We Are Building Up Michigan

With the first majority in nearly four decades, Senate Democrats are seizing the opportunity to reshape the state budget, expanding its impact to ensure all Michiganders can enjoy its benefits. Our focus is on every family, student, school, and community in every corner of the state. Last year’s budget marked a turning point, and this year’s budget builds on that momentum with innovative proposals to address the challenges facing Michigan. As we continue to strengthen our state, Senate Democrats remain committed to our values and priorities. The 2025 budget reinforces our dedication to transformational, innovative, equitable, and intentional investments in Michiganders and the places we call home. Combined with the groundwork laid last year, this budget serves as a blueprint for a brighter future, ensuring that every Michigan resident has the opportunity to reach new heights.

Senate Democrats are building up Michigan’s future by making significant investments in kids and families, from maternal and infant health and child care to innovative and equitable funding for students, schools and teachers.  

• Investing nearly $15M more for Healthy Moms, Healthy Babies, including:  
  • • $7.5M for maternal health services; 
    • $3.9M for doula training and continuing education; and
    • $918,000 for maternal and infant health Medicaid rates. 
• Continuing to lower child care costs and support child care workers: 
  • • $65M million to increase hourly child care provider reimbursement rates by 15%;  
    • $24M for child care stabilization grants to assist providers and ensure availability for parents; and 
    • Additional investments to improve the administration of the Tri-Share Child Care Program, support for home-based care providers, child care facility inspections, and more. 
• $85M ongoing investment to the Great Start Readiness Program to expand free preschool for four-year-olds, increasing the eligibility threshold to 400% of the federal poverty level (under $120,000 annually for a family of four). 

• Building on the historic investments from last year in Michigan’s students, schools, and teachers, on average, our 2025 budget increases per-pupil funding by approximately $400 per student statewide.
  

• Continuing our universal free school meals program. 

• Providing more funding and resources for the students and schools that need it the most, including: 
  
  • • $65M increase in weighted funding for Small, Isolated Districts, At-Risk students, Bilingual Education, Early On and Career and Technical Education; 
    • $25M additional increase for At-Risk, marking the first time the state has invested more than $1 billion in at-risk funding; and 
    • $10.4M total in Bilingual Education.
• Recognizing the important role of teachers in our kids’ education and supporting them accordingly, with an additional $25 million investment in the student loan stipend program for our teachers that we established last year, helping more of them stay in the classroom and attracting new teachers to the profession.  

• Investing nearly $15M more for Healthy Moms, Healthy Babies, including:  
  • • $7.5M for maternal health services; 
    • $3.9M for doula training and continuing education; and
    • $918,000 for maternal and infant health Medicaid rates. 
• Continuing to lower child care costs and support child care workers: 
  • • $65M million to increase hourly child care provider reimbursement rates by 15%;  
    • $24M for child care stabilization grants to assist providers and ensure availability for parents; and 
    • Additional investments to improve the administration of the Tri-Share Child Care Program, support for home-based care providers, child care facility inspections, and more. 
• $85M ongoing investment to the Great Start Readiness Program to expand free preschool for four-year-olds, increasing the eligibility threshold to 400% of the federal poverty level (under $120,000 annually for a family of four). 

Senate Democrats are building up Michigan’s students and workers, enabling them to build up their skills and a better life through free community college for all and targeted training and work supports. 

• $52M total in continued support for Michigan Reconnect scholarships, enabling workers to go back to school to pursue a degree or a skilled trade certification, as well as additional funding for administration of the program and wraparound services for its participants.

• Creating more opportunities for veterans, returning citizens, business owners of color, farmers and more. 

• $330M total for the Michigan Achievement Scholarship, a bipartisan scholarship established to lower the cost of community, private, or public college by thousands of dollars a year — up to $27,500 over five years — for most graduating seniors. 
  • • This includes expanding access to free community college for all students in every part of the state with the Community College Guarantee.  

• $52M total in continued support for Michigan Reconnect scholarships, enabling workers to go back to school to pursue a degree or a skilled trade certification, as well as additional funding for administration of the program and wraparound services for its participants.

• Creating more opportunities for veterans, returning citizens, business owners of color, farmers and more. 

Senate Democrats are building up communities, rejuvenating and reenvisioning state funding for the places we call home to strengthen public safety and improve our quality of life. 

• $75M annually for a Public Safety Trust Fund to help curb crime and keep communities safe. 

• $75M annual investment in state funding to support the local needs of the Michigan communities we call home, from the smallest villages and townships to the largest cities and counties.  

• • • This funding enables local governments to provide residents with things like reliable and responsive police and fire services, quality parks and recreation opportunities, and dependable local water and sewer service.
    • Around 1,200 more communities around the state will now receive discretionary state funding for local services. 

• $75M annually for a Public Safety Trust Fund to help curb crime and keep communities safe. 

Senate Democrats are helping lower costs and building up Michiganders’ savings, from expanded preschool and lowered housing costs to efforts to rein in predatory payday lending and high auto insurance rates.  

• $4.3M for volunteer income tax assistance programs to continue to support and provide assistance for families receiving the expanded state Earned Income Tax Credit (EITC).  

• Lowering housing costs, including: 
  • • $2.5M in grants to address veteran homelessness; and 
    • $10.5M to reduce homelessness and assist families in need with housing. 
• Making investments to help curb predatory lending. 

• Funding efforts to help review, evaluate and reduce auto insurance rates. 

• Ongoing investment to expand free preschool for four-year-olds for more kids and families, supporting early learning while reducing child care or preschool costs for families. 

• Investing in every part of the child care equation to help support parents, child care workers, and child care providers, lowering costs for families and improving and strengthening the child care system to benefit everyone.   

• $25 million for continued classroom startup grants for the creation of new providers and classrooms to ensure more preschool slots are available in lieu of child care for families.

• $4.3M for volunteer income tax assistance programs to continue to support and provide assistance for families receiving the expanded state Earned Income Tax Credit (EITC).  

• Lowering housing costs, including: 
  • • $2.5M in grants to address veteran homelessness; and 
    • $10.5M to reduce homelessness and assist families in need with housing. 
• Making investments to help curb predatory lending. 

• Funding efforts to help review, evaluate and reduce auto insurance rates. 

Senate Democrats are also literally building up Michigan, too, making significant investments to build more housing and fix our roads, bridges, and water infrastructure. 

• Major water infrastructure, including: 
  • • $10.3M increase for climate change mitigation through green infrastructure, providing grants to municipalities to support stormwater projects that reduce the impact of climate change; 
    • $52.3M increase in local water infrastructure projects; and 
    • $13M increase for lead service line replacement. 
    • There is also additional funding for specific local water projects, including $8M for lead service line replacement and $17M for specific water infrastructure projects.

• $94.5M to create new and refurbished housing to improve access and affordability: 
  • • $61.1M to address housing affordability, including money for local and regional housing projects and down payment assistance grants; and 
    • $33.4M for housing stock and homeowner affordability grants.  

• More than $440M in additional funding in our transportation budget, including $89.4M that goes to state-funded local projects (i.e., local road, bridge and pedestrian projects). 

• Major water infrastructure, including: 
  • • $10.3M increase for climate change mitigation through green infrastructure, providing grants to municipalities to support stormwater projects that reduce the impact of climate change; 
    • $52.3M increase in local water infrastructure projects; and 
    • $13M increase for lead service line replacement. 
    • There is also additional funding for specific local water projects, including $8M for lead service line replacement and $17M for specific water infrastructure projects.