Whitmer signs bipartisan FY26 budget to fix roads, cut taxes, lower costs, protect public health & safety

On Tuesday, Michigan Governor Gretchen Whitmer signed her seventh balanced, bipartisan budget into law. The fiscal year 2026 (FY26) budget secures sustainable, long-term funding to fix Michigan’s state and local roads, tax cuts for seniors and working families, protections for core health care services, funding for public safety, investments in Michigan’s air, land, and water, and commonsense changes to improve government efficiency. The FY26?budget totals $81 billion, including a general fund total of $14.1 billion. 

Additionally, as a part of the budget deal, Speaker Hall and Majority Leader Brinks agreed to pass bipartisan legislation before the end of the calendar year that will make it easier to create and retain good-paying, high-skill jobs in Michigan. Whitmer called for commonsense, job creating legislation in the Mackinac Policy Conference keynote and several of her series of Road Ahead speeches this year. The legislation will help Michigan continue to lead the future of advanced manufacturing, regardless of the economic uncertainty at the federal level. 

“This balanced budget delivers on the kitchen table issues that make a real difference in people's lives,” said Whitmer. “Our budget fixes the damn roads, cuts taxes for seniors and working families, funds first responders, secures core health care services that millions of Michiganders rely on, protects our air, lakes, and land, and increases government efficiency to saves taxpayers time and money. I’m so grateful to legislators on both sides of the aisle for coming together to get this done. Amidst so much uncertainty caused by a chaotic tariff strategy and a national government shutdown, Michigan is showing everyone how to get things done. In the weeks and months ahead, we will build on this momentum and come together on commonsense tools to create and retain good-paying jobs.” 

“Our number one priority is helping more people afford to stay and succeed in Michigan, by providing access to health, jobs, and safety for their families,” said Michigan Lt. Governor Garlin Gilchrist II. “This budget does just that. It positions mothers and babies to be healthier and escape poverty. It helps seniors keep what they’ve earned by completing the rollback of the retirement tax. It tackles higher prices for working families by expanding the working families tax cut. It protects access to Medicaid for the millions of Michiganders who use it. With this budget, we are Standing Tall for a Michigan where everyone can afford to live a good life and raise their family. Let’s keep getting it done.” 

“While this budget cycle featured unprecedented challenges, it also provided us the opportunity to show the rest of the country what leadership can look like in divisive political times,” said Senate Majority Leader Winnie Brinks. “The result: a bipartisan budget that fixes our roads, strengthens public schools, protects health care access, and insulates us from some of the toughest federal cuts. Michiganders and their communities stand to benefit both immediately and into the future because of groundwork we are laying today.” 

“People are frustrated when they struggle to pay their bills while the government burns through billions of dollars of their money like it’s nothing,” said Speaker of the House Matt Hall. “Our state government spending has grown way beyond its means, and it’s time to rein it in. This budget makes a significant difference in eliminating waste, fraud and abuse to lower state spending and give the taxpayers better value for their dollars. That’s how we were finally able to get our local roads fixed and pass the public safety trust fund, all while eliminating taxes on tips, overtime and social security. You can do a lot when you take the time to evaluate state spending and set better priorities.” 

“In Michigan, we're proving that both sides can come together to do hard things, and I'm proud of the budget. It fixes the damn roads, protects Medicaid coverage for more than 2 million Michiganders, and invests in our kids from pre-k through college,” said State Budget Director Jen Flood. “At a time when families are dealing with higher costs, this budget builds on our record of fiscal responsibility by paying down debt and cutting taxes for seniors and working families.”

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