Updates About Economy

Governor Whitmer’s 2025 State of the State Address featured several initiatives that emphasized public health and improving outcomes for Michigan children. A few of her noteworthy priorities include:

¶Healthcare Initiatives

The Governor emphasized her continued commitment to expanding healthcare access, with a focus on reducing prescription drug costs and improving maternal healthcare. She proposed additional funding to support community health programs and initiatives to address disparities in healthcare access, particularly in underserved communities.

¶Medical Debt

A historic allocation of $4.5 million is set to ease the burden of medical debt affecting nearly 700,000 residents, ensuring that health emergencies do not lead to long-term financial hardship.

¶Vaping Tax

In an effort to curb youth vaping and promote healthier communities, Whitmer proposed closing longstanding loopholes by introducing a new tax on vaping products similar to cigarettes. The revenue generated would be directed toward public health initiatives and educational campaigns aimed at preventing youth nicotine addiction.

¶No Phones in Class

To enhance learning environments and reduce distractions, the Governor suggested a statewide policy restricting cellphone use in classrooms. The goal is to improve student engagement, academic performance, mental health, sociability, and overall well-being.

¶Children’s Literacy & Education

The Governor highlighted a renewed focus on early childhood literacy, proposing increased investment in reading programs, teacher training, and access to educational resources to ensure students meet grade-level proficiency standards.

¶Mental Health & Child Care

Expanding support programs, the address highlighted efforts to nurture mental well-being and expand affordable child care, reinforcing the link between mental health and educational success. Whitmer emphasized the critical need for enhanced funding and integration of mental health services in schools and communities to ensure that both children and their caregivers have timely access to comprehensive support.

In addition to these priority areas, Governor Whitmer touched on several other important initiatives in her speech:

• Housing Investments: A $2 billion plan to build, buy, or repair nearly 11,000 homes, creating over 10,000 construction jobs and reducing living costs.
• Energy Assistance: Expansion of the Michigan Energy Assistance Program to help tens of thousands of households save on winter utility bills.
• Tax Relief: Measures including a retirement tax rollback and expanded Working Families Tax Credit to put over $1 billion back into households.
• Permitting & Licensing Reforms: Streamlined processes aimed at accelerating construction and job creation.
• Workforce Development: Initiatives to boost job skills and educational opportunities, including targeted outreach to young men for tuition-free career and technical programs.
• Road Funding: Proposed investments in road maintenance and infrastructure upgrades aim to improve transportation safety and efficiency, benefiting all Michiganders and supporting local economies.

You may read Governor Whitmer’s entire 2025 address HERE for a detailed outline of her 2025 priorities.

Governor Gretchen Whitmer recently presented her Fiscal Year 2025-2026 Executive Budget Recommendations, kicking off Michigan’s budget season. With a total proposal of $83.5 billion—the largest in state history—the budget reflects a $1.2 billion revenue surplus and prioritizes lowering costs for residents, creating jobs, investing in education, supporting seniors, and strengthening public safety. Key highlights include continued tax relief through the Working Families Tax Credit, expanded universal pre-K, free school meals for all public school students, and increased investment in workforce development. Additionally, the proposal allocates billions toward infrastructure improvements, child care support, and special education funding.

Other notable investments focus on public health and safety, including $46.8 million in opioid settlement funds, increased Medicaid access for seniors and individuals with disabilities, and a $42.8 million tax on vaping and nicotine products (see Governor Recommends New Tax Targeting Youth Nicotine Consumption for more info). The budget also includes major investments in Michigan’s defense industry, cybersecurity, and government modernization. As the legislature begins negotiations, these proposals will shape the final state budget ahead of the July 1 deadline.

The Michigan Senate has passed a bipartisan bill, SB 8, that will gradually raise the tipped minimum wage to 50% of the regular minimum wage by 2031, rather than completely phasing it out as originally planned. The bill, introduced by Democratic Senator Kevin Hertel (D-Saint Clair Shores), received more support from Republicans than Democrats, with a 20-12 vote in favor. Under the bill, the tipped wage will remain at 38% for the rest of 2025, then increase by 2% annually until it reaches 50%. This compromise comes as the Legislature faces a February 21 deadline to amend the minimum wage and Earned Sick Time Act (ESTA) before they take effect.

SB 8 is tie-barred to HB 4002, the ESTA bill, which remains in a Senate committee. As a result, the minimum wage changes cannot be signed into law without also changing the paid sick time bill. While many businesses and Republicans view the bill as a necessary adjustment to avoid job losses in the restaurant industry, some Democrats and labor advocates criticize it for rolling back worker protections originally mandated by a court order.

Despite the mixed response, legislative leaders view the bill as a step toward a bipartisan solution. Senate Majority Leader Winnie Brinks (D-Grand Rapids) and Hertel expressed optimism about continued negotiations, while Republican leaders emphasized the need to balance business interests with wage increases. House Speaker Matt Hall (R-Richland Township) highlighted the importance of compromise, stating that the deal should benefit workers rather than just businesses or labor unions. With the deadline approaching, both parties acknowledge more work is needed to finalize a consensus on the state’s wage and sick leave laws.