MichiganHB 56302025-2026 Regular SessionHouseWALLET

Appropriations: school aid omnibus; fiscal year 2026-2027 appropriations for K-12 school aid, higher education, and community colleges; provide for. Amends, adds & repeals (See bill). Last Action: assigned PA 25'26 with immediate effect

Sponsored By: Ann Bollin (Republican)

Signed by Governor

Appropriations: school aid omnibus

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Bill Overview

Analyzed Economic Effects

175 provisions identified: 126 benefits, 20 costs, 29 mixed.

Certified teachers can get cash bonuses

For 2026–2027, eligible National Board-certified teachers can get $4,000, plus $6,000 for serving in a Title I school. Districts must apply; awards are first-come, first-served, with one award per teacher per fiscal year. Eligible leadership and support roles now qualify, and former classroom-hour and certification-date limits are removed. Funding is capped at $2.5 million or the amount recovered from the 2023–2024 work project, whichever is lower. Bonuses do not count toward school retirement pay or contributions; unused funds carry into 2027–2028, with project completion estimated by September 30, 2029.

More families can apply for preschool

The law removes the Great Start Readiness Program's household income ceiling of 400% of the poverty level. It also removes the income-quintile enrollment sequence. Programs still give priority to lower-income children and children with other risk factors, as determined by the state. Families above the old ceiling can apply, but a place is not guaranteed.

More graduates qualify for college scholarships

Michigan Achievement Scholarship applicants no longer need to graduate from a Michigan high school. A diploma, completion certificate, or equivalency certificate earned in 2023 or later can qualify. Students must be Michigan residents for federal aid purposes, attend full-time as undergraduates, and generally first enroll within 15 months of earning their credential. Prior Achievement or Skills Scholarship recipients have an enrollment-timing exception; dual enrollment and early college do not disqualify applicants. Students must maintain satisfactory academic progress, avoid federal student-loan default, and apply for available gift aid.

State funds scholarships and college aid

Michigan provides $770 million for college grants and financial aid in 2026–2027. This includes $532 million for Michigan Achievement Scholarships, $165.8 million for the Tuition Incentive Program, and $67 million for Michigan Reconnect. It also includes $2 million for children-of-veterans and officers' survivor tuition grants, plus $3.2 million for Project GEAR-UP. Up to $10 million of Achievement Scholarship funding may support skills scholarships; each program's requirements determine student eligibility and awards. The state budget director now reviews institutions' Achievement Scholarship funding ineligibility annually, replacing review after one academic year.

Student teachers get paid stipends

For 2026–2027, student-teacher stipends receive $30 million in school aid, $20 million in public-provider funds, and $7 million in private-provider funds. Eligible students can receive up to $9,600 per semester, with no more than two awards. Applicants must pursue certification in an eligible preparation program, complete required coursework and a supervised classroom placement, and submit a timely certified application. Teachers of record are ineligible; current City Year corps members in eligible programs can participate. Nonpublic-school placements must be paid from private-provider funds.

School operating aid and reserves continue

For 2026–2027, Michigan allocates up to $3.562 billion to protect eligible districts' and public school academies' 1994–1995 per-pupil operating revenue. Districts must maintain at least their 1994 operating millage rate to receive the guarantee. Intermediate school district aid rises from $83.1577 million to up to $85.2366 million. The general pupil support reserve supports programs under sections 30d, 31aa, and 99h during 2025–2026 through 2027–2028. Reserve money requires a specific appropriation before spending; this provision states no reserve amount.

Higher funding target for public schools

For 2026–2027, the school funding target rises from $10,050 to $10,300 per pupil; charter school allocations generally follow that target. The discretionary school payment cap rises from $6.6965 billion to $6.783 billion for 2025–2026. For 2026–2027, the law allocates up to $6.91445 billion, plus $56.1 million from school aid and $130 million from enrollment stabilization funds. Unspent money may supplement basic school aid and special education foundation allocations for the same year. Beginning in 2026–2027, affected community districts keep specified local tax revenue from reducing their basic aid, without a matching discretionary aid increase.

More state funding for special education

Special education receives up to about $2.264 billion in 2026–2027, compared with about $2.125 billion in 2025–2026. Estimated reimbursements rise to $495.2 million for intermediate districts and $1.1417 billion for school districts, from $457.8 million and $1.0564 billion. These payments cover 28.6138% of approved education costs and 70.4165% of approved transportation costs, excluding separately reimbursed education costs. Another estimated $533.2 million, up from $519.8 million, covers 100% of applicable foundation costs, subject to pupil exclusions and funding limits. Unspent district reimbursement money may supplement basic and discretionary school aid for the same year.

State funds public university operations

For 2026–2027, public universities receive about $1.755 billion, including $743.0883 million from school aid and $1.0122206 billion from general funds. Allocations cover operations and North American Indian tuition-waiver costs; retirement system reimbursement is $0. The law also provides up to $69.7603 million in one-time operating increases, subject to allocation and reporting requirements. For that year, lawmakers state an intent to cover unfunded Native tuition-waiver costs from school aid rather than general funds. That funding-source statement does not change students' waiver eligibility or amounts.

State funds schools and operating costs

The law provides about $18.179 billion from the school aid fund for 2025–2026 and $18.856 billion for 2026–2027. For 2026–2027, it also provides about $57.985 million in general funds; other listed funds and federal money also contribute. General funds must be spent before school aid funds. School-law compliance costs receive $40 million in 2025–2026, up from $37.5094 million, and $44.5 million in 2026–2027. In 2026–2027, up to $10 million covers school aid cash-flow borrowing costs, and $12 million moves from the educator fellowship private provider fund into the pupil support reserve.

State helps schools cover retirement costs

School retirement contributions receive up to $1.5365 billion in 2025–2026 and $1.4544 billion in 2026–2027. Participating district libraries receive up to $300,000 each year. District allocations follow prior-year covered payroll, using a $1,100 average cap per pupil and a 15.21% maximum employer rate. Districts must forward these funds to the retirement system. Community colleges also receive $7.189 million in 2026–2027 retirement offsets, subject to section 207a.

Weighted aid and backstops for schools

For 2026–2027, Michigan provides up to about $1.628 billion for weighted school aid. District payments equal the target foundation allowance times their weighted pupil count, subject to statutory limits. The school aid stabilization fund supplies the amount needed to fully fund the article’s allocations beyond section 11 funding. Collected overpayments also fund obligations above other appropriations, but only up to the amount collected.

Children receive health service funding support

For 2026–2027, Michigan provides up to $33 million for primary care serving children and adolescents up to age 21. The education and health departments jointly direct spending and prioritize unserved or underserved counties when funding new adolescent health centers. Four percent must be available for a qualifying nonprofit to offer technical support and coordination to all Michigan child and adolescent health centers. Michigan also provides up to $10.15 million for hearing and vision screenings and $1.5 million for dental screenings. Local health departments pay at least half of screening costs; awards need joint state approval, and hearing and vision schedules follow state rules.

Free school meals for Michigan families

In 2026–2027, pre-K through grade 12 students get free reimbursable breakfasts and lunches at participating schools. Schools must run both federal meal programs, report meals, seek family income information, and forgive debt for federally reimbursable meals. Eligible schools must use the Community Eligibility Provision to maximize federal payments. Michigan provides up to $200 million in school aid and $2 million in general funds, with reserve funding covering district shortfalls. A separate reserve provides up to $1 million for nonpublic-school reimbursements; payments use federal meal rates minus specified existing payments.

School behavioral health reaches more children

The school behavioral health program now counts children served under sections 32d and 32t as general education pupils. This broadens which children qualify for the program's funding and services. Districts unable to obtain a licensed master's-level behavioral health provider can use a provider with less than a master's degree. They must notify both state departments and document their search; both departments must verify that a master's-level provider was unavailable.

One-time bonuses for public school educators

For 2026–2027, the law provides $150 million for educator bonuses, shared equally per pupil among districts and intermediate districts. Bonuses must be added to existing bargained pay, and union-represented increases must be bargained. They do not count toward retirement benefits and carry no Michigan public school retirement contributions. The law does not set each educator’s payment.

Pilot funds smaller early elementary classes

A 2025–2026 pilot provides up to $65 million for smaller kindergarten through third-grade classes. Applicants must operate all K–12 grades, receive section 31a aid, and have a qualifying early-grade building in opportunity index band 4 or higher. Districts must commit at least 10% of their 2025–2026 section 31a funds; funded classes must average no more than 17 pupils, with none above 19. Grants must include Muskegon Heights Public School Academy System, Benton Harbor, Flint, and Wayne-Westland; no district gets more than 25% of the pool. Unspent funds carry forward, with project completion estimated by September 30, 2030.

Reconnect funding supports younger award recipients

For fiscal year 2026–2027 only, Michigan can use Reconnect funds for recipients of the temporary Reconnect expansion-to-21 awards. This supports students already receiving awards through that temporary program. This authority ends September 30, 2027; the provision does not set individual award amounts.

Scholarship fund can cover award shortfalls

The postsecondary scholarship fund provides a backstop when state funding falls short for awards under section 236(7)(a), (b), (d), or (e). The additional appropriation covers the amount needed to fully fund those awards. The State Budget Director decides whether to make the appropriation and must notify required report recipients beforehand.

