In late July, Governor Whitmer signed the FY 2027 state budget – the final budget of her tenure – into law. The FY 2027 budget, which will take effect on October 1, 2026, was crafted against a backdrop of changes in federal funding and state revenue shortfalls. Despite the obstacles faced by the Legislature during this year’s appropriations process, the FY 2027 budget delivers meaningful investments in Michigan’s families with young children.
Crucially, the budget preserves enrollment-based payments for the Child Development and Care (CDC) child care scholarship. This win is thanks to Michigan’s families and child care providers, who galvanized to educate their lawmakers on the importance of the program and enrollment-based reimbursements, which stabilize child care businesses and maintain open child care seats. The FY27 budget also increases CDC Scholarship program funding by $88.1 million to reflect more families relying on scholarships. The increase in program funding and maintenance of enrollment-based payment practices will allow additional eligible families to access child care scholarships while supporting provider stability and availability of care.
ECIC and the Think Babies Michigan Coalition was also pleased to see the creation of a new . The creation of a dedicated early childhood fund has been a long-standing priority for Think Babies Michigan, and this initial investment in vital early childhood programs – particularly for infants and toddlers – is a step in the right direction. The $5 million investment in FY2027 can provide supplemental support to the CDC Program, Early On, the Great Start Readiness Program (GSRP), and programs for infants and toddlers, though is focused on the CDC program in FY2027. Funds can be used for increasing provider or reimbursement rates; reducing costs for families; recruitment and retention activities for the early childhood workforce; and for infrastructure, equipment, or facilities grants. The flexibility and wide range of funding uses will support crucial early childhood programs and address areas of high need.
The budget also includes $30 million in new funding specifically for the early childhood workforce. These funds can be used for recruitment, retention, and professional development and career advancement opportunities including wage and compensation-focused initiatives. This targeted investment, paired with the Early Childhood Investment Fund, is a step towards stabilizing Michigan’s early care and education system with a workforce that’s adequately compensated, highly skilled, and growing to meet the needs of children and families statewide.
Other budget wins include a $2.4 million increase to Early On, Michigan’s early intervention program for infants and toddlers with disabilities and developmental delays. Continued investments in Early On helps more children meet developmental goals including early literacy foundations. Additionally, in alignment with the Governor’s recommendation, $30 million is included to establish Early Learning Partnerships to support local early childhood infrastructure formerly through Great Start Collaboratives. The funds will support developmental screenings for young children, family navigation to needed services, access to books and early literacy materials, family support services such as home visiting, and a coordinated statewide enrollment system. Visit ECIC’s 32p side-by-side overview resource to learn more.
Your voice is still needed! Reach out to your state representative and state senator to thank them for the budget investments you were glad to see included in the final budget. Additionally, 2026 is a crucial election year! Connect with candidates running for local, state, and federal office, and educate them about the importance of prioritizing Michigan’s children and families. For resources, voting information, and tools to engage with candidates this election season, visit ECIC’s Voter and Candidate Education Toolkit.
Check out the FY27 budget tracker to see how other early childhood programs fared, and read our Budget Report for additional information.