JUNE 2025 NEWSLETTER

LASCO EDITOR • July 2, 2025

Governor DeWine Signs House Bill 96, FY 26-27 Operating Budget

The Ohio General Assembly passed the final version of House Bill 96, the FY 26-27 operating budget on Wednesday, June 25th, 2025. The bill was then sent to Governor DeWine for consideration. The governor signed the budget on June 30th, 2025 and issued 67 line-item vetoes. Veto messages can be found here. OPLC provided testimony on several issues throughout the General Assembly's committee process, as well as a veto request letter sent to Governor DeWine.


OPLC advocated for the following provisions included in the budget:


Medicaid


  1. The Federal Medical Assistance Percentage (FMAP) trigger language related to the Group VIII Medicaid expansion population was maintained, as well as a related provision regarding state programs receiving federal funding with corresponding federal programs.
  2. Federal grant suspension: This language allows Ohio to mirror any actions by the federal government to reduce, discontinue, pause, or suspend programs for which Ohio has a corresponding state program receiving federal funding.
  3. A requirement for the Ohio Department of Medicaid (ODM) to conduct eligibility redeterminations for Ohio Medicaid Group VIII members every six months.
  4. Restoration of the continuous coverage requirement to enable ODM to continue to move forward in these efforts.


OPLC advocated for a line-item veto of these provisions in a letter to Governor DeWine sent on Friday, June 27th, 2025. Items #1-3 were included in the final budget; however, the continuous coverage repeal was vetoed and the Ohio Department of Medicaid can move forward in the process.


Department of Aging Background Checks


OPLC advocated for language that would restore an exemption for attorneys from a Department of Aging background check requirement by excluding them from the definition of a direct care position. These changes were included in the final version of the budget.

 

Unemployment Compensation

 

OPLC urged removal of changes to unemployment compensation eligibility for temporary workers. The changes, which are in the final version of the budget, will require an individual who completes a temporary work assignment through a temporary staffing agency to immediately contact the agency for a new assignment. If they fail to contact the staffing agency, the individual will be considered to have quit work without just cause if suitable work is available.

OPLC advocated for the following provisions which were not included in the budget:


Supplemental Nutrition Assistance Program (SNAP)


OPLC supported the removal of two House budget provisions that would have added additional administrative barriers for SNAP recipients.

The first would have required a household receiving SNAP benefits report changes in circumstances that may affect eligibility for continued receipt of benefits to Ohio Department of Job and Family Services (ODJFS) within 30 days after the household becomes aware of the change.


The second would have prohibited ODJFS from implementing simplified or quarterly reporting procedures for households receiving SNAP benefits.


Earned Wage Access Services


OPLC opposed provisions that would have created Earned Wage Access Services in Ohio. These services are similar to predatory paycheck advance products. The proposals allowed direct-to-consumer wage advances ("consumer-directed wage access services") as well as employer sponsored products. There would have been no limits on fees or tips. Under the proposed provisions, EWA services would not have been considered a loan or other form of credit or debit.


Although this language was removed from the budget, OPLC continues to work with partners on Senate Bill 117 and House Bill 152, the standalone legislation related to these provisions.


Lead Poisoning Prevention


The budget cut almost all of the funding for lead poisoning prevention over the biennium. Governor DeWine had previously set funding at $7 million for each of the next two years, but the House slashed this down to $250,000 thousand for each of the next two years. Ohio has the second highest number of children testing positive for elevated blood lead levels in the country, and more than two-thirds of Ohio’s housing stock was built before 1980, meaning they might contain lead hazards. It is estimated that more than 425,000 children under the age of 6 live in these homes. The funding went toward a variety of important programing, including: 


  • lead testing 
  • lead investigations 
  • resources for families of lead poisoned children 
  • lead poisoning prevention programing 



The funding was not restored despite OPLC’s and our allies’ best advocacy efforts. We hope to still work on lead poisoning prevention with lawmakers, and we will be keeping track of how changes to lead poisoning prevention funding have impacted low-income Ohioans.


Governor DeWine’s Budget Vetoes

Sugar Sweetened Beverages – SNAP


The budget included a requirement for the Ohio Department of Job and Family Services to request a waiver from the U.S. Department of Agriculture to exclude sugar-sweetened beverages from purchase via SNAP card. This provision was vetoed by Governor DeWine. Ohio Department of Job and Family Services will convene a working group to make recommendations to tailor the waiver request for the “most efficient and effective implementation that best supports public health”. Senators Schaffer and Johnson have also introduced Senate Bill 161, which is this same requirement as standalone legislation.


Continuous Medicaid Enrollment for Children


Language in the budget would have repealed existing law requiring the Ohio Department of Medicaid to apply for a federal waiver for continuous Medicaid enrollment for children ages 0-3.Governor DeWine vetoed the proposed language, allowing ODM to move forward with the application.


40% School District Carryover Provision


The state operating budget included a provision that would have prevented school districts from carrying over more than 40% of their budget of previous year. The county commission would reduce the expenses on levies until a school was below the 40% threshold, with the idea being that property tax owners would see some savings. We urged the Governor to veto this provision because it would make it more likely schools would have to go to the ballot for levy increases more often due to not being able to have an adequate amount of savings. Taxpayers would be forced to increase their already high property taxes or choose not to fund their local school district. The Governor agreed and vetoed the language.

Other property-related provisions vetoed include:


Authorization for county budget commissions to reduce millage on levies if they believe tax collections are excessive or unnecessary.

Changes to the 20-mill floor calculation, which guarantees a certain amount of money for schools.

Elimination of certain types of tax levies.


Non-chartered Nonpublic Educational Savings Accounts


HB 96 included a provision that would have established a savings account that would provide public funds to parents and students attending a non-chartered nonpublic school with up to 75% of the EdChoice Scholarship amount to use for educational purposes. While OPLC has not taken a formal stance on this provision, we are invested in making sure that Ohio’s tax dollars for education are used effectively and benefit all students. Governor DeWine vetoed the language due to a lack of transparency and oversight over non-chartered nonpublic schools, and OPLC expects there to be further deliberation on this issue via Senate Bill 68.


Income Tax Refund Garnishment for Private Judgment Debts


This item would have required the Ohio Department of Taxation to withhold funds from income tax refunds in circumstances involving taxpayers who owe private judgement debts. The Governor’s veto stated this provision would be in conflict with federal law in circumstances where the person owing the debt is also in debt to the Internal Revenue Service and it would be improper for the Department of Taxation to serve as a collector of private debt.


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