Special education graduates gain tuition-aid access

Phase I Tuition Incentive Program age rules add an eligibility route for students considered special education pupils at high-school graduation. These graduates must still meet the program's other Phase I requirements. This provision does not set an individual award amount.

Survivor tuition grants keep unspent funding

Appropriations for children-of-veterans and officers' survivor tuition grants must enter a restricted account, regardless of their funding source. Unspent money stays in that account rather than returning to the general fund. The money remains available for allocation under the children of veterans tuition grant law; no individual award amount is specified.

Tuition increases face limits for students

For 2026–2027 and 2027–2028, universities receiving section 236d payments must limit resident undergraduate tuition and fee increases to the greater of 4% or $651. They must also certify no increase after September 1, 2025, for 2025–2026. Covered community colleges face an in-district increase limit of the greater of 4% or $199 for 2026–2027 and 2027–2028. Colleges exceeding that limit lose 2026–2027 one-time performance funding eligibility and risk legislative funding adjustments; both groups certify compliance by August's last business day. Eligible tribal and independent nonprofit colleges also face applicable restraint and reporting rules; nonprofit colleges must report actual tuition and required fees.

Water emergency communities get child services

For 2026–2027 only, Michigan provides $3 million for services for children living within qualifying school districts. Most district territory must lie in a city covered by a drinking-water emergency proclamation during the current or previous 11 fiscal years. The district must have had at least 4,500 pupils in 2016–2017 or 2,400 in a later fiscal year. The money funds services and programs, not direct cash payments to families.

Water-emergency students receive school support funding

For 2026–2027, the law allocates up to $3 million for K–12 students affected by the executive-proclaimed drinking-water emergency. Funding goes to an intermediate district with a qualifying constituent district. Services can include behavioral support, social workers, counseling, psychology, nursing, vision and hearing care, transportation, parent engagement, and community coordination.

Young adults can get college aid

Michigan can use Reconnect funding for last-dollar aid toward associate degrees, recognized job certificates, or other eligible credentials. Last-dollar aid helps cover eligible costs left after other aid. Initial grant applicants must be ages 21 through 24 and apply on time through the state's process. The department must publish program guidelines, and awards stop when the appropriation is fully committed. The law sets no individual award amount here.

Funding supports children's meals and nutrition

For 2026–2027, Michigan directs all available federal child nutrition funding, estimated at $418.2676 million, plus estimated food-distribution funding of $100. It also provides up to $29.5534 million for 6.0127% of necessary state-mandated lunch costs, using the Durant calculation. Providers not required to serve lunch face limits of $10 per eligible pupil, plus 5 cents per free lunch and 2 cents per reduced-price lunch. Breakfast reimbursements receive up to $16.9 million for districts and meals meeting federal standards. Breakfast payments cover the lesser of actual or statewide average meal costs, minus other specified payments; the meals reserve covers required lunch and breakfast funding shortfalls.

Funding supports students' behavioral health services

For 2026–2027, Michigan provides up to $106.545 million in school aid and $1.3 million in general funds for school behavioral health. School aid includes up to $14.3 million for the specified child and adolescent health-center network and $87.245 million for intermediate districts. Funded centers must commit to maintaining services, and recipients must keep seeking available federal Medicaid matching funds. A remaining $31.0714 million within this program goes to intermediate districts with plans approved by both state departments by February 1. Those districts distribute funds on an equal per-pupil basis, including qualifying charter schools, while considering geography, costs, and other challenges.

Schools receive mental health activity funding

For 2026–2027, Michigan provides $300 million in school aid and $10 million in general funds for school safety and mental health. Within this shared funding, up to $200 million in school aid can support mental health activities, plus general funds for nonpublic-school payments. Mental health payments are capped at $73.53 per pupil, with a $7 million total cap for nonpublic schools. Uses include staff, screening, technology, training, needs assessments, cellphone-free policies, and evidence-based character and relationship programs.

Grants expand school break care options

For 2026–2027, Michigan provides up to $135 million for affordable before-school, after-school, and summer programs for K–12 students. This includes up to $50 million in school aid and $85 million from the pupil support reserve. Clinton County RESA manages competitive grants for programs supporting expanded learning, academic outcomes, and at least two additional measurable goals. At least 60% of grants must go to community-based organizations. No more than 40% of the total allocation can go to statewide or regional applications.

State funds Great Start preschool services

For 2026–2027, Great Start Readiness preschool receives up to $712.3561 million from the school aid fund. Up to $700.3561 million follows the program's funding formula. The law also allocates $18 million from the Great Start Readiness reserve. Necessary, available reserve money covers any shortfall in calculated formula allocations. This money supports preschool programs and services, not direct family payments.

State grants help fund school transportation

For 2026–2027 only, Michigan provides up to $125 million for district and intermediate-district transportation costs. Recipients are grouped into eight bands by riders per square mile. Initial payments use the lower of the band’s median cost per rider or actual cost per general education rider. Additional payments can cover reasonable unusually high costs, while shortages trigger proportional reductions. Districts and public school academies must report expected nonpublic school riders by December 1 to stay eligible. Intermediate districts must send that information to the department by February 1.

Additional reserves for college scholarship funding

For the fiscal year ending September 30, 2027, the law provides for a scholarship fund deposit of up to $100 million. The money comes from the School Aid Stabilization Fund. The intended first source is unspent, unreserved school aid appropriated for 2025–2026. Available balances from other article I funds deposited in the stabilization fund are the intended backup source. This provision does not set an individual student’s award.

Extra school funding targets disadvantaged students

Students qualify through free or reduced-price meal eligibility, household SNAP or TANF, homelessness, migrant status, or foster care. District funding weights depend on six opportunity-index bands based on prior-year student counts. Bands 1–3 add weights of 0.1913–0.1965, 0.1968–0.2046, and 0.2050–0.2126; bands 4–6 add 0.2132–0.2284, 0.2296–0.2546, and 0.2569. The law states an intent to increase the weights annually and uses the greatest applicable student count. A special building-level count limit applies during the fiscal year after a district first joins the community eligibility meal program.

Grants target critical school building needs

The law allocates an estimated $50 million for competitive school infrastructure grants in 2026–2027, including demolition of vacant buildings. Districts and intermediate districts must apply, and projects must address critical needs identified in the statewide facilities study. Priorities include opportunity-index bands 4–6, qualifying economic disadvantage, student health or safety needs, and limited or attempted bond financing. If funding falls short, up to another $50 million can be appropriated from the infrastructure fund, limited by its balance. Unspent 2026–2027 funds carry into 2027–2028; the provision ends September 30, 2029.

Retirement cost relief for education employers

Michigan provides participating schools and community colleges up to $71 million in 2025–2026 and $88.8 million in 2026–2027. These payments reimburse specified employer retirement contributions for eligible Tier 2 participants and certain Tier 1 members hired after February 1, 2018. Participating community colleges also receive an additional $2.4 million in 2025–2026 solely for normal retirement contribution costs. Qualifying public universities receive up to $1.75 million for that purpose in 2026–2027. Participating district libraries receive up to $100,000 each year, based on payroll for members entering Tier 1 before February 1, 2018. These payments go to employers, not workers.

State covers past college building costs

For 2026–2027, State Building Authority rent support covers the state's share of costs for previously built college projects. Estimated support totals $153.2189 million for public universities and $40.3989 million for community colleges. Community college estimates include $2.881 million for Delta and $2.43 million for Grand Rapids. They also include $3.4045 million for Kalamazoo Valley and $2.3599 million for Monroe County. These payments cover institutional building costs, not student housing assistance.

State funds community college operations

For 2026–2027, community college operating funds total about $363.595 million, an increase of $23,900. College allocations include reimbursements for North American Indian tuition-waiver costs. Listed colleges also receive $14.63 million in one-time performance payments, up from $10.9725 million, subject to statutory distribution requirements. The funding goes to colleges and does not guarantee lower tuition or fees.

State helps schools cover retirement costs

Eligible school districts and intermediate districts receive up to $379.9 million in 2025–2026, up from $336.2 million. They receive up to $351.1 million in 2026–2027 to offset normal retirement contribution costs. Recipients must report employees to Michigan's public school retirement system; allocations use quarterly payroll for workers entering Tier 1 before February 1, 2018. Participating community colleges receive up to $20.75 million in 2026–2027, up from $19.6 million, solely for normal retirement contribution costs. These are employer cost offsets, not payments to workers or retirees.

College scholarships have need and time limits

Beginning with 2024–2025 awards, the Michigan Achievement Scholarship generally requires a Student Aid Index of $30,000 or less and a completed federal aid application. This need test covers public universities, independent nonprofit colleges, and eligible community-college bachelor's programs; an equivalent test must replace it if federal rules change. Scholarship eligibility lasts no more than five consecutive academic years from first enrollment, including time used for a Skills Scholarship. No more than three years can be used at community or federally recognized tribal colleges, except in eligible bachelor's programs. The specified scholarship awards cannot be received in the same academic term.

Special education funding estimates drop sharply

For 2026–2027, the law lists $100 for specified state and available federal IDEA Part B payments, versus $500 million in 2025–2026. Prior-year federal carryover funds are also included, but their amount is not stated. A separate federal special education estimate falls from $83 million to $300. That estimate lists $100 each for infants and toddlers, preschool grants, and other special education programs. These are stated funding estimates, not a stated cut to each child's services; federal money remains subject to federal law.

