The Michigan Legislature has approved a nearly $81 billion budget for fiscal year 2026, ending a months-long stalemate as state officials vied over allocations, priorities and programming needs.
The budget consists of two bills, split between education and general government. The bills have now been sent to Gov. Gretchen Whitmer, who is expected to sign the bills.
The House and Senate missed the initial constitutional deadline for finalizing a budget but were able to come together and pass a stopgap bill in time to prevent a state government shutdown. The budget prioritizes funding for the state’s roadways and schools while cutting vacant jobs and gutting a corporate incentive program.
The Michigan Department of Transportation (MDOT) has been appropriated $7.9 billion for the coming year, a significant increase from the previous year’s $6.8 billion budget. From that amount, $5.3 billion will be invested in critical road and bridge programs, supplementing local municipal and county budgets.
A significant amount of new funding will directly support the state’s efforts to fix its roadway systems, resulting in an approved long-term road funding plan. The road spending breakdown includes:
- $456.7 million for counties.
- $246.1 million for cities and villages.
- $179.7 million for state trunklines.
- $65 million for the Infrastructure Protection Authority.
- $42.4 million to support local bus operations.
- $40 million for the rail grade separation fund.
- $6.8 million to supplement the airport improvement program.
- $6 million for the Detroit airport.
The state’s education sector is another highlight for the budget session as lawmakers placed increased efforts in delivering free school meals. This includes a $201.6 million fund to provide for students who don’t qualify for existing no-cost programs. Another $321 million has been slotted for mental health and safety grants available to both public and private schools.
The education budget bill also allocates $350 million in one-time infrastructure grants for districts to address critical facility needs. Other major adjustments included in the budget compared to the previous year include:
- $258.7 million to provide instructional programs and noninstructional services for at-risk pupils.
- $202 million for special education expenditures.
- $198.5 million to improve mental health and school safety, including stipulations to remove nonpublic schools as eligible recipients, implement cell phone free school policies and requires recipients to agree to being in a comprehensive investigation following a mass casualty event.
Earmarks have received significant support through the approved budget, with $160 million being added through community enhancement grants and spending items. Notable earmarks featured in the budget include:
- $10 million to replace a bridge on West Road in Trenton.
- $10 million to support flood mitigation efforts in Midland.
- $4.4 million for road infrastructure repairs in Davison.
- $3 million to redevelop blighted sites into housing in Muskegon County.
- $3 million to support air service and infrastructure investments at Marquette Sawyer Regional Airport in Marquette County.
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