Kids belong in state budget
Investments in kids are investments in our future. State spending on proven effective programs for children can not only have an immediate impact on kids and families but also long-lasting benefits for our communities and economy.
The new federal administration and congressional leaders have already stated a desire to shift costs onto states for essential public services like healthcare, education, and food assistance that children and families need to thrive.
Trump’s promise to abolish the U.S. Department of Education is especially concerning. Michigan received over $2.3 billion in federal grants for education in the last fiscal year, providing millions in Title I funds for schools with students who are economically disadvantaged, Pell Grants for students who cannot afford college, and dollars for children receiving special education services.
With these threats looming, it’s more important now than ever to ensure we are prioritizing kids through our state budget.
Gov. Gretchen Whitmer’s budget proposal for fiscal year 2026, released last week, includes a significant focus on education. For public schools, the governor recommended increased funding, including for students who are economically disadvantaged (through the Opportunity Index), special education students, English-language learners, and students attending rural and isolated schools. In addition, she proposed additional funding for literacy coaches and grants to support early literacy.
In the short term, these dollars may help to stymie the continued decline in test scores — which put us below the national average in fourth-grade reading and eighth-grade math in 2024 — and reduce the performance gap for students who are economically disadvantaged. In the long term, higher spending on education is linked to higher earnings in adulthood and reduced involvement in the criminal justice system, both of which have a positive impact on future state revenue.
The governor’s budget also includes $200 million to continue providing free school breakfast and lunch for all public school students. Not only have universal free school meals been found to increase reading and math scores, but they also meaningfully reduce grocery spending for households with children.
Finally, the budget proposes a new tax on vaping products. Although teen smoking has declined in the 30 years since the Youth Risk Behavior Survey began collecting data, rates remain higher in rural areas. At the same time, vaping products have grown in popularity with 15.4% of Michigan high school students reporting use of e-cigarettes. The new tax will bring the cost of vaping in line with other tobacco products — like cigars and smokeless tobacco — and provide funding for state prevention and cessation programs.
Despite these big investments, the governor’s budget proposal left out a number of priorities stemming from programs during the pandemic that have been shown to improve the lives of kids and their families. There remains no plan for a state-level Child Tax Credit, despite substantial evidence from the 2021 federal expansion of its anti-poverty effects.
Similarly, the governor did not propose a revival of the Emergency Rental Assistance program, which provided over $1.2 million to households in Alcona, Alpena, Montmorency and Presque Isle counties to help cover rent and utility bills. With 1 in 4 kids statewide living in a household burdened by the high cost of housing and over 32,000 students in the state experiencing homelessness, the lack of action to address housing affordability for families is deeply disappointing.
Another glaring omission in this budget is for child care. The proposal includes some small investments in grants and prospective payments for child care providers as required by new federal rules, but lacks a more dedicated revenue source for early childhood programs or a comprehensive strategy to address the workforce shortage plaguing Michigan’s child care industry. Without greater investment in the sector, Michigan’s economy will not be able to reach its full potential.
Government spending on programs for children and youth remains popular with voters, who desire to do what’s in the best interest of our kids. In November 2024, voters approved 55 local ballot measures to increase funding for schools and intermediate school districts, and in Kent County, voters renewed the Ready by Five millage to raise $48 million in revenues for evidence-based programs that improve early childhood health, school readiness, and well-being.
Now’s the time for us to demonstrate our commitment as a state to our youngest residents and invest in their future. If our budget is a reflection of our priorities as a state, then kids and families must be at the center.
Anne Kuhnen is the kids count director at the Michigan League for Public Policy.