Prior at-risk school funding framework ends

The law removes the described at-risk pupil funding framework, including its opportunity-index reimbursements and district spending rules. That framework covered instructional programs and direct noninstructional services for at-risk students. This provision does not state a funding amount or effective date. It does not establish the net service change after accounting for the law's separate funding formulas.

College aid help adds graduation requirement

For 2026–2027 only, up to $10 million helps districts improve Free Application for Federal Student Aid (FAFSA) completion. Participating districts must apply and require completion for graduation, with exemptions for prescribed waivers, privacy concerns, and qualifying parent-signature problems. Parent-signature exemptions require a good-faith effort and the additional statutory conditions. Funds must support state-identified completion activities; initial payments are due January 31, 2027. District payments use an equal per-pupil rate multiplied by grade 12 enrollment and attendance.

Families gain consent over virtual courses

Schools need parental consent to enroll nonemancipated students under 18 in courses meeting virtually more than six days yearly. Separately, districts can use the specified virtual-instruction option for at most six days under a board-approved plan. Families must receive notice before the plan takes effect; instruction can be live or self-paced as the education department determines. Up to three days cover required state or federal tests, only in affected buildings and grades. Up to three more cover conditions outside district control, but only after allowed emergency closure days run out.

Teacher fellowships expand with reading requirements

Educator fellowship recipients can count certified teaching in eligible Michigan nonpublic schools and preschools toward their service commitment. Repayment falls in proportion to qualifying years taught. Required service generally depends on award years; recipients working in critical-needs districts must serve three years. Preparation programs seeking fellowship eligibility must include teaching methods based on the science of reading. Programs lacking that coursework can keep eligibility by submitting a detailed public compliance plan by September 30, 2027.

Training scholarships expand with award caps

The Achievement Skills Scholarship expands eligible training, including qualifying maritime programs, and does not require a Michigan high-school credential. Applicants need one year of Michigan residency, a timely application, and no prior associate degree, bachelor's degree, or credential earned using this scholarship. First enrollment must be in 2023–2024 or later, generally within 15 months of graduation or equivalency; equivalency certificates must date from 2023 onward. Prior scholarship recipients have a timing exception, and dual enrollment does not count against first-time status; maritime programs need 150 hours over eight weeks at a Michigan-incorporated, nationally accredited nonprofit approved for federal aid. Awards cannot exceed tuition or $2,000 yearly for two years, and schools cannot change tuition or discounts because a student receives a scholarship.

School safety grants require investigation cooperation

Within the shared 2026–2027 safety and mental health funding, up to $200 million in school aid supports school safety. Payments are capped at $147.06 per pupil and $14 million total for nonpublic schools, with general funds supporting nonpublic awards. Eligible uses include threat-response training, safety infrastructure, resource officers, safety dogs, and emergency systems; emergency infrastructure needs prior state approval. If the shared $10 million general-fund allocation falls short, up to $11 million in reserves supports nonpublic-school safety and mental health awards. Safety-fund recipients must cooperate with a full investigation after a mass casualty event and waive privileges shielding related information.

English learner funding brings service requirements

Districts get extra funding weight for full-time English learners counted and assessed with WIDA in the prior fiscal year. Scores of 1.0–1.9 receive 0.1940 extra weight; scores of 2.0–2.9 receive 0.1339. The law states an intent to raise these annually to 0.75 and 0.50, respectively. Except for the section 22b(3)(g) exception, section 22b(4) recipients must provide WIDA testing, minimum weekly direct English instruction, and evidence-based K–12 tiered supports. Districts must report to parents and state monitors, repay audit disallowances, and limit related administration to 2% of these funds.

Adults get employer-linked education support

Michigan provides up to $4 million in 2026–2027 for approved adult education programs linked to employers and technical training. Programs generally work with Michigan Works! to identify participants ready to enter the workforce. Participants generally enroll in both adult education and a state-approved technical course; commercial driver license courses are excepted. Programs must provide an adult education navigator to support participants.

College students get updated transfer information

Michigan public universities must actively participate in the Michigan Transfer Network and submit timely updates. Each university must certify compliance to the State Budget Director by the first business day of November each year. The requirement supports current transfer information but does not guarantee that specific credits transfer.

Families get early learning enrollment tools

For 2026–2027, Michigan allocates up to $4 million for family outreach and a coordinated statewide enrollment system. An intermediate district works with the state and community groups on outreach, including community events. Providers can list services, and families can enroll and find information about additional early-childhood programs. Families do not have to join early learning partnerships.

Families get timely school test results

For 2026–2027, Michigan provides up to $11.5 million to districts applying for benchmark assessment funding, divided equally per K–8 pupil. Funded districts must use the same qualifying assessment in fall and again by the last marking period's final day. Fall testing must occur within the first nine weeks. Parents or legal guardians must receive available results within 30 days of each assessment. The provision sunsets June 30, 2027.

First-time student aid applicants can win

Michigan sets aside $1 million from scholarship-marketing funds for prizes promoting first-time federal student aid applications. Residents must show they completed the Free Application for Federal Student Aid for the first time. Winners are selected randomly with geographic diversity, including at least one Upper Peninsula recipient. The law does not set the number or size of prizes.

Home-schooled students gain equal virtual pricing

Home-schooled and nonpublic-school students can use Michigan Virtual School services provided through their home district if it subscribes. They cannot be charged more than district pupils pay for the same services. Access is available upon enactment.

Parents get clearer school curriculum information

Beginning with the fiscal year ending September 30, 2026, districts must notify affected K–5 families about curricula outside the state's evidence-based list. Notices must explain concerns about evidence or state standards, possible academic harm, and why the district uses the curriculum. They must also give a replacement plan and projected timeline. The literacy committee's evaluations and annual public rankings now cover broader literacy materials, not just early literacy. Its recommended list remains limited to 15 choices.

Students gain fairer college credit reviews

Michigan public universities must certify that outside-credit decisions do not consider dual enrollment or how or where courses were taught. They also cannot consider whether classmates were high-school students or used the course toward high-school graduation. These protections apply when deciding whether outside credits count toward a degree or certificate; acceptance is not guaranteed.

Students get help paying exam fees

For 2026–2027, Michigan provides up to $1.2 million in general funds and $1.6 million in school aid for exam participation. Assistance covers approved Advanced Placement, International Baccalaureate, and CLEP tests, subject to applicable federal fee-program eligibility. Students must pay at least $5 per assisted test. Students above low-income status can receive partial help only after low-income awards, if money remains. A state-selected intermediate district administers the school aid portion.

Tribal colleges receive tuition waiver funding

For 2026–2027, the law funds tuition waived for eligible North American Indian students under 1976 PA 174. Saginaw Chippewa Tribal College receives $96,700 from Central Michigan University's appropriation. Bay Mills Community College receives $465,000 from Lake Superior State University's appropriation. Keweenaw Bay Ojibwa Community College receives $112,200 from Northern Michigan University's appropriation. These amounts go to colleges, not directly to individual students.

Universities must maintain college credit pathways

Each Michigan public university must participate in reverse transfer agreements with at least three Michigan community colleges. These agreements help eligible students combine previously earned credits toward a credential. Universities must certify participation to the State Budget Director by the first business day of November each year.

Universities must review campus misconduct safeguards

Public universities receiving section 236 funding must submit annual security reports, Title IX summaries, and compliance certifications. These are due by the first business day of November each year. Required safeguards include student prevention presentations, quarterly leadership reports, and review of employee-misconduct reports. An outside review of the Title IX office and related policies is required every four years. Reports must protect complainants' anonymity.

Young children get books and family support

For 2026–2027, Michigan provides up to $3.9 million for evidence-based family support, including qualifying home visits. Payments go through an intermediate district, and home-visiting programs must meet state law. Separately, at least $4 million goes to eligible intermediate districts for books and literacy materials for children from birth to age 5. Those programs must teach families about reading aloud and prioritize families with the greatest economic need when funding falls short.

Education contracts cannot benefit department employees

The Michigan Department of Education cannot enter a state contract with an individual when a department employee may financially benefit. The restriction addresses financial conflicts in the department's contracting.

Medicaid matching supports school mental health

Michigan's health department must maintain a Medicaid plan that can obtain appropriate waivers and added matching funds for Caring for Students. Within the 2026–2027 behavioral health funding, up to $1 million supports technology, systems, and other administrative needs. Up to $300,000 supports administration and efforts to generate more Medicaid funds. Up to $5 million in school aid is split equally among intermediate districts for program administration. These districts must seek Medicaid matching funds for all eligible services and join required Caring for Students learning groups.

Schools get help buying Michigan food

Michigan provides up to $4 million in competitive school food grants for 2026–2027, with awards based on prior-year meal counts. Grants support whole or minimally processed Michigan-grown fruits, vegetables, and legumes for federal child nutrition meals and related activities. Minimally processed products must also be processed in Michigan. Matching payments can reach 10 cents per meal, and directly related labor and transportation can use up to 25% of awards. Covered school lunch and breakfast programs must prefer Michigan-grown or Michigan-produced food when competitively priced and of comparable quality.

