Michigan’s 2025 School Aid Budget: What It Means for Your School

Governor Signs 2025 School Aid Budget: Key Updates and New Provisions

Governor Whitmer has signed the 2025 School Aid Budget, setting the state’s K–12 education funding plan for the year. This budget keeps funding equitable across all public schools, including charter and cyber schools, and introduces a few new rules that every school should understand.

With a divided government (Republican House, Democratic Senator and Governor), this budget cycle posed some challenges. It’s important to note that while we didn’t get everything on our wish list, we achieved a lot of our goals. We were successful in achieving equitable per-pupil funding for all students and charter schools achieved some wins at the ISD level.

This was not by accident. It’s because we all spent the year creating relationships, engaging with legislators, inviting them into our schools and advocating for our students. We showed up in the rain in droves at Charter Day at the Capitol and made our voices heard. The MAPSA team was proud to lead this effort and we’re grateful for all of your support.

We’ll be doing this budget process all over again in just a few months, so it’s important to keep the momentum going. Let’s continue advocating, engaging and forging meaningful relationships.

Funding Highlights

• Foundation Allowance: Every public school, including charter and cyber schools, will receive $10,050 per pupil. This continued equal funding is critical for maintaining stability across the education system.
• Equal Access Restored: Charter schools once again have equal access to ISD services, meetings, and communications, meaning charters can participate in regional support, training, and initiatives just like traditional districts.
• School Safety & Mental Health: The budget includes $321 million statewide for safety and mental health initiatives. These funds can support things like school security, counseling, and wellness programs, but they come with new legal considerations (explained below).
• Free Meals for All Students: The popular MI Meals program continues, providing free breakfast and lunch for every student. This helps remove barriers to learning and keeps all kids fed, regardless of income.
• Early Childhood Access: The budget maintains funding for GSRP, Michigan’s free preschool program, expanding access to nearly every four-year-old in the state.
  

New Rules & Requirements to Watch

The new budget includes some new “strings attached” for schools. The Michigan Department of Education (MDE) can withhold up to 5% of state aid if schools don’t comply with certain new requirements, including:

• Following federal school meal rules
• Asking all families to complete the free and reduced-price meal application (though federal law prohibits requiring it)
• Avoiding any financial incentives for attendance on count day
• Making all student survey questions public
• Notifying parents when a school uses a reading curriculum not approved by MDE as evidence-based

MDE has already clarified that schools cannot require families to fill out the meal form. Instead, schools should encourage voluntary completion and offer the form multiple times during the year until further guidance is released.

Section 31aa: School Safety & Mental Health Grants

Schools that accept Section 31aa funding for safety or mental health must now agree to a new “independent investigation waiver of privilege” clause. This legal language is controversial and currently under review.

Here’s what school leaders need to know:

• The clause could affect how investigations into safety or mental health incidents are handled.
• Legal experts emphasize that schools do not give up their constitutional rights by accepting state grants.
• MDE has given schools until November 12 to decide whether to accept these funds.

Before signing any agreement, consult your school’s attorney and insurance provider to understand the risks and implications.

What’s Next

With the $10,050 per-pupil funding locked in, schools can move ahead with budgeting and staffing plans for the year. However, several areas, like the meal form requirements, survey transparency, and safety funding rules, remain in flux.

MAPSA will continue tracking updates from MDE and legislative leaders and will share timely resources to help schools stay compliant and informed.