Against a backdrop of early childhood advocacy events and Month of the Young Child programming across Michigan, the State House and Senate quickly moved their budget proposals for the upcoming 2026-27 fiscal year (FY27), which will begin October 1, 2026. Due to changes in federal funding, the State is facing significant revenue shortfalls in the upcoming fiscal year, which would result in needed budgetary cuts across programs if new revenue sources are not identified. there were also suggested cuts to critical programs that support our youngest learners and their families, including the Child Development and Care (CDC) child care Scholarship program.
Michigan’s House of Representatives suggested a funding reduction that would be realized through a policy change for the state’s CDC Scholarship program, which would drastically impact Michigan’s child care ecosystem and the families it serves. Their proposal suggests reducing program funding by $19.5 million by reverting back to paying child care businesses based on child attendance, rather than enrollment. The CDC program is crucial to offsetting the cost of child care for lower income working families, and paying based on enrollment is a critical stabilizing factor for child care businesses, which operate on incredibly thin margins. In contrast, the Senate suggests continuation funding and no policy changes to the CDC Scholarship program. Educating lawmakers now about the importance of stable funding for the CDC scholarship is essential.
Importantly, the House is suggesting a meaningful increase for early intervention services through an additional $5 million for Early On, whereas the Senate proposed a $1.45 million increase. Early On is Michigan’s early intervention program, which serves all eligible families with infants and toddlers who have a developmental delay or disability, and is a key support in Michigan’s ongoing focus on literacy. Early language skills are foundational to literacy development, and early intervention for speech and language delays – the most common reason for Early On services – is imperative for future literacy success. Increased investment in early intervention would help alleviate service shortages, support more children with early literacy foundations, and ensure families and babies receive the services they need. Visit ECIC’s Early On Action Center to educate lawmakers on the importance of adequate funding for Early On in the final FY27 budget.
In alignment with the Governor’s budget proposal, the House proposes new funding to establish “Early Learning Partnerships” while the Senate proposes “Help Me Grow Collaboratives” to support and coordinate local early childhood infrastructure. However, in contrast to the Governor’s proposal, the House proposal does not include dedicated funding to support regional family engagement through MiFamily Engagement Centers whereas the Senate includes this important investment. Family engagement and leadership is vital to supporting a well-informed local early childhood infrastructure, as families need to be centered in the work that impacts them. Visit ECIC’s side-by-side 32p comparison document to learn more about the differences between the Executive, House, and Senate budget proposals for “Early Learning Partnerships”.
In the wake of decreased revenue projections, the Legislature will need to negotiate to reach a final consensus this summer – and your voice is still needed! Make sure your state lawmakers understand the importance of centering Michigan’s youngest children in the final budget by reaching out to your state representative and state senator. You can find full details on the House and Senate budget proposals and stay up-to-date throughout this budget season using ECIC’s FY27 budget tracker.