Honigman Capitol Report: State of the State

Whitmer Delivers Final State of the State

Governor Gretchen Whitmer used her eighth and final State of the State to outline a 2026 agenda on literacy, housing affordability, and health care costs.  She framed a “Michigan for all” budget with the largest targeted literacy investment in state history and urged an on-time bipartisan budget to put more money in residents’ pockets for housing and health.  Her agenda highlighted three pillars of improving literacy, easing housing construction, and lowering medical debt.  Secretary of State Jocelyn Benson said the focus on affordability mirrors voter concerns about rising housing and health care costs.

Literacy and Education

Whitmer proposed expanding her “Every Child Reads” plan with early starts, proven methods, and extra help to close reading gaps.  Michigan currently ranks 44^th in 4^th grade reading. She called for free full-day pre-K for all children, statewide adoption of effective curriculum, and additional professional learning for teachers.  The plan adds tutoring and small-group support during class, after school, on weekends, and over summer.  Whitmer proposed universal dyslexia screening, funding for evidence-based resources, literacy coaches, and statewide evidence-based curriculum with added teacher training.  She urged making free breakfast and lunch for 1.4 million public school students permanent.

Housing

Whitmer said Michigan must keep building more homes and reduce construction barriers, emphasizing “build, baby build.”  She proposed a state affordable housing tax credit to supplement the federal credit, noting Michigan lacks this regional tool, the only Midwest state without one, and saying it would enable thousands more homes yearly.  She urged demolishing unnecessary construction rules and streamlining zoning to allow in-law suites and multifamily homes, modernize lot sizes and setbacks, and update parking and building codes.  House Speaker Matt Hall welcomed regulatory reform and flagged “out of control” local regulations, while citing last year’s deal cutting over $800 million in waste and signaling interest in tax negotiations. The state has closed the housing gap by 44%, tracking 86,000 new homes per year towards the 115,000 target.

Healthcare and Medical Debt

Whitmer urged Congress to renew subsidies to avoid large premium increases for Michiganders.  She proposed capping medical debt interest, removing medical debt from credit reports, requiring hospital financial assistance, and banning home liens or foreclosures over medical debt.  The medical debt proposals received a bipartisan standing ovation.  She proposed major budget investments to stabilize Medicaid and preserve coverage regardless of federal actions.  DHHS Director Elizabeth Hertel said the department has begun work on debt relief and preserving Medicaid financing.  Rep. Alabas Farhat called the package common sense and prioritized interest caps and hospital aid, and Speaker Hall signaled willingness to work on reforms.

Notable Accomplishments Touted

Governor Whitmer highlighted several significant accomplishments achieved during her tenure, emphasizing bipartisan cooperation and strategic investments across the state. She cited the signing of 1,575 bipartisan bills and seven balanced budgets, along with major tax relief measures, including the repeal of the retirement tax, a 500% expansion of the Working Families Tax Credit, and the elimination of state taxes on tips and overtime. Her administration has overseen substantial infrastructure improvements—repairing 26,500 lane miles of road and nearly 2,000 bridges—and advanced key public services by delivering free pre-K, universal school meals for 1.4 million public school students, and free community college opportunities. Additional milestones include replacing 70,000 lead pipes, facilitating the historic restart of the Palisades nuclear plant, preparing for the 2026 opening of the Gordie Howe International Bridge, and securing a new fighter mission for Selfridge Air National Guard Base, for which she publicly thanked President Trump.

Republican Response

Senate Republican Leader and gubernatorial candidate Aric Nesbitt delivered the official Republican response to Whitmer’s State of the State from his family farm in Lawton, Michigan. Nesbitt asserted that despite increased state spending during Whitmer’s tenure, Michigan faced worsening conditions, including limited progress on road repairs, significant unemployment fraud, and pandemic‑era policy decisions that he said negatively affected seniors, small businesses, and student learning outcomes. He argued that Michigan families were struggling with affordability, citing rising costs of living and what he characterized as ineffective or harmful state policies. Nesbitt highlighted GOP legislative efforts that focused on reducing government waste, shrinking bureaucracy, and returning taxpayer dollars to residents.

He outlined Republican priorities, including ending what he described as burdensome environmental regulations; expanding access to housing, child care, and health care by cutting red tape; improving education through stronger literacy standards, greater parental choice, and a renewed emphasis on skilled trades; and addressing infrastructure needs. Nesbitt concluded with a message of encouragement, stating that Republicans were working to strengthen the state and ensure families could succeed in Michigan.