Post

EdTrust-Midwest Urges Policymakers to Increase Support for Underserved Students in Final Budget

Feb 12, 2026 by

At a crucial moment in our nation’s history, when public education is under attack, state investments are more critical than ever. At the same time, Michigan’s students who have long been underserved — students from low-income backgrounds, students of color, English learners and students with disabilities — need additional support.

Governor Whitmer’s recently-released executive budget includes several proposals aimed at supporting Michigan’s most underserved students, particularly through funding to address Michigan’s literacy crisis, tutoring support, expanded access to tuition-free college scholarships and dual enrollment, and additional dollars for students from low-income backgrounds and English Learners. EdTrust-Midwest lauds her strong support for public education, while urging policymakers to invest more for students with the greatest needs.

The $88.1 billion budget, which also calls for raising taxes and tapping the rainy day fund to offset some costs, includes $20.3 billion for K-12 schools. Overall, K-12 schools’ base per-pupil funding would rise 2.5% — raising base per-pupil funding to $10,300, providing an additional $250 per student. Notably, the Governor’s recommendation shifts over $1.2 billion from the School Aid fund to pay for colleges and universities. This continues a troubling trend of using dollars intended for school districts to pay for other priorities.

Funding to support students from low-income backgrounds under the Opportunity Index and English learners each increased by 6% — from $1.29 billion to $1.37 billion for students from low-income backgrounds and from $62.7 million to $66.5 million for English learners. EdTrust-Midwest and partners have long been strong advocates for investing more in students with the greatest needs.

The governor’s recommendation continues to fully fund the foundation allowance for special education in addition to required cost reimbursements for special education students. This follows recommendations in the Michigan Blueprint for Special Education Finance Reform including creation of a weighted funding formula for students with disabilities beginning in fiscal year 2028.

Gov. Whitmer’s budget also calls for investing $625 million in a variety of programs aimed at addressing the state’s K-12 literacy crisis, from PreK through high school. She also recommends $50 million to support districts’ efforts to provide tutoring to help students catch up and accelerate. Her budget also significantly increases funding to train teachers in the science of reading. It provides $50 million over five years for LETRS training and an increase of $10.5 million for reading coaches.

EdTrust-Midwest and partners have long called for the state to prioritize improvements in reading outcomes through research-backed strategies and investment based on the science of reading. That advocacy culminated in bipartisan passage of the Reading for All law in 2024, designed to address one of the most common barriers to reading: dyslexia.

Widespread support for efforts to improve early literacy are needed more than ever as Michigan’s students continue to lag the nation in reading. An analysis of assessment data by EdTrust-Midwest also showed that students who are underserved continued to perform below their wealthier peers on the 2024-25 M-STEP, contributing to longstanding opportunity gaps in education. More than half of third grade students (55.7%) from higher-income backgrounds scored proficient or advanced in reading, while only 25.7% of students from low-income backgrounds scored proficient or advanced.

EdTrust-Midwest’s analysis of the M-STEP data further revealed deeper opportunity gaps, with Black and Latino students, as well as English learners and students with disabilities, scoring lower than the state average on the third grade reading assessment.

Research demonstrates that reading proficiency in early grades is essential to improving education overall. Students who read well by third grade have a better chance of succeeding in school, are far more likely to go to college, participate in the job market, and have greater lifetime employment earnings.

Investments in research-backed practices based in the science of reading are particularly important in districts that serve high concentrations of poverty, students of color, English learners and students with disabilities. Improvement in literacy outcomes come about through a fierce commitment to these practices. They are proof that all students, of every race, family background, and zip code, can read when they have access to the proper resources.

This proposed budget is a good first step, but students who are the most underserved will require significantly greater investments to truly meet their needs. As policymakers continue their budget deliberations, EdTrust-Midwest and partners with the Michigan Partnership for Equity and Opportunity urge policymakers to:

  • Invest an additional $400 million into the Opportunity Index over FY 26 to provide students from low-income backgrounds with the resources they need to succeed.
  • Double the amount of funding from FY 26 for English Learners for a total of $125 million.
  • Begin implementing the recommendations in the Michigan Special Education Finance Reform Blueprint, including creating a new weighted funding formula based on student needs.
  • Increase funding for teacher professional development and grants to local districts to purchase high quality curriculum based in the science of reading.
  • Protect funding to help rural districts with their transportation costs.
  • Increase accountability and transparency including requiring at least 75 percent of the weighted funding to be spent at the building where the intended student attends.

