Michigan Governor and Lawmakers Race to Finalize 2026 Budget

News Summary

As the October 1 deadline looms, Governor Gretchen Whitmer and bipartisan lawmakers in Michigan are working diligently to finalize the 2026 budget. With crucial components like the School Aid budget and road funding almost in place, the urgency is high to avoid a possible state government shutdown. Recent developments include proposed tax measures aimed at road repairs and ensuring continued funding for essential state services. Legislative leaders are optimistic about meeting the fiscal year requirements, but time is running out, underscoring the importance of effective budget negotiations.

Lansing, Michigan – Governor Gretchen Whitmer and bipartisan lawmakers are in a crucial race against time to finalize Michigan’s 2026 budget as the October 1 deadline approaches. The end of the 2025 fiscal year marks the point at which the House and Senate must approve identical budget versions to avoid a partial state government shutdown. If a deal is not reached by midnight on September 30, it could lead to an unprecedented situation in Michigan’s history, where both state and federal governments would simultaneously experience a shutdown.

Negotiations on the budget have continued despite announcements from September 25 indicating that a deal had been reached on several key financial aspects, including the School Aid budget and long-term road funding. On that day, the state House voted with bipartisan support to impose a 24% wholesale tax on marijuana sales to raise funds for road repairs. In addition, the House also voted to decouple Michigan’s income tax law from the federal income tax law to prevent a significant revenue drop stemming from changes in federal legislation. Tax breaks were also approved for income generated from tips, overtime, and Social Security.

Following the September 25 discussions and votes, legislative activity slowed down as the legislature did not convene over the weekend leading into September 29. There were scheduled sessions for that Monday, but on September 29, the House did not take attendance or vote on any bills, while the Senate was in recess for much of the day. However, during this time, the Senate passed a resolution for detailed disclosures on legislative grants.

Senate Majority Floor Leader Sam Singh expressed confidence that the Legislature possesses the necessary tools to complete the budget by September 30. Meanwhile, Senate Majority Leader Winnie Brinks indicated that negotiations were intensifying, with increasing efforts towards reaching a budget agreement. The current budget discussions focus on key bipartisan priorities, which include road repairs, tax cuts, Medicaid protection, and providing free breakfast and lunch for students.

As of September 30, state government operations were anticipated to “run as normal” while final budget details were being completed. House Speaker Matt Hall noted the progress made in addressing waste and fraud in the budget and highlighted the importance of continuing funding for school safety and mental health services. Both Democratic and Republican leaders are dedicated to finalizing a balanced state budget that meets the needs of Michigan communities.

Officials have indicated that if a spending plan is not in place by December 1, the state government will face a shutdown. A vote on the finalized budget is expected to take place once all details are finalized in the upcoming week. The urgency of the situation underscores the critical role of the legislature in setting priorities to ensure necessary funding for vital state programs and services.

Deeper Dive: News & Info About This Topic

• Detroit Free Press
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