Michigan Legislature Passes 2025–26 Budget With 24% Marijuana Wholesale Tax for Roads

Lawmakers approved general government and School Aid omnibus bills totaling $51.8 billion and roughly $24 billion, respectively, with overall spending reported at about $76–81 billion depending on accounting of federal funds. Road funding is anchored to a new 24% wholesale tax on marijuana taking effect Jan. 1 and to fuel-tax and revenue shifts, together expected to generate about $420 million annually. K-12 allocations raise the per-pupil foundation to $10,050, restore $321 million for safety and mental health, and continue universal free school meals, alongside added support for at-risk students. The plan reduces and reallocates spending across departments, including a large DHHS cut tied to federal changes, eliminates roughly 2,000 unfilled positions, and imposes higher in-person office occupancy targets. The House and Senate passed the measures with bipartisan votes (101-8 and 31-5; education 104-5 and 31-5), as cannabis businesses and major business groups object to the marijuana tax and corporate tax changes.