POLITICS

Lawmakers miss deadline, finalize contentious Michigan budget

PUBLISHED Jul 1, 2026, 11:42 PM ET

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Lansing — Michigan lawmakers missed a self-imposed July 1 deadline and continued negotiating a new state budget this week, as Republican-led House and Democratic-led Senate leaders worked past the deadline Thursday and into Friday to finalize an approximately $84 billion spending plan and attached policy measures for schools, universities and state government. Lawmakers addressed a reported $1 billion revenue gap with funding maneuvers and spending cuts; the plan increases basic per-student support, allocates about $125 million for special projects, trims arts and several department budgets, preserves Medicaid and food assistance, and prompted leaders to schedule final votes later this week after overnight negotiations.

By James Porter | JQJO News

Timeline of Events

State law sets July 1 target for budget approval to aid school districts.
Republican-led House and Democratic-led Senate missed the July 1 deadline for the second consecutive year.
Lawmakers reported little visibility of omnibus drafts on July 2 as votes loomed.
Negotiators worked overnight into Friday to close an estimated $1 billion gap and craft an $84 billion plan.
The compromise preserved Medicaid and food assistance, increased per-student funding, and cut arts and some department budgets.

News Intelligence

This budget affects your wallet and your community. It decides school funding, Medicaid, and food assistance. It also impacts arts and various department budgets. If you're a Michigan resident, check how your local school district or community programs might be affected.