Transcript Highlights:

• This one sewer grant is a reallocation from the county allocation pool, and there are four water grants
• </c> 2022 session, there are five grants. 2022 session, there are five grants.
• </c> grants requiring no action? grants requiring no action?
• </c> 12 EDF grants.
• </c> in KPDI EDF grants. in KPDI EDF grants.

Summary: The committee first handled routine business, including approval of the February meeting minutes and several information items. Those items covered university equipment purchases, school district and transportation-related debt issuances, Northern Kentucky University’s planned construction-manager/general-contractor delivery method for the medical examiner/crime lab relocation project, a lease-space advertisement, postsecondary asset preservation allocations, and lease-law compliance reports. Members then discussed the Northern Kentucky crime lab project in more detail; staff explained that the memorandum of agreement would cover the construction portion while the lease would cover operations, and members were told the project should move forward without procurement problems. The committee approved a Kentucky Community and Technical College System project to modify the fire academy maintenance building after the related dormitory project was set aside because of major cost overruns. KCTCS said the dormitory would be about $3 million over budget, so it would not be bid; instead, the maintenance building would be expanded to add showers and restroom/locker facilities, bringing that project from $2 million to about $3.2 million. The committee also approved a Transportation Cabinet project for the Hardin County I-65 southbound commercial motor vehicle station relocation, with members asking about the estimate, the lack of a direct prior example, and the fact that the loadometer equipment itself would be purchased separately and was not included in the construction estimate. Finance and Administration Cabinet lease items were then considered. The committee approved a Department of Public Advocacy lease in Christian County and a Transportation Cabinet vehicle regulation lease in Kenton County, both negotiated down from initial asking prices and both including utilities. Two lease modifications were reported without action: a Department of Revenue fit-up in Jefferson County and an expanded vehicle regulation lease in Adair County. Members also approved a package of Kentucky Infrastructure Authority items, including four loans and six Cleaner Water Program grant reallocations, covering sewer and water projects such as MSD’s Patty’s Run flood pumping station, Paducah-McCracken County’s wastewater treatment plant, Mount Washington’s lift station replacement, and Eminence’s wastewater plant expansion. Finally, the committee heard a batch of Kentucky Product Development Initiative economic development grants and approved the action items in one vote. The projects included due diligence and infrastructure work for industrial and site-development projects in multiple counties, with local match requirements and KEDFA approvals described for each. The committee also received three line-item water grants from House Bill 1 that required no action, and the meeting ended after the grant presentations and approvals.

Transcript Highlights:

• The grants management system that we are using now for the incentive grants is already in use for our
• Is that already happening when these grants open up?
• Granted, one of the common questions we get is why GovOps?
• Granted, one of the common questions we get is why govops?
• Cal Grant program, Cal Grant reform program. LAO, do you want to take that, or anybody? Yes.

Summary: The Assembly Budget Subcommittee on Education Finance heard an overview of the governor’s new Career Education Master Plan and related budget items. Labor Secretary Knox described the plan as an effort to reduce fragmentation across K-12, community colleges, workforce boards, and other systems by improving statewide and regional coordination, data sharing, skills-based hiring, career pathways, and wraparound supports such as child care, housing, food, and transportation. Members asked how success would be measured, how the plan would serve disconnected youth and adults, and whether the proposed data integration would rely on Cradle to Career; the secretary said it would. The Department of Finance said it was available to answer questions on the education side. The committee then reviewed existing CTE funding and oversight. The LAO, CDE, and Community Colleges Chancellor’s Office described the major ongoing programs, including CTIG, Perkins, K-12 Strong Workforce, and Community College Strong Workforce, and noted that many programs overlap in purpose and administration. Members repeatedly raised concerns about duplication, annual applications and reporting burdens, lack of clear outcome metrics, and whether funding incentives should be better aligned to regional collaboration. CDE and the Chancellor’s Office said they support alignment and dual enrollment, and Finance and CDE said LCFF/local match dollars are part of the funding structure. The committee also discussed child care as a barrier to participation and the need for better tracking of enrollment, completion, and job outcomes. On the consolidated application proposal, Finance proposed a study directing CDE to examine whether three long-standing CTE grant programs—Specialized Secondary Programs, CTIG, and California Partnership Academies—could be streamlined into a single application and reporting process. The LAO supported reducing administrative burden but noted that the largest programs, CTIG and K-12 Strong Workforce, were excluded from the proposal even though districts most often cite them as burdensome. CDE said it did not oppose the study but warned that statutory differences may limit consolidation. Members said the proposal should better address regional coordination, multi-year funding stability, and outcome measures rather than only simplifying paperwork. Finally, the committee heard a proposal for a $5 million ongoing California Education Interagency Council. GovOps said the council would provide a neutral venue for statewide coordination across education and workforce systems. The LAO opposed the proposal, arguing that existing bodies already provide coordination, the proposal does not change agency incentives, and the council would lack authority to implement decisions. Members expressed mixed views, with some supporting a coordinating body and others questioning whether it would differ from past efforts. No votes were taken during the portions summarized here, and the committee indicated it would hold some items open for further discussion.

