Gretchen Whitmer pitches $88B budget, with focus on literacy and education

The governor's final budget proposal includes new taxes, tax cuts, and investments in schools and universities

Published on Feb. 11, 2026

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Michigan Gov. Gretchen Whitmer unveiled a record-setting $88 billion state budget proposal on Wednesday, calling for investments in literacy tutors, pulling money from the state's 'rainy day' fund, and new 'sin' taxes to help pay for some of it. The budget plan includes a 10% property tax reduction for seniors, a sales tax 'holiday' for school supplies, and increased funding for K-12 schools, community colleges, and universities.

Why it matters

Whitmer's budget proposal is the opening salvo in what will be a months-long negotiation process with the Republican-led state legislature. While the final budget is likely to be smaller than Whitmer's $88 billion plan, the governor's priorities around education, literacy, and tax relief for families and seniors will shape the debate over state spending in Michigan.

The details

Whitmer's budget proposal includes $100 million for 'high impact tutoring' and $100 million in grants for school districts to purchase and implement literacy curricula. It also calls for $50 million for teacher training on the 'science of reading', $30 million for 'early learning partnerships', and $10.5 million for more literacy coaches. To help pay for these initiatives, the governor is proposing new taxes on vaping products, tobacco, digital advertising, and casino/sports betting. The budget also includes a 10% property tax reduction for seniors and a three-year sales tax 'holiday' on school supplies.

  • Whitmer unveiled her $88 billion budget proposal on Wednesday, February 11, 2026.
  • The Republican-led House and Democratic-led Senate will propose their own budgets later this year, and the three camps will attempt to negotiate a final deal by summer — or the Oct. 1 constitutional deadline.

The players

Gretchen Whitmer

The governor of Michigan, who is proposing an $88 billion state budget in her final year in office before term limits force her out.

Jen Flood

The state budget director, who presented Whitmer's budget proposal to lawmakers on Wednesday.

Matt Hall

The Republican speaker of the Michigan House, who said he will not support new 'sin' taxes called for in Whitmer's budget proposal.

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What they’re saying

“This is a budget that helps Michiganders save money, improve student literacy, protects access to health care and sets Michigan up for long-term success.”

— Jen Flood, State Budget Director (bridgemi.com)

“No responsible budget proposal should pull from a rainy day fund. We purposefully put ourselves in this situation.”

— Matt Hall, Michigan House Speaker (bridgemi.com)

What’s next

The Republican-led House and Democratic-led Senate will propose their own budgets later this year, and the three camps will attempt to negotiate a final deal by summer — or the Oct. 1 constitutional deadline.

The takeaway

Whitmer's final budget proposal reflects her priorities around education, literacy, and tax relief, but the final budget will likely be significantly smaller as it goes through the legislative process. The debate over the budget will shape state spending in Michigan in the coming year.