Budget Keeps Money for Fixing the Roads, School Lunches and More

Here's what's in the state budget for education:

• Record per-pupil funding of $10,050. That's an increase of 4.6 percent
• Funds free pre-K and community college for all. The budget invests $657 million to continue expanding free pre-K to every 4-year-old in Michigan, regardless of family income
• Delivers recruitment and retention bonuses to educators. Millions of dollars are included in the FY26 budget to fund higher education in Michigan. Michigan’s 28 community colleges receive total of $375 million to deliver affordable associate degrees, transfer pathways, and skilled trades training across the state.
• $248.1 million to continue providing free breakfast and lunch to Michigan’s 1.4 million public school students, helping students focus on learning and saving families nearly $1,000 per year.
• $203 million for an educator stipend program to recruit and retain teachers.

The budget secures long-term funding for roads, bridges and transit. There's over $2 billion over the next four years.

• $100 million to repair and replace local bridges.
• $100 million for public transit, including new transformational projects and local bus operations.
• $40 million for rail grade separation projects to improve safety and reduce traffic congestion

• $1 billion per fiscal year from a sales tax and motor fuel tax swap that begins on Jan. 1, 2026, and dedicates all taxes paid at the pump for state and local roads, without increasing costs for motorists.
• Dedicates $420 million to roads from revenue generated from a tax on the marijuana industry.
• Shifts $600 million from the Individual Income Tax to the Corporate Income Tax, protecting the general fund and providing a reliable base for transportation funding.
• Phases in an additional $440 million ($88 million annually) from corporate income tax growth to sustain infrastructure investments long term.

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