[City, State] – Wisconsin Governor Tony Evers has presented his 2025-27 biennial budget, a massive $119 billion proposal that introduces several new policies aimed at improving the economy, education, and healthcare. While many of his recommendations have been rejected by Republican lawmakers in previous budgets, this year’s proposal includes four key new measures that could impact residents across the state.

What’s New in Wisconsin’s Budget Proposal?

The Governor’s budget proposal includes:

No tax on cash tips

Free college tuition for Native American students

Auditing health insurance companies

A new tax bracket for millionaires

Let’s take a closer look at these four major changes.

No Tax on Cash Tips

The elimination of taxes on cash tips is one of the most talked-about proposals in the budget. This policy has been a hot topic in national politics, with Republicans and Democrats both supporting it.

If passed, workers in service industries (such as restaurant staff and hotel employees) would no longer have to pay income tax on cash tips. However, this exemption does not apply to tips received through credit card payments, which make up the majority of tipped earnings today.

Critics argue that many lower-wage workers already pay little to no state income tax, so this measure might not provide significant relief. Some experts also believe that broader tax reforms, such as expanding the Earned Income Tax Credit, would have a greater impact on helping low-income workers.

Free College Tuition for Native American Students

Governor Evers has proposed a full tuition waiver for Native American students who are:

Wisconsin residents

Citizens of one of the state’s 11 federally recognized tribal nations

Enrolled at a Universities of Wisconsin System or Wisconsin Technical College System school

This initiative expands on an existing program at UW-Madison, which already provides full tuition coverage for Native students. However, this new proposal would extend the benefit to all public universities and technical colleges in Wisconsin.

The exact cost of this program has not yet been confirmed, but it is part of a larger $129 million effort to make higher education more affordable.

Similar programs exist in other U.S. states, and supporters argue that they help reduce financial barriers for Native students, improving graduation rates and career opportunities.

Auditing Health Insurance Companies

One of the most unique proposals in the budget is a plan to audit health insurance companies that frequently deny medical claims.

Governor Evers believes insurance companies should have strong justifications when denying coverage for medical treatments. Under this proposal:

The state would audit insurers that deny a high percentage of claims.

A new office would be created to oversee the process.

Companies found to deny too many claims would face fines or corrective actions.

Although details on how “high rates of denials” will be defined are still unclear, this proposal aims to increase transparency and ensure that patients get the care they need.

A New Tax Bracket for Millionaires

In an effort to increase state revenue, Governor Evers has proposed a new tax bracket for the wealthiest Wisconsinites.

This tax would apply to:

Individuals earning over $1 million per year (tax rate: 9.8%)

Married couples filing separately with incomes over $500,000

Currently, the highest state income tax rate is 7.65%, applying to individuals earning above $315,310 and joint filers earning above $420,420.

The Governor’s office estimates that this new tax rate would generate $1.3 billion in revenue over the next two years, which could help fund public services and infrastructure projects.

Critics argue that raising taxes on high earners could push businesses and wealthy individuals to relocate to states with lower tax rates, potentially impacting Wisconsin’s economic growth.

Will These Proposals Become Law?

Despite these new ideas, the budget faces strong opposition from Republican lawmakers, who control the state Legislature. Assembly Speaker Robin Vos has already dismissed the plan, calling it “dead on arrival.”

Historically, many of Governor Evers’ proposals—including Medicaid expansion and marijuana legalization—have been blocked by Republican lawmakers. This year’s budget battle will determine whether any of these new initiatives can survive the legislative process.

As discussions continue, Wisconsin residents should stay informed and engage with their representatives to ensure that their voices are heard.