MichiganSB 01662025-2026 Regular SessionSenateWALLET

Appropriations: school aid; fiscal year 2025-2026 appropriations for K-12 school aid; provide for. Amends, adds & repeals (See bill).Last Action: FOR FINAL DISPOSITION OF BUDGET, SEE HB 4706

Sponsored By: Darrin Camilleri (Democratic)

Signed by Governor

Appropriations: school aid

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165 provisions identified: 123 benefits, 13 costs, 29 mixed.

Educator trainees get free paid training

For 2025–2026, the law provides up to $70 million in competitive grants for local educator development programs. Participation must be free, and trainees must be paid; individuals cannot receive overlapping aid from two specified teacher programs. Tier 1 totals no more than $50 million, including at least one grant of $40 million or more. Tier 2 awards are capped at $12.5 million yearly, and tier 3 awards at $5 million yearly. Applicants must document workforce needs and spending plans, with experience, evaluation, partnership, and private-funding requirements varying by tier. Payments are due December 15, 2025; tier 1 spending ends September 30, 2029, and tier 2 and 3 spending ends September 30, 2027. Unspent funds must be returned by the following October 30.

Preschool pilot helps eligible three-year-olds

For 2025–2026 only, Clinton County RESA receives up to $25 million for phase two of Strong Beginnings preschool. Children must be under four on September 1 and at least three on December 1 of the school year. Family income must be at or below 250% of the federal poverty level, with lower-income families getting priority. Developmental delays, language barriers, and challenging behaviors may also be considered. The state pays over two years for services designed for three-year-olds and similar to Great Start Readiness preschool.

School staff get free teacher training

For 2024–2025, the law provides up to $12.5 million to Marquette-Alger RESA and $7 million to Kent ISD. Both programs must give school support staff a no-cost path to teacher certification. Marquette-Alger’s apprenticeship program serves a consortium of at least 45 intermediate districts; Kent’s West Michigan Teacher Collaborative serves at least three. Each program can use no more than 10% to encourage grades 6–12 students to consider education careers. Unspent funds carry into 2025–2026, and Marquette-Alger’s program has limits on overlapping teacher-pipeline funding and transfers to already-funded districts.

Student teachers can receive semester stipends

For 2025-2026, student-teacher stipends receive $30 million in school aid and $20 million from the educator fellowship fund. Eligible applicants can receive up to $9,600 per semester, paid in full through their preparation program, with no more than two awards. Applicants must seek teacher certification, complete required supervised classroom student teaching, and apply on time with district and student-teaching certifications. Programs must be approved Michigan college programs and cannot be barred from Michigan Achievement Scholarships for tuition violations. A second award requires multiple required student-teaching semesters; teacher-of-record employees are excluded, while eligible current City Year members can qualify. The law removes the prior academic-progress requirement and Pell-recipient priority, and requires the fellowship fund to cover any program funding shortfall.

More state funding for special education

State special education funding reaches up to $2.0286961 billion in 2024-2025 and $2.2195961 billion in 2025-2026. Estimated federal funding is $450 million and $500 million, respectively, plus available carryover. Reimbursement estimates include $441.4 million and $492.4 million for those years, plus a separate $1.1079 billion allocation for 2025-2026. Payments cover 28.6138% of approved special education costs outside section 53a and 70.4165% of approved transportation costs. Unspent money from the $1.1079 billion allocation can support basic school aid in the same fiscal year.

More funding for special education services

For 2025-2026, special education funding under the mandated reimbursement percentages rises from $1.0164 billion to $1.1079 billion. The law also provides an estimated $1.6 million in each of 2024-2025 and 2025-2026 for specified pupils. Those pupils include certain children in detention or child-care facilities and certain children with emotional impairments served by state health officials. Their school payments follow the applicable per-pupil formula and target allowance cap.

More operating support for public universities

For 2025–2026, public university operating funding rises from about $1.7403 billion to $1.7545 billion. It includes $643.1683 million from school aid and about $1.1113 billion from the general fund. Michigan State receives $396.8453 million, Michigan–Ann Arbor $362.5079 million, and Wayne State $227.7873 million. The law adds up to $50.1141 million in one-time general-fund payments for the same operating purposes. These are payments to universities, not student awards or guaranteed tuition cuts.

More school support for at-risk children

For 2025-2026, at-risk pupil funding rises from about $1.035 billion to $1.294 billion. Schools can use up to 30% for smaller K-3 classes, without the former school-level economic-disadvantage threshold. Schools in opportunity index bands 4, 5, or 6 can use another 30% to recruit and keep staff. These uses must follow school needs assessments and student-support plans; administration and replacing existing funding remain excluded. Schools must report their plans by November 1 of the current fiscal year.

More state funding for public schools

For the year ending September 30, 2025, the law provides about $17.94 billion from the state school aid fund. It also authorizes up to $481.4 million from the school retirement reform reserve. For 2025-2026, the target school allowance rises from $9,608 to $10,050 per pupil, subject to district funding formulas. The covered cyber-school allowance rises from $9,150 to $10,050 per pupil, excluding special education pupils.

Schools get pension contribution support

For 2025–2026, the law provides up to $1.5365 billion for participating school systems’ pension contributions, based on prior-year covered payroll. This covers specified pension debt contributions above the 20.96% employer maximum; the estimated rate-cap support is $1,100 per pupil. Another $336.2 million offsets normal pension costs using quarterly payroll for members who entered Tier 1 before February 1, 2018. Up to $118.4 million reimburses specified Tier 2 contributions and certain Tier 1 costs for members hired after February 1, 2018. Community colleges receive a separate $7.189 million retirement contribution offset; all these payments support employer retirement costs, not direct employee checks.

State funding supports Michigan schools

For the fiscal year ending September 30, 2026, the law provides about $18.37 billion in state school aid. It also provides $73.1511 million from the general fund and available federal education funds. Separate fund spending limits include $100 million for infrastructure, $125 million for transportation, and $71 million for enrollment support. Other limits are $18 million for preschool reserves, $30 million for educator fellowships, and $97.0374 million plus $600,000 for pupil support. For 2025–2026, the stabilization fund supplies the amount needed to fully fund the article’s allocations.

State school aid allocations rise

The law allocates up to $6.220 billion in discretionary school aid for 2024-2025, plus $41 million from a community district fund. General Fund reimbursement for that fund's costs above $41 million is estimated at $77.7 million. For 2025-2026, the allocation is up to $6.6965 billion, plus another $124 million. Districts must meet education, data-reporting, and applicable partnership-agreement requirements; 2024-2025 community-district increases use the community district fund. Public school academies also count as districts under a separate school-aid rule, subject to its statutory exceptions.

Future teachers get aid with obligations

The law allocates up to $25 million for the MI Future Educator Fellowship in 2025-2026: $10 million each from fellowship and school-aid funds, plus $5 million in general funds. Eligible Michigan residents pursuing initial certification receive the lesser of $10,000 yearly or tuition and required fees. Applicants need a diploma or equivalent, at least a 3.0 GPA, qualifying full-time enrollment, junior standing for higher-education students, and timely applications for the fellowship, federal student aid, and available gift aid; continued aid requires residency, qualifying enrollment, satisfactory progress, advising, and renewed aid applications. Recipients cannot also receive covered grow-your-own funding and must teach in qualifying Michigan public schools or preschools for 3, 4, or 5 years after one, two, or three award years; critical-needs district service is 3 years. Failure to meet enrollment, completion, or service requirements converts awards to a 0% interest loan repayable within 10 years, reduced proportionally for years worked.

School revenue guarantees get lower funding

The law funds school operating revenue guarantees at up to $3.927 billion in 2024-2025 and $3.785 billion in 2025-2026. Payments maintain the applicable 1994-1995 per-pupil state and local operating revenue guarantee. Districts are excluded for years when their operating property tax rate falls below their 1994 rate. Public school academies must have operated in 1994-1995 and remain open in the current fiscal year.

College funding tied to tuition limits

Funded community colleges face in-district tuition and fee increase limits: the greater of 4.5% or $227 in 2025-2026. Their 2026-2027 limit is the greater of 4.0% or $199; exceeding limits bars one-time 2025-2026 performance funding. Public universities qualify for designated payments only with resident undergraduate increases no higher than 4.5% or $735, whichever is greater, in 2025-2026. Their 2026-2027 limit is the greater of 4.0% or $651; they also must have made no 2024-2025 increase after September 1, 2024. Both types of institutions must certify compliance by the first business day of November each year; these rules limit increases, not guarantee tuition cuts.

College scholarships get funding and outreach

The law creates a Treasury fund for Michigan Achievement Scholarships and other authorized purposes; year-end balances stay in the fund. Awards support eligible students attending eligible Michigan postsecondary schools, and Treasury administers the fund for auditing. The law also allocates $50 million in 2025-2026 general funds for remaining State Competitive Scholarship and State Tuition Grant students as those programs end, using their existing distribution methods. Unspent transition funding can carry through 2028-2029, with completion estimated for September 30, 2029. Up to $10 million annually from the covered scholarship appropriation can fund outreach; the department must inform high school students about aid and provide program staff and funding.

