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Gov. Gretchen Whitmer has signed the $23.4 billion education spending plan for 2025 that includes free pre-K for many families and free community college education.

“This balanced education budget—my sixth—makes record-breaking investments to support our students, invest in our schools, and empower our educators,” Whitmer said.

“With access to free pre-K for all, record funding for students, free school meals, on-campus mental health resources, and tuition-free community college for every high school graduate, this budget will improve outcomes, lower costs, and strengthen our education system.”

Whitmer signed the budget Tuesday, July 23, at Educare Flint, a no-cost early education center open to children from birth through age 5. She was joined by education leaders and lawmakers.

The budget, which goes into effect Oct. 1, also continues free breakfast and lunches for all students at a cost of $200 million. Free meals for students was first included in the current budget, and it’s something Whitmer has wanted to make permanent.

Republican lawmakers, along with state Superintendent Michael Rice, reiterated concerns Tuesday about significant reductions to school safety and mental health grants in the budget, which were cut from $328 million in funds this current budget down to $26.5 million.

“This reduction will slow Michigan’s recent momentum in addressing student mental health challenges,” Rice said. “A $300 million reduction in funding for children’s mental health services and school safety fails to recognize the physical and mental health needs of our students.”

While Rice said he understands the federal pandemic funding that helped bolster dollars for mental health and school safety grants in the past two budgets has ended, he called the large decrease in this budget disappointing.

Under the new budget, free pre-K for 4-year-olds will be available for families making 400% or less of the federal poverty limit. That collective income limit is $81,760 for a family of two, $103,280 for a family of three and $124,800 for a family of four, according to the federal 2024 poverty guidelines.

The $54 million investment will provide free pre-K for about 5,300 additional children in the state, according to state officials.

The spending plan also includes a $30 million investment to expand the Michigan Achievement Scholarship, which state officials say most students qualify for.

Democratic lawmakers say this investment would allow every Michigan high school graduate to receive an associate degree or skilled certificate tuition-free at a community college.

The scholarship expansion would also give more dollars to students attending private and public universities.

“This budget provides every Michigan child the guarantee of a free, high-quality education from preschool through community college – that’s a big deal,” said State Budget Director Jen Flood. “We’re laser focused on providing our kids a world class education while saving families money: from ensuring students get free breakfast and lunch at school to cutting the cost of a four-year degree by more than $25,000.”

For the first time in a decade, the budget will not include a direct increase in per pupil funding, which would remain at $9,608 per student under the proposed spending plan.

However, about $589 million in redirected funding to offset retirement costs would save K-12 school districts about $400 per pupil, effectively equating to a 4.2% per pupil increase, according to Democratic lawmakers.

The budget would also remove, for next year, a requirement that 3% of teachers’ earnings pay into the retiree health plan.

The vote last month by lawmakers on the education spending plan fell along party lines, with Republicans accusing Democrats of “raiding” the teacher retirement fund by redirecting $670 million that would have gone to covering liabilities in the teacher retirement system.

Republicans also took aim at the lack of a per-pupil increase and accused Democrats of bloating the state budget with pork projects. Whitmer has yet to sign the $59 billion spending plan for 2025 for state agencies and departments.

“This budget fails Michigan students and teachers by blocking an increase in per-pupil funding for the first time in more than a decade,” state Rep. Mike Harris, R-Waterford, said Tuesday.

“It puts teachers’ retirements at risk by raiding the pension fund. And it guts funding for school safety and mental health. I voted against the budget because I’m focused on helping kids learn, supporting good teachers, and keeping students and staff safe.”

Democratic leadership has said the budget pays off certain liabilities in the teacher retirement system and protects teacher pensions and retirement benefits all while freeing up that $670 million to be invested back into classrooms.

Whitmer, who pitched the move in her budget proposal earlier this year, previously likened it to paying off a mortgage early, allowing those funds to be freed up.