Michigan state budget 2026: 7 things to know about the bills

LANSING — Lawmakers on Oct. 2 and Oct. 3 voted to approve a 2026 budget plan that makes cuts to many state agencies while boosting funding for Michigan‘s highway department by about $1.1 billion.

The state‘s fiscal year turned over on Oct. 1 but lawmakers previously passed a short-term continuation to buy themselves an extra week. On Oct. 2, they released a plan to fund state operations for the 2026 fiscal year, which runs through Sept. 30, 2026.

Two budget bills, one for general government and one for education, were approved by overwhelming bipartisan votes in the House and Senate on the night of Oct. 2 and morning of Oct. 3 and sent on to Gov. Gretchen Whitmer, who is expected to sign them. The Senate also passed other road funding bills already passed by the House, including a controversial measure to put a 24% wholesale tax on Michigan marijuana sales.

Here are highlights of the proposed state budget:

Michigan K-12 schools

For K-12 schools, a per-pupil funding grant of $10,050, which is a record high and an increase of $442 from 2025, when the grant stood at $9,608 per pupil.

Michigan school lunches, meals

More than $200 million for Michigan‘s universal school meals program that provides free breakfast and lunch for every PreK-12 public school student. In a change, the 2026 budget would allocate funding to allow nonpublic schools to participate in the meals program.

Michigan State Police budget

A Michigan State Police budget that is only $11 million higher than it was in 2025, meaning the $964.2 million in funding represents a cut, when contracted salary increases are considered. House Republicans had targeted the MSP for cuts, citing alleged morale and leadership issues under Col. James Grady. The budget funds 280 fewer full-time MSP positions than in 2025, though the bulk of those cuts represent the elimination of vacant positions. Training, professional development and the Safe Cities Partnership are among the areas cut.

Return-to-office for state employees

The budget pressures departments to have state employees return to their offices instead of working at home as many have done since the 2020 pandemic. Boilerplate language in the budgets of several state agencies calls for measures to ensure state office space is 80% utilized and for polices, procedures and monitoring that ensure state employees working remotely are doing their jobs.

MDOT budget

A $7.9 billion budget for the Michigan Department of Transportation, up from $6.8 billion in 2025. Increases include an extra $474.2 million in Michigan Transportation Fund distributions to county road commissions; $255.8 million in extra MTF distributions to cities and villages; and an extra $233.3 million for the State Trunkline Road and Bridge Capital Program.

Revenue sharing for cities, villages, townships

A $63.2 million cut in constitutional revenue sharing to cities, villages and townships, which are projected to receive a total of $1.1 billion in constitutional revenue sharing in 2026.

Other items

More than $100 million in “legislatively directed spending” items, often referred to as earmarks, and sometimes referred to as pork, ranging from $1 million for a firetruck for the city of Flat Rock to $500,000 for the Detroit Police Athletic League to $85,000 to improve heating, ventilation and cooling at city offices in Huntington Woods.

Because the budget documents were reported by conference committees, made up of members from both parties and both chambers, the Legislature could only take up or down votes on their entire contents. No amendments were entertained.

Contact Paul Egan: 517-372-8660 or [email protected].

This article originally appeared on Detroit Free Press: Michigan state budget 2026: 7 things to know about the bills

Reporting by Paul Egan and Clara Hendrickson, Detroit Free Press / Detroit Free Press

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