Continued support for younger Reconnect awardees

For 2025-2026, the department can use Michigan Reconnect funding to support recipients of the temporary expansion-to-age-21 program. Students must have an award under that existing temporary program. This authority applies only for that fiscal year and does not set an individual award amount.

Dedicated money funds educator pay increases

The law allocates $203 million for educator pay increases in 2024–2025, distributed equally per pupil to districts and intermediate districts. Funding depends on the budget director canceling the remaining designated 2023–2024 work-project funding. The allocation cannot exceed the amount canceled. All money must support pay increases negotiated with educator unions, on top of pay already negotiated in existing agreements. Unspent money carries into 2025–2026.

More after-school and summer help for families

The law provides up to $57 million in 2024–2025 and $75 million in 2025–2026 for affordable before-school, after-school, and summer programs. Eligible providers include qualifying nonprofits, colleges, libraries, local governments, and intermediate school districts; at least 60% goes to community groups. Providers must have a child care license, an active license application, or an exemption, and provide educational activities and evaluation data. Beginning in 2025–2026, exempt providers must serve at least 15 school-age children at one location to meet the specified quality criterion. Grants are paid fully upon award, but recipients may owe repayment for missed reporting or service requirements or closure.

No tuition for enrolled nonresident pupils

A district receiving funds under this law cannot charge parents or legal guardians tuition for a child enrolled as a nonresident pupil. Both conditions must apply: the district receives this funding, and the child is enrolled there as a nonresident. The rule does not itself guarantee admission.

Preschool programs get help with transportation

For 2024–2025 and 2025–2026, the law allocates up to $10 million in school aid and $18 million in preschool reserve money for transportation. The money reimburses Great Start Readiness Program transportation costs, not payments directly to parents. Reimbursement cannot exceed the program's projected transportation budget or $500 per funded child, whichever is lower. Programs must submit budgets to their fiscal-agent intermediate school district by November 1 each year. If money falls short, reimbursements are reduced equally per funded child.

Startup grants help preschool classrooms expand

The law provides up to $10 million in 2025–2026 for new or expanded Great Start Readiness Program classrooms. Grants cannot exceed $50,000 per classroom and are reduced equally if requests exceed available money. Intermediate school districts and consortia must pass the full grant to classroom operators for staffing, space, startup costs, outreach, or quality improvements. Applicants must show instructional staff have completed or are completing science-of-reading training. Unspent money carries into 2026–2027, and projects must finish by September 30, 2027.

State adds scholarship reserves and backstops

For the year ending September 30, 2026, Michigan deposits $300 million into the Postsecondary Scholarship Fund. That includes $200 million from school aid and $100 million from the general fund. For the year ending September 30, 2025, the law also directs a deposit of up to $80 million from qualifying unused, unreserved school aid balances recorded at year-end closing. The fund covers shortfalls in specified scholarship awards after the budget director gives lawmakers and fiscal agencies written notice. These deposits support scholarships but do not set each student's award.

Transfer students gain college credential pathways

Michigan community colleges and public universities must implement statewide reverse-transfer agreements. Students who transferred before finishing a community college degree can apply university credits toward a community college credential. The university-side pathway requires a significant number of previously earned community college credits; it does not guarantee a credential. Funded colleges and universities must consult with the state about transfer policies and services at least once each academic year. The state data center must also coordinate with education agencies and college groups to inform community colleges about transfer students' academic status.

Water emergency students get added services

For 2025-2026 only, the law provides $5 million in school aid and $3 million in general funds for qualifying drinking-water emergency communities. General funds include up to $2.425 million for district staff and services and $575,000 for nutrition. The $5 million school-aid allocation supports interventions for affected K-12 pupils through a qualifying intermediate district. Most district territory must lie within a city covered by a drinking-water emergency proclamation issued in the current or prior 10 fiscal years. The district must have had at least 4,500 pupils in 2016-2017 or at least 2,600 pupils in a later fiscal year.

Young children get early intervention support

The law provides up to $23.6707 million in 2025-2026 grants for Early On services. These services help eligible children from birth to age three and their families. Intermediate districts must apply and add services without replacing existing services or resources. Recipients must report program information and maximize Medicaid funding where possible. Funds must be spent before June 30 of the fiscal year after the year received.

Child nutrition programs receive meal funding

For 2025–2026, Michigan allocates all available federal child nutrition funding, estimated at $901.4 million. It also allocates all available federal food distribution funding, estimated at $22 million. Separately, Grand Rapids Public Schools receives $1.2 million for 2024–2025 to supplement its school meals program. Unspent Grand Rapids funds carry into 2025–2026, with estimated completion by September 30, 2026.

Schools get student mental health funding

For 2025–2026, school mental health services receive up to $106.545 million in school aid and $1.3 million in general funds. School aid includes $14.3 million for eligible health centers to place licensed, master's-level providers in schools without existing services. It also includes $87.245 million for intermediate-district services for general education students and $5 million for administration. General funds include $1 million for technology and administration, plus $300,000 for administration and obtaining more Medicaid funds. Funded health centers must maintain services and use available federal Medicaid matching methods.

Schools get safety and counseling grants

For 2025–2026, competitive safety-officer and safety-dog grants receive up to $50 million in school aid and $3.5 million in general funds. Separate mental health staffing grants receive the same amounts for psychologists, social workers, counselors, and related support staff. Districts, intermediate districts, and nonpublic schools apply to the education department, which prioritizes plans to sustain salaries after grants end. Funded school resource officers must complete Michigan Commission on Law Enforcement Standards training. Unspent funds carry into 2026–2027, with estimated project completion on September 30, 2029.

State funds preschool and teacher training

For 2025–2026, Michigan provides up to $638.2176 million for Great Start Readiness preschool, including $626.2176 million in formula payments. The law provides $18 million in reserve funding for 2024–2025 and 2025–2026; reserve money also fills formula-payment shortfalls. Intermediate districts or consortia get up to $2 million each year for training and materials supporting approved curricula and assessment tools. Another $350,000 funds a study following participating children over time.

Education employers get retiree health support

For 2024–2025, the law allocates the remaining retirement reform reserve balance, estimated at $147.3 million, for retiree health costs. Eligible recipients are public retirement-system reporting districts, intermediate districts, district libraries, and community colleges. Each receives a share based on its share of designated earlier funding and must use it for normal retiree health costs. Unspent funds carry into 2025–2026; the law does not increase individual retirees’ health benefits.

More operating support for community colleges

For the year ending September 30, 2026, community college operations receive $363.5706 million, up from $363.3635 million. College allocations include North American Indian tuition-waiver costs; listed performance-funding allocations are zero. Separately, retirement-system payments to participating community colleges rise from $62.1 million to $89.5 million for 2025-2026. Both appropriations come from school aid funds and support colleges rather than household payments.

More school funding for English learners

For 2025–2026, English learner funding rises from $50.1861 million to $62.7326 million, including support for learning software. District payments per assessed full-time-equivalent learner are $2,329 for scores 1.0–1.9, $1,608 for 2.0–2.9, and $263 for 3.0–3.9. Districts must give funded learners the WIDA ACCESS or WIDA Alternate ACCESS assessment. Payments fall by the same percentage across score groups if funds run short; families do not receive this money directly.

Reserve money supports student programs

The law creates a pupil support reserve whose unused money stays in the fund. It deposits $326.1122 million for the fiscal year ending September 30, 2026. The law states an intent to support designated school programs in 2025–2026, 2026–2027, and 2027–2028. Spending still requires a specific appropriation; the deposit alone does not authorize payments.

Schools get help repairing buildings

For 2025–2026, the law allocates an estimated $100 million for competitive school infrastructure grants. Districts and intermediate districts can apply only for needs identified in the statewide school facilities study. Priority factors include opportunity index band 4 or higher, economic need, heating or roof needs, and bond-financing limits or efforts. Additional funding is limited to the award shortfall or available fund balance, whichever is less. Unspent money carries into 2026–2027, with estimated project completion on September 30, 2030.

Schools get special education foundation funding

The law allocates $528.1 million in 2025–2026 to cover 100% of foundation allowance costs associated with special education pupils. Payments go to school districts and intermediate school districts, not directly to families. The formula uses pupil membership and foundation allowances, capped at the current year's target foundation allowance. Pupils covered by the exclusion in section 51a(11) are not counted in this calculation.

Schools receive transportation cost support

The law creates a school transportation fund whose unused money stays available, depositing $130 million for fiscal year 2025–2026. Spending requires a specific appropriation, and the law allocates up to $125 million for district and intermediate district transportation costs. Payments use eight rider-density groups and the lower of each group’s median cost or actual general education cost per rider. Reasonable unusually high costs can receive extra support, but payments can shrink proportionally if money runs short. Districts report expected nonpublic-school riders by December 1, and intermediate districts report to the state by February 1.

State covers existing university building costs

For 2025-2026, the law provides an estimated $142.1539 million in State Building Authority rent support for public universities. It pays the state's share of costs for previously constructed university capital projects. The money supports university facilities, not student payments, and does not establish a tuition or fee reduction.

