LANSING, Mich. (Michigan News Source) – Michigan lawmakers have approved a $75.191 billion state budget, a spending plan that comes in below Democratic Governor Gretchen Whitmer’s original $88.1 billion proposal.
In a flurry of press releases, Michigan House Republicans are celebrating the newly approved Fiscal Year 2026-27 budget as a victory for fiscal restraint, arguing they succeeded in reducing overall spending while protecting core government services.
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The bipartisan budget totals $75.191 billion, down from $76.003 billion in the current fiscal year. Republican leaders, led by House Speaker Matt Hall, say the plan includes no new taxes, trims spending in several departments, and continues funding for priorities such as public education, school safety, literacy initiatives, mental health services, and public safety.
Speaker Hall said on the House floor, “This is by far is the best budget deal that I’ve negotiated. It’s probably the most decisive budget victory for the Republicans.”
Child care funding gets more accountability.
The spending plan tightens oversight of Michigan’s Child Development and Care program by tying reimbursements to attendance rather than enrollment, a change supporters say will help prevent the kinds of child care fraud schemes seen in other states.
A back-to-the-office plan in the works.
Republicans are also highlighting efforts to reduce government waste by eliminating 250 vacant “ghost employee” positions and requiring state departments to develop return-to-office plans to make better use of taxpayer-funded office space.
Educational funding.
Students are receiving a funding boost under the agreement. The budget increases the per-pupil foundation allowance by $250 per student, bringing it to a record $10,300 while maintaining funding for tutoring, literacy programs, school safety, student mental health services, and universal school meals.
SNAP fraud safeguards take center stage.
Republicans are also touting their continued efforts to combat SNAP fraud. Michigan Republicans posted on Facebook about ID chips in Bridge cards to stop fraud, verifying eligibility instead of blindly trusting self-attestation, checking eligibility against federal databases, checking other states for food stamp abuse, removing ineligible people from the rolls, mandatory reporting to the Legislature on ineligibility, monthly error rate checks & reporting, no waivers for changes without the Legislature and cutting hundreds of millions of dollars in waste, fraud and abuse in Michigan’s welfare system.
Funding allocation to RXKids is over.
Another notable provision in the budget eliminates $20 million in funding for RxKids, a program that provides direct cash payments to pregnant women and new mothers. Republicans have argued taxpayer-funded cash assistance is not a sustainable long-term policy and that limited resources should instead be directed toward essential government services. The RxKids initiative will have to continue using previously appropriated funds and other public-private funding sources rather than receiving a new state appropriation.
Good news for retirees.
The budget also completes the rollback of Michigan’s retirement tax, restoring tax exemptions on qualifying retirement income. State officials say the change will save about 500,000 seniors an average of $1,000 a year. The budget also continues tax exemptions on tips, overtime and Social Security.
State Rep. Josh Schriver (R-Oxford) praised the budget for reducing spending while strengthening accountability and protecting taxpayer dollars.
The budget package, contained in House Bill 5630 and Senate Bill 878, is now headed to Governor Whitmer, who is expected to sign it into law.