 

The governor’s budget includes the following proposed investments:

Foundation Allowance

  • $10,300 per pupil, a $250 (2.5%) increase
  • Cyber schools receive $8,240 per pupil ($53 million reduction) in recognition of lower operating costs.

Students from Low-Income Backgrounds

  • The at-risk funding line item was removed from the budget and integrated into the foundation allowance. The Opportunity Index bands, which allocate additional funding weights based on concentration of poverty in districts, still exist; the funding is instead distributed as part of the foundation rather than in a separate line item.
  • $78.8 million (6%) increase for a total of $1.37 billion in additional funding for students from low-income backgrounds
  • Weights range from 16.92% to 22.73%, about a 1 percentage point increase from FY26 weights

English Learners

  • The English learner line item was removed from the budget and integrated into the foundation allowance. The weighted funding model, in which students with lower English proficiency receive greater funding, still exists; the funding is instead distributed as part of the foundation rather than in a separate line item.
  • $3.8 million (6%) increase for a total of $66.5 million in additional funding for English learner students
  • Weights range from 1.9% to 16.87% depending on the students’ English proficiency
  • The budget continues to include language that requires districts to provide a minimum number of minutes of language instruction.

Students with Disabilities

  • Includes a new proposed weighted funding formula for students with disabilities beginning in FY 28. This is in line with the recommendations in the Michigan Special Education Finance Reform Blueprint.
  • Nearly $2.9 billion in federal and state funding, including $1.1 billion to reimburse districts for special education costs
  • $535 million – an increase of $13 million – to continue providing 100% of the base foundation allowance

Rural and Isolated Districts

  • $13.7 million ($783,000 increase) to offset additional costs faced by school districts in rural and isolated communities.

Transportation

  • $125 million in continued funding to pay for transportation costs.
  • School Safety and Mental Health
  • $300 million to provide school safety and mental health grants.

Educator Workforce

  • $25 million in continued funding for the MI Future Educator Fellowship
  • $50 million in continued funding for Student Teacher Stipends
  • $60 million over 3 years for Grow-Your-Own programs ($10 million decrease from FY26)

Expanding Postsecondary Readiness and Access to Dual Enrollment

  • The governor’s recommendation includes new funding to encourage more students in areas with high concentrations of poverty to participate in dual enrollment opportunities to earn college credit. The new line item proposes $20 million to reimburse eligible districts for dual enrollment costs.
  • $532 million (a $232 million increase) to the Michigan Achievement Scholarship, which offers tuition-free attendance at community college for residents who attend the community college in their district, scholarship support at four-year universities, and funding to support recognized skills certificate attainment
  • $10 million for FAFSA Completion Challenge grants that support districts to increase FAFSA completion
  • $1.2 million (a $1.4 million decrease) to cover Advanced Placement, International Baccalaureate, and the College-Level Examination Program testing fees for students from low-income backgrounds
  • $53.5 for Career and Technical Education (CTE) reimbursements and partial equalization of local revenue differences from vocational education millages
  • $67 million (a $25 million increase) in Michigan Reconnect funding, and a renewed call to expand eligibility to ages 21+

Literacy

  • $625 million in programs aimed at addressing the state’s K-12 literacy crisis, which would represent a $434.2 million net increase, according to the Michigan budget office. That includes:
    • expansion of the state’s PreK for All initiative to provide free preschool to children regardless of income;
    • $50 million over five years for Language Essentials for Teachers of Reading and Spelling (or LETRS) training, a professional development program for educators based on the science of reading;
    • $100 million over two years to help districts purchase new curriculum and supports aligned to the science of reading, required guidance that was included in the 2024 literacy and dyslexia laws;
    • $135 million for expanded summer, before- and after-school programming. This is an increase of $60 million from last year’s budget.
    • $100 million over two years to provide high impact tutoring

Related Content

Load More