College aid grants add graduation requirements

For 2025–2026, the law offers up to $10 million to districts working to increase college financial aid applications. Recipient districts must generally require the Free Application for Federal Student Aid, or FAFSA, for graduation. Exemptions include specified parental waivers, privacy concerns, inability to file, opt-outs, graduation progress, administrator decisions, and federal-law conditions. Applications must open by November 1, 2025, and are due December 1; equal payments per grade 12 pupil are due January 31, 2026. The law states an intent, not a guaranteed appropriation, to continue funding through 2027–2028.

College aid rises and falls

For 2025–2026, total student grants and aid fall from $542.4536 million to $469.5 million. Tuition Incentive Program funding rises from $93.8 million to $122.3 million. Michigan Achievement Scholarships fall from $330 million to $300 million, while Michigan Reconnect falls from $52 million to $42 million. Up to $10 million of Achievement Scholarship funding can support skills scholarships. These program totals do not determine an individual student's award.

Preschool enrollment priorities change for families

For 2025-2026, Great Start programs prioritize lower-income children and children with other risk factors set by the state department. Programs must report open and filled slots to their funding district or consortium. The former income-quintile priority system tied to 400% of federal poverty guidelines ends after September 30, 2025. That system put eligible foster children, homeless children, and children with an education plan recommending inclusive preschool in the lowest-income priority group. While it applied, children above 400% could enroll only after eligible children were served and no qualifying child remained waitlisted.

Tuition aid notices and college choices

Tuition Incentive Program Phase I covers mandatory fees and capped per-credit tuition at eligible Michigan nonprofit degree-granting and federally controlled tribal colleges. The per-credit cap is the average community-college in-district tuition rate. Focus: HOPE is removed from the eligible institution list. The department must give financially eligible students an age-appropriate eligibility notice, which can be sent after they begin sixth grade.

School mental health aid carries conditions

Funded districts must seek available Medicaid matching funds and cannot use these funds or generated Medicaid money to replace existing services. Districts applying through an intermediate district must provide a local match of at least 20% of their allocation spent on general education pupils. They must serve nonpublic students upon request, and applications cannot be rejected solely because a school is a public charter school. Services generally require licensed, master's-level behavioral health providers. A lower-degree provider requires documented failed efforts to secure a master's-level provider and verification by both state departments.

School improvement grants gain stricter oversight

Assigned partnership districts and charter schools need signed three-year improvement agreements to receive section 22b funding. Agreements set school-level learning, attendance, and applicable graduation targets for 18 and 36 months, plus consequences for missed targets. Districts must face school reorganization for missed benchmarks; charter schools may face it, and newly assigned systems have funding withheld until signing within 90 days. The state can require school leaders and all covered board members to take finance and policy training at a state-set frequency. Grants can also fund reading, math, smaller K-3 classes, and attendance efforts when superintendent-approved, tied to achievement, and unaffordable from existing district resources.

School safety aid requires investigation cooperation

For 2025–2026 only, the law provides $300 million in school aid and $21 million in general funds for safety and mental health. Within this total, up to $200 million supports opting-in districts, intermediate districts, and Michigan's Schools for the Deaf and Blind; up to $14 million supports opting-in nonpublic schools. Equal per-student payments are due by December 31, and nonpublic rates cannot exceed public-school rates. Money supports staff, mental health services, safety equipment, emergency systems, and phone-free policies; immediate-threat emergency infrastructure spending needs prior state approval. Recipients must cooperate with a governor-designated investigation after a qualifying mass casualty event at school or a school event, including waiving privileges protecting relevant information. The investigator can review records and interview people, and must report findings and recommendations within 90 days after the investigation ends.

More preschool funding with provider rules

For 2025-2026, Great Start Readiness Program funding rises from $627.72 million to $656.2176 million. The rule counting each enrolled school-day or extended-program child when setting grants ends after September 30, 2025. Grant recipients must still contract at least 30% of their total allocation to eligible community providers. Without satisfactory evidence of efforts, the department can reduce a grant by the percentage-point gap below 30%. That reduction is discretionary, not automatic.

School retirement funding rates vary

For 2025-2026, estimated public school retirement contribution rates depend on hire date, retirement election, and health arrangement; each pair below gives total and directly employer-paid rates. For pre-July 1, 2010 hires, rates are 44.93%/29.91% with the health premium subsidy, or 41.10%/26.08% with the personal healthcare fund. For hires on or after July 1, 2010, rates are 40.19%/25.17% with the subsidy, or 36.36%/21.34% with the healthcare fund. Defined-contribution electors have rates of 30.23%/15.21% for on-or-after-September 4, 2012 hires using the fund; pre-July 1, 2010 hires have 34.06%/19.04% with the subsidy or 30.23%/15.21% with the fund. Hires after January 31, 2018 who elect retirement-system membership have rates of 36.43%/21.41%; these are funding rates, not changes to stated retirement benefits or employee paycheck deductions.

Colleges disclose finances and safety information

Funded community colleges must meet annual disclosure, Title IX reporting, and compliance-certification deadlines by November's last business day. Online disclosures include budgets, debt, governance links, campus-safety resources, security statistics, sexual misconduct reports, and specified Title IX matters. Public universities must maintain a transparency site linked from their homepage by November 1 each year. It must show budget, spending, labor, debt, transfer, federal student aid application completion, and performance information, plus the president's name, residence city and state, and annual salary. Performance measures cover the three most recent academic years with available data.

Hispanic students get college completion support

The law provides Wayne RESA up to $3 million in 2024–2025 for programs helping Hispanic students graduate from college. A qualifying tax-exempt nonprofit must provide academic and career support. Funded districts must contract with a nonprofit that received state money for this purpose in the previous fiscal year. Unspent funds carry into 2025–2026, with estimated completion by September 30, 2026.

More exam fee help for students

For 2025-2026, exam fee assistance rises from $1.2 million to as much as $2.6 million. It covers all or part of eligible low-income pupils' Advanced Placement, International Baccalaureate, and College-Level Examination Program test and registration fees. Pupils must meet the applicable low-income eligibility rules, use approved test providers, and pay at least $5 per supported test. Other pupils can receive partial help only after low-income awards, if money remains. The stated $1.2 million for 2026-2027 is legislative intent, not a funded guarantee.

Parents get timely student test results

For 2025–2026, the law offers up to $11.5 million for K–8 reading and math benchmark tests. Applying districts receive equal funding per K–8 pupil and must use eligible tests within the first nine weeks and again by year-end. They must use the same assessment and share available student data with parents or guardians within 30 days. The law also allocates $500,000 for 2024–2025 and 2025–2026 to operate a secure online tool showing results immediately after scoring. Data collected by that tool cannot provide individually identifiable student information to the federal government.

Preschool families get schedules and openings

Great Start Readiness programs can offer school-day, part-day, or extended schedules under department requirements for daily, weekly, and annual hours. Programs can blend with Head Start only when federal rules allow it. Beginning in 2025-2026, funded intermediate districts or consortia must publish accessible dashboards showing funding requests, programs, enrollment, open and filled slots, and applicable waitlists. Families on waitlists must receive a dashboard link, but the dashboard does not guarantee a place. The law also provides up to $350,000 in general funds for a competitive grant continuing a long-term study of participating children in 2025-2026.

Preschool programs can support parents' rides

Beginning in 2025-2026, Great Start programs can use transportation funds for costs when parents or guardians provide a child's ride. This adds to support for parent-accompanied trips using transportation companies, buses, or public transit. The department sets payment rules meant to improve access for low-income and geographically isolated families. Programs must document supported families, the reason and type of travel, actual costs, and other required information; no household payment amount is set.

Tribal college students get tuition-waiver support

For 2025-2026, the law directs $80,800 from Central Michigan University's appropriation to Saginaw Chippewa Tribal College. It also directs $498,800 from Lake Superior State University's appropriation to Bay Mills Community College. These payments cover tuition-waiver costs for eligible North American Indian students under Michigan's existing waiver law. The allocations do not specify each student's waived tuition amount.

Closed charter schools need anti-blight plans

Charter school authorizers receiving community college or public university appropriations must adopt policies for property left behind when authorized schools close. The policies must ensure vacant buildings and other property do not add to neighborhood or community blight.

Schools gain flexible mental health funding

Intermediate districts can seek state approval to use remaining funds for assessment teams, coordination, and evidence-based training. State departments can move unused or unrequested money to intermediate districts able to spend it before the deadline. Districts and intermediate districts can carry funds forward for up to two additional fiscal years. The health department must amend Medicaid plans and seek needed waivers to obtain more matching funds through Caring for Students. State departments must maintain an advisory council, identify match-eligible services, open applications by December 1, and award funds by February 1. They must develop outcome measures and report annually by December 1; funded districts must supply data, and administration-funded intermediate districts must seek matches and join required learning groups.

Schools receive breakfast and lunch reimbursements

For 2025–2026, lunch reimbursements receive up to $29.5534 million, covering 6.0127% of necessary state-mandated costs using the court-approved Durant method. Eligible providers not required to serve lunch are capped at $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 participating in the federal breakfast program and serving meals meeting federal standards. Breakfast payments equal the lesser of actual cost or the statewide average, minus federal aid, participant payments, and other state breakfast reimbursements. The school meals reserve fund must cover any shortfall in required lunch or breakfast reimbursements.

