Great Lakes Wire

Michigan House Republicans have announced on the social media platform X that the newly signed state budget advances several GOP priorities. These include eliminating state taxes on tips, overtime, and Social Security, increasing local road funding, reducing waste, and providing record support for students.

According to Michigan leaders, a bipartisan fiscal year 2026 budget has been finalized alongside companion policy changes. The plan pairs broad tax relief with significant infrastructure and school investments. It highlights the elimination of state taxes on tips, overtime, and Social Security while advancing a multiyear road funding package that allocates more funds to local projects. Education items in the budget include continued universal school meals and substantial mental health and safety funding. Republicans describe the outcome as aligning with their priorities on affordability, roads, and core services within a balanced budget framework.

Bridge Michigan reports that the state will suspend its 4.25% income tax on tips, overtime pay, and Social Security for three tax years through 2028 under legislation signed in October 2025. The move is part of the budget deal and is projected to save hundreds of thousands of seniors and workers money annually. External coverage added that Governor Whitmer signed the tax relief measure on October 9, 2025, confirming the scope and temporary nature of the exemptions championed by Republicans during negotiations.

Road funding will expand substantially as part of this initiative. Bridge Michigan’s explainer describes it as the state's largest-ever increase in road funding achieved through revenue shifts and tax changes. Local road agencies are expected to receive significant new resources after being sidelined by previous bonding strategies. Separate reporting details complementary elements such as higher marijuana wholesale taxes and a sales-to-gas-tax swap aimed at bolstering the transportation fund—measures anticipated to generate nearly $2 billion in ongoing resources over four years when fully phased in.

The Michigan House Republicans represent the GOP caucus of the Michigan House of Representatives based in Lansing. The caucus promotes a platform emphasizing fiscal restraint, tax relief, infrastructure improvements, education outcomes, and public safety. They communicate through gophouse.org and member channels. Following the 2024 elections, Republicans organized the House for the 2025–2026 term with a budget approach focused on cutting perceived waste, redirecting spending toward local priorities, resisting broad-based tax hikes while collaborating on bipartisan elements where possible.