Transcript Highlights:

• This establishes maximum grant amounts, and that would be $2 million for trail maintenance grants and
• This establishes maximum grant amounts, and that would be $2 million for trail maintenance grants and
• </c><00:08:39.680><c> that</c> assessment assessment for grants that assessment assessment for grants
• </c> grants that are under $50,000. grants that are under $50,000.
• This requires grant house section.

Summary: The Environment and Natural Resources Trust Fund Conference Committee met on May 13, 2026, to finalize House File 3426. After roll call established a quorum, staff walked members through the conference agreement and spreadsheet, noting that most appropriations were unchanged from the House and Senate positions. The report kept the LCCMR recommendations in resiliency, water, fish and wildlife, energy, and most land and education/outdoor recreation items, while removing the “cultivating conservation leaders through education and wilderness experiences” project and a Senate rotational grazing pilot provision. The committee also noted the overall appropriation total and carryforwards/extensions, and that the community grants program appropriation remained in the bill. Members then reviewed the policy language in the DE amendment. The agreement retained House provisions setting guardrails for the community grants program, including requirements for emerging issues account votes, maximum grant amounts, staff training, monitoring visits, pre-award risk assessments, surety bond or fiscal-agent approval for advance payments, and quarterly progress reports, while also adopting Senate language repealing a DNR acquisition-approval requirement. Senators McEwen and Her offered contrasting comments about the removal of the Boundary Waters-related project, with McEwen criticizing the decision as politicized and Her emphasizing stewardship and the importance of exposing young people to the Boundary Waters. Representatives Heintzeman and Fischer defended the need for accountability and said the issue had been addressed in a bipartisan way. The committee reported receiving a letter from the DNR supporting the language and thanking the conferees and staff. Chair Her moved adoption of the HF 3426 DE amendment and the spreadsheet dated 5/13/26 at 11:38 a.m., authorized staff to prepare the conference committee report and make technical and conforming changes, and the motion passed 7-0. The meeting ended with thanks to staff, LCCMR participants, and Speaker Melissa Hortman, followed by adjournment and instructions for members to watch for and sign the conference committee report electronically that night.

Transcript Highlights:

• Grant program called PrEP. That was in that leaked memo.
• designated bona fide agent to submit and manage the ELC capacity grants.
• the grant.
• In addition to the lab equipment, we've also been using the ALC grant...
• So following the CDC decision to abruptly end the grant...