Young people get primary care support

For 2025–2026, the law provides up to $33 million in school aid for primary care through age 21. State education and health departments jointly direct spending, prioritizing new adolescent health centers in unserved or underserved counties. An amount equal to 4% of the primary care allocation is available for technical support and coordination. The nonprofit providing that support must focus exclusively on Michigan adolescent health centers and serve all child and adolescent health centers statewide. Its membership must include federally qualified health centers, local health departments, hospital systems, and public school districts.

Afterschool programs get training and evaluation

Beginning in 2025-2026, out-of-school program funding includes up to $500,000 for statewide evaluation of youth, families, and programs. Up to 1.5% supports statewide training, technical help, and program capacity under state department direction. Clinton County RESA can retain the greater of 0.25% of the covered funding or $250,000 for administration. These amounts support evidence-based learning opportunities rather than direct family payments.

Broader quality tools for preschool classrooms

The department must review curricula and classroom quality assessments covering children from birth through kindergarten, rather than only prekindergarten. Both must support state early childhood quality standards. Intermediate districts must have at least two approved classroom assessments available. More eligible Great Start program options can use AmeriCorps Pre-K Reading Corps members in classrooms using research-based early reading strategies.

Charter schools gain equal service access

Intermediate districts receiving designated state funding must give all districts in their area equitable access to services and activities. This includes coordination, meetings, programs, events, and communications. They cannot exclude public school academies, commonly called charter schools, when other districts are included.

Colleges must coordinate courses and training

Community colleges must explore closer work with four-year universities on training, teaching, and transfer pathways. They must work with universities to develop course-equivalency standards and identify equivalent core courses. Community colleges must also work together on innovations that address local job needs. These duties do not guarantee an individual student’s transfer credits or financial aid.

Creative learning and school libraries supported

The law provides up to $2.5 million to Eaton Regional Education Service Agency for MI Creative Potential through the Michigan Assessment Consortium. This money is available only after the budget director orders remaining 2023-2024 project funds to lapse, and cannot exceed that amount. For 2025-2026 only, Wayne State University receives up to $250,000 to study public school libraries. A committee with representatives from the specified organizations must examine staffing, access, collections, technology, and funding. Its report and recommendations are due December 31, 2026.

Detroit aerospace school gets relocation funding

The law provides Detroit Public Schools Community District up to $7 million in 2024–2025 to move Davis Aerospace Technical High School. The funded move is to Coleman A. Young International Airport. The district may spend the money through September 30, 2027. It must return unspent money to the Department of Education by October 30, 2027.

Disability education services receive targeted funding

For 2025–2026, the law provides $3 million to a special education administrators’ association for content available throughout Michigan. Funds can also support remote-learning assessment tools with the education department and help identify federal research funding. Separately, the Conductive Learning Center receives up to $500,000 from the general fund for 2024–2025 only. That operating support serves children and adults with neuromotor disabilities through a learning model aimed at independence and mobility.

Education data systems and research funded

For 2025–2026, the state education data center can fund competitive grants for the statewide longitudinal education data system. Intermediate districts and their consortia can apply for portal technology, maintenance, user support, and staff learning. After three straight years of funding, recipients must compete openly with new applicants. The law also provides up to $1 million for 2025–2026 only for joint University of Michigan and Michigan State University research. Their centers must work with state education agencies to maintain research data and study educator shortages, early literacy, and early childhood outcomes.

Education funding supports youth in custody

For 2025–2026, the law provides up to $1.3557 million for intermediate districts' eligible education costs in state-run juvenile justice facilities. Funds must support those programs, pupils cannot also receive section 24 funding, and state responsibility cannot transfer without the district's consent. Another $1.6 million supports monthly payments to eligible strict-discipline academies and qualifying public school academies serving county juvenile-agency youth. The latter academies must meet the history requirement involving a strict-discipline academy that enrolled agency youth in 2020–2021 and later closed. Recipients must follow pupil-transfer rules and apply annually for section 24 aid; combined payments face a per-pupil limit, and section 53a-funded special education pupils are excluded.

Education programs get longer spending deadline

Recipients can spend 2023-2024 funds allocated under former section 32x through September 30, 2029. They must return unspent money to the state department by October 30, 2029, following its instructions. This extends the spending window without adding a new appropriation.

Elementary students get school arts support

The law allocates up to $11 million in 2023–2024 for one year of added music or visual arts costs. Unspent funds carry into 2024–2025. Applying districts must pledge at least 60 minutes of weekly instruction for every K–5 pupil and one appropriately endorsed teacher per 400 pupils. They must also meet curriculum, space, dedicated-budget, data, and arts-planning requirements. Qualified first-time applicants receive priority; awards are reduced by equal percentages if funding falls short.

Federal funds support required school assessments

The law allocates an estimated $8 million in federal assessment funds for 2025-2026, plus prior-year federal carryover funds. The money supports compliance with the Every Student Succeeds Act. Distribution must follow federal law and its applicable flexibility provisions.

Flexible schedules keep full-time school funding

Students in grades 6-8 can count as full-time with at least 80% of required instructional hours. Their reduced schedule must serve their best educational interest because they take an advanced curriculum. A separate 75% threshold remains for qualifying students in grades 6-12 in four-block programs. Districts cannot reduce full-time counts solely because cooperative or special education programs, including needed travel, reduce classroom hours.

Legal immigrants receive education service support

For 2024–2025, the law provides up to $2 million to KEYS Grace Academy for education services for legal immigrants. The academy must partner with Kalasho Education and Youth Services in Warren. Services include English instruction, early childhood learning, high school graduation help, and K–12 support. Unspent money carries into 2025–2026, with estimated project completion on September 30, 2026.

Literacy coaches help teachers support young readers

The law allocates up to $42 million for early literacy coaches in 2024–2025 and 2025–2026. Coaches support pre-K through grade 5 teachers, with a goal of grade-level reading by the end of grade 3. Each intermediate school district receives funding for two coaches first, capped at $125,000 per coach. Additional grants follow each district's share of statewide K–3 pupils meeting federal free- or reduced-price lunch income standards. Districts must submit coach contacts by September 1 before the fiscal year, report changes within 30 days, and meet training and application requirements.

Livonia students get healthy living program support

The law provides Livonia Public Schools $750,000 in 2024–2025 for Thrive Track – Healthy Living Skills for Independence. Unspent funds carry into 2025–2026 as a continuing project. The estimated completion date is September 30, 2026. Funding supports the school program, not direct payments to families.

Local schools get repairs and upgrades

For 2024–2025, the law gives Grosse Pointe Public Schools $450,000 for technology and Clintondale Community Schools $1 million for flood-related building costs. Mid Peninsula School District receives $245,000 for heating, ventilation, and air-conditioning improvements. A district partnering with ACCESS in Dearborn receives $1 million to repair and expand its Innovation Center. Lansing Public School District receives $1.2 million to renovate Don Johnson Fieldhouse and expand the Lansing Student Development Program. Unspent money from these allocations carries into 2025–2026, with estimated project completion by September 30, 2026.

Macomb students get safer crossing improvements

The law provides $3 million to Macomb Township for improvements at 21 Mile Road and Heydenreich Road. The work covers roads, signals, and pedestrian crossings to improve student walking safety. Unspent 2024-2025 funds carry into 2025-2026 as a continuing project. Completion is estimated for September 30, 2029.

Menominee schools get emergency repair support

The law provides Menominee Area Public Schools $4.5 million in 2024–2025 for emergency water and asbestos costs and consolidation. It also covers inflation costs on unfinished bond work delayed by asbestos cleanup. Unspent funds carry forward and may be spent through September 30, 2027; remaining money must return by October 30, 2027. If the district receives a qualifying settlement over unfulfilled contracted duties by June 20, 2035, it must repay the state within 90 days. Repayment cannot exceed the smaller of the settlement received or the grant received.

Michigan virtual learning receives state support

For 2025–2026, the law provides up to $9.8 million from the general fund for Michigan virtual learning services. Supported operations include the Michigan Virtual Learning Research Institute and Michigan Virtual School. The funding supports these services rather than direct payments to families.

More funding for secure school data

For 2025-2026, education data operations receive up to $19.3647 million in general funds, up from $19.2192 million. Estimated federal support rises from $193,500 to $2.1935 million for operations and the P-20 longitudinal data system. Competitive data hub grants gain $1.5 million, bringing their total to as much as $5 million. Eligible fiscal agents can represent no more than five consortia with the required prior grants; awards must be geographically diverse. Regional hubs must protect local data control, security, and student privacy, and participation stays voluntary.

More help for families' school crises

The Student Advocacy Center of Michigan's statewide education crisis helpline receives $250,000 for 2024-2025, up from $100,000. Funding goes through Washtenaw Intermediate School District. Unspent money carries into 2025-2026 for the same helpline, with project completion estimated for September 30, 2026. The allocation supports services, not payments to callers.

Named youth groups receive program grants

For 2024–2025 only, Clinton County RESA must distribute grants to named youth and education groups. Awards include $4 million each for FFA, Detroit's Boys and Girls Club of Southeastern Michigan, and Dearborn Heights' HYPE Athletics Center. buildOn Detroit receives $2 million; remaining listed awards range from $500,000 to $1.5 million. The law states a $22 million total, but the listed awards do not add up to that amount. Recipients must use grants for specified purposes and cannot apply to the general program that year; unspent funds carry into 2025–2026 for out-of-school programs.

