Budget Breakdown: Investing More in Students with the Greatest Needs

While the federal government shutdown continues, Michigan lawmakers recently set an example of putting aside their differences and doing the right thing by passing a state budget that invests more in students who have long been underserved. This funding comes at a time when all of Michigan’s students, but especially our most vulnerable students, require reliable resources to keep from falling further behind.

The funding increases, particularly for students from low-income backgrounds and English Learners, build upon the tremendous work of our state leaders over the last two years to create a fair school funding system that meets the needs of all students. This school aid budget represents a significant victory for Michigan’s students with the greatest needs.

Notably, the budget will invest more dollars for students from low-income backgrounds by increasing funding for the Opportunity Index by 25%, representing a $258.7 million increase. That brings the total to $1.29 billion. The Opportunity Index, created in 2023, provides resources to districts to improve the educational outcomes of students from low-income backgrounds and targets those dollars toward school districts with the highest concentrations of poverty. Funding the Opportunity Index is critical to addressing the opportunity and achievement gaps between students from low-income backgrounds and their wealthier peers.

The budget also includes a 25% increase for English Learners. English Learners are a growing population of over 100,000 students and attend districts across the state, including in urban, rural, and suburban areas. In contrast to the Trump administration’s proposed cutbacks, Michigan invested more in the needs of English Learners. The budget included $62.7 million to provide needed instruction and supports for these students. Additionally, the budget contains language that ensures English Learners receive a minimum number of minutes of English language instruction.

Increasing funding for students from low-income backgrounds and English Learners has been a key advocacy priority for EdTrust-Midwest and our partners with the Michigan Partnership for Equity and Opportunity to address the ongoing achievement and opportunity gaps in our state.

Consider that Michigan lags leading states in early reading performance. Additionally, students from low-income backgrounds, Black and Latino students, and English Learners underperform in early reading compared to their peers. For example, only 26% of 3rd grade students from low-income backgrounds were proficient in reading according to the most recent M-STEP. In 7th grade math, only 18% of students from low-income backgrounds were proficient.

English Learners fare even worse in both reading and math. According to the 2025 M-STEP, only 23% of 3rd grade English Learners were proficient in reading and only 12% of 7th grade English Learners were proficient in math. They also lag their peers in 4-year graduation rates.

Research is clear that money matters and that some students need more support to reach their full potential. Yet for years, Michigan’s school aid budget did not take these differences into account. Even with the funding increases over the past two years, Michigan still has one of the highest foundation allowances in the country but is among the bottom ten in terms of funding students from low-income backgrounds and English Learners.

Legislative leaders, particularly Sen. Darrin Camilleri (D) and Rep. Tim Kelly (R), deserve significant credit for putting politics aside and focusing on the needs of students. There is more work to do to ensure opportunity for all students, but this school aid budget shows what can be done when students with the greatest needs are centered in the budgeting process.

The budget passed with bi-partisan support in both the House and Senate and was signed into law earlier this month.

This is part of a series by EdTrust-Midwest digging into the details of the FY 26 School Aid Budget.