Training helps school mental health providers

For 2026–2027 only, Michigan provides up to $3 million to train school mental health professionals. Training includes evidence-based practices such as cognitive behavioral therapy and mindfulness. Intermediate districts with approved applications receive equal grants. They must forward the awards to the program for contracted services.

Aid supports specialized student education services

The law estimates $1.8 million in foundation aid in each of 2025–2026 and 2026–2027 for specified pupils. These include some pupils served in juvenile detention, child-care institutions, or state health and human services settings. Payments use applicable foundation and per-pupil amounts, subject to target foundation limits. For 2026–2027, another $3 million funds an association of special education administrators to develop content available statewide. That money may also support remote-learning assessment tools and research on federal special education research funding.

Attendance flexibility for special education programs

Each instructional day in a qualifying district special education program is exempt from the specified attendance threshold. The Michigan Department of Education must approve the program, and its calendar must exceed 180 days. Programs must provide the required minimum instruction hours and keep documentation of their approved calendar.

Better test tools for school families

The law allocates $500,000 for 2025–2026 and 2026–2027 to operate a secure online assessment-reporting tool. Educators, parents, and students can get student-level results immediately after scoring. The tool cannot give the federal government data identifying individual students. Approved benchmark-test providers must also include digital teaching resources tied to their tests and Michigan standards.

Clare schools get missed-day relief

For 2025–2026, districts wholly or partly in Clare County can count up to four additional missed days as instructional days. Only March 12, 13, 16, and 17, 2026, qualify. Instruction must have been canceled because of conditions beyond school authorities' control. This rule ends June 30, 2026.

College transfer partnerships and visiting professors

For 2026–2027, Michigan funds partnerships helping community college students transfer into bachelor’s degree programs. Michigan public or independent colleges can receive up to $150,000 per institution for no more than two years. The state pays 70% and the college pays 30%. Each public university also receives $11,184 for visiting professors serving as role models for academically or economically disadvantaged students. Visiting professor awards also last no more than two years. Neither program allows participant preference based on race, color, ethnicity, gender, or national origin.

Community colleges must post safety links

Community colleges receiving the law's operating appropriations must prominently display a link to campus safety information and resources. Colleges must develop, maintain, and update the link by the first business day of November each year. The requirement does not specify a new safety service or funding amount.

Disadvantaged candidates get faculty career fellowships

Public university funding for 2026–2027 includes fellowships for academically or economically disadvantaged candidates pursuing college faculty or administration careers. Each university’s fellowship allocation follows the percentage change used for its university appropriation. Universities may use no more than 5% for administration and cannot prefer applicants by race, color, ethnicity, gender, or national origin. Funds may transfer to another university before September 1. Allocations not spent or committed by September 30, 2028, must return to Michigan’s labor department and lapse to the general fund.

Districts get special education cost reimbursements

For 2025–2026 and 2026–2027, the law allocates up to $3.2 million for qualifying special education rule costs. School districts and intermediate districts receive reimbursement for 100% of qualifying net increases in necessary costs. Costs must arise solely from the specified rule revisions. The education department determines eligible increases after subtracting permitted savings.

Early developmental services for young children

Michigan provides up to $26.0819 million for Early On services in 2026–2027. Services support children from birth to age 3 with developmental delays, disabilities, or both. Intermediate districts must apply and use grants to add services, not replace existing services or money. They must provide monitoring information and maximize Medicaid funding where possible. Awards must be spent before June 30 of the fiscal year following receipt.

Early learning partnerships help families connect

Michigan allocates up to $30 million for statewide early learning partnerships in 2026–2027. Partnerships help families find services, connect pediatric providers with early identification of needs, and use data to improve services. At least $16.9 million goes to eligible intermediate districts, with awards no lower than their 2024–2025 local Great Start Collaborative funding. At least $1 million supports MiFamily regional centers; recipients must partner with an organization experienced in family leadership. Each funded district must provide at least a 0.8 full-time-equivalent lead position and a 0.5 full-time-equivalent care coordinator.

Extra school aid for rural communities

For 2026–2027, eligible rural districts receive up to $14.1844 million through separate funding formulas. Up to $4.3041 million supports K–12 districts with fewer than 250 pupils and approved essential-needs spending plans. Every building must be on a non-bridge-accessible island or in the Upper Peninsula, at least 30 miles from another public school. Up to $9.269 million supports qualifying districts with fewer than 10 pupils per square mile or over 250 square miles. Bridge-accessible island districts receive up to $611,300; the law bars certain overlaps among these funding groups.

Families get free educational media resources

For 2026–2027 only, up to $3 million expands literacy programming, educator resources, and family engagement through a qualifying media service. Funding passes through a public university with a prior partnership; the university cannot retain administrative fees. The nonprofit service must offer free pre-K–12 standards-aligned resources, statewide distribution, and a no-cost online library. It must also partner with Michigan public broadcasting stations. The department must pay by December 1, 2026, and the service must report compliance by February 1, 2028.

Families get public school growth reports

For 2026–2027 only, up to $2 million supports a student and teacher growth and projection data system. An intermediate district partners with Michigan’s education department and a vendor selected through a competitive grant process. The system uses historical student data and provides educator training and reports. District and school growth measures must be public online by March 31. Educator access must follow privacy laws and use permissions tied to job roles.

Funding for deaf and blind schools

Michigan provides up to $2.8414 million for the Michigan Schools for the Deaf and Blind in 2026–2027. The education department sets the payment schedule. This provision funds the schools rather than setting an individual pupil’s services or household payment.

Funding for students earning college credit

For 2026–2027 only, Michigan provides up to $40 million to reimburse districts for required college and career dual-enrollment charges. Opportunity index bands 4 and higher get priority, followed by bands 3, 2, and 1 if money remains. Reimbursements cannot exceed required charges; shortages trigger a 25% allocation cap on oversized payments and proportional reductions. A separate allocation provides up to $9.2204 million for career early middle college and dual-enrollment programs. Program funding uses 50% of statewide average career education costs per pupil times prior-year enrollment. Programs must meet curriculum and credential requirements and rank among their region’s top five career-cluster priorities. Each fiscal agent and provider has a 5% administration limit, and combined section 61a and 61b payments cannot exceed allowable costs.

Funding supports early childhood workers

For 2026–2027, Michigan provides up to $21.7 million in school aid and $8.3 million in reserves for early childhood workers. Funding can support training, career growth, hiring, and retention, including stipends, incentives, pay, and benefits. An intermediate district or district consortium serves as fiscal agent. Administration and data collection require a Michigan public university partner and cannot exceed 5% of funding. Unspent money carries into 2027–2028; the work project’s estimated completion date is September 30, 2029.

Funding supports future farmers association

Michigan State University’s 2026–2027 appropriation includes $80,000 for the Michigan Future Farmers of America Association. This money cannot replace support the university already provides to the association.

Grants support teacher training and retention

Michigan provides up to $25 million in competitive educator workforce grants for 2026–2027. School districts, intermediate districts, and groups of intermediate districts can apply through the education department. Grants support local teacher pipelines, workforce innovation, educator development, and retention.

Literacy coaches and statewide teaching support

Michigan provides up to $52.5 million for intermediate-district literacy coaches in 2026–2027, capped at $125,000 per coach. Funding starts with four coaches per intermediate district, then supports at least one more than its funded 2025–2026 count. No district receives funding for fewer coaches than last year; remaining money follows shares of low-income K–3 pupils. Coaches must meet training requirements, and districts must submit contact details by the preceding September 1 and changes within 30 days. Another $6 million supports statewide reading materials, training, coach networks, and regional coaches. That award goes through the intermediate district with the fewest constituent pupils and an administrators’ association, whose administration costs cannot exceed 2%.

More virtual course options for students

Michigan Virtual School can offer more course types, including college-level classes, technology courses, and programs for at-risk students. These offerings must appear in the statewide virtual-course catalog. Michigan Virtual University must run its research institute each year it receives section 98 funding. The institute studies virtual learning and maintains a public catalog with enrollment and pass rates. The law does not guarantee every student access to a specific course.

New treatment for qualifying school debts

Beginning with the fiscal year ending September 30, 2027, the law sets debt presumptions for a qualifying school district. The district must have entered a qualified debt agreement. Specified agreement debts and outstanding operating obligations are presumed paid, and section 386 no longer applies to the community district. Remaining agreement revenue funds are presumed transferred to the community district.

Portable credentials for students and educators

For 2026–2027 only, Michigan provides $3 million for a statewide digital credential program. An intermediate district must work with an experienced nonprofit partner. The program provides portable, verifiable career education credentials and portfolios aligned with approved programs and statewide skill standards. It also records educators’ literacy training, including LETRS. The nonprofit must support implementation, secure sharing, participant-level data, and annual reports to the education department.

Preschool programs get training and support

For 2026–2027, up to $2 million supports preschool educator training and materials for new approved curricula or child assessment tools. Purchased materials must meet early-childhood quality standards, including the science of reading. Michigan must also competitively fund a state public university to continue studying former Great Start Readiness preschool participants. Up to $1.2 million supports early learning partnerships, including up to $50,000 for Oakland Schools’ strategic leadership. Up to $1.15 million supports Clinton County RESA’s statewide leadership, technical help, central access point, outreach, and administration.