Residential facility students receive education support

For 2025–2026, the law provides up to $7.65 million for approved on-site education at eligible residential facilities. Students must be assigned to reside in or attend the facility by a court or Michigan’s health department. Educating districts and intermediate districts receive the lower of approved added costs or their approved per-pupil allocation. Special education students already funded through the designated separate program are excluded.

School communities get youth violence grants

The law provides $10 million in competitive school district grants for youth violence prevention in 2025-2026. Plans must use evidence-based practices and include mentorship and community engagement. Awards prioritize comprehensive local strategies and demonstrated outside partnerships, with applications evaluated alongside the state's community violence intervention office. Unspent funds carry into 2026-2027, and project completion is estimated for September 30, 2030.

School cybersecurity projects get more time

Recipients can spend the 2023-2024 statewide school Security Operations Center project funds through September 30, 2028. They must return any unspent money to the department by October 30, 2028. The law extends the existing project's spending period rather than providing a new allocation.

School data funding includes tribal consultation

For 2025–2026, the law provides up to $41.0005 million for required school data collection, upkeep, and reporting. This includes $3 million for data supporting tribal-government reports and decisions about participation in specified federal programs. Districts and intermediate districts receive equal amounts per pupil, with no payment adjustments after the final school-aid installment. State education officials must consult continuously with federally recognized Michigan tribes about reporting, access, and use of tribal-affiliation records.

School leaders and teachers get mentoring support

The law sets aside $1.5 million yearly for administrator mentoring, paying the lower of $3,000 per eligible administrator or actual annual program cost. Providers must be state-approved and meet research-based standards; awards cannot be prorated, and leftovers may support approved mentoring after eligible applicants receive awards. A $500,000 competitive grant helps develop mentor standards, training materials, and professional learning for mentors of new teachers. Another $500,000 competitive grant funds evaluation and recommendations by qualified evaluators. Unspent 2024–2025 evaluation funds carry into 2025–2026, with estimated project completion by September 30, 2028.

Schools get robotics and science grants

For 2025–2026, the law provides up to $5 million for public-school robotics grants and $600,000 for nonpublic-school robotics or Science Olympiad grants. Applicants need a partner, budget, and private or local cash or in-kind match of at least 25% of the robotics program award cost. They must meet competition requirements, including one in-person event, and applicable team-size rules; nonpublic schools must meet registration and reporting rules. Awards are reduced proportionally if requests exceed funding. The law also creates a nonlapsing general pupil support reserve with a $1.8 million general-fund deposit for the year ending September 30, 2026; it states an intent to support this program through 2027–2028, but spending requires a specific appropriation.

Schools plan and promote career pathways

The law sets aside up to $500,000 in 2025–2026 to plan new or expanded career-focused early middle college programs. Intermediate school districts and their consortia may apply for up to $50,000 each and must provide equal matching funds. A separate allocation provides up to $1.5 million in 2025–2026 only for a statewide career and technical education campaign. An intermediate district or consortium must run the campaign to encourage student, parent, and community participation.

Schools receive help for specialized placements

The law provides up to $10.5 million in 2025-2026 for specified special education placements. Covered pupils include certain court- or agency-placed students and institutional residents listed in section 53a(2). District costs must directly result from educating those pupils and must not otherwise have occurred. Their transportation costs are paid through this funding rather than section 58.

Smaller early-grade classes get grant support

The law provides up to $65 million for smaller K-3 classes in 2025-2026, averaging no more than 17 pupils. No class can exceed 19 pupils. Applicants must operate K-12, receive at-risk aid, have an eligible building in opportunity index band 4 or higher, and plan to use at least 30% of that aid for small classes. Awards must be geographically diverse and include Muskegon Heights Public School Academy System, Benton Harbor Area Schools, Flint School District, and Wayne-Westland Community School District; no district can receive over 25% of the allocation. Unspent funds carry into 2026-2027, with project completion estimated for September 30, 2030.

Southeast Michigan students get engineering support

The law provides up to $900,000 from the school aid pupil support reserve for a qualifying pre-college engineering program in 2025–2026. The program must serve multiple southeast Michigan communities and school districts and have received the specified state funding in 2014–2015. It must prepare pupils for science, technology, engineering, and math careers and college, especially at-risk and underrepresented pupils. The legislature states an intent to continue funding through 2027–2028, not a guaranteed future allocation.

Special education services receive dedicated funding

The law allocates available federal special education funds, estimated at $83 million, for 2025-2026 under federal distribution rules. This includes $14 million for infants and toddlers, $14 million for preschool grants, and $55 million for other programs. It also provides up to $3.2 million for 2024-2025 and 2025-2026 to reimburse 100% of qualifying net added costs from specified special education rule changes. The Education Department determines eligible added costs, which must arise solely from those changes after permitted savings. Another allocation of up to $1.688 million in 2025-2026 supports pupils at the Michigan Schools for the Deaf and Blind, with district payments proportional to instructional costs.

State supports local special education taxes

Intermediate school districts receive up to $40.0081 million annually in 2024-2025 and 2025-2026 to support special education millages. Formula benchmarks are $260,200 per pupil in 2024-2025 and $278,500 in 2025-2026, with specified revenue deductions. One district cannot receive more than 62.9% of the covered allocation and generally receives at least 75% of its prior-year amount. Money remains restricted to the purposes allowed for the underlying millage and the intermediate district plan. Districts sharing millage money with local districts must submit and follow a state-approved distribution plan.

Struggling schools receive improvement plan funding

For 2025–2026, the law provides $6.1374 million for districts assigned to partnership improvement agreements by the superintendent. A district must have at least one school identified as low performing under the approved federal accountability system. Within 90 days of assignment, it must complete an approved needs assessment and then secure approval for an improvement plan. Required goals cover grade-level skills, graduation, smaller K–3 classes, and attendance. Plans must set benchmarks within 18 months and expected student achievement outcomes within three years.

Students get clearer campus safety information

Public universities must maintain a prominent homepage link to campus safety resources, updated by November 1 each year. It must cover emergency contacts, safety services, policies for minors, survivor resources, security policies, and crime statistics. State-funded public universities must also report their annual Clery security report and a Title IX summary by November 1. The summary covers litigation fees, complaints, investigation and resolution times, appeals, and referrals to law enforcement. Investigation-duration categories with fewer than five cases must say “fewer than five” rather than give the exact count.

Students get trades and agriculture program support

The law provides $3 million in 2024–2025 for Schools to Tools, introducing middle- and high-school pupils to building trades and apprenticeships. The recipient intermediate district must partner with the Michigan Regional Council of Carpenters and Millwrights. Another $12 million in 2024–2025 supports expanded education through an intermediate district partnering with Adrian's nonprofit Sam Beauford Woodworking Institute. Unspent funds from both allocations carry into 2025–2026, with estimated completion by September 30, 2026. Michigan State University's 2025–2026 funding also includes $80,000 for Michigan Future Farmers of America, which cannot replace existing university support.

Teachers and administrators get mentoring support

The law provides up to $49.4188 million for district educator mentoring grants in 2024-2025. Funding requires a budget director order ending the remaining 2023-2024 project funding, and cannot exceed the amount released. Districts must apply and use mentoring aligned with state research-based standards. Allowed costs include veteran mentor stipends, training, onboarding resources, and staffing. If annual spending remains below $10 million after awards to all eligible applicants, the department can redirect the balance to mentoring other certified educators.

Teachers get literacy and math training

The law allocates up to $10 million for approved literacy training in 2024–2025 and 2025–2026 through a designated intermediate school district. Voluntary enrollment opens first to pre-K through grade 3 teachers, prioritizing pre-K, kindergarten, and grade 1, then other specified staff. Enrollment is first-come, first-served until funding runs out. A separate allocation of up to $6 million in 2024–2025 goes to the intermediate district with the fewest combined pupils for literacy coaching, principal training, and job-based math learning. Its partner administrators' association may use up to 2% for administration, and the district must report achievement and parent and teacher surveys by September 1 each year.

Teachers get literacy training and coaches

For 2025-2026 only, up to $4 million supports literacy training and regional lead coaches through the intermediate district whose constituent districts collectively have the fewest pupils. The allocation reserves $500,000 for principal or chief administrator support, and the partner administrators' association can use up to 2% for administration. The district must report English language arts achievement and parent and teacher survey results annually by September 1. The Education Department must publish approved research-based reading-training programs and review new proposals, whose applicants must show written competency in required topics. LETRS remains the approved provider for staff covered by the literacy program while it meets training, assessment, literacy-content, and instructional-support requirements.

Two communities fund safer school walks

Woodhaven-Brownstown School District receives $250,000 for sidewalks connecting nearby homes to schools. The Village of Brooklyn receives $450,000 for student walking-route safety with Columbia Charter School District and Columbia Charter Township. Unspent 2024–2025 money carries into 2025–2026. Both projects have an estimated completion date of September 30, 2029.

Universities get visiting professor program support

Each public university receives $11,184 in 2025–2026 for visiting professors serving academically or economically disadvantaged students. Award periods cannot exceed two years, and participant preferences cannot be based on race, color, ethnicity, gender, or national origin. By April 15, 2026, universities must report funds unspent and unobligated as of March 31, with a spending plan. The Department of Labor and Economic Opportunity may direct transfers to another public university when funds are reported as not being spent.

