Highlights from the 2025-27 Wisconsin Biennial Budget

Tax Policy and Direct Financial Relief

- Significant income tax cuts for working- and middle-class families, resulting in over $600 million in annual tax reductions.

- Elimination of state sales tax on household energy bills, expected to save residents more than $178 million over two years.

- New exclusions for retirement income tax, benefiting retirees and reducing taxes for over 280,000 filers.

- Creation of a film tax credit and a new State Film Office, with up to $5 million allocated for film production and investment tax credits each fiscal year.

Child Care and Workforce Participation

- Over $360 million investment in the child care sector, including:

  - $110 million in direct payments to providers to increase availability and lower waitlists.

  - Expansion of per-child investments and a new state-funded “Get Kids Ready” initiative.

  - Increased funding to child care subsidy rates, improving affordability for families and stabilizing providers.

- Program expansion allowing larger “family care” centers and standardizing the minimum hiring age for assistant teachers.

Education and Workforce Development

- Nearly $1.4 billion increase in spendable revenue for K-12 schools, supporting special education and mental health resources.

- Largest increase to the University of Wisconsin (UW) System in nearly 20 years, aimed at stabilizing campuses, boosting competitiveness, and retaining faculty and staff.

- $13 million investment in technical colleges, including funding for AI integration and material grants.

- Over $6 million to expand the state’s Youth Apprenticeship Program, linking students directly with high-demand industries.

Infrastructure and Construction

- $1.1 billion in new transportation funding for highways, local road improvement, and rural road repair.

- Additional $333 million for the state highway rehabilitation program, benefiting construction and logistics sectors.

- $50 million in local grants for community construction projects, assisting local governments and nonstate entities in broad-based infrastructure work.

- Funding for harbor assistance and specific port/harbor upgrades, supporting logistics and waterfront-related industries.

Support for Healthcare and Health-Related Businesses

- Over $1.1 billion for healthcare access, including increased Medicaid reimbursement rates and rural health support.

- Continued funding for BadgerCare and investments in workforce development for healthcare professions (e.g., WisCaregiver Career Program).

- Resources for mental health and opioid crisis intervention, impacting healthcare providers and support services.

Agriculture and Food/Farm Businesses

- $150 million for the Agricultural Roads Improvement Program, helping farmers and logistics companies.

- Grants supporting food security initiatives, local food producers, and Tribal food programs.

- Direct funding for dairy and meat processing facilities, meat inspection, and watershed/environmental initiatives to benefit producers and processors.

Environmental and Natural Resources

- Significant funding for clean water infrastructure, including increased borrowing to access federal clean water and safe drinking water grants.

- Initiatives and grants to support forest management, wildfire suppression, and conservation staff.

- Maintaining and expanding parks and outdoor recreation—a sector contributing over $11 billion annually.

Local Community Investments and Veterans Services

- $14 million through municipal service payments to support basic and unique local needs.

- Funding for operations of veterans’ homes, increased support to county and tribal veterans service offices, and grants for affordable veterans housing.

Public Safety and Criminal Justice System

- Grant funding and pay progression boosts for district attorneys, public defenders, and court costs, improving the efficiency and stability of the legal system.

- Investments in facilities modernization, public safety interoperability, and victim advocacy organizations—which can impact local service providers and contractors.

Full 2025-27 Biennial Budget here.