The budget makes cuts to many state agencies while providing an extra $1.1 billion to the Michigan Department of Transportation, which funds roads.

Michigan lawmakers bought themselves more time by passing a continuation budget on Wednesday, but the ongoing delay has frustrated school officials and education advocates.

Wednesday brought Oct. 1, the start of a new fiscal year for Michigan's government. Normally, state operations would shut down without a budget.

Michigan lawmakers unveiled a proposed school aid budget for the 2026 state fiscal year, signaling an end to the months of funding uncertainty that have plagued educators across the state. Schools' fiscal year began July 1,

In the thick of a government shutdown that lasted just one hour, the Michigan House and Senate passed a continuation budget to hold the state over for the next eight days – a move that was described as giving legislative staffers some cushion to finish drafting the final budget deal hammered out into the small

House Republicans tried to roll the $200 million reserved for universal free meals into the per-pupil fund. But Democrats prevailed in preserving it.

At least one key Michigan lawmaker expressed doubts that the governor and Legislature could finalize a budget before midnight.