Summary: The subcommittee held an oversight hearing on federal actions affecting California’s public health and family planning systems, focusing first on the freeze to Title X family planning funds and then on broader CDC/public health grant terminations. Chair and members described the cuts as abrupt, harmful, and likely to create major gaps in disease surveillance, vaccination, contraception, STI testing, and other preventive services, while also criticizing the federal administration’s explanation that the actions were tied to DEI or civil-rights compliance. The chair thanked Attorney General Bonta for legal action and said the hearing was intended to document the real-world impacts and inform state budget responses. Witnesses from Essential Access Health, Planned Parenthood Affiliates of California, a Central Coast clinic, and other providers said California’s Title X network serves more than half a million low-income patients annually and relies on the funds for staffing, outreach, training, mobile and school-based clinics, and confidential care. They warned that the freeze has already forced reserve spending, delayed services, and could lead to layoffs, reduced hours, longer waits, and fewer appointments, especially for sexual and reproductive health care. Public comment included support for a proposed state backfill of Title X losses, with advocates emphasizing impacts on low-income, LGBTQ+, and communities of color. On the public health side, CDPH, county health officials, and local health officers testified that the CDC’s rescission of $11.4 billion in grants would affect California by an estimated $840 million and threaten lab capacity, immunization programs, health disparities work, and data systems such as CalConnect and vaccine registries. Sacramento County and others described how the grants supported outbreak response, sequencing, community vaccination clinics, and equity-focused partnerships, and said terminations had already led to canceled appointments, stopped contracts, and layoffs. Several speakers urged the Legislature to preserve and expand state “future of public health” funding and to backfill federal losses, while public commenters from HIV, immunization, labor, and county organizations echoed concerns about workforce losses and worsening health outcomes.

Transcript Highlights:

• The maintenance level is largely tied to the Washington College Grant.
• The maintenance level is largely tied to the Washington College Grant.
• The first is for the Washington College Grant.
• The first is for the Washington College Grant.
• College Grant costs.

Committee: Joint Joint Higher Education Committee

Summary: The Joint Higher Education Committee met with introductions from members and then held a work session on higher education and statewide accounting practices. OFM Deputy Director Sarah Rupp explained how state and university accounting/reporting differ, including current AFRS/SAM requirements and the transition to Workday/WAM, and described what higher education data are currently included in state reporting versus what will remain excluded, such as transaction-level detail and vendor payment information. University of Washington and Washington State University officials then described the complexity of their institutions’ financial structures, including multiple campuses, auxiliary enterprises, component units, hospitals, clinics, bonds, and other reporting obligations, and how they submit summarized data to the state while maintaining more detailed local accounting systems. The Education Research and Data Center also presented the public four-year finance dashboard created under Senate Bill 5512, emphasizing that the metrics are best used to examine trends within institutions rather than direct comparisons across schools; members asked about data availability and federal reporting delays, and ERDC said it was on track to update the dashboard with newer data and additional metrics. The committee then heard a presentation from the Washington Student Achievement Council on the Workforce Education Investment Account (WIA). Joel Anderson reviewed WIA’s creation under House Bill 2158, its revenue sources, and its intended purpose of supporting postsecondary attainment, high-demand fields, student aid, and workforce education. He said WIA revenue has grown substantially, especially after recent tax changes, and noted that most current appropriations go to higher education, including the Washington College Grant, community and four-year institutions, and some workforce-related programs. Members asked whether WIA supports apprenticeships and trades, and Anderson said it has in some cases, though nearly all current appropriations are now within higher education. Anderson also highlighted a major policy shift in the 2025-27 budget: WIA is now being used to supplant some general-fund higher education spending, especially a large transfer for University of Washington general operations. He said this has reduced the general fund share of higher education funding and increased the share from WIA, raising concerns about whether the account is still being used as originally intended. He also described how WIA is increasingly covering Washington College Grant caseload growth and faculty compensation costs, and said WSAC is working to improve public documentation of ongoing and carry-forward appropriations. The committee did not take any substantive votes on the presentation topics and then moved toward executive session and adjournment.

Transcript Highlights:

• The maintenance level is largely tied to the Washington College Grant.
• So we had to adjust for a significant increase in the Washington College Grant caseload.
• The first is for the Washington College Grant.
• The first is for the Washington College Grant.
• College Grant costs.

