Whitmer talks literacy, housing and health care in 2026 State of the State address

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Governor Gretchen Whitmer delivers her last State of the State address from the Michigan House Chamber on Wednesday evening. Jonah Feldman/DAILY. Buy this photo.

Gov. Gretchen Whitmer delivered her eighth and final State of the State address from the Michigan State Capitol’s House Chamber Wednesday evening. In her address, Whitmer highlighted her accomplishments during her past two terms as governor and goals for her final year in office.

During her opening remarks, Whitmer said she is proud of the state’s recent progress.

“Over the last seven years, we’ve delivered on the kitchen table issues,” Whitmer said. “Wages and GDP are up, crime and overdose deaths are down. Pre-K, school meals and community colleges are all free. Taxes on retirement, tips, overtime and Social Security gone. We fixed more roads, built more homes and replaced more lead pipes than ever, and more people moved into Michigan from other states and out for the first time since the early ’90s.”

Despite these accomplishments, Whitmer outlined three areas for improvement: increasing literacy rates, creating more affordable housing and forgoing medical debt. She said bipartisan collaboration is the most effective way to address these issues in a time of increasing political polarization.

“We’re all exhausted by the endless division,” Whitmer said. “Too many people are quick to judge and eager to spin everything they read, watch or hear. … But despite these national challenges, Michiganders can show the way forward. We can show the rest of the country how we work together to get things done.”

Whitmer first addressed the issue of literacy. Currently, fourth graders in Michigan rank 44th in the country for reading scores, with boys falling behind girls in every age group. Whitmer said she is hoping to combat this issue during her final year in office.

“Literacy is a national challenge,” Whitmer said. “No matter who becomes governor after me, they’ll have to continue this work, because, simultaneously, our economy demands every child possess stronger reading, writing and critical thinking skills than ever before, and yet, we’re not keeping up with top states — but we can. We can close the gender gap and raise the bar for all kids.”

Whitmer’s 2027 fiscal year budget recommendation proposes $625 million for literacy support — the largest targeted literacy investment in Michigan’s history. She said her Every Child Reads plan consists of teaching reading early, using proven teaching methods and emphasizing extra help.

“First, we start teaching reading earlier. Those early years are crucial, it’s when young brains are best able to absorb new information for babies and toddlers,” Whitmer said. “Second, let’s get proven literacy teaching practices into all Michigan classrooms. … Finally, extra help. Now, potential is universal, but opportunity is not.”

Whitmer then addressed Michigan’s housing affordability. The first-time home buyer median age has increased to an all-time high of 40 years old since 1990; Whitmer said she understands Michiganders’ frustrations, referencing her own experience as a homeowner.

“In the ’90s, I bought my first house as a 28-year-old, so if you’re 28 years old right now and you think that sounds crazy, you’re right, because a lot has changed since then,” Whitmer said. “There’s a multimillion home shortage nationwide, while the majority of houses that are for sale are totally unaffordable. … This year, let’s continue making it easier to build more housing.

”Whitmer cited President Donald Trump’s international tariffs, associating them with the rise in housing prices and lack of affordability for basic goods. Whitmer said she is optimistic after the U.S. Supreme Court’s 6-3 decision last week to strike down these tariffs.

“We rely on Canadian lumber and Mexican drywall to build homes, and tariffs have raised the cost of a house by upwards of 17 grand, further exacerbating our housing shortage,” Whitmer said. “Now, we can’t change national tariffs. Believe me, I’ve tried. But we can build more quality affordable housing in Michigan. … I’m hopeful that last week’s Supreme Court decision will force Congress and the president to work out a more strategic trade policy.”

Whitmer announced she is combating this crisis by proposing a new affordable housing tax credit. Developers would receive tax credits to incentivize the construction of more affordable homes in Michigan.

“With a state credit, we can build thousands more homes every year,” Whitmer said. “Now, Michigan is the only state in our region without this tool, and once we create one, it will unlock more federal dollars. We need to get this done because too many workers are being priced out of home ownership.”

In an interview with The Michigan Daily, state Rep. Ann Bollin, R-Brighton, said she supports Whitmer’s housing tax credit but highlighted alternative options.

“Home ownership has always been the crown jewel in the United States of America, and I want to see that happen for generations to come,” Bollin said. “Is a state tax credit the right path? Certainly, I support that, but I think there are additional things we can do. We can cut the red tape, we can draw the economy.”

Whitmer also discussed expanding affordable health care across the state, particularly after the passage of the One Big Beautiful Bill Act in July 2025, which cut nearly $1 trillion from Medicaid and the Supplemental Nutrition Assistance Program. She said these cuts will have a domino effect on the state and called on members of Congress to renew Affordable Care Act subsidies to help alleviate this issue.

“I’m calling on members of Congress: renew the ACA subsidies, provide real relief to Michiganders,” Whitmer said. “We will all, every one of us, be impacted by these cuts. The domino effect of higher premiums, hospital closures, reduced services, workforce reduction will impact us all. Even if you have good insurance, no state can pick up the massive tab the federal government has dropped on us.”

Whitmer said she hopes to counteract federal legislation impacting Michigander’s health care by reducing the burdens of medical debt.

“Let’s cap interest rates on medical debt,” Whitmer said. “Let’s prevent medical debt from showing up on your credit report. Let’s require hospitals to set up financial assistance programs for patients and let’s ban liens foreclosures on homes because of medical debt. In Michigan, we believe that being sick or getting hurt shouldn’t also mean going broke.”

Whitmer said her commitment to bipartisan collaboration began years ago when she served as a legislative staffer while in college, when the Michigan House of Representatives was equally divided. Whitmer said she will continue to promote collaboration through her bipartisan roads deal.

“(As a staffer) we had to tie 55 Republicans and 55 Democrats,” Whitmer said. “They shared power and still got a lot done, and that early experience stayed with me and shaped the way that I lead. We’re fixing the damn roads, everywhere, thanks to the biggest bipartisan roads deal in state history. … It’s Republicans, Democrats and independents who put politics aside to solve problems. That’s what Michigan’s about. It’s why I’ve never been prouder to be a Michigander.”

Daily News Editor Gia Verma and Daily News Contributor Jonah Feldman can be reached at [email protected] and [email protected].

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