Michigan Legislature Advances Budget Bills for Fiscal Year 2026-27
Michigan Senate committees advance multiple budget bills for 2026-27 fiscal year while House prepares its own spending proposals.
LANSING, MICHIGAN — The Michigan Legislature made progress on the state’s Fiscal Year 2026-27 budget Wednesday as Senate appropriations subcommittees advanced multiple spending bills and the House prepared to consider its own budget proposals.
The Democratic-led state Senate moved forward with budget legislation covering Michigan’s community colleges and institutions of higher education, along with spending plans for several state departments. Senate appropriations subcommittees voted to send bills to the full committee for the Departments of Natural Resources, Agriculture and Rural Development, Transportation, and Environment, Great Lakes and Energy.
Senate Committee Action Planned
The Senate Appropriations Committee plans to consider those budget bills Thursday alongside appropriations for the Departments of Licensing and Regulatory Affairs and Insurance and Financial Services. The committee will also review funding for acquisition and development projects through the Natural Resources Trust Fund.
Meanwhile, the Republican-led House is advancing its own budget process. House appropriations subcommittees will meet Thursday to consider funding proposals for community college and higher education, along with budgets for the Departments of Licensing and Regulatory Affairs, Insurance and Financial Services, and Environment, Great Lakes and Energy.
Additional House Budget Items
House appropriations subcommittees also plan to review general government spending and budgets for the Michigan State Police. They will consider funding for the Departments of Health and Human Services, Military and Veterans Affairs, and Lifelong Education, Advancement and Potential, known as MiLEAP.
The early committee votes signal movement in what observers projected would be a contentious budget year, though committees overseeing K-12 education spending have not yet presented their budget plans.
Higher Education Funding Changes
The Senate’s higher education budget proposal shows significant changes from the current fiscal year. In Fiscal Year 2025-26, the state allocated $2.36 billion to higher education with $1.48 billion from the general fund.
For Fiscal Year 2026-27, the Senate Appropriations Subcommittee on Universities and Community Colleges moved to allocate $2.59 billion with $1.42 billion from the general fund. This represents an increase in total funding while reducing the general fund contribution.
Community college funding faces a slight reduction under the Senate proposal. The state provided $493 million to community colleges in Fiscal Year 2025-26, but the Senate subcommittee recommends $490 million for the upcoming fiscal year.
The budget process continues as both chambers work toward finalizing spending plans for the fiscal year beginning October 1. With split party control between the Democratic Senate and Republican House, negotiations will be required to reach a final budget agreement.
