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Whitmer Signs $81B Michigan Budget with Funding Increases for Roads, Schools

The $81 billion budget includes record per-pupil funding of $10,050 and $1.8 billion annually for roads, supported by a new 24% wholesale cannabis tax.

  • Governor Gretchen Whitmer approved Michigan's $81 billion spending plan for the 2026 fiscal year on Tuesday following a late compromise among state legislators.
  • Persistent disagreements over funding priorities and road repairs, including rejection of Whitmer's 2019 gas tax plan, led to partisan infighting and last-minute negotiations.
  • The newly approved budget introduces a debated 24% tax applied to cannabis transactions from growers to retailers, with the revenue earmarked for road and infrastructure improvements.
  • Legislative fiscal agencies estimate the new wholesale marijuana tax will generate $420 million annually for Whitmer’s $1.8 billion road-funding plan, while analysts predict a 14.4% drop in sales.
  • Critics, especially small business owners, argue the higher tax could hurt the legal market and spur illicit sales, while backers call it a vital step to fix roads and deliver key services.
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Michigan creates additional marijuana tax to fund Whitmer's plan to 'fix the damn roads'

Michigan Gov. Gretchen Whitmer has signed into law a new 24% tax on marijuana to create new revenue that will help fund long-promised major road repairs.

·United States
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Detroit Free Press broke the news in Detroit, United States on Tuesday, October 7, 2025.
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