Qualifying school debt is presumed paid

Beginning with the fiscal year ending September 30, 2027, the law sets debt-payment presumptions for a qualifying school district. The district must qualify under section 12b of the Revised School Code and have entered a qualifying debt agreement. Specified agreement debts and outstanding operating obligations are presumed paid, and section 386 is presumed no longer applicable to the community district. Remaining agreement revenue funds are presumed transferred to the community district after those payments.

Reading training funds help school staff

For 2026–2027 only, Michigan provides up to $75 million for approved literacy training. The funding includes $25 million in school aid and $50 million from the educator fellowship public provider fund. Priority groups include specified pre-K–5 and special education educators, administrators, literacy coaches, reading preparation faculty, and designated literacy partners. Remaining funds can help districts that publicly commit to training all qualifying staff. Available grants can cover implementation, substitute teachers, and participant compensation; LETRS remains the approved provider while meeting statutory requirements.

School data hubs receive integration grants

For 2026–2027, Michigan provides up to $3.5 million in competitive grants to connect local systems with its data hub network. Awards must reach geographically diverse regional hubs. Eligible recipients must serve as fiscal agent for no more than five intermediate-district groups previously funded to establish regional hubs. Hub governance must protect local control of data, data security, and student privacy.

School transportation and driver training funded

For 2026–2027, Michigan funds eligible colleges, universities, and intermediate districts providing required school bus driver safety instruction. Payments cover actual instruction costs and compensation for attending public and nonpublic school drivers, at no more than their driving hourly rate. Michigan also funds reasonable costs of qualifying transportation for nonspecial education auxiliary services. Districts cannot receive another allocation for the same transportation. Both allocations provide the amount necessary rather than a fixed dollar pool.

School transportation and inspection funding rises

For 2026–2027, the transportation-services allocation rises from $3.9499 million to a ceiling of $4.7531 million. It supports driver safety training, nonspecial-education auxiliary-service transportation, and vehicle inspections. Within this transportation funding, required state police inspection funding rises from $1.9249 million to a $1.9781 million ceiling. State police must submit inspection costs for approval; reimbursement cannot exceed that ceiling. Approved payments must be forwarded within 45 days after receipt of the relevant statement or funds.

School tutoring grants and parent choices

For 2026–2027 only, Michigan provides up to $50 million for competitive grants to vetted tutoring partners serving eligible districts. Shortages prioritize districts with the lowest M-STEP literacy scores. Tutoring generally must be in person at least twice weekly, with no more than four students per tutor, trained tutors, evidence-based lessons, and progress checks. Awards are due January 15, 2027, payments March 1 and March 15, and services before the school year ends. A parent-driven pilot sets aside up to $5 million, prioritizing opportunity index bands 4 and higher while covering urban, rural, and all state regions. Parents apply through participating districts, which prioritize low-income, academically at-risk students and pay selected evidence-based providers directly. Pilot providers must not already partner with the district; administration limits are 0.5% for competitive-grant fiscal agents and 2.5% for pilot districts.

Schools get dyslexia and reading support

For 2026–2027 only, Michigan may award up to $1 million for dyslexia teacher training, first-come, first-served until funds run out. Districts must apply for programs covering five essential reading components through explicit, proven teaching using sight, hearing, touch, and movement. Another allocation provides up to $1.6 million for reading, dyslexia, social, emotional, and behavioral support through a statewide technical assistance center. This work must support tiered student help and teaching grounded in the science of reading. An intermediate district manages the money, may use up to 2% for administration, and Michigan must report annually on implementation and reading help.

Schools get help training qualified librarians

For 2026–2027, Michigan may award up to $3 million for programs leading to a school librarian specialist endorsement. Priority goes to applicants serving schools with libraries but no staff holding a school librarian or equivalent endorsement. The grants fund certification programs, not direct household payments.

Schools get literacy funding and evaluation

Districts and intermediate districts can apply for payments Michigan determines are needed for their chosen literacy items. Recipients must report past, current, and planned literacy items by May 1 and October 1 each year. Clinton County RESA receives $600,000 for tutoring technical help and reporting with the Michigan Association of Intermediate School Administrators. No more than $300,000 can fund data collection, aggregation, and reporting. For 2026–2027 only, up to $3 million funds statewide literacy evaluation by a Michigan public university with an existing department-district research partnership.

Schools get tribal consultation training support

For 2026–2027 only, up to $2.5 million funds Marquette-Alger Regional Educational Agency’s statewide tribal consultation support. The agency must bring together tribal leadership, tribal education groups, school leaders, program directors, and Michigan’s indigenous education initiative. Training covers Native student identification, tribal affiliation and program data, data sharing, and government-to-government consultation. Initial training must be available to district staff, administrators, and board members by September 30, 2027. Annual reports measuring progress must begin no later than January 1, 2028.

Startup grants support more preschool classrooms

For 2026–2027 only, Michigan provides up to $3.6 million to start or expand Great Start Readiness Program classrooms. Grants cannot exceed $50,000 per classroom and are reduced equally among eligible applicants if money runs short. Recipients must pass the full award to classroom operators for approved staffing, facilities, outreach, quality improvements, and reading training. Instructional staff must have completed or be completing science-of-reading training. Applicants must apply as directed by the education department.

State funds classroom science learning programs

For 2026–2027, up to $3.8 million funds MiSTEM Council-recommended science, technology, engineering, and math programs or demonstration grants. Programs must meet state standards, third-party certification requirements, and specified student or educator learning criteria. Demonstration grants must support state standards and the statewide learning strategy. Council funding recommendations are due December 15 each fiscal year. Without timely recommendations, the labor department awards competitive grants following the statewide strategy and council-recommended rating system.

State funds Michigan virtual learning services

For 2026–2027 only, Michigan Virtual University receives up to $9.8 million from the state general fund. The money may be used only for the virtual-learning purposes listed in the law's designated funding section. This supports the institution's services rather than direct payments to families.

Students get college planning and transcript support

For 2026–2027, up to $3 million supports college advising, outreach, mentoring, and planning with the Michigan College Access Network. Districts with comprehensive high schools can receive up to $5,000 to form college access teams and use approved college-going strategies. The Michigan College Advising Program can receive no more than 33% of this pool. These funds cannot replace district-funded counselor spending. Another allocation provides up to $500,000 for high school and pupil electronic transcript services, without promising a specific family fee reduction.

Students get funded career learning programs

For 2026–2027 only, up to $2.9 million funds competitive school grants to expand career education aligned with high-demand jobs. Half supports technology purchases; half supports mobile virtual-reality career services. Up to $900,000 supports a K–12 engineering program serving multiple southeast Michigan communities and districts. That program must have received designated 2014–2015 state funding and emphasize at-risk and underrepresented pupils preparing for science careers and college. Another allocation provides up to $900,000 for districts partnering with nonprofits to teach restaurant management, culinary arts, hospitality, or tourism.

Students get more financial aid information

The state must publicize grants and financial aid and give high school students information about available help. The Department of Lifelong Education, Advancement, and Potential can use up to $10 million annually for outreach. That money comes from the Michigan Achievement Scholarship appropriation. Outreach does not guarantee students an award.

Students get virtual reality math pilot

For 2026–2027 only, up to $2.9 million funds a math and science simulation pilot for grades 6–12. It can serve up to 9,000 students in up to eight districts, focusing on algebra I and middle-school math benchmarks. The provider must have a third-party-evaluated randomized trial showing double-digit growth on algebra I benchmark assessments. The intermediate district must send funds to the selected provider within 30 days, retaining no more than 2.5% for administration. Participating districts must apply and give all their math and science teachers access to the standards-aligned program.

Teacher preparation grants get funding deadlines

For 2026–2027, Tier 2 teacher preparation grants are capped at $8 million, and Tier 3 grants at $3 million. Starting that year, Tier 4 serves small or early-stage programs without independent evaluation data and with limited scope or reach. The law sets no Tier 4 funding amount. The education department must make preparation grant payments by December 15, 2026. Specified 2025–2026 program funds remain available through September 30, 2027; recipients must return unused money by October 30, 2027.

Tiny districts get attendance funding protection

Districts with fewer than 100 pupils in the latest fall count can request an attendance-threshold waiver. They must show that one household’s absence could materially push daily attendance below the usual threshold and keep supporting records. The superintendent must grant a qualifying request. With the waiver, attendance-related funding reductions apply only when fewer than 60% of pupils attend an instructional day.

Transportation funding helps families reach preschool

For 2026–2027, Michigan makes up to $28 million available for Great Start Readiness Program transportation reimbursements. This includes up to $10 million in school aid and $18 million from the program reserve. Reimbursement cannot exceed the projected transportation budget or $500 per funded child, whichever is less. Eligible costs include transportation provided or accompanied by parents or guardians, with family, need, transportation-type, and actual-cost records required. Programs must submit budgets to their fiscal-agent intermediate districts by November 1. If money runs short, reimbursements are reduced equally per funded child.

Universities support disadvantaged future teachers

Beginning October 1, 2026, university funding includes the Morris Hood, Jr. program for academically or economically disadvantaged future teachers. State-approved institutions administer the program to support teacher-degree completion and teaching in Michigan. Participation preferences cannot be based on race, color, ethnicity, gender, or national origin. Institutions receiving section 278, 279, or 281 funds must report March 31, 2027, unused balances by April 15, 2027. Reports must include year-end spending plans; money not expected to be spent moves to institutions planning to use their full allocations.

