The 2026 Michigan state budget that resulted from last-minute negotiations spilling into the new fiscal year works out to be a net positive for public education, according to an initial MEA analysis.

Educators from across the state held steady pressure on lawmakers to help break the months-long budget stalemate, including several dozen who descended on the Capitol in the shadow of a looming state government shutdown.

The compromise spending plan, adopted by the Legislature after the Oct. 1 deadline, reflects steadfast efforts by pro-education lawmakers to hold the line against the House’s proposal to raid $1.4 billion from education to pay for road construction.

“While overdue and still with areas of concern, the education budget for this school year is finally complete and makes important investments in the success of Michigan’s students and the educators who serve them,” MEA President & CEO Chandra Madafferi said in a media statement.

“Although this budget compromise does not include all of our priorities, we welcome that it provides much-needed support and certainty for PreK-12 schools and higher education institutions to meet the needs of Michigan students.”

Positive elements for public schools include a $10,050 per pupil foundation allowance (a 4.6%/$442 increase), full funding for universal free school meals, and more than $300 million for safety and mental health programs.

Critical to MEA members is $203 million directed toward providing school employees additional one-time compensation to help mitigate increased out-of-pocket health insurance costs.

In addition, the budget includes 25% increases to funding for at-risk (+250m); English language learner education (+12.5m); and increases of $70 million for career and technical education and $60 million for literacy programs; and investments of $200 million for school infrastructure, $125 million for rural transportation and $65 million for smaller K-3 class sizes.

The plan provides an overall 2-3% boost to higher education funding and does not include penalties against universities for perceived political stances, which had been proposed in the House. Similarly, most language penalizing PreK-12 schools in continuing culture war fights has been removed.

Funding for student teacher stipends, future educator fellowships, free community college, and grant funding for educator recruitment programs will all continue.

Given the vast differences between the original budget proposed by House Republicans compared to separate proposals by Senate Democrats and Gov. Gretchen Whitmer, MEA Labor Economist Tanner Delpier gave his initial impression of the final spending plan as “better than expected.”

However, this is a compromise budget and includes problematic aspects. Most concerning is a shift of School Aid Fund dollars to higher education which frees General Fund money to flow toward road-building costs. The $400 million shift, while much less than the $1.4 billion first proposed in the House, remains significant.

Tax revenue from gas sales being moved to road funding instead of education is another area MEA will watch in future budgets — while those dollars have been backfilled in this year’s budget, keeping it that way could be an annual legislative battle.

In addition, some categorical appropriations were rolled into the foundation allowance, including $100 million in funding to districts to pay school employee retirement costs, but overall increases offset the losses for districts. Viewed as a whole, the budget is good but not perfect.

Stay tuned for more analysis from MEA about the 2025-26 education budget.