Universities strengthen student sexual misconduct protections

State-funded public universities must certify Title IX compliance and student prevention-training practices. Freshmen and incoming transfer students receive in-person prevention training; students with no in-person campus credits can receive electronic training. Other students receive an online or electronic prevention course or presentation. Universities must obtain an outside review at least every four years, send it to designated state officials, and report quarterly to campus leaders. They must follow employee-allegation notification and review rules and protect complainants' identities in board-requested employee investigation reports.

Michigan farms get research and sustainability support

For 2025–2026, Project GREEEN receives $2.9829 million through Michigan State University's AgBioResearch and $2.6452 million through its Extension program. The project addresses regulatory, food safety, economic, and environmental problems in plant-based agriculture, forestry, and processing. The university's appropriations also fund the Agricultural Climate Resiliency Program, without a separate amount stated. That program supports sustainable agriculture and protection and efficient use of Michigan water resources.

Algonac and Rudyard retain building support

For 2024-2025, up to $500,000 goes to the City of Algonac for asbestos removal and redevelopment of a former school. The city replaces Algonac Community School District as the recipient. Rudyard Area Schools keeps its $6 million infrastructure allocation for 2024-2025. Its general-fund share falls from $3.9 million to $2.9 million, while school-aid funding rises from $2.1 million to $3.1 million.

Bigger school payments for career students

For 2025–2026, career education incentive funding rises from $5.3043 million to a $13.4 million ceiling. Districts receive $88 per counted student in grades 9–12 enrolled in an approved career program. They receive another $88 for students in listed high-demand programs with codes 01, 03, 10–11, 14–15, 26, 46–48, or 51. Payments go to districts, not families, and are reduced equally per student if funds run short.

Colleges receive property tax loss payments

Eligible community colleges receive 2025-2026 payments for revenue lost to 2025 renaissance-zone property tax exemptions. Each allocation reflects the college's share of total covered losses. Eligibility follows section 12(3) of the Michigan renaissance zone act. Treasury must certify that it has the needed information, and payments are due within 60 days after certification.

Colleges receive scheduled state funding payments

Most community college appropriations arrive in 11 monthly installments starting October 16, 2025. Their section 201(4)(b) funds arrive quarterly in November, February, May, and August. Covered university appropriations arrive in 11 equal monthly installments on the 16th, or next business day, starting October 16, 2025. Applicable July and August payments count toward college fiscal years ending June 30, 2026; Wayne State University is exempt from the university accrual rule. University payments remain subject to the listed funding conditions.

District libraries get retirement cost help

The law allocates up to $100,000 for 2024–2025 and 2025–2026 to offset retirement contributions for participating district libraries. Libraries must report employees to the Michigan Public School Employees' Retirement System. Payments use quarterly payroll for members who entered Tier 1 before February 1, 2018, and must offset normal-cost contributions only. A separate allocation provides up to $300,000 in 2025–2026 for retirement contributions at district libraries participating in that system.

Dropout programs count more completed courses

Qualifying dropout recovery programs can count one-twelfth of a full-time pupil for each successfully completed course. A pupil can generate more than one-twelfth in a month with full attendance and completion of multiple required courses. Basic payments under sections 22a and 22b remain capped at one full-time pupil per student. Any excess is paid under section 25g, not directly to the student.

Extra school aid for rural districts

For 2025-2026, up to $3.9062 million supports K-12 districts with fewer than 250 pupils and state-approved needs-based spending plans. Each building must be in the Upper Peninsula at least 30 miles from another public school, or on an island without a bridge. Another $8.4121 million supports qualifying sparse districts: fewer than 8 pupils per square mile earns the full rate. Rates are 75% for 8 to fewer than 9 pupils and 50% for 9 to fewer than 10; qualifying districts over 250 square miles receive 100%. Payments can be prorated, and districts receiving specified overlapping aid are excluded.

Law signals Native American tuition waiver support

For the year ending September 30, 2026, the law states an intent to fund universities' uncovered North American Indian tuition waiver costs. The intended support comes from the general fund and covers costs under the existing waiver program. This provision specifies no funding amount and does not itself award students a new waiver.

More aid for rural island schools

For 2025–2026, funding for isolated and rural school districts rises from $12.3069 million to $12.8731 million. The law also provides up to $554,800 for districts whose every school building is on an island accessible by bridge. Bridge-island recipients cannot also receive the specified remote-district or sparse-or-large-area payments.

More funding for community college projects

For 2025–2026, one-time community college performance funding rises from $3.5683 million to $10.9725 million, subject to statutory payment conditions. State support for previously built college projects rises from $33.4816 million to $38.0326 million. Project allocations include $4.6822 million for Macomb, $3.103 million for C.S. Mott, and $2.8811 million for Delta. These payments support colleges; they do not guarantee lower tuition or direct student payments.

More funding for local Promise Zones

The Michigan Promise Zone Fund receives up to $37.7 million for 2024-2025 and $43.3 million for 2025-2026. Payments support eligible school districts and intermediate districts with Treasury-approved Promise Zone development plans. Money must cover qualified educational expenses and serve only purposes allowed by the Promise Zone law. No individual student award amount is set here.

More reimbursement for school career courses

For 2025–2026, career and technical education reimbursements rise from $39.8998 million to a $41.7338 million ceiling. Payments cover no more than 75% of added program costs, including up to $800,000 for eligible administration. Programs must follow superintendent-approved rules, and funding calculations must include ninth-grade participation. Districts that were consortium fiscal agents in 1993–1994 cannot receive administrative reimbursements; those above the target foundation allowance also cannot receive program reimbursements.

More support for college career courses

For 2025–2026, funding for career-focused early middle college and dual enrollment rises from $8 million to $8.368 million. Payments equal 50% of statewide average career-program costs per student for the relevant program code, multiplied by prior-year enrollment. Programs must meet course, credit, credential, student-support, reporting, and records-review requirements, with an approved intermediate district managing funds. Administration is capped at 5%; programs must repay disallowed costs, and funding shortfalls trigger equal-percentage reductions based only on dual enrollment payments.

School infrastructure money supports district funding

The law creates a school consolidation and infrastructure account for learning, efficient school systems, and safe, healthy school spaces. Balances stay in the account at year-end, and spending requires a specific appropriation. For 2025–2026, $83.4 million transfers from this account into the state school aid fund. Taylor School District also receives up to $4 million in 2025–2026 for a new high school or other infrastructure. Taylor's award requires a budget director directive ending the availability of $4 million from the specified 2023–2024 work project and cannot exceed that released amount.

School lunches favor Michigan-grown food

Schools and other covered lunch-program buyers must favor food grown or produced by Michigan businesses. The preference applies only when the food is competitively priced and comparable in quality.

School transportation costs get closer study

The law authorizes up to $200,000 for an intermediate school district to study school transportation costs under the 2022–2023 allocation. The recipient may spend the money through September 30, 2026. It must report study results to the specified state education officials and legislative offices. Unused money must return to the Department of Education by October 30, 2026; this is study funding, not family transportation reimbursement.

Schools gain backup funding sources

In 2024-2025 and 2025-2026, collected school-aid overpayments can cover obligations above their appropriations, limited to money actually collected. Departments can also use revenue from prior-year accounting write-offs to pay school-aid expenses caused by those write-offs. Certain historical school-aid calculations move from 2024-2025 to 2025-2026. Those calculations remain limited to districts meeting section 20d's historical criteria; subsection (b) adjustments require agreement from every constituent district.

Schools gain more flexible instruction rules

District instruction under the virtual-course rules is no longer limited to 15 days per school year. It also is no longer restricted to emergency closures, testing, or limited staff training days. During 2024-2025 and 2025-2026, classes count for school aid when pupils learn together with an approved teacher or substitute. Eligible staff include certificated teachers, teachers engaged under section 1233b, and people with valid state substitute permits, authorizations, or approvals. The temporary classroom-counting rule ends June 30, 2026.

Schools get help covering compliance costs

The law provides $39.5094 million for 2024–2025 and $37.5094 million for 2025–2026 for specified district education-law compliance costs. Separately, eligible nonpublic schools can share up to $1 million in 2025–2026 for actual health, safety, and welfare compliance costs. Eligible expenses include specified wages, training, inspections, and background checks; labor claims exclude benefits and overtime and have calculation limits. Nonpublic schools must apply by June 30 and allow limited records review; payments are due August 15 and can shrink if funds run short. Unspent nonpublic-school funding carries into 2026–2027, with estimated project completion on September 30, 2027.

Schools receive Renaissance Zone tax reimbursements

For 2025–2026, the law provides up to $14 million for eligible district and intermediate district Renaissance Zone tax reimbursements. The payments concern qualifying taxes levied in 2024, not a new household tax break. The education department must pay within 60 days after Treasury certifies receipt of the information needed to calculate amounts due.

