Advocacy News – July 9, 2026
What’s happening: After weeks of on-and-off negotiations and an overnight session that extended into the early morning hours, Michigan lawmakers approved the FY 2027 budget (SB 878 and HB 5630) and sent 66 policy bills to the governor right before the July 4th holiday. The agreement funds state government – including funding for local communities and schools – beginning Oct. 1 and advances several policy initiatives that had stalled earlier this year.
Why it matters: The annual state budget is more than a spending plan. It establishes funding priorities often serves as a vehicle for policy changes affecting employers, employees, schools and communities.
What we’re saying: The Michigan Chamber supported efforts to keep overall state spending essentially flat compared with last year while preserving investments in proven initiatives.
We were particularly pleased to see continued investment in the Going PRO Talent Fund, permanent authorization of the MI Tri-Share Childcare Program and long-awaited brownfield redevelopment reforms included in the final budget package.
At the same time, we believe additional opportunities remained to further reduce overall spending and strengthen Michigan’s long-term fiscal position.
Process concerns: The budget process itself also left much to be desired. Lawmakers were given little time to review nearly 1,500 pages of budget documents before casting final votes. A budget of this size and importance should be completed transparently, finalized by the statutory June 30 deadline and considered through a deliberate process that gives legislators and the public adequate time to review its contents before it becomes law.
Beyond the budget numbers: The spending plan also served as the vehicle for 66 policy bills, including:
- Brownfield redevelopment reforms (SB 723) that importantly expand opportunities to revitalize unused or underutilized properties and attract new investment.
- Permanent authorization of the MI Tri-Share Child Care Program (HB 6043), underscoring an innovative childcare solution the Michigan Chamber has long supported.
- Affordable housing tax credit legislation and other housing reforms (SB 966, HB 5806, HB 5807, HB 5571) aimed at increasing housing supply and helping address a workforce challenge.
- A weighted school funding plan designed to direct additional funding based on student needs.
- Ethics reforms (HB 4062, HB 4063, HB 4064) establishing a two-year cooling-off period before certain elected officials can become lobbyists.
- Additional bipartisan bills related to healthcare, public safety, workforce development, occupational licensing, and tax administration.
Worth noting: Debate continues over the budget’s total size. Legislative leaders describe the budget as $75.2 billion, but independent fiscal experts say authorized spending is closer to $86.4 billion.
What’s driving the difference?
- Approximately $9.2 billion in federal Medicaid-related funding and $2 billion in education spending was shifted into budget boilerplate rather than listed as appropriations.
- The funding remains available to be spent, but the reporting change has prompted questions about transparency and makes year-over-year budget comparisons more difficult.
Bottom line: The FY 2027 budget delivers several positive policy outcomes for Michigan employers while renewing needed conversations about responsible state spending, budget transparency and improving the process by which one of Lansing’s most consequential pieces of legislation is approved.