Overview

• Gov. Gretchen Whitmer signed the FY 2026 budget on Oct. 7 after lawmakers used an eight-day continuation measure following the missed Oct. 1 deadline.
• The package phases in nearly $2 billion in ongoing state and local road funding over four years, with roughly $420 million a year projected from the new cannabis tax.
• School Aid totals $21.3 billion, raising per‑pupil funding to $10,050, maintaining free school meals, and increasing support for at‑risk students.
• Health and human services receive $29.8 billion, including major allocations for physical health managed care, behavioral health, and senior and disability care.
• Tax relief continues for households and public safety funding expands, including the retirement tax rollback, a larger Earned Income Tax Credit, elimination of state taxes on tips, overtime and Social Security income, $1.6 billion in revenue sharing, $95 million for local police and fire, funding to sustain about 2,000 state police, and wage increases for corrections staff.