-owned facilities across Michigan.

· $50 million for the Information Technology Investment Fund, financing large-scale modernization projects across state agencies.

· $49.5 million for the Michigan Public Safety Communications System, the statewide radio network that connects first responders.

· $29 million for cybersecurity and homeland security IT initiatives, protecting state networks and ensuring secure delivery of public services.

· $28.6 million for election administration and services, funding staff and systems that support Michigan’s statewide elections and voter access.

· $9.6 million for the Help America Vote Act program, strengthening election security through voting equipment upgrades, cybersecurity testing, and development of public information materials.

· $7 million for the Michigan Center for Data and Analytics, enhancing state capacity to use data for policymaking and performance management.

· $5 million to streamline EGLE’s permitting process and increase transparency by digitizing and indexing department documents.

· $2.1 million for state archives, preserving government records and Michigan history.

(photo credit: Governor Gretchen Whitmer's Office)