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Gov. Whitmer’s last State of the State focused on literacy, housing and healthcare

Advocacy News – Feb. 26, 2026

What’s happening: Gov. Gretchen Whitmer delivered her final State of the State address Wednesday evening during a joint session of the Legislature in the Michigan House Chambers.

Why it matters: The Governor used her speech to highlight the progress Michigan has made under her tenure – and challenges ahead.

  • Victory lap on metrics: While the Governor highlighted favorable metrics, like gross domestic product (GDP) being up, seven consecutive balanced budgets, and positive net migration into Michigan for the first time in 30 years, she glossed over areas where Michigan has fallen in multiple national economic and education rankings (e.g., job attraction of high-tech jobs (No. 45) and per capita income (No. 40 ) to our unemployment rate (No. 45).
  • Federal uncertainty: The Governor highlighted how policies at the national level like tariffs and healthcare cuts are impacting Michiganders.

Her priorities: She highlighted three main focus areas for her remaining year in office:

  1. Literacy: Acknowledged there’s “work to do,” her plan Every Child Reads emphasizes getting an early start on reading, doubling down on proven learning methods like phonics and providing extra support for students.
  2. Housing: She outlined new goals, including a state-level affordable housing tax credit and streamlined zoning to allow diverse housing types to help address the rising costs and low supply that are make buying and building homes challenging.
  3. Healthcare: Accessibility and affordability were stressed, including state-level initiatives to erase medical debt, cap interest rates on medical debt, require hospital assistance programs, and fund Michigan’s Medicaid program.

Our thought bubble: We appreciate the Governor’s attention to these key quality of life issues that directly affect employers’ ability to attract and retain talent. At the same time, her speech largely sidestepped Michigan’s ongoing competitiveness challenges – areas like job and income growth, student performance and unemployment received little attention.

  • Michigan must double down on policies that address these key performance indicators and shape our economic future – not put us a significant disadvantage to other states, especially our Midwest peers. Helping ensure businesses can grow is how Michigan expands opportunity, raises incomes and builds stronger communities for all.

What’s next: The Michigan Chamber stands ready to work with the Governor and Legislature on the choices that will shape Michigan’s trajectory for years to come.