In final State of the State, Whitmer calls for literacy, housing fixes

LANSING — Michigan Gov. Gretchen Whitmer touted seven years of work in her final State of the State address Wednesday, Feb. 25, but said there are still significant strides to be made in fields like literacy and housing before she leaves office at the end of the year.

Speaking to lawmakers gathered in the state Capitol, Whitmer said state leaders need to show urgency to improve literacy and drive down housing and health care prices in order to make Michigan a better place to live.

“Despite these national challenges, Michiganders can show the way forward. We can all show the rest of the country how we work together to get things done,” she said.

Michigan is falling too far behind in literacy rates, Whitmer said, pointing to a 44th place ranking for fourth grade reading. She also said a gender gap in literacy exists, as boys had lower literacy rates “at every age level.”

The governor has called for $625 million in literacy funding in her budget proposal, which she said would be the largest one-time literacy investment in state history. Whitmer said children must be taught to read at an earlier age using proven methods, including phonics.

“Literacy is an ordinary superpower that every child deserves,” Whitmer said. She also touted legislation she recently signed to ban cell phones in schools during instruction time.

Whitmer pointed to strides made in overall wages and gross domestic product (GDP) growth since she took office, but said tariff policies, like the ones embraced by President Donald Trump, have created national economic uncertainty.

“While your paycheck may have grown, the cost of everything else has too,” Whitmer said. “Many middle-class families tread water, struggle to pay the bills, find good jobs, and get ahead. If you’re young, it can be hard to find a job that pays well or a home you can afford.”

On housing, Whitmer said Michigan needs to join its neighboring states in creating a state-level affordable housing tax credit. She also said the states zoning and building laws need to be modernized in order to make it easier to build new homes.

“It shouldn’t be so hard to build the homes people need in the places where they want to live,” she said. “Young Americans want to live in areas with good jobs, great restaurants, unique businesses, concert venues, and sports stadiums nearby. To attract and retain young workers, let’s build the kind of homes and places they want.”

She also pointed to medical debt as a barrier to financial security, calling on lawmakers to cap interest rates on it, prevent medical debt from showing up on credit reports, require health systems to create financial assistance programs for patients and prevent medical debt from leading to home foreclosures.

Whitmer continued to urge lawmakers to bridge the partisan divide and drew applause when she called for the state’s budget to be finalized before June 30. Notably, the 2025-26 fiscal year budget wasn’t enacted until Oct. 7, months beyond lawmakers’ self-imposed summer deadline.

In a show of bipartisan camaraderie, Whitmer gave House Speaker Matt Hall, R-Richland Township, a high-five as she celebrated legislation signed in 2025 to eliminate taxes on tips and overtime hours for workers. The moves giving tax breaks for workers echoed similar cuts by the federal government Trump championed.

She later thanked Hall for his collaboration on a road funding plan signed last year.

“When you see those orange barrels, just know I’m sorry, and you’re welcome,” Whitmer said, to laughs from the audience.

Hall said he appreciated Whitmer giving him credit in her speech on the road funding deal.

Secretary of State Jocelyn Benson, center, and Michigan Attorney General Dana Nessel, left, cheer on as Gov. Gretchen Whitmer speaks during her eighth and final state of the state address at the Michigan Capitol Building in Lansing on Wednesday, Feb. 25, 2026. (USA Today Network)

“I put a bold plan on the table and she reciprocated,” and the deal ultimately required give and take from both parties, Hall said. Now, “I’m hoping we can make a big deal on property tax,” said Hall, who has proposed an outline of a plan that would reduce property taxes by more than $4 billion while offsetting lost revenue through expanding the sales tax to luxury services.

Hall said he is also interested in working with Whitmer on her stated priorities of reducing medical debt and improving literacy, though he added that any literacy plan would “need accountability.” Whitmer has proposed more targeted property tax relief — a $90 million plan aimed at seniors 65 and over who are below a certain income level.

Whitmer celebrated past policy wins, including expanding the state’s civil rights act to prohibit discrimination based on sexual orientation and identity.

“You belong, you matter, and no matter who comes after you, I’ll stand in the way,” Whitmer said, speaking to members of Michigan’s LGBTQ community.

In a prepared response to Whitmer’s speech, Senate Minority Leader Aric Nesbitt, R-Lawton, said Michiganders are worse off than they were before Whitmer took office.

“It’s harder and harder than ever to make it in Michigan. Too many families are struggling to heat their homes, put food on the table and stretch their paychecks each month,” said Nesbitt, who is running for governor himself.

About three dozen applause lines brought lawmakers to their feet, but more than one third of those appealed to Democratic lawmakers only. House Speaker Matt Hall stood up when Whitmer touted the road funding deal and another initiative he pushed — tax breaks on tips and overtime. But Republicans remained glued to their seats when Whitmer touted the new Gordie Howe bridge — a signature initiative of her GOP predecessor, Gov. Rick Snyder.

Those in attendance included Michigan’s Supreme Court justices and other state officials, as is traditional. State Rep. Karen Whitsett, D-Detroit, known for her frequent and lengthy absences from the House, also did not attend the State of the State. Only representatives are allowed to sit in representatives’ chairs, so Whitsett’s chair was removed for the night to ensure that a member’s guest would not sit in it, said Gideon D’Assandro, a spokesman for the House speaker.

For Whitmer, 2026 will likely be the end of a decades-long tenure as an elected official in Lansing. Before being elected to the governorship, Whitmer served in both the state House and Senate. She said her time in the Capitol has steeled her resolve for the years ahead.

She called on Michiganders to reject division.

“We’re all searching for a way forward, and the answer has been in front of us the whole time. It’s us. No matter what comes our way, we will always have a way through it because we will always have each other.”

This article originally appeared on Detroit Free Press: In final State of the State, Whitmer calls for literacy, housing fixes

Reporting by Arpan Lobo and Paul Egan, Detroit Free Press / Detroit Free Press

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