Wisconsin Gov. Evers, GOP Reach $1.3B Tax Cut, Education Funding Deal

Wisconsin Democratic Governor Tony Evers and Republican legislative leaders have reached a bipartisan agreement on the state's 2025-2027 budget, which includes $1.3 billion in income tax cuts mainly benefiting the middle class and retirees. The deal expands the state's second lowest income tax bracket, exempts the first $24,000 of retirement income for those 67 and older, and eliminates the sales tax on electricity, collectively saving taxpayers hundreds of millions over two years. The budget also increases funding by nearly $1.4 billion for K-12 schools, including special education, and allocates $330 million to support the child care industry. Despite earlier threats of cuts, the University of Wisconsin system will receive a $256 million funding boost, marking its largest increase in about 20 years. Republican leaders praised the budget as delivering meaningful tax relief and government accountability reforms, while Evers described it as a "pro-kid budget" that benefits families and the state's future. The Legislature is expected to finalize and pass the budget shortly after the agreement was announced past the June 30 deadline, with no government shutdown occurring in the interim.