103rd Legislature, Jan-Feb 2026: Whitmer's Final Executive Budget
One for the (damn) road
On Wednesday, February 11th, State Budget Director Jen Flood presented Governor Whitmer's Executive Budget recommendations before the House and Senate Appropriations committees.
In order of appearance: Senate Appropriations Chair Anthony (D-Lansing), House Appropriations Chair Bollin (R-Brighton), State Budget Director Jen Flood, Acting Director of DTMB (Department of Technology, Management, and Budget) Kyle Guerrant, Sen. Damoose (R-Harbor Springs), Rep. Morgan (D-Ann Arbor)
Footage edited for time and most salient transit-related discussion. The full budget presentation is available on the House TV YouTube channel .
Public transit funding
The Executive Budget proposes $315M in Local Bus Operating Assistance (LBO), in line with the ongoing sustained funding prescribed in the FY2025-26 budget .
| Local Bus Operating Funds | FY 24-25 Enacted Budget | FY 25-26 Enacted Budget | FY 26-27 Executive Proposal |
|---|---|---|---|
| Sustained | $226.75M | $271.6M | $315M |
| One-Time (ARPA) | $20M | Not Renewed | Not Renewed |
| Total (Combined) | $246.75M | $271.6M | $315M |
$65M for new transformational projects is once again earmarked via the Neighborhood Roads Fund. Additionally, $298.8M is allocated to the new “Intermodal capital” item, a consolidation of several smaller capital line items into one shared source of funding for bus, rail, and marine projects. (For reference, FY2025-26’s transit capital line item was $250.7M).
Last year, capital funds decreased slightly from the year prior to facilitate the large increase in operational funding. This restructuring offsets that decrease.
This budget includes:
- $100 million for public transit, including new transformational projects and local bus operations.
- $40 million for rail grade separation projects to improve safety and reduce traffic congestion.
- $130.8 million increase in state and federal support for transit and rail programs, including a $43.4 million increase in Local Bus Operating assistance for local transit agencies. This adds to the $44.9 million FY26 increase for Local Bus Operating approved last fall, for a total of $315 million – a combined 39% increase.
This long-term funding supports improvements across the entire transportation system, including state and local road repairs, local bridge replacement, rail grade separation projects that improve safety and reduce congestion, and investments in public transit infrastructure and local bus operations. Together, these investments strengthen Michigan’s economy, support good-paying jobs, and ensure that every community reaps the benefits.
— Press release from the Executive Office of the Governor
This time, after two messy years, we are finally starting off a legislative budget cycle without the looming question of whether existing transit ops funding will be cut. The FY2025-26 budget established a floor, and this recommendation for FY2026-27 preserves it. The big question: Will this group project get turned in before the deadline or will this year’s state budget cycle be a repeat of last year’s chaos?
Now, long term, should this floor still be raised higher to close the gap between Michigan and our neighboring states (looking enviously at llinois )? Absolutely. But short term, we have record-level funds to put toward tangible projects, like patching the holes in our existing intercity transit network .
The Michigan Public Transit Association is once again hosting a Transit Day at the Capitol in partnership with several advocacy groups. Save the date for Thursday, March 12th from 9:00 am to 3:00 pm. RSVP by February 28th.
Housing and placemaking
The Michigan Housing and Community Development Fund (HCDF) maintains its annual funding of $50M for the creation of affordable, missing middle housing. A portion of this fund will also be used for ongoing downtown revitalization efforts across the state.
(Let’s use some of the $50M to reform that sea of surface parking in downtown Lansing!)
Recent legislative actions
While 2026 has not yet seen movement on any policy bills which directly impact transit, a package of bills , SB 691 and 693-698, has been introduced which would move Michigan’s primary elections from August to May starting in 2027. Senate Fiscal Agency analysis documents for this package were recently completed, suggesting we can expect to see discussion and referral from the Committee on Elections and Ethics soon.
This simply means that after 2027, any local ballot measures, including transit millages, which would have historically been placed on the ballot in August will now be voted upon three months earlier.
A word on our budget deficit
As noted by Rep. Morgan, roads, bridges, and transit are among the few areas of the budget which the Executive proposal would strengthen. The majority of the recommendation is instead focused on damage control, protecting Medicaid funding when 200,000 Michiganders face a complete loss of coverage.
“While Michiganders continue to pay federal taxes, we all get less back in federal support, and the state pays more.”
Replacement funds would be raised from new taxes on nicotine, sports betting, and digital advertising, which can be expected to face staunch opposition from the House as the budget wheel begins turning once more.
So, why do we have this sudden multi-billion dollar deficit from federal sources and what is that federal funding — which, itself, is in part Michiganders’ own money — being used for instead?
The following views are, as always, my own, though by now they should be the views of anyone with an understanding of history and any capacity at all for human compassion. Yep, we’re going there.
Michigan must now generate nearly $1 billion in new state revenue this year just to plug holes in our basic social safety net because the federal government stripped Medicaid and SNAP bare to fund ICE. While our budget proposal rightfully focuses on protecting access to healthcare and education, the messaging must go further.
We must call this what it is: Michigan’s federal tax dollars have been stolen to terrorize cities and kidnap people.
That’s a sentence I never in my life thought I’d write, but it’s exactly where we are now as a country. On a smaller but no less damaging scale, what’s happening in Minneapolis is already happening here , and at top of mind for anyone paying attention is whether Metro Detroit is next in line for full illegal occupation by federal agents.
Our federal government is in a partial shutdown while Congress determines the future of the Department of Homeland Security. It is not hyperbole to say the fate of this country hangs in the balance. We must demand our tax dollars serve us and the betterment of our lives, and that means no less than pressuring our elected officials to openly call for the complete abolition of ICE, partisan politics and electoral strategy be damned. There is no reforming a government agency with a track record of killing its own citizens without repercussion and repurposing empty warehouses across the country for holding mass numbers of people in large, concentrated spaces (Are the alarm bells ringing for you yet? They should be!!) Only after this threat is gone can we even begin to restore some semblance of normalcy and hope that the future we’re building for will still be there.
— — —
I imagine this is uncomfortable for some of you read. My response: Good, and embrace that discomfort now, because it’s up to all of us to find one another and collectively channel this anger into an effective response.
Yes, I’m the local transit guy, but my blog and my work is really about providing access to opportunity for more Michiganders. Above all else, I just want to make the state I’ve called home my entire life a better place than I found it. All the public infrastructure improvements that I and so many others have dedicated our lives to building will mean nothing if entire communities of people are afraid to even leave their homes.
I used to tell myself I’d focus local rather than national and “be the helper” within my own neighborhood, as that was within my control. Well, national news is knocking on all our front doors now, so that distinction is long gone. It becomes just a little bit difficult to keep your head down and focus solely on municipal matters when your federal administration is this interminably hell-bent on stripping everyone of their personal freedoms and livelihoods, let alone basic financial security. When even the fellow snarky Midwestern tech enthusiast (to whom most readers of this blog are probably subscribed!) calls this out? Everyone with the ability, and especially with the privilege of having a platform, has the responsibility to speak up.
Remember, though, that organizing is a marathon, not a sprint, and burning yourself out won’t do anything to help anyone. You are allowed to, and should, make time to engage in the hobbies and small joys that make you the unique person you are. And to that point, on a lighter note, look for this year’s intercity transit adventure to land in mid-March.
Keep your family, friends, and neighbors close, and take care of each other.