University funding supports medical graduate training

Michigan provides $10 million for graduate medical education in 2026–2027. A public university participating in the MiDocs consortium receives the money. The university must use it for graduate medical education, subject to the program’s statutory requirements. The allocation does not provide direct payments to patients or households.

Virtual learning gets training and subsidies

The Michigan Virtual Learning Research Institute must train at least 30,000 education workers to use virtual learning in teaching. Reports on participation, barriers, opportunities, and course standards are due December 1 in each funded year. Michigan Virtual University may use up to $1 million of its designated funding to help districts pay virtual-course costs. It must also run a statewide lab for virtual-learning research, teaching practices, experimentation, and policy work. The lab promotes responsible artificial intelligence use in schools; course subsidies go to districts, not families.

Virtual school teachers face background checks

Michigan Virtual School must follow school-district procedures for criminal history and criminal records checks on its virtual-course teachers. The State Police provide the checks. This requirement takes effect upon enactment.

Vocational schools get revised funding benchmarks

The law raises taxable-value benchmarks used for reimbursements to intermediate districts and vocational programs with qualifying millages. For 2024–2025 millages, the benchmark rises from $287,400 to $288,300 per membership pupil. For 2025–2026 millages reimbursed in 2026–2027, it is $302,800 per membership pupil. Calculations subtract specified local community stabilization, brownfield tax-increment, and related reimbursements. These are school funding benchmarks, not household tax rates or payments.

Recovery funds stay available through December

Beginning October 1, 2026, Michigan's budget director must ensure American Rescue Plan state recovery funds are spent by December 31, 2026. Funds otherwise lapsing after September 30, 2026, are automatically reappropriated for their original authorized purposes. They remain available through December 31, 2026, and any later financial closeout period. The provision does not create a new household payment.

Research funding supports Michigan farms

For 2026–2027, Project GREEEN receives $2.9829 million through Michigan State University agricultural research and $2.6452 million through Extension. It addresses regulatory, food safety, economic, and environmental problems affecting plant-based farming, forestry, and processing. The university and state agriculture department set priorities with commodity groups and other interested parties. University research and Extension funding also supports the Agricultural Climate Resiliency Program's work on sustainable farming and water protection. The supplied provision states no separate amount for that climate program.

Unused recovery funds support state payroll

Beginning October 1, 2026, the state budget director can redirect recovery funds at risk of missing the spending deadline. This includes money left when projects finish under budget or recipients cannot use their full awards. Redirected money is immediately reappropriated to reclassify general-fund payroll and covered benefits for eligible Corrections or State Police employees. The transfers must follow federal recovery-law guidance and reporting requirements.

Added school funding for English learners

Schools get an extra 0.0219 in pupil funding weight for qualifying full-time-equivalent English learners. Students must have scored 3.0–3.9 on WIDA ACCESS or WIDA Alternate ACCESS in the previous fiscal year. The law states an intent to increase this added weight annually until it reaches 0.35. This changes school funding, not direct payments to families.

College database and regional program funding

Michigan provides $322,100 for state and regional higher education programs in 2026–2027. Of that amount, $200,000 pays for database modernization and conversion. The remaining $122,100 supports the Midwestern Higher Education Compact. These are program funds, not direct student payments.

College grant supports maritime job training

For 2026–2027 only, Michigan provides a $3.5 million grant to continue the Michigan Maritime Manufacturing Initiative. A community college must have a program capable of supporting the project. The money funds instruction and certifications in maritime welding, machining, and construction. The Department of Labor and Economic Opportunity administers the grant; students do not receive the money directly.

College students and educators get support

For 2026–2027, the King–Chávez–Parks-related student and educator program named in the law receives $2.6915 million. The allocation provides $1.9561 million for select student support services. It also provides $586,800 for Michigan college/university partnerships and $148,600 for Morris Hood, Jr. educator development. The funding supports programs and services, without setting individual payment amounts.

Community colleges recover exempted tax revenue

Community colleges receive $2.2 million in 2026–2027 for Renaissance Zone tax reimbursements, subject to section 207c. Eligible colleges receive shares based on revenue lost from property taxes exempted in 2026. Colleges must qualify under section 12(3) of the Michigan Renaissance Zone Act. Payment is due within 60 days after Treasury certifies receipt of the information needed to calculate amounts. Colleges must record the payments in their fiscal year ending June 30, 2027.

Dropout recovery programs gain funding flexibility

Qualifying dropout recovery programs can count one-twelfth of a full-time student for each full-attendance month or successfully completed course. A student can generate more than one full-time funding count, and the entire amount receives aid. Monthly counting requires a personalized learning plan by the first school day of the student's first month. Students must meet the specified monthly progress, prior-month progress and intervention, or first-two-month credit requirements. Programs must meet section 23a requirements.

Hiring support for educator loan programs

For 2026–2027 only, Michigan provides up to $500,000 for districts participating in the educator-on-loan program. Districts and intermediate districts can use the money for added retirement-system hiring costs and other employment expenses, including benefits. The education department sets the payment schedule. The law does not set a payment for each worker or district.

Late state budgets delay school penalties

Districts get extra time before budget-disclosure penalties when the school-aid budget is not enacted and approved by July 1. The state cannot apply the specified withholding or penalty until 30 days after enactment. The penalty can withhold up to 10% of state school aid. This protection also covers intermediate school districts.

Medical training funds pass through universities

Graduate medical education funds go in one lump sum to a public university chosen by Michigan's health department. The university must transfer the entire payment to the department within 30 days. The department must use it for graduate medical education programs in Michigan.

More funding for adult education programs

Adult education programs receive up to $42.525 million for 2026–2027, compared with $32.9136 million for 2025–2026. Recipients must use the money only for adult education programs authorized by this funding section. The law funds programs rather than setting direct payments to adult learners.

More funding for university research outreach

For 2026–2027, Michigan State University AgBioResearch receives up to $1.5675 million in supplemental school aid funding. Michigan State University Extension receives up to another $1.3521 million. Both amounts add to their existing university appropriations. The money supports research and extension programs, not direct household payments.

Private schools get compliance cost reimbursements

Eligible nonpublic schools receive up to $1 million in 2026–2027 for actual state-required health, safety, and welfare compliance costs. Schools must apply by June 30 and allow limited records review; payments can be reduced proportionally if funds fall short. Eligible costs include specified training, inspections, and background-check fees. Labor reimbursement uses the lowest-paid capable employee, excludes benefits and overtime, and rounds partial increments down using increments of at least 15 minutes. Qualifying 2017–2018 through 2022–2023 costs use work-project funds first, then this allocation if needed.

School employers get lower retirement rates

The law sets lower public school retirement contribution rates for 2026–2027 using a 12-year amortization period. Stated total rates range from 28.72% to 41.02% of payroll, with employer-paid portions from 15.21% to 27.51%. Rates depend on first work dates, health coverage or personal healthcare fund participation, and retirement plan choices. Employers also pay applicable Tier 2 contributions. These figures do not establish a new employee contribution rate or personal retirement payment.

School infrastructure fund and demolition grants

The law creates a school consolidation and infrastructure fund whose money carries forward and requires a specific appropriation before spending. For 2026–2027, it provides up to $8.8 million in grants to demolish vacant buildings on district-owned property. Priority goes to districts losing over 80% of pupils since 2002–2003 and having the most vacant properties. A recipient cannot receive over $10 million in additional grants under this section. Grants can be spent through September 30, 2029; unspent money must be returned by October 30, 2029.

School infrastructure fund gets new deposit

For 2026–2027, the law deposits $50 million from school aid into the school consolidation and infrastructure fund. The money is reserved for school consolidation and infrastructure purposes. Spending still requires a specific appropriation; the deposit alone does not approve projects.

Schools avoid duplicate teacher-placement aid penalties

For school-aid counting, instructors must be placed for the required grade range or hold valid substitute permission. Their credentials no longer need to cover the class's subject for this counting definition. Teacher misplacement still carries section 163 penalties and remedies. The state cannot add a section 15 membership adjustment for the same misplacement already subject to section 163.

Schools gain broader student funding counts

For 2026–2027 only, districts use the specified membership calculation even without meeting its usual eligibility conditions. Charter schools also count as districts under sections 11x and 11aa, but remain excluded under other listed sections. Districts can count fifth-year students in state-approved early middle colleges even after those students earn high school diplomas. At each membership count, at least one college course must be recorded for high school credit. These changes affect school aid, not direct household payments.

Schools get help paying data costs

Michigan provides up to $41.0005 million in 2026–2027 for required school data collection, maintenance, and reporting. This includes $3 million for reports to tribal governments and tracking student participation in specified federal programs. Districts and intermediate districts receive equal amounts per pupil. Money must cover necessary state-required data costs, and payments cannot change after the final scheduled school aid installment.

State scholarship fund supports broader aid

Michigan expands the postsecondary scholarship fund beyond Achievement Scholarships and related uses. The fund can support state grants and financial aid allocated under section 236(7). This funding change does not itself set individual awards or change who qualifies.

State support for school bond payments

For 2026–2027, Michigan adds general fund money to the school loan revolving fund. The amount equals school bond loans assigned to the Michigan Finance Authority, capped by school bond loans held as long-term reserve assets. The law also provides up to $23 million for bond redemption payments on behalf of districts and intermediate districts. That allocation must be paid in full up to the cap, without across-the-board proration.

