Michigan lawmakers reach state budget agreement ahead of Oct. 1 deadline
The Michigan House and Senate on Thursday reached an agreement on the state budget days before the Oct. 1 deadline.
State officials say the 2026 budget includes nearly $2 billion per year to fix local and state roads. The bipartisan budget includes "top priorities for both Democrats and Republicans," according to a news release.
The administration and legislative leaders will now meet to finalize and pass the budget.
Gov. Gretchen Whitmer issued the following statement:
"Today's agreement in the legislature puts us on a path to lower costs, fix the damn roads, and pass a balanced, bipartisan budget by October 1. I am grateful to Majority Leader Brinks, Speaker Hall, and legislators on both sides of the aisle for working hard to move this budget forward. In Michigan, we've proven again and again that we can work together to get things done by staying focused on the kitchen-table issues that make a real difference in people's lives. Amid so much national economic uncertainty, I am proud that we are taking action to lower costs, cut taxes for seniors and working families, create jobs, fund schools, fix roads, keep people safe and healthy, and so much more."
Lawmakers have been struggling to pass a budget since earlier this year, initially missing their July 1 deadline.
Speaker Pro Tempore Rachelle Smit, R-Shelbyville, said avoiding a shutdown was a big win for the state.
"This is going to bring funding for our local roads, cutting waste, fraud and abuse within our government, and also delivering on President Trump's agenda of no tax on tips," Smit said.
On Monday, lawmakers said negotiations were not going well. The legislature struggled to bridge the large gap in proposals from Republicans and Democrats. House GOP lawmakers passed a $78.5 billion proposal, and Senate Democrats passed an $84.5 billion proposal.
However, on Wednesday, Rep. Parker Fairbairn, R-Sault Ste. Marie, said negotiations were improving.
"Back in June, we were having productive conversations. I will say one chamber walked away from the table we couldn't meet because we need all three legs of the stool to get the job done," Fairbairn told CBS News Detroit. "So we're at the point now, you know, almost October, where everyone is at the table, everyone is operating in good faith."
In a statement on Thursday, House Speaker Matt Hall said:
"We have an opportunity here to reform Michigan's broken process and get much better value for the taxpayers. There is still work to be done, but it is an important step that all of us are agreeing to implement meaningful tax relief for Michigan workers and seniors, bring transparency and accountability to the earmark process for the first time, and eliminate ghost employees. Government has grown far too much in recent years, and we need to trim the waste, fraud and abuse in Lansing. That's how we can afford the real priorities of Michigan families – like education, public safety, and fixing our local roads and bridges. This agreement puts us in position to do just that."
Senate Majority Leader Winnie Brinks also issued a statement:
"The people of Michigan deserve a budget that makes their daily lives better — a budget that boosts education, improves roads, and protects healthcare. The framework we have agreed to reflects the priorities of Michiganders from every region, and while no budget will be a perfect product, I am confident that the final result we vote on next week will have features that benefit every resident."