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Michigan lawmakers worked overnight to pass a $75 billion bipartisan state budget for the 2027 fiscal year after missing their July 1 deadline for a second straight year.

The budget, which was passed by both the state House and Senate early Friday morning, totals $75.2 billion, includes $19.8 billion in school aid funding and $14.1 billion in the general fund, reducing the general fund spending by $859 million.

This balanced budget reflects a rare moment of bipartisanship in Lansing, delivering key priorities for both parties while avoiding new taxes or fees and preserving the state’s rainy-day fund. Governor Gretchen Whitmer praised the package for strengthening student literacy, expanding housing opportunities, protecting healthcare, fixing roads, and lowering costs for families.

House Republicans, led by Majority Leader Bryan Posthumus, highlighted the spending cuts for the second straight year, emphasizing fiscal responsibility and rejecting the idea of growing government. Democrats, including Sen. Darrin Camilleri, celebrated record investments in education, including a 2.5% increase in per-pupil funding to $10,300, continued free school meals, and support for mental health and safety grants.

The budget also continues the Working Families Tax Credit and calls for eliminating the retirement tax, while allocating additional funds for roads, bridges, rail, and transit.

As the budget heads to Whitmer’s desk for signature, it represents a compromise that aims to deliver tangible benefits for Michiganders amid ongoing economic pressures. Whether it fully addresses the state’s long-term challenges remains to be seen, but for now, it marks a step forward in a divided political landscape.