LANSING, Mich. (WZMQ) – The Michigan House has approved a $78.5 billion state budget for the 2026 fiscal year, seven weeks after the July 1 deadline.
The so-called “Value for MI Dollars Budget” passed on a 59–45 vote, with six members absent. The plan was supported almost entirely by Republicans, who hold 58 seats in the House, while most Democrats opposed it.
According to House Republicans, the budget includes $3.1 billion for roads, $140 million in new public safety investments, and eliminates state taxes on tips and overtime pay. Republican leaders say they cut more than $5 billion in waste, fraud, and abuse, including eliminating 4,300 “phantom positions” in state departments that were never filled.
The bills were introduced and passed in the House before they were even officially enrolled on the legislature’s website.
The plan also ends funding for controversial corporate subsidies through the state’s SOAR program and requires state employees to return to in-person work. GOP lawmakers argue their proposal protects programs like Medicaid and SNAP, which they say were underfunded in the Senate’s version.
The budget now heads to the Senate for further negotiation. Lawmakers have until September 30 to come to a final agreement.