Special education districts get tax supplements

The law provides up to $34.2 million in each of 2024–2025 and 2025–2026 for special education property-tax supplements. Intermediate districts qualify under one formula when three-year average revenue is below $251 per pupil. That formula requires a levy of at least 46.2%, but less than 60%, of the allowed maximum. A second formula uses revenue below $296 per pupil and a levy of at least 60% of the maximum. Negative calculations produce no payment, and remaining funds are shared proportionally among districts receiving the designated millage reimbursements.

State covers school aid borrowing costs

For 2025–2026, Michigan provides up to $5 million for cash-flow borrowing costs tied solely to the State School Aid Fund. The provision runs through June 30, 2026. The money supports fund operations, not direct household payments.

State funds agricultural research and outreach

For 2025–2026 only, Michigan provides up to $1.1844 million in general-fund support for Michigan State University's AgBioResearch. It also provides up to $1.0217 million for MSU Extension. The money supports research and extension programs, not direct household payments or a set amount of services per resident.

State funds college coordination and data

For 2025–2026, state and regional higher education funding rises from $316,800 to $322,100. The Midwestern Higher Education Compact receives $122,100, up from $116,800. Higher education database modernization and conversion funding stays at $200,000.

State funds school bus safety

For 2025–2026, Michigan provides up to $3.9499 million for bus driver training, auxiliary transportation outside special education, and inspections. The inspection allocation rises to $1.9249 million, with payments subject to State Police cost review and approval. Training payments cannot exceed actual instruction and driver pay costs; hourly pay cannot exceed the driver's bus-driving rate. Districts cannot receive payment under another section for the same auxiliary transportation, and inspection payments cannot exceed their allocation.

State money supports school bond financing

For 2025–2026, the law provides up to $23 million for school loan bond redemption payments on behalf of districts. These payments cannot be reduced proportionally and must be paid in full within the allocation limit. A separate general fund appropriation supports the school loan revolving fund, matching school bond loans assigned to the Michigan finance authority. That appropriation cannot exceed school bond loans held in reserve as long-term assets. These provisions support school financing, not direct household payments.

State supports district services and reimbursements

For 2025–2026, intermediate school districts receive up to $83.1577 million, based on prior-year aid plus a uniform percentage increase. Recipients must maintain trained accounting and data staff, submit required data, and use funds for authorized services and technical help. Another $14.4 million ceiling covers required brownfield tax reimbursements, usable only for the original property-tax purposes. Payments under the state's natural resources law for school, intermediate, and community college districts rise from $5.284 million to $5.549 million. Those payments are prorated equally among eligible recipients if funds run short.

State supports local career education taxes

The law provides up to $9.19 million annually in 2024-2025 and 2025-2026 for eligible vocational education millage reimbursements. Payments in 2024-2025 cover 2023-2024 millages using a $269,800 per-pupil benchmark. Payments in 2025-2026 cover 2024-2025 millages using a $287,400 benchmark, with specified stabilization and brownfield revenues deducted. Money can fund only purposes allowed for the millage. Opted-out districts count in the intermediate district formula only when they operate the program under contract and contribute a comparable millage amount.

Community colleges receive tax loss reimbursements

For 2025–2026, the law provides $2.2 million in school aid for eligible community colleges' renaissance zone tax reimbursements. Payments follow the law's community-college reimbursement rules. Colleges must record the payments in their institutional fiscal year ending June 30, 2026. This is college funding, not a household tax refund.

Schools cannot pay count-day attendance rewards

For pupil count days after the fall 2025 count, districts and intermediate districts cannot give students financial attendance incentives. After receiving and confirming a violation report, the department must withhold 5% of the applicable state payment. Withholding continues while the district remains out of compliance. Families do not owe a payment, but students lose this reward option.

English instruction funding requires minimum lessons

Districts qualify for this English instruction funding only by agreeing to minimum weekly minutes of direct English language development instruction. The department sets those minimums by student proficiency level through program models that meet federal requirements. The funding condition applies to districts, not as a payment obligation for families.

Colleges face administrative spending caps

Community colleges and public universities can spend no more than 10% of their article appropriation on administration. An institution exceeding the cap forfeits 50% of the excess, up to its full appropriation. Specified instructional, student-service, facilities, and other costs are excluded. University exclusions also include research and public safety.

Dedicated school technology funding earmarks removed

The law removes Michigan Virtual University's specific earmark of up to $500,000 for expanding online and blended educator training. It also removes an earmark of up to $500,000 for a statewide school artificial-intelligence laboratory. Michigan Virtual University must still expand the training programs and operate the laboratory using the section's broader funding.

Less aid for above-full-time school enrollment

For 2025–2026, aid for pupils counted above full-time enrollment falls from $3.05 million to $1.25 million. District payments equal the enrollment share above full-time multiplied by the district's foundation allowance or applicable per-pupil payment. Payments are prorated equally per pupil if funds run short, and special education pupils funded under section 53a are excluded. The law states an intent, not an appropriation, to provide $750,000 for 2026–2027.

Less funding for college application help

For 2025–2026, Michigan caps college access funding at $3 million, down from $4 million. MiLEAP and the Michigan College Access Network administer advising, financial aid application outreach, and mentoring support. The college advising program can receive no more than 33% of available funds. District grants of up to $5,000 require a high school college access team and approved college-going strategies. Funds cannot replace district-funded counselors.

Less funding for Downriver career programs

The law cuts Huron School District's 2024–2025 allocation for the Downriver Career and Technical Education Consortium from $10.7 million to $5 million. Unspent funds carry into 2025–2026 and remain available through September 30, 2027. Recipients must return any remaining money by October 30, 2028.

Less reimbursement for tribal tuition waivers

For 2025–2026, Keweenaw Bay Ojibwa Community College receives $105,700 for eligible Native American student tuition waivers, down from $155,200. The money comes from Northern Michigan University's state appropriation. This changes reimbursement funding; it does not state a change to students' waiver rights or tuition savings.

Less retirement support for public colleges

For 2025–2026, state retirement cost support for participating community colleges falls from $21.8 million to a $19.6 million ceiling. Support for participating public universities falls from $8.5 million to a $7.6 million ceiling for that year only. Universities must report to and pay into the Michigan Public School Employees' Retirement System to qualify. Both groups must use the payments only to offset their normal retirement contribution rate.

Less state funding for early reading

For 2025–2026, Michigan caps this early literacy allocation at $52 million, down from the prior $82.9 million ceiling. The money supports participating school districts and intermediate districts. The law states an intent to provide $42 million for 2026–2027; that statement is not a current appropriation.

Missing college reports can stop payments

The state can withhold community college operating installments when required data are missing or submitted in the wrong form. Colleges lose withheld money if the required data remain missing at fiscal year-end. The budget director must notify legislative community college subcommittee chairs at least 10 days before this withholding. Missing required audit materials triggers mandatory withholding of monthly operating installments until the materials arrive.

Some school enrollment funding faces caps

Districts and charter schools face limits on pupil counts funded under section 166b. If last year's covered count was at least 5% of other pupil membership, growth is capped at 10%. Below that threshold, the cap is the greater of 5% of last year's other membership or 110% of last year's covered count. Consolidated or annexed districts use their combined membership from the fiscal year before the change.

University reporting failures risk state payments

Public universities must submit required higher education data and requested financial-aid information on the state schedule. Universities with June 30 fiscal year-ends report by October 15. Those with September 30 year-ends submit preliminary data by November 15 and final data by December 15. Late data can trigger withheld operating installments after at least 10 days' notice to legislative subcommittee chairs. Universities forfeit withheld money if specified website and campus-safety requirements remain unmet at fiscal year-end.

School meals carry standards and paperwork

Districts and intermediate districts must ensure food offered through school breakfast and lunch programs follows federal meal rules. As far as federal rules allow, schools must require every student household to complete the nutrition and education benefits application. This applies even when schools provide universal breakfast or lunch. After receiving and confirming a violation report, the state must withhold 5% of the applicable district or intermediate-district aid payment. Withholding continues until the school system complies.

Parents control minors' virtual course enrollment

A student's primary district must get parent or guardian consent before enrolling a non-emancipated student under 18 in a virtual course. Consent is required even when the course meets virtually for 15 days or less. This expands parental control and blocks covered enrollment without consent.

Parents get survey and spending information

Districts and intermediate districts must post student survey questions and results online and notify parents and guardians about surveys. This covers their own surveys and those from local, state, or federal government. After a reported violation is confirmed, the state must withhold 5% of the applicable school-aid payment while noncompliance continues. Starting with the fiscal year ending September 30, 2026, opportunity index aid recipients must annually tell parents how much they received, how funds targeted highest-need buildings, and which evidence-based interventions they funded. They must also give parents a way to provide feedback and ask about services for their children.

Parents receive warnings about unlisted curricula

Starting with the fiscal year ending September 30, 2026, districts must notify affected K-5 families about curricula outside the state's evidence-based list. The notice must say the curriculum is not evidence-based or not aligned with state standards and could hurt academic outcomes. It must explain the district's choice and give a plan and projected timeline for adopting a listed curriculum. After a reported violation is confirmed, the state must withhold 5% of the district's applicable school-aid payment until compliance.

Children get school health screening support

For 2025–2026, school hearing and vision screenings receive up to $10.15 million in school aid. Dental screenings receive up to $1.5 million in general funds. Local public health departments must pay at least 50% of total screening costs. Screening frequency must follow Michigan's administrative rules.