Committee: Joint Joint Higher Education Committee

Summary: The Joint Higher Education Committee met for a work session on higher education accounting practices and financial transparency. OFM Deputy Director Sarah Rupp explained how state accounting rules and higher education reporting differ, including what data is captured in AFRS today and what will move into Workday, with universities generally reporting summary-level fund data, mandatory codes, and most balance sheet and income statement activity, but not transaction-level detail or vendor payment information. Representatives from the University of Washington and Washington State University described the complexity of their own accounting systems, the many entities and business lines they must track for audits and compliance, and the need to reconcile university-level accrual accounting with state reporting requirements. The committee also heard from the Education Research and Data Center on the public four-year finance dashboard created under Senate Bill 5512; ERDC said the dashboard is based on publicly available data, is best used to examine institutions individually rather than compare them directly, and will be updated with additional metrics in 2025 and 2026. The committee then received a presentation from the Washington Student Achievement Council on the Workforce Education Investment Account (WIA). Joel Anderson reviewed WIA’s creation under House Bill 2158, its revenue sources, and its intended uses for higher education, financial aid, and workforce development. He said recent legislation significantly increased WIA revenues and that, in the 2025–27 budget, the account is being used in new ways, including to replace general fund support for University of Washington operations and to fund a larger share of the Washington College Grant and some faculty compensation costs. Anderson said roughly 98% of current WIA appropriations go to higher education, but the share used to supplant other higher education funding has grown, and he estimated about 60% to 70% of current spending still aligns with the account’s original intent. He also described a new effort to track WIA appropriations across biennia in more detail and noted the WIA Oversight Board’s role in recommending uses of the account and monitoring outcomes. No votes were taken; the committee ended by moving into executive session for staffing issues and then adjourned.

Transcript Highlights:

• These are the CASA grants.
• This is Amendment 6 to an existing grant.
• Next, we have grants four through 11. These are all for the area agencies on aging grants.
• Grant number 12 through grant number 16 are all federal grants with the Division of Aging, Adult, and
• The last grants for your review today are resubmitted.

Committee: All ALC-REVIEW

Summary: The committee met to review a supplemental agenda item, procurement rule revisions, methods of finance, discretionary grants, contracts, reports, and a member disclosure. The supplemental agenda was accepted, and the Office of State Procurement’s rule revisions were approved after Jessica Patterson explained they were driven by 2025 legislative changes, including Act 782, CASO Consulting recommendations, and updates to sole source, bid, protest, and debarment provisions. The methods of finance and discretionary grants were also approved, covering a range of university capital projects, health and human services grants, historic preservation awards, and tobacco prevention and cessation programs. The committee then reviewed RFQs and six ratifications. The ratifications included a Workforce Connections payment to ACT WorkKeys for services provided during a contract gap, a Department of Health ratification for water-leak repairs, a large Department of Public Safety ratification for Motorola’s Arkansas Wireless Information Network upgrade, a Veterans Affairs HVAC ratification, an ADFA medical services ratification, and a UA Little Rock painting contract ratification. Members questioned the Public Safety ratification at length about why the expired Motorola contract was not caught sooner and why it took months after discovery to come forward; agency officials said the work was tied to bond funding and was not tracked in ASIS, and the chair urged agencies to develop better monitoring procedures. The committee approved a large slate of construction, intergovernmental, out-of-state, and in-state contracts, including many recurring service agreements for DHS, higher education institutions, corrections, health agencies, and state support functions. Several members asked about specific contracts, including aerial application services for correctional farms and a Southern Arkansas University custodial contract, and staff or agency representatives provided brief explanations. The meeting concluded with review of reports and approval of a member disclosure involving Representative Andrew Collins’ investment interest in a company leasing property to Arkansas Rehabilitation Services.

Transcript Highlights:

• , the mental health block grant, ARPA grant, um, the another block grant, ARPA grant, um, the another
• , the mental health block grant, ARPA grant, um, the another block grant, ARPA grant, um, the another
• , the mental health block grant, ARPA grant, um, the another block grant, ARPA grant, um, the another
• , the mental health block grant, ARPA grant, um, the another block grant, ARPA grant, um, the another
• , the mental health block grant, ARPA grant, um, the another block grant, ARPA grant, um, the another

Committee: Senate Health and Human Services

Transcript Highlights:

• </c> legislature has helped with our grant legislature has helped with our grant writer<00:10:42.399>
• </c> AMS letting us know that three grants AMS letting us know that three grants are<00:20:17.760><c>
• We have our grant writer here. She is preparing grants and grants and grants.
• We have our grant writer here. She is preparing grants and grants and grants.
• </c> preparing grants and grants and grants. preparing grants and grants and grants.

