The Michigan Legislature recently approved an $80.97 billion state budget for fiscal year 2025-26, concluding months of negotiations and averting a state government shutdown. Gov. Gretchen Whitmer is expected to sign the spending plan Oct. 7, according to news reports.
The budget provides a one-time 3% increase in base operational funding for each of Michigan’s 15 public universities, including the University of Michigan’s three campuses. The increase applies to current-year appropriations and will not raise base funding levels in future years.
“We appreciate the Legislature and governor’s support for public higher education and student success,” said Chris Kolb, vice president for government relations.
U-M’s campus-specific allocations are as follows:
- Ann Arbor: $373.43 million (increase of $7.75 million, or 2.1%).
- Dearborn: $32.67 million (increase of $640,000, or 2.0%).
- Flint: $27.68 million (increase of $720,000, or 2.7%).
The final higher education budget totals $2.34 billion, slightly below the governor’s proposed $2.37 billion, and includes an $850.8 million shift from the School Aid Fund to support university operations.
The budget maintains a tuition restraint provision that limits increases to no more than 4.5% or $735 per student, whichever is greater, in order for institutions to receive the full one-time operations increase.
In addition, the budget includes a $300 million deposit into the Postsecondary Scholarship Fund that supports the Michigan Achievement Scholarship, bringing the fund’s total to approximately $600 million. The scholarship program is designed to increase access to college for Michigan students and reduce their out-of-pocket costs.
Other highlights
Elsewhere in the budget, the Department of Labor and Economic Opportunity reinstated $15.6 million for the Innovation and Entrepreneurship line item, which supports programs such as the Michigan Translational Research and Commercialization, or MTRAC, and the Technology Transfer Talent Network, or T3N.
Two of the MTRAC hubs, Life Sciences and Advanced Transportation, are managed by Innovation Partnerships as is the T3N program.
“We’re thrilled to see continued state investment in impactful programs like MTRAC and T3N,” said Kelly Sexton, associate vice president for research – innovation partnerships and economic impact. “These programs play a vital role in helping researchers at U-M and across our state translate high-potential discoveries into real-world innovations that fuel economic growth, create jobs, and improve quality of life across Michigan.
“This support reinforces the state’s commitment to strengthening the innovation ecosystem and ensuring that breakthrough research benefits the public.”
The K-12 budget includes a one-time $1 million allocation to support the Michigan Education Research Institute, a partnership between U-M and Michigan State University. The Health and Human Services budget includes technical adjustments that allow U-M to continue receiving federal passthrough funds for child welfare workforce training.