Assault-related school transfer exception narrows

The serious-assault exception for counting pupils outside their home district without its approval now covers felony sections 750.81 through 750.90g. The former range extended through section 750.90h. The pupil, parent, or guardian must file an official written complaint with law enforcement and school officials. It must state that the assault happened at school or was committed by a home-district pupil or employee.

Parents lose required school information notices

Districts and intermediate districts no longer must make student survey questions and results publicly available or post them online. They also no longer must notify parents and guardians about surveys under the repealed requirement. Districts no longer must notify parents when K–5 curriculum is absent from the state's evidence-based list. They also no longer must explain that choice or provide a timeline for adopting listed curriculum. The survey repeal does not prohibit voluntary sharing.

Students face new school fitness testing

Starting in 2026–2027, district and intermediate-district schools must give the presidential fitness test under state guidance. Testing applies only to students enrolled in physical education and must occur in those classes. Students with an individualized education program are exempt unless their program requires the test.

Teacher programs cannot fund student expenses

Beginning October 1, 2026, institutions cannot use section 278, 279, or 281 program funds for student financial aid. Banned uses include scholarships, tuition, stipends, work-study, transportation, textbooks, child care, and medical premiums or expenses. Public universities can offer academic incentives only with Department of Labor and Economic Opportunity approval.

Regional teacher grants change eligibility rules

For 2025–2026, Tier 3 programs must be under two years old, lack independent evaluation data, and have limited scope or geography. They must document a path to expand. For 2026–2027, programs instead need at least three years of operation and an independent evaluation partnership showing promising results. A regional consortium must be led by an intermediate district serving 97,000–103,000 students and partner with at least 35 districts. It must also partner with a department-approved regional preparation program and document a path to deepen or replicate regional impact.

Regional youth grants face tighter limits

Statewide and regional applications can receive no more than 40% of out-of-school-time grant funds. Each such proposal must involve at least two qualifying entities and serve more than 2,000 children at 15 or more sites. The sites must be statewide or within a publicly defined region, and applicants must show a record of success. An applicant and its listed sites cannot appear on another application under the same grant provision.

School aid requires school-code compliance

Districts must comply with Revised School Code section 1280f to receive section 22b aid. The law also ties aid to section 1280h if Senate Bill 903 of the 103rd Legislature becomes law. Otherwise, section 164m applies.

Schools lose emergency missed-day waiver

District boards can no longer use the specific emergency waiver that excused up to 15 missed instructional days. The former waiver required a majority board vote. It covered instruction missed because of an emergency in a county under the governor's emergency declaration. The repeal does not describe changes to other missed-day exceptions.

Schools receive less literacy program funding

Michigan provides up to $50 million for literacy purposes in 2026–2027, down from $64.4 million in 2025–2026. The maximum allocation falls by $14.4 million. The money can fund payments to districts and intermediate districts to improve literacy outcomes.

Teacher grants face workforce spending rules

Educator grant recipients can spend no more than 10% of their awards on administration. Those costs must concern teacher recruitment, retention, development, innovation, or evaluation. Beginning in 2026–2027, applications must show how programs address projected workforce needs. Grow-your-own preparation partners must have Michigan department approval or accreditation from CAEP or AAQEP leading to Michigan licensure.

Teacher pipeline grants require nonprofit experience

For 2026–2027, Tier 2 applicants must include a Michigan-based 501(c)(3) nonprofit operating for at least four years. Programs must serve K–12 and early-childhood teacher pipelines across geographically diverse urban and rural areas. They need promising internal results and a contract with an outside research agency. Required experience includes grow-your-own programs with more than 100 participants and partnerships with at least nine districts and a national strategic-staffing nonprofit. Applicants must also have led a degree-granting program for school-district talent leaders.

Top-tier teacher grants require statewide experience

For 2026–2027, Tier 1 educator grant awards are capped at $8 million within the four-tier grant structure or authorized alternative purposes. Programs must have operated for at least three years and show successful educator retention. They need ongoing formal district partnerships in every intermediate district and statewide service covering urban and rural areas. They must also show a record of private philanthropic or corporate funding.

Colleges risk funding over missing reports

Community colleges receiving section 201 or 201f funding must submit required data and certifications to the state's education data center. The budget director can withhold monthly operating payments until submission; amounts still withheld at year-end are forfeited. Standard report recipients must receive at least 10 days' notice before that withholding begins. Colleges must also submit auditor management letters and annual audited income and spending accounts, including foundations, before November 15. The center shares audits with designated state recipients; missing audit materials require withholding monthly operating payments until submission.

Community colleges receive less retirement funding

For 2026–2027, participating community colleges receive $84.8 million in retirement-system payments, down from $89.5 million. That is a $4.7 million reduction. Payments remain subject to section 207b and go to colleges, not directly to workers or retirees.

School project grants face spending deadlines

Work-project grant recipients must spend their funds by the end of the fiscal year immediately after the project's closure year. Unspent money must return to the Michigan Department of Education by that September 30. These deadlines cover districts, intermediate districts, and other recipients. Another provision in the article can set a different deadline.

Specified federal school funding estimate drops

The law estimates $8 million in federal funding for specified assessment and special education purposes in 2025–2026. It changes the 2026–2027 estimate from $8 million to $100. Distribution must follow federal law and support compliance with the Every Student Succeeds Act. This is a specified allocation, not the law's total special education funding.

Universities risk losing funds over reports

The state budget director may withhold universities' monthly regular and one-time operating payments until required reports are submitted. Universities forfeit withheld money if they remain out of compliance at the fiscal year's end. The director must notify the designated report recipients at least 10 days before withholding funds.

Preschools face staffing and transparency rules

Great Start Readiness funding applicants must show compliance with program rules or an applicable waiver. Providers must use staff qualified under state department standards, replacing the former detailed credential and compliance-plan rules. Funded intermediate districts and groups must post dashboards showing funding requests, programs, enrollment, open slots, and applicable waitlists. Families on waitlists must receive a link; the dashboard rule is no longer limited to applications starting in 2025–2026. The reserve fund can also support purposes listed in section 32v, but spending still requires a specific appropriation.

Grant recipients face fewer oversight rules

The law removes detailed requirements for legislatively directed spending grants. Removed rules cover grant agreements, recipient checks, reimbursement and spending procedures, reporting, and recordkeeping. They also cover repayment enforcement, project completion, and deadlines to return money. Recipients face fewer duties, but these specific public spending safeguards are gone. Requirements imposed by other laws still apply.

School safety grants and investigation rules

For 2026–2027 only, districts can compete for $10 million in youth violence prevention grants. Plans must use evidence-based practices, mentorship, and community engagement; comprehensive plans with outside partners receive priority. Education and health officials coordinate application reviews, and the law removes the former work-project carryforward authority. Separately, school safety investigation rules cover school-ground or school-event incidents causing significant injuries to at least three people or at least two deaths. They also cover incidents requiring outside emergency resources because local resources are insufficient, or a sudden surge of injured people needing emergency care.

School food rules carry funding penalties

Food offered through school breakfast and lunch programs must follow federal meal rules, including Smart Snacks limits on soda and candy. After receiving a report and confirming a violation, the Department withholds 5% of the applicable school aid payment. Withholding lasts while the district remains out of compliance.

After-school grants set safety and access rules

Out-of-school-time grants must offer tiers for statewide or regional programs, programs with 6–14 sites, and programs with 1–5 sites. Michigan must publish scoring rules at least 30 days before applications open and allow at least 30 calendar days to apply. Applicants with an active child-care license application, and exempt entities, must show required youth-staff safety checks and training. These include Central Registry and Internet Criminal History Access Tool checks, first aid, CPR, and child-care safety Modules A–C. These are grant conditions, not general rules for all youth programs.

College access grants require institutional contributions

University funding for 2026–2027 supports college exposure for disadvantaged schoolchildren and retention services for disadvantaged students at four-year institutions. College day plans require equal contributions from the program, public university, school district, and participating independent degree-granting college. College day funds cannot pay indirect costs, and indirect costs cannot exceed 20% of the university match. Retention awards are capped at $150,000 per institution and two years, with a 70% state and 30% institutional funding split. Neither program allows preferences based on race, color, ethnicity, gender, or national origin.

Early college planning grants require matches

For 2026–2027, up to $500,000 from career education funding supports planning new or expanded early middle college programs. Intermediate school districts or their consortia can receive up to $50,000 each. Recipients must provide an equal funding match. These grants pay for planning, not student tuition awards.

Education data and research receive funding

For 2026–2027, education data center operations receive up to $19.5485 million in general funds and an estimated $100 in federal funds. The previous amounts were $19.3647 million and $2.1935 million, respectively. Another allocation provides up to $1 million for Michigan Education Research Institute work through the University of Michigan and Michigan State University. Researchers must work with state education agencies on research-ready data and studies of literacy, educator shortages, and early-childhood outcomes.

Improvement funding for low-performing school districts

Michigan provides $6.1374 million in 2026–2027 for districts assigned to partnership improvement agreements. Eligible districts must have at least one school identified as low performing under the federal accountability system. Within 90 days of assignment, districts must complete an approved needs assessment. They also need an approved improvement plan with measurable benchmarks and access to fiscal and policy training for leaders. The law provides up to $137,400 for a data tool and requires covered districts to buy a tool funded by that allocation.

