LANSING, Mich. — Governor Gretchen Whitmer, Senate Majority Leader Winnie Brinks, House Speaker Matt Hall, and other legislative leaders celebrated passage of a balanced and bipartisan budget for fiscal year 2027 that lowers costs, protects access to health care, and makes other key investments to help more families live, work, and play in Michigan.
“Today’s balanced, bipartisan budget delivers for every Michigander,” Whitmer said. “Over the past seven and a half years, we’ve fixed more roads, supported more students, secured more investments, and expanded more rights than any other administration in state history. This budget builds on our progress by strengthening student literacy, opening doors for more housing opportunity, protecting health care, fixing our damn roads, and lowering costs for all Michiganders. Thank you to Leader Brinks, Speaker Hall, and legislators on both sides of the aisle for coming together for Michiganders. I am proud of this budget, my final as Governor. It will leave our state stronger than before and keep things moving forward for Michigan.”
The balanced budget totals $75.2 billion, including a general fund total of $14.1 billion and a school aid budget totaling $19.8 billion.
“This budget cements Michigan as a national leader in response to HR 1, including a proactive, comprehensive plan to help Michiganders maintain access to health care and food assistance following cruel policies passed out of Washington, DC,” state budget director Jen Flood said.
The budget will lower costs and put money back in people’s pockets, including:
- $200 million to continue free school meals for all 1.4 million public school students, saving families around $1,000 per year, per child, and valuable time every morning.
- Continuing the Working Families Tax Credit, sending an average of nearly $3,900 in tax relief to 665,000 families.
- Rolling back the retirement tax completely, saving 500,000 seniors an average of $1,000 a year.
The budget includes targeted funding to help every child read. Additionally, the budget continues record investments in education, setting students up to succeed from pre-K through postsecondary education.
Protecting Medicaid
The budget funds initiatives to protect access to health care and ensure the future sustainability of Medicaid, including:
Protecting Medicaid
- $185 million to stabilize Medicaid funding, protecting access to health care for eligible Michiganders through efficiency savings identified in collaboration with stakeholders to address costs, increase accountability and align resource effectiveness while maintaining sustainability of services.
Implementing H.R. 1
- $184.3 million general fund to prepare our state to meet new, burdensome federal requirements that make it harder to access food and health care:
- $94.3 million in increased SNAP administrative cost-sharing, which increased from 50% to 75%.
- $40 million for staffing, administration, and implementation oversight efforts.
- $31.5 million in workforce investments to help Michiganders maintain access to health care and SNAP, including funding for workforce training and expansion of registered apprenticeship opportunities.
- $20 million, in a supplemental, for community health navigators to help individuals who are subject to new eligibility requirements demonstrate compliance and maintain coverage.
Supporting Healthy Communities
- $351.9 million to maintain direct care worker wages, consistent with the Jan. 1, 2027, and prior year statewide minimum wage increases and provide paid sick leave.
- $31 million general fund–$25 million ongoing and $6 million one-time–to expand behavioral health care and capacity through the new state psychiatric hospital, which is anticipated to open in October 2026.
- $116.2 million in funding to continue the Healthy Moms, Healthy Babies program which helps new and expectant mothers receive the care they need and reduce racial disparities in infant and maternal mortality. The program has supported more than 313,100 families since 2020.
- $10 million to support nursing home staffing and improve care for nursing home residents.
- $1.3 million investment in the autism navigator program to help individuals with autism and their families.
Fixing Michigan’s Roads
The budget continues fixing state and local roads across Michigan, powered by the roads deal signed into law by Governor Whitmer last fall alongside the FY26 budget. This budget includes:
- $52.7M additional for roads and bridges, to save drivers time behind the wheel and money on repairs, while also supporting an estimated 30,500 good-paying construction jobs annually.
- $123.8 million increase in state and federal support for transit and rail programs, including a $33.4 million increase in Local Bus Operating assistance for local transit agencies. This adds to the $44.9 million FY26 increase for Local Bus Operating approved last fall, for a total of $305 million – a combined 34% increase.
- $16.5 million to support a critical highway rail grade crossing project in Trenton to improve travel time and ensure safer commutes for first responders and vehicle traffic.
- $7.5 in rural jobs and capital investment to provide critical investment support for rural businesses throughout the state.
Creating Jobs & Growing the Economy
The budget makes investments to create good-paying jobs, continue to grow and diversify Michigan’s economy, and build stronger, more vibrant communities, including:
- $68.5 million in funding for Michigan small business, community growth, and entrepreneurship to support small business, grow Michigan’s economy and strengthen our entrepreneurial and innovation ecosystem.
- Since 2019, $476.7 million for business attraction and revitalization efforts have supported 22,300 projected jobs and leveraged nearly $9.8 billion in private investment across Michigan communities.
- $100 million in total investments in entrepreneurs and innovators since 2019 has spurred $12.6 billion in new industry investment and advanced Michigan’s position in key sectors.
High-Tech Jobs
- $15.9 million to support Michigan science, technology, engineering, and mathematics (MiSTEM) programs which will increase the number of students who are college- and career-ready upon high school graduation and promote degree attainment in STEM fields.
- $1 million investment supporting the Office of Future Mobility and Electrification, advancing aviation and drone initiatives that drive innovation, economic growth, and workforce development.
- $3.5 million to grow the maritime manufacturing sector and strengthen the state’s defense industry, creating good-paying jobs, fostering innovation, and attracting new investment.
