Updates About Appropriations

The Michigan Senate Appropriations MiLEAP Subcommittee has proposed a $736.2 million budget for the Department of Lifelong Education, Advancement and Potential, including a $63 million increase to sustain child care services in light of declining federal support. The adjustment aims to maintain access to early childhood programs that have relied heavily on federal funding. Senator Rosemary Bayer (D-West Bloomfield) emphasized that child care is essential to Michigan’s economy and noted that the Senate’s proposal reflects a strategic response to federal funding uncertainty.

In addition to backfilling lost federal dollars, the proposal includes $23 million to boost payments to child care providers—especially those caring for infants and toddlers—as well as $40 million to support advance payments to providers in line with federal regulations. The budget also allocates $16 million for student service grants and calls for the creation of a Dual Enrollment Task Force to strengthen access to higher education.

Senator Kevin Hertel (D-St. Clair Shores) has proposed a $1 million allocation for a new “Statewide Fentanyl Enforcement” initiative in the Michigan State Police budget for Fiscal Year 2026. The funding would bolster the department’s existing task force operations, which collaborate with other agencies to identify and prosecute fentanyl traffickers across the state. Hertel noted the investment is a direct response to the increasing impact of fentanyl in Michigan communities.

As the Senate Appropriations Military, Veterans and State Police Subcommittee Chair, Hertel believes the appropriation would provide resources to help MSP and its partners identify fentanyl sources, disrupt distribution networks, and hold traffickers accountable. The subcommittee approved the broader FY 2026 State Police budget, which includes this allocation, on a 2-0 vote.

Governor Gretchen Whitmer recently presented her Fiscal Year 2025-2026 Executive Budget Recommendations, kicking off Michigan’s budget season. With a total proposal of $83.5 billion—the largest in state history—the budget reflects a $1.2 billion revenue surplus and prioritizes lowering costs for residents, creating jobs, investing in education, supporting seniors, and strengthening public safety. Key highlights include continued tax relief through the Working Families Tax Credit, expanded universal pre-K, free school meals for all public school students, and increased investment in workforce development. Additionally, the proposal allocates billions toward infrastructure improvements, child care support, and special education funding.

Other notable investments focus on public health and safety, including $46.8 million in opioid settlement funds, increased Medicaid access for seniors and individuals with disabilities, and a $42.8 million tax on vaping and nicotine products (see Governor Recommends New Tax Targeting Youth Nicotine Consumption for more info). The budget also includes major investments in Michigan’s defense industry, cybersecurity, and government modernization. As the legislature begins negotiations, these proposals will shape the final state budget ahead of the July 1 deadline.