Nineteen school aid sections are repealed

Beginning October 1, 2026, the law repeals 19 sections of Michigan's State School Aid Act. They are sections 11y, 11aa, 11bb, 23g, 25g, 27k, 35e, 41, 41b, 55, and 61d. The list also includes 97k, 99, 99aa, 99ee, 99mm, 107a, 147g, and 164j. The supplied text does not explain their contents, so specific funding, service, or obligation changes cannot be identified.

Regional science funding carries matching rules

For 2026–2027, up to $4.2 million funds regional MiSTEM networks, with $220,000 per regional fiscal agent for base operations. Remaining money follows prior-year regional K–12 enrollment; fiscal agents may retain no more than 5%. MiSTEM grant recipients must provide at least a 10% local public or private match, allow audits, and repay disallowed spending. Performance reports are due July 1 in each funded year and must be public online. Regions must plan science learning, support events and funding applications, work with schools on teaching and training, and coordinate career-education discussions.

Schools face penalties for unqualified placements

Schools get 15 school days after written notice to correct educator credential or qualification violations, with no aid reduction for earlier noncompliance. Uncorrected violations reduce aid by $50,000 on day 16, then $1,000 each later school day, capped at $100,000 per person, assignment, and fiscal year. This replaces a membership adjustment for the same violation and period. Officials knowingly continuing a violation after notice commit a misdemeanor punishable by a $1,500 fine per incident. Districts can request review within 30 calendar days, but deadlines continue unless stayed; the superintendent can reduce or waive adjustments for unusual, extenuating circumstances.

Special education reimbursements face funding caps

For 2026–2027, specified special education reimbursements under section 53a are capped at $10.5 million from the section 51a allocation. Intermediate districts also receive funding tied to pupils attending the Michigan Schools for the Deaf and Blind. That allocation follows each pupil's share of instructional costs and is capped at $1.688 million.

Student robotics grants require local matches

For 2026–2027 only, up to $5 million funds district robotics grants, and $600,000 funds nonpublic school robotics or Science Olympiad. Grants support competition costs, advancement awards, and coaching stipends up to $1,500 per building. Applicants need a qualifying partner, a budget, and a cash or in-kind local match of at least 25% of the award. Teams must meet provider size and participation requirements, including at least one in-person competition; nonpublic schools must meet registration and reporting rules. Approved programs must be available statewide, and insufficient funds are prorated among qualified applicants under the stated payment rules.

Teacher training support gains reading standards

Teacher preparation programs must include science-of-reading teaching methods to meet the stated support eligibility standard, including student-teacher stipend eligibility. Programs can keep eligibility by submitting a detailed public plan to comply with MCL 380.1531e by September 30, 2027. Separately, the educator fellowship public provider fund can support professional learning described in section 35a(10), alongside recruitment. That spending requires an appropriation; no amount is specified.

Youth program grants change payment schedules

Out-of-school-time grantees generally receive half their award upfront and half later on the department's schedule. The department can pay the full award upfront when it finds a grantee has resource needs. Clinton County RESA can receive administrative funding up to the greater of 0.25% of the allocation or $250,000. Up to $500,000 supports statewide evaluation comparing participating K–12 youth with peers. Up to 1.5% supports statewide capacity building, staff training, and technical assistance.

College funding follows performance and transfer rules

Community college performance funding assigns 30% each to 2025–2026 base funding and weighted student contact hours. Performance improvement, completion totals, and completion rates each receive 10%; administrative costs and local strategic value each receive 5%. Local strategic-value funding requires an October 15, 2026, board resolution certifying four of five practices in each of three categories. Those payments follow 2025–2026 operations-funding shares and arrive with November's installment. Performance funding also requires active Michigan Transfer Network participation and timely updates, including course matches at least every six months.

Community college payments follow set schedules

Most community college funding follows an 11-month payment schedule beginning October 16, 2026. This schedule excludes section 201(4)(b) and section 201(7) funds. Section 201(4)(b) payments arrive quarterly in November, February, May, and August. July and August 2027 monthly payments, plus the August quarterly payment, count toward the fiscal year ending June 30, 2027. The provision changes payment timing, not household benefits.

Education department sets eligible recipients' paydays

For the payments covered by this provision, the Michigan Department of Education determines when eligible entities receive money. Its schedule overrides the law's usual payment scheduling rule. The provision sets no payment dates or amounts.

Schools and universities must review efficiency

School districts, intermediate districts, and public universities must identify ways to work more efficiently. School examples include shared services, group buying, energy savings, and changes to class sizes or course offerings. Universities must also review planned building, renovation, and technology projects to improve coordination and use. Institutions are encouraged, but not required by these provisions, to pursue cost-control measures. The law sets no savings target or direct change to household charges.

Targeted school aid formulas are revised

For the fiscal year ending September 30, 2027, the law states an intent to include qualifying community districts' taxable value. This applies when a related district still levies operating taxes over the same geographic area. Separately, 2026–2027 aid calculations must adjust certain districts' historical 1993–1994, 1995–1996, and 1996–1997 figures. One adjustment requires a 1993–1994 vocational-center fiscal agent with at least $6,500 revenue per pupil in 1994–1995. Another requires a prior adjustment, specified nonresident student counts, and agreement by all constituent districts; net aid changes are not stated.

University funding follows updated payment dates

Covered public university appropriations arrive in 11 equal monthly installments beginning October 16, 2026, replacing the October 16, 2025, start. Except for Wayne State, universities must count July and August 2027 payments in the institutional year ending June 30, 2027. Section 236k funds are excluded, and the schedule remains subject to the other listed payment rules.

Unused education reserves return to schools

At fiscal year-end, unused student loan repayment assistance reserve money moves to the State School Aid Fund. Unused public school retirement obligation reform reserve money moves there too. These balances no longer stay in their dedicated reserve funds. The law states no transfer amounts and does not change individual borrower eligibility or payment amounts.

Sponsors & Cosponsors

Sponsor

  • Ann Bollin

    Republican • House

Cosponsors

  • Tim Kelly

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 215 • No: 173

Senate vote • 7/3/2026

SENATE ADOPTED CONFERENCE REPORT WITH IMMEDIATE EFFECT

Yes: 25 • No: 11 • Other: 2

House vote • 7/3/2026

conference report adopted

Yes: 99 • No: 8 • Other: 3

Senate vote • 7/1/2026

PASSED

Yes: 34 • No: 0 • Other: 4

House vote • 7/1/2026

roll call

Yes: 1 • No: 105 • Other: 4

House vote • 4/22/2026

passed; given immediate effect

Yes: 56 • No: 49 • Other: 5

Actions Timeline

  1. assigned PA 25'26 with immediate effect

    7/29/2026House
  2. filed with Secretary of State 07/21/2026 02:28 PM

    7/29/2026House
  3. approved by the Governor 07/21/2026 01:48 PM

    7/29/2026House
  4. presented to the Governor 07/14/2026 11:28 AM

    7/14/2026House
  5. bill ordered enrolled

    7/3/2026House
  6. conference report adopted by Senate with immediate effect

    7/3/2026Senate
  7. RETURNED TO HOUSE

    7/3/2026Senate
  8. SENATE ADOPTED CONFERENCE REPORT WITH IMMEDIATE EFFECT ROLL CALL # 228 YEAS 25 NAYS 11 EXCUSED 2 NOT VOTING 0

    7/3/2026Senate
  9. CONFERENCE REPORT RECEIVED IN SENATE

    7/3/2026Senate
  10. retransmitted

    7/3/2026House
  11. conference report adopted Roll Call #330 Yeas 99 Nays 8 Excused 0 Not Voting 3

    7/3/2026House
  12. rule suspended

    7/3/2026House
  13. conference report received

    7/3/2026House
  14. referred to conference committee 07/01/2026

    7/1/2026House
  15. Senate conferees named 07/01/2026: Sens. Darrin Camilleri Sarah Anthony Rick Outman

    7/1/2026House
  16. REFERRED TO CONFERENCE COMMITTEE 7/1/2026

    7/1/2026Senate
  17. HOUSE NAMED CONFEREES 7/1/2026: REPS. ANN BOLLIN, TIM KELLY, JOE TATE

    7/1/2026Senate
  18. SENATE NAMED CONFEREES 7/1/2026: SENS. DARRIN CAMILLERI, SARAH ANTHONY, RICK OUTMAN

    7/1/2026Senate
  19. House conferees named 07/01/2026: Reps. Ann Bollin Tim Kelly Joe Tate

    7/1/2026House
  20. roll call Roll Call #287 Yeas 1 Nays 105 Excused 0 Not Voting 4

    7/1/2026House
  21. Senate substitute (S-1) nonconcurred in

    7/1/2026House
  22. rule suspended

    7/1/2026House
  23. laid over one day under the rules

    7/1/2026House
  24. returned from Senate with substitute (S-1) with title amendment

    7/1/2026House
  25. INSERTED FULL TITLE

    7/1/2026Senate

Bill Text

  • Public Act

    7/21/2026

  • As Passed by the House

    7/3/2026

  • As Passed by the Senate

    7/3/2026

  • Conference Report 1

    7/3/2026

  • House Concurred

    7/3/2026

  • Introduced

    2/26/2026

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