Michigan Gov. Gretchen Whitmer seeks $625M for literacy, tax ‘holiday’ for school supplies

Gov. Gretchen Whitmer will unveil the final budget proposal of her tenure this Wednesday in Lansing
As part of it, she’s calling for lawmakers to put $625M toward increasing childhood literacy efforts
She’s also expected to propose a property tax break for seniors, as well as a “tax holiday” on school supplies

LANSING — Michigan Gov. Gretchen Whitmer will seek $625 million in funding to address the state’s poor student reading scores and propose a sales tax “holiday” on school supplies to save families money, according to her office.

The administration shared outlines of those plans with Bridge Michigan on Monday and will provide more details Wednesday, when State Budget Director Jen Flood is scheduled to present to lawmakers the governor’s executive budget recommendation for next fiscal year.

With Michigan students ranking 44th in fourth-grade reading on the most recent national assessment — and Whitmer vowing to make literacy the top priority during her last year in office — her budget will propose what she’s calling “the largest investment in literacy” in state history.

“Our mission is simple: every child reads and succeeds,” the governor said Monday on social media.

Whitmer’s $625 million Every Child Reads plan proposes expanding before-school, after-school and summer programs in an effort to give children extra learning support.

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It would also continue Michigan’s free Pre-K for All program, implement a reading curriculum and expand a teacher training program known as LETRS, which focuses on how the brain learns to read and is often referred to as the “science of reading.”

State Superintendent Glenn Maleyko called the proposed spending “especially significant.”

“Nothing is more important to our students and our state than improving literacy,” he said in a statement. “Reading and writing are the foundation for long-term success, and I look forward to working with the Legislature through strong teamwork and shared responsibility to advance these priorities and continue improving student outcomes statewide.”

Whether the funding is one-time or ongoing, however, has some education groups concerned.

While investing in literacy fundamentals is great, “we’ve tried for years to build long-term gains on one-time short-term investments and we know that’s not a sustainable way to show gains,” Peter Spadafore, executive director of the Michigan Alliance for Student Opportunity, told Bridge.

But if the one-time spending is targeted on things like “getting all our instructors coached up on LETRS and purchasing the right curriculum,” Spadafore said, then “those one-time investments make a lot of sense.”

Michigan fell to 44th in the nation for fourth-grade reading on the National Assessment of Educational Progress in 2024. Third-grade reading scores reached a new low on state tests in 2025, with 38.9% of the third graders considered proficient in English Language Arts, down from 39.6% in 2024.

But boosting state spending next year could be difficult.

State budget officials in early January announced lawmakers have roughly $1 billion less to work with, in part due to tax law changes at the state and federal levels, as well as Michigan’s recently passed $2 billion road funding package.

That could complicate a budget process that was already fraught last year, as the Republican-led House, Democratic-led Senate and Whitmer failed to finalize a deal by the Oct. 1 constitutional deadline but avoided a government shutdown with stopgap spending.

Targeted tax relief

Whitmer is also expected to propose two targeted tax breaks as part of what her administration is calling the Saving Michigan Money Plan.

The plan includes a temporary sales tax exemption for families to buy school supplies. It would apply to clothing, classroom items and computers whether purchased in person or online, according to the administration.

The governor will also propose allowing seniors 65 and older to apply for a property tax refund of up to 10%.

It’s unclear if lawmakers will take up the plans, as House Republicans are considering more expansive property tax relief. But if approved, the Whitmer administration says it would provide tax relief to more than 335,000 seniors and save eligible households an average of $345 a year.

As a credit paid by the state, local governments that rely on property tax revenue are expected to be held harmless.

“As Michiganders face a lot of national economic uncertainty, we must work together to lower costs so they can pay the bills, put food on the table, and provide for their kids,” Whitmer said in a statement.

It would be the latest in a series of cost-cutting measures that Whitmer continues to promise, including an expanded Earned Income Tax Credit; a three-year pause in taxes on tips, overtime and Social Security earnings; universal free breakfast and lunch for K-12 students and phase-out of the so-called “retirement tax.”

Bridge Michigan education reporter Isabel Lohman contributed to this report.