Evers, GOP Leaders Announce Deal on Tax Relief and School Funding
$1.9 billion deal includes direct payments of $300 to all income tax payers.
Gov. Tony Evers takes questions from reporters Monday, May 11, 2026, in Barneveld, Wis. Angela Major/WPR
After months of negotiation, Gov. Tony Evers and Republican leaders in the Legislature said Monday they’ve reached a deal that would spend down the state’s budget surplus on tax relief and education.
The roughly $1.9 billion deal, which is expected to go before lawmakers for a vote this week, includes $850 million in direct payments to taxpayers, and the elimination of state income tax for overtime pay and tipped earnings. It would also boost spending on K-12 education by $600 million.
That school funding figure is split between general school aid and increasing the state’s special education reimbursement rate, which has been a point of contention from Evers’ team since the passage last summer of the two-year state budget. Since that time, higher-than-expected costs of special education lowered the total amount received by school districts from the state.
The deal would spend down much of the state’s projected surplus — which the nonpartisan Legislative Fiscal Bureau had previously estimated at roughly $2.5 billion — but leave the state’s rainy day fund untouched.
Speaking to reporters on Monday, Evers touted the deal as a win for schools, with compromises for Republican tax priorities.
“Money for schools is obviously the most important thing for me,” Evers said. “We’re in a position to actually compromise and have Republicans and Democrats — at least at the leadership level — getting something done.”
Gov. Tony Evers addresses reporters during a school visit Monday, May 11, 2026, in Barneveld, Wis. Angela Major/WPR
That comment alludes to some fracturing within the parties themselves, with several lawmakers putting out immediate statements condemning the deal. But Evers expressed confidence that a majority of lawmakers would vote to approve the plan.
In separate statements, Assembly Speaker Robin Vos, R-Rochester, and Senate Majority Leader Devin LeMahieu, R-Oostburg, said the deal would put the state’s surplus toward tax relief.
“We’re sending (the surplus) back to help families with the pressure of increasing costs, reward hard work, and to continue investing in schools to help stabilize rising property taxes,” said Vos.
Evers’ office said that the direct payment checks, which would total $600 per married couple or $300 per individual, would be mailed out by November. Evers spokesperson Britt Cudaback called that provision a central priority for Senate Republicans during negotiations. The governor’s office says 3 million people are expected to receive those checks, for a total cost to the state of about $850 million.
“This deal will provide immediate relief with $600 in surplus refund payments and provide permanent property and income tax relief for Wisconsin families,” said LeMahieu in his statement.
While the state Legislature has adjourned for the year, both the Senate and Assembly would need to pass this deal for it to become law. That means that a special session of the Legislature will be called. According to the governor’s office, that path will be expedited, with the Legislature’s budget committee expected to move it forward on Tuesday, and the full Legislature set to debate it as early as Wednesday.
Editor’s note: This story will be updated.
Evers, GOP leaders announce deal on tax relief and school funding was originally published by Wisconsin Public Radio.
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