Overview

• Both chambers approved the 2025–26 budget after midnight, combining roughly $51.8 billion for general government and about $24 billion for education, and sent it to Gov. Gretchen Whitmer for signature.
• The package creates a 24% wholesale marijuana tax starting Jan. 1, expected to raise about $420 million annually for road funding, and shifts fuel-tax policy to steer more revenue to transportation.
• Per-pupil funding rises 4.6% to a record $10,050, with $321 million restored for school mental health and safety grants and universal free school meals continuing.
• Overall appropriations are reduced compared with last year, with large departmental cuts tied in part to federal changes and the elimination of roughly 2,000 unfilled state positions.
• Business groups criticized corporate tax changes as a roughly $2 billion hike over five years, and cannabis industry leaders warned the new levy will raise prices and strain operators.