This bill repeals Michigan's state real estate transfer tax, which previously applied to the sale of property. It includes a provision to ensure that any resulting loss in state revenue is compensated by transferring funds from the state general fund to the school aid fund. The law will only take effect if a separate companion bill, HB 5880, is also passed.
This bill repeals Michigan's 1993 State Education Tax Act, which previously imposed a tax on property owners to fund public schools. The legislation is contingent upon the simultaneous passage of a companion bill (HB 5880) that mandates the state to use general funds to fully replace any revenue lost from eliminating the tax. If enacted, the change would remove the specific tax requirement while ensuring that school funding levels remain unchanged through state appropriation. The law is scheduled to take effect 90 days after it is signed into law.
HB 4345 creates an exception allowing Michigan school districts to skip required instructional days without facing penalties when closing due to a declared state of emergency. This directly affects school districts and students by providing flexibility during emergencies like natural disasters or public health crises. The bill amends existing law to remove the penalty for missing minimum instructional days during such closures, ensuring districts aren't financially punished for following emergency protocols. The law took effect immediately upon the Governor's approval on June 2, 2025.
HB 4238 prohibits Michigan public schools from entering agreements or accepting grants from specific "foreign countries of concern" (including China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria) that would control curriculum, restrict school contracting freedom, or promote agendas harmful to U.S. security. Schools must share cultural exchange agreements with federal security agencies before signing, and federal agencies can block agreements deemed threatening. The law also bans accepting any value conditioned on promoting a foreign country's language or culture. It directly affects all Michigan public schools participating in international programs with the listed countries.
HB 4239, the "foreign influence of state institutions of higher education act," prohibits Michigan public colleges and universities from entering agreements or accepting grants from specific "foreign countries of concern" (including China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria) if those arrangements control curriculum, threaten U.S. security, or restrict contracting freedom. It requires all gifts from foreign sources to be formalized through written agreements and mandates reporting of certain gifts to state officials. The law also bars accepting items of value conditioned on promoting a foreign country's language or culture and requires cultural exchange agreements with listed countries to be reviewed by U.S. federal agencies for national security risks. These provisions directly affect all 15 Michigan public universities and community colleges.
HB 4185 changes how Michigan's general sales tax revenue is distributed. It directs 15% of the 4% sales tax to cities, villages, and townships through the Glenn Steil Revenue Sharing Act. Sixty percent goes to the state school aid fund (including all 2% tax from aviation fuel sales), while 27.9% of 25% from vehicle/fuel sales funds the transportation system. Additionally, it requires $9-12 million annually from computer software sales to the Michigan health initiative fund.
HB 4162 allocates $17.77 billion in state and federal funds for Michigan's K-12 public schools for the 2025-2026 fiscal year, primarily from the state school aid fund and other designated trust funds. It sets a new target per-student funding level of $10,025 and establishes a formula to calculate each school district's foundation allowance based on the previous year's funding, inflation (using the Consumer Price Index), and the target amount. School districts with funding below the target receive adjusted increases, while those above the target see smaller raises tied to inflation. The bill directly affects all public school districts by determining their state funding allocation through this updated formula.
