State of the State 2026: What Governor Whitmer’s Final Address Means for Small Business 

Governor Gretchen Whitmer delivered her eighth and final State of the State address on Wednesday, which included a mix of policy priorities and a retrospective look back at her time in office. For small business owners, Governor Whitmer’s address signals where policy momentum may continue in 2026 and what topics could dominate conversation this year. 

Governor Whitmer began her speech by celebrating gains made during her time in office but addressing concerns about the national economy. She touted GDP and wage growth throughout the state but cites the cost of tariffs, political division, and general uncertainty as concerns. She called for maintaining competitiveness with neighboring states such as Ohio and Indiana and referenced legislative efforts to expand economic development tools.

Looking forward at her priorities for the remainder of her time in office, Governor Whitmer pinpointed three major policy areas where she feels Michigan’s Republican-controlled House and Democrat-controlled Senate can find bipartisan consensus: literacy, housing, and health care affordability. 

Governor Whitmer made literacy the centerpiece of her final year agenda. She revisited some of the steps she has made to address literacy throughout her term, like increasing per-pupil funding and banning cellphones in schools. Looking forward, she is prioritizing a goal she calls “Every Child Reads”, which ensures children are taught reading early using proven curriculum and strategies and providing additional support to the students who need it most.   

SBAM has been closely engaged in the literacy conversation; as Michigan test scores continue to fall behind, student literacy becomes an increasingly important priority. Early education and supports for students lagging in reading are core philosophical tenets of the Launch Michigan Framework, which SBAM supports to bring meaning to a high school diploma, and ensure that graduating students are equipped for their college and/or career path.   

Governor Whitmer acknowledged difficulties in housing, particularly for young people who are increasingly priced out of the market. She touted the housing investments made during her administration and called for new policies to further encourage growth.  

She framed housing affordability as a workforce and economic development issue affecting talent attraction, which SBAM agrees with. SBAM supports the MSHDA Statewide Housing Plan as a blueprint to grow Michigan’s housing supply, because if communities don’t have homes available, it’s harder for businesses to hire the best employees and bring in new business.  

Governor Whitmer addressed the rising costs of healthcare, which has reached a tipping point for many. She urged the federal government to renew Affordable Care Act subsidies, expressed desire to increase Medicaid funding, and proposed solutions for those with medical debt.  

 
Health care cost remains a top concern for small employers, who increasingly struggle to hire new employees or invest in employee benefits due to year-over-year double digit premium increases.  However, unnecessary mandates that appear to be fixing an issue often shift costs within the health system rather than reduce underlying price drivers. SBAM policy has emphasized transparency, competition, and flexibility as the only durable ways to reduce costs for customers. 

Whitmer closed her address by highlighting several administration achievements relevant to the business climate. SBAM supported some of these policies and opposed others that would raise costs or limit small business’ flexibility.  

As the Legislature debates the governor’s final-year priorities, SBAM will evaluate proposals as they affect Michigan’s small business landscape and will advocate accordingly.