Article Summary –
Michigan lawmakers passed an $82.5 billion budget for the 2025 fiscal year, which includes significant investments in education, economic development, and infrastructure. The budget allocates $598 million to reduce public school pension and health care costs, $200 million for universal free school meals, and funds to expand the Great Start Readiness Program and Michigan Achievement Scholarship. Additionally, it provides $4.2 billion for road and bridge projects, $100 million for affordable housing, and $20 million for services to support the unhoused, while also enhancing economic opportunities through initiatives like the Pure Michigan tourism campaign and funding for minority-owned businesses.
Michigan lawmakers approved the state’s $82.5 billion 2025 fiscal year budget during an overnight session on June 27. The general omnibus and school aid budget bills now await Gov. Gretchen Whitmer’s signature.
Whitmer said in a statement that the new budget will enhance Michigan’s economy, fix roads, support first responders, and boost affordable housing.
“This budget will grow our economy, fix the damn roads, ensure first responders have the funding to keep our neighborhoods safe, and build a heck of a lot more affordable housing, while also bringing down costs and putting more money back in people’s pockets,” Whitmer said.
Here’s an overview of how the allocated funds will impact residents:
K-12 and Higher Education
The budget will save Michigan public schools $598 million in pension and retirement health care costs, allowing more funds for classrooms. Lawmakers allocated $200 million for universal free breakfast and lunch for all students, which is expected to save families $850 annually and improve academic performance, according to researchers.
Additionally, 5,000 more 4-year-olds will gain access to Michigan’s free Great Start Readiness Program. Studies by Michigan State University indicate significant academic benefits for low-income children who participate.
For higher education, funding for the Michigan Achievement Scholarship increased, offering up to $5,500 annually for public university students and $2,750 for community college students. The Michigan Reconnect program received $52 million to provide free postsecondary education for those 25 and older.
Economic Development
The budget supports economic development and the Whitmer administration’s goal to grow Michigan’s population. It includes funding for the Pure Michigan tourism campaign and financial aid for businesses expanding in Michigan.
Support for entrepreneurs includes $10 million for minority-owned businesses and $2.5 million in short-term loans. Additional revenue sharing of $34.2 million for cities and $30 million for counties aims to improve public safety and quality of life, said Grand Rapids Mayor Rosalynn Bliss in a statement.
Infrastructure
Michigan’s transportation and housing infrastructure will see significant upgrades. The 2025 fiscal year budget includes $4.2 billion for road and bridge projects, according to the governor’s office, with $1.7 billion from Biden’s Infrastructure Investment and Jobs Act.
To increase affordable housing, $100 million is allocated for building or rehabilitating homes in areas like Ingham County, Grand Traverse County, Muskegon, and Detroit. Another $20 million will help unhoused individuals find employment and stable housing, said Catherine Distelrath of CSH in a statement.
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