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Wisconsin Budget Deal Boosts Education Funding and Cuts Taxes in 2025
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wisconsin Governor Tony Evers and legislative leaders have reached a bipartisan agreement to inject an additional $1.2 billion into key sectors, including K-12 education, child care, and the University of Wisconsin (UW) System. The budget deal, finalized on July 1, 2025, also incorporates a $1.5 billion tax cut package, fulfilling key priorities for both the Governor and the Republican-controlled Joint Finance Committee [[3]].
Key Provisions of the Wisconsin Budget Deal
The agreement addresses several critical areas, reflecting a compromise between Democratic and Republican priorities. Here’s a breakdown of the key components:
- Education Funding: A significant boost of over $500 million is allocated to special education funding, increasing the reimbursement rate to 45% by the second year of the budget.
- Child Care Investments: $331.6 million in new funding will address childcare costs, including direct payments to providers and increased subsidies for low-income families.
- UW System Support: The UW System will receive a $256 million increase in state aid, along with $840 million for capital projects across various campuses.
- Tax Cuts: The $1.5 billion tax cut package includes exemptions for retirement income and an increase in the amount of income covered by the state’s second-lowest tax bracket.
Did You Know? The agreement also includes $1 million for UW-Green Bay‘s Rising Phoenix early College High School Program, enabling high schoolers to earn college credits.
Impact on Education and Child Care
Special Education Funding
the increase in special education funding is a major win for school districts across Wisconsin. The reimbursement rate will rise from the