Summary: The joint informational briefing focused on how federal policy changes, tariffs, funding cuts, the federal shutdown, and delays in the farm bill are affecting Hawaii agriculture and food access. Opening remarks emphasized Hawaii’s heavy dependence on imported food and farm inputs, the state’s vulnerability to disruptions in USDA services, and the need for stronger state, county, and community coordination. Speakers also noted that immigration enforcement and broader global supply-chain pressures can affect local farm labor, production, and food availability. Sharon Herd, chair of the Department of Agriculture and Biosecurity, described both positive and negative federal impacts. She said Hawaii has benefited from some recurring grants and a large new $8.8 million federal grant, but also reported about $22 million in losses from suspended or terminated grants, including farm-to-school and water-related projects. She said some USDA programs, such as microgrants for food security and FISMIP, are currently suspended, while the specialty crop block grant remains active. She also said Hawaii farms declined from 7,328 to 6,569 between the 2017 and 2022 censuses and argued the state cannot rely on imports alone to feed its people. Amanda Shaw of Agriculture Stewardship Hawaii presented findings from federal funding cut reports. She said the first report, in March, identified about $88 million in potential cuts, and the newer report found $64.7 million in confirmed cuts and about $175 million in potential cuts. She said federal shifts are creating uncertainty for farmers, food-system organizations, and school and community food programs, and noted that 4,000 to 5,000 Hawaii farmers could receive less money because of changes to payment-factor provisions for socially disadvantaged farmers. She also said Hawaii has lost 18% of local USDA staff since September 2024, with possible further national reductions expected. No votes were taken; the meeting was informational only, and the chair noted that any legal questions, including the reported SNAP changes, would be for the Judiciary Committee to assess later.

Transcript Highlights:

• of grants within that program called special focus grants.
• of grants within that program called special focus grants.
• </c><00:31:36.480><c> and</c> prepared meals food relief grants and prepared meals food relief grants
• Line 544 is to convert the American Indian health special emphasis grants from competitive grants to
• </c> that largely by winning federal grants. that largely by winning federal grants.

Committee: Senate Health and Human Services

Transcript Highlights:

• And you can see a number of other grant programs. mitigation program uh that is Grants to mitigation
• </c><00:28:43.640><c> to</c> different agencies uh grants to different agencies uh grants to political
• </c><00:29:30.640><c> to</c> um and then you can see two grants to um and then you can see two grants
• and clean water grants.
• and clean water grants.

Committee: House Capital Investment

Transcript Highlights:

• I am concerned about this next grant, too. I am concerned about this next grant, too.
• We have some of those grants open right now, and we are having some issues with those grants, too, and
• We have some of those grants open right now, and we are having some issues with those grants, too, and
• We have some of those grants open right now, and we are having some issues with those grants, too, and
• </c> Grant opportunity from that Grant Grant opportunity from that Grant award<01:46:34.440><c> uh</c

Committee: Senate Agriculture, Veterans, Broadband, and Rural Development

Transcript Highlights:

• Are they eligible for the workforce capitalization grant program?
• How could they possibly access that grant? How could they possibly access that grant process?
• You launched the line grant, and we've received about $1.8 million in funding for the line grant to expand
• Workforce capitalization grant enabled us. Thank you.
• Workforce capitalization grant enabled us. Thank you.

Committee: Senate Education Postsecondary

Summary: The Education Postsecondary Committee met to hear an overview of Florida career and technical education (CTE) from Chancellor Kevin O’Farrell and presentations from Big Bend Technical College and Santa Fe College. O’Farrell described Florida’s CTE structure, including career clusters, postsecondary program types, enrollment and completion growth, apprenticeship expansion, and the state’s credentials review process. He said postsecondary CTE enrollment is near 480,000 students and completions reached a record 76,806, with strong growth in nursing, law enforcement, EMT, and other public-safety credentials. He also discussed the CTE audit, which uses retention/success, employment or continued education, and labor-market demand metrics; programs not meeting thresholds would eventually require phase-out plans beginning in 2026. He highlighted the workforce development capitalization grant as a major driver of program expansion and facility renovation, and answered questions about business outreach, construction trades, apprenticeships, and space-industry training. Shelