April 24, 2026

State Budget Update
The Michigan House of Representatives passed a $76 billion budget proposal on Wednesday, April 22 and the Michigan Senate’s budget is expected to be on the floor next week. The House did come in lower than the governor’s $88.1 billion budget proposal, even including the $9 billion in Medicaid funding that is included in contingency funds. And unlike the governor’s recommendation, neither budget will be based on any new or increased taxes. The League continues to be concerned about the state’s long-term revenue sufficiency, which needs to be addressed, especially now in the wake of the so-called “One Big, Beautiful Bill Act.”

The spring Consensus Revenue Estimating Conference (CREC) has been set for May 15. This will determine the revenue projections for final negotiations on the fiscal year 2026-2027 spending plan.

Legislative and Policy Update

  • The Senate Civil Rights, Judiciary, and Public Safety committee reported out Senate Bills (SBs) 508-510 and Resolution 86, which address sensitive locations where immigration enforcement is prohibited and require federal immigration enforcement officers to be properly uniformed. The League supports this legislation.
  • The Senate Housing and Human Services Committee reported out SBs 735-736 — a bipartisan package that specifies that its not neglect to allow a child to walk to school or play outside independently. The League supports this legislation.
  • The Senate Finance, Insurance, and Consumer Protection committee reported out SBs 757-760, more commonly referred to as the “Kids Over Clicks” legislative package. This package aims to protect children from threats associated with social media and AI. The League supports this legislation.
  • The House Health Policy committee took testimony on House Bills (HBs) 5254-5255 and SBs 449-451. This is a bipartisan, bicameral package of bills to limit how creditors can go after people with medical debt as well as creating a standard hospital financial assistance program. The League supports this legislation.
  • The House Judiciary committee took testimony on HBs 5492-5493. These bills would establish commonsense guardrails for automatic license plate readers so that Michiganders’ data is not leaked or abused. The League supports this legislation
  • The Senate passed SB 463 and SB 466, which would repeal ineffective and inequitable purchase, use and possession (PUP) penalties for minors in possession of tobacco products. The Senate previously passed bills to require licensing and regulation of tobacco retailers (SBs 464-465). This package is substantially similar to HBs 5368-5372, which is pending before the House Regulatory Reform Committee. The League supports this legislation.


2026 QUARTER 1 RECAP

State Budget Update
At the January Consensus Revenue Estimating Conference (CREC), state fiscal experts adjusted anticipated revenues downward overall, driven largely by intentional tax changes made last year. These estimates form the basis for the governor’s budget, which was released in mid-February.

Fiscal Year 2026 Fiscal Year 2027 Fiscal Year 2028
Jan CREC Change from May CREC Jan CREC Change from May CREC Jan CREC
General Fund/General Purpose $14,134.1 million $980.5 million $14,074.6 million $1,269.1 million $14,484.2 million
School Aid Fund $19,135.4 million $201.1 million $19,568.3 million $169.7 million $19,965.7 million
Combined $33,269.5 million $779.4 million $33,642.9 million $1,099.4 million $34,449.9 million

Based on these revenue projections, the governor released her budget proposal on Wednesday, February 11, 2026. Her $86.7 billion adjusted gross budget proposal includes a School Omnibus totaling $24.5 billion and a General Fund Omnibus totaling $62.2 billion. Here are some of the highlights:

  • $400 million withdrawal from the state Rainy Day Fund;
  • $800 million in new or increased revenues, including increased taxes on cigarettes and other tobacco products and a new tax on vape products;
  • An additional shift of School Aid Fund revenues to shore up higher education funding;
  • Largely flat funding across most departments, with small economic adjustments;
  • Notable investments in: implementation of H.R. 1, the federal megabill enacted last year; literacy efforts; and out-of-school-time programs.

For more detailed information, please see our statement and our analysis.

The work now turns over to the House and the Senate to craft their own proposals of the fiscal year 2026-2027 budget. Subcommittees have been holding hearings about various issues and programs within their budget areas, and members have been making requests for Legislative Directed Spending Items (commonly referred to as “earmarks”) using the new process set in law last year. There is still a desire to get the budget done by the July 1, 2026 deadline, but it is expected to at least be completed by the October 1, 2026 budget year start date.

State Policy Update
The governor provided her eighth and last State of the State address on Wednesday, February 25, 2026. Her speech took a complete look at her legacy, including quintupling the Earned Income Tax Credit and expanding the Elliott-Larsen Civil Rights Act and road funding, while also looking forward. She focused on investments to expand housing access and, like her budget proposal, supported policies to reduce healthcare costs and medical debt and improve literacy and educational outcomes. The League’s statement on the State of the State address can be viewed here.

To date, only four bills have made it to the governor’s desk for her signature. Last year, a record low of 74 bills were signed into law, and a similar slow pace is expected this year. Here are some of the issues the League has weighed in on so far this year:

  • The Michigan House Election Integrity Committee reported HB 4765, which would require strict proof of citizenship for voting, on party lines. The League opposes this legislation.
  • The Michigan Senate Transportation and Infrastructure Committee took testimony on SB 617-621, which would allow the state to issue mobile driver’s licenses or state identification cards. The League opposes this legislation.
  • The Michigan Senate Labor Committee reported on party lines Senate Bill 145, which would prohibit employers from asking job applicants for their prior wage and benefits information. The bill currently sits on the Senate floor. The League provided testimony and published a column showing support for this bill. 
  • The Michigan Senate Finance, Insurance, and Consumer Protection Committee took testimony on Senate Bill 757-760, a package of bills often referred to as Kids Over Clicks. The League supports this bill package.
  • The Michigan House Regulatory Reform Committee took testimony on HB 5558-5569, a package of bills to allow certain earned wage access services, which is another predatory lending practice similar to payday lending. The League opposes this bill package.
  • The Senate Civil Rights, Judiciary and Public Safety Committee took testimony on Senate Joint Resolution (SJR) F, which would place on the ballot a repeal of Michigan’s unenforceable constitutional prohibition on same-sex marriage. The League supports this measure.
  • The Michigan House Regulatory Reform Committee took testimony on HB 5368-5372, a package of bills to help keep tobacco out of the hands of kids by requiring tobacco retail licensing and eliminating ineffective purchase, use and possession penalties. The League supports this package. 

Other Issues Being Monitored
As the state moves to implement the requirements of H.R. 1, the League is increasingly concerned about possible legislation that goes beyond what the federal law requires and/or implements those requirements in ways that harm Michiganders. We will continue to monitor these discussions, engage with key policymakers and members of the administration, and push back against changes that limit benefits or eligibility or those that simply intend to make it more difficult for Michiganders to access the services they need.