College day funding requires matching contributions

The law funds the Martin Luther King, Jr.–Cesar Chavez–Rosa Parks college day program for 2025-2026. Plans require equal contributions from the program, university, participating school district, and participating independent degree-granting college. Program money cannot pay indirect costs, and indirect costs cannot exceed 20% of the university match. Participants cannot receive preference based on race, color, ethnicity, gender, or national origin.

College support grants require matching funds

The law funds retention services for academically or economically disadvantaged students and community-college transfer partnerships for 2025-2026. Each institutional award is capped at $150,000 for no more than two years, using 70% state and 30% institutional funding. Neither program can give preference based on race, color, ethnicity, gender, or national origin. These programs and Morris Hood educator programs must report uncommitted, unspent funds as of March 31, 2026 by April 15, 2026, with spending plans. Money reported as not being spent goes to institutions intending to use all their applicable program funding.

Educator programs receive funding with limits

The law funds future faculty fellowships and the Morris Hood, Jr. educator development program for 2025-2026. Fellowship allocations follow the university's section 236 percentage change; transfers for eligible candidates to another public university's program are allowed before September 1. Fellowship administration is capped at 5%, and money unspent or uncommitted on September 30, 2027 must return through the labor department to the general fund. State-approved teacher education institutions run Morris Hood programs under labor department rules for academically or economically disadvantaged students pursuing Michigan K-12 teaching. Neither program can give preference based on race, color, ethnicity, gender, or national origin.

Emergency waivers allow fewer school days

For the 2024–2025 school year, qualifying districts can waive up to 15 days of instruction missed because of an emergency. A district must lie wholly or partly in a county covered by a governor-declared state of emergency. A majority of its school board must approve. Only hours and days actually missed because of that emergency qualify, allowing students to receive less instruction without makeup time.

Literacy grants favor proven classroom tools

The law provides up to $64.4 million for literacy purposes in fiscal year 2025-2026 only. Districts and intermediate districts must apply and report past, current, and planned literacy tools by May 1 and October 1. Higher-ranked tools receive larger base and tiered per-pupil awards. The department can deny funding for ineffective tools or tools less effective than other choices. Payments support implementation in 2026-2027 and wait until the department has evaluated as many tools as possible.

Preschool providers gain flexibility and requirements

Beginning in fiscal year 2025-2026, Great Start Readiness Program applicants must follow the state early childhood department's application rules. They must show compliance with program requirements and use staff the department considers qualified. Subrecipients operating part of the program can charge indirect costs up to the federal de minimis rate. The law removes the stated 10% cap and the requirement for an approved indirect-cost rate from another early childhood program.

Preschool quality protections and deadlines change

Programs combining Great Start and Head Start must follow the higher program standard when federal law allows. They can request waivers to align Great Start requirements with Head Start quality standards; waiver reports are due each March 1. The department must maintain one quality-improvement system and process prospective providers first-come, first-served, without favoring provider types. However, its 90-day deadline for assessing community providers after a request and self-assessment ends after September 30, 2025.

Grant recipients face tighter spending oversight

Within 30 days after enactment, lawmakers must give administrators and the state budget director a list of directed grants. Administrators must verify recipients' capacity and public purposes, review documentation, and sign agreements covering budgets, reporting, monitoring, and repayment. Payments reimburse verified project costs; release is barred for unmet disclosures, specified state debts including delinquent taxes, or disqualifying conflicts of interest. Recipients must answer information requests, keep records for at least seven years, and spend funds and finish projects by September 30, 2030. Unspent, declined, or misused funds are subject to return or recovery; associated funds return to the treasury when sufficient agreement information is missing by June 1, 2026.

Career training grants require local investment

The law sets aside $68.5 million from a 2025–2026 allocation of up to $70 million for career training grants. Districts must show little access to career and technical education or another clear opportunity gap. Competitive awards support high-skill, high-wage, high-demand jobs and must meet state standards, include stackable credentials, and use advisory committees. Awards last three years, but state support falls in years two and three while districts must increase local funding. Applicants must document student needs, an aligned budget, and plans to keep programs running after state aid ends.

College aid follows quarterly payment schedules

The law sets quarterly institutional payments for five college aid programs. State Competitive Scholarship and Tuition Grant funding arrives 50%, 30%, 10%, and 10% across the four state fiscal quarters. Tuition Incentive, Michigan Reconnect, and Michigan Achievement Scholarship funding arrives 65% in the first quarter and 35% in the second. These provisions set when institutions receive money, not individual students' total awards.

College funding requires transfer and advising

Community college performance funding and university operations increases require annual certification by the last business day of August. Schools must accept the Michigan Transfer Agreement, partner with the Michigan Transfer Network, and promote clear transfer pathways. They must also offer degree maps, cheaper remedial courses, designated advisors meeting students each term, or staff help completing federal aid applications. These practice requirements exclude one-time community college performance funding under section 201f. Payments can be withheld and lost at fiscal year-end for noncompliance; university withholding requires at least 10 days' notice to legislative subcommittee chairs.

College performance money carries transfer requirements

Community college performance funding uses 30% for 2024-2025 base appropriations and 30% for weighted student contact hours. The remaining 40% reflects performance measures, administrative costs, and local strategic value. Local-value funding requires a board resolution by October 15, 2025, certifying four of five practices in each of three categories. Performance and one-time performance payments require active Michigan Transfer Network participation and timely information updates. Course equivalencies must be updated at least every six months.

College retirement support uses lower rate

Community college retirement allocations must offset retirement contributions. Section 201(4)(a) allocations use each college's share of prior-year covered payroll; section 201(4)(b) uses current-year quarterly payroll. Section 201(5) allocations also use prior-year payroll shares. The maximum employer rate in that payment calculation falls from 20.96% to 15.21%. Colleges must use those payments for retirement contributions and forward the allocated money to the retirement system.

Sponsors & Cosponsors

Sponsor

Darrin Camilleri
Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 262 • No: 28

Senate vote • 10/3/2025

SENATE ADOPTED CONFERENCE REPORT WITH IMMEDIATE EFFECT

Yes: 31 • No: 5 • Other: 1

House vote • 10/3/2025

conference report adopted

Yes: 104 • No: 5 • Other: 1

House vote • 10/1/2025

passed; given immediate effect

Yes: 108 • No: 1 • Other: 1

Senate vote • 5/14/2025

PASSED

Yes: 19 • No: 17 • Other: 1

Actions Timeline

ASSIGNED PA 0015'25 WITH IMMEDIATE EFFECT
10/8/2025Senate
FILED WITH SECRETARY OF STATE 10/7/2025 1:16 PM
10/8/2025Senate
APPROVED BY GOVERNOR 10/7/2025 12:00 PM
10/8/2025Senate
PRESENTED TO GOVERNOR 10/4/2025 8:50 AM
10/7/2025Senate
FOR FINAL DISPOSITION OF BUDGET, SEE HB 4706
10/3/2025Senate
ORDERED ENROLLED
10/3/2025Senate
HOUSE ADOPTED CONFERENCE REPORT WITH IMMEDIATE EFFECT
10/3/2025Senate
re-returned to Senate
10/3/2025House
conference report adopted Roll Call #247 Yeas 104 Nays 5 Excused 0 Not Voting 1
10/3/2025House
rule suspended
10/3/2025House
conference report adopted by Senate with immediate effect
10/3/2025Senate
conference report received
10/3/2025House
SENATE ADOPTED CONFERENCE REPORT WITH IMMEDIATE EFFECT ROLL CALL # 257 YEAS 31 NAYS 5 EXCUSED 1 NOT VOTING 0
10/3/2025Senate
CONFERENCE REPORT RECEIVED IN SENATE
10/3/2025Senate
REFERRED TO CONFERENCE COMMITTEE
10/2/2025Senate
HOUSE NAMED CONFEREES 10/1/2025: REPS. ANN BOLLIN, TIM KELLY, CAROL GLANVILLE
10/2/2025Senate
House conferees named 10/01/2025: Reps. Ann Bollin Tim Kelly Carol Glanville
10/2/2025House
Senate conferees named 10/01/2025: Sens. Darrin Camilleri Sarah Anthony Jon Bumstead
10/2/2025House
re-received from Senate with notice of nonconcurrence in House substitute (H-5)
10/2/2025House
SENATE NAMED CONFEREES 10/1/2025: SENS. DARRIN CAMILLERI, SARAH ANTHONY, JON BUMSTEAD
10/1/2025Senate
HOUSE SUBSTITUTE (H-5) NONCONCURRED IN
10/1/2025Senate
RULES SUSPENDED FOR IMMEDIATE CONSIDERATION
10/1/2025Senate
HOUSE AMENDED TITLE
10/1/2025Senate
PASSED BY HOUSE WITH SUBSTITUTE (H-5)
10/1/2025House
returned to Senate
10/1/2025House

Bill Text

Public Act
10/7/2025
PDF
As Passed by the House
10/3/2025
PDF
As Passed by the Senate
10/3/2025
PDF
Conference Report 1
10/3/2025
PDF
House Concurred
10/3/2025
PDF
Senate Concurred
10/3/2025
PDF
Introduced
3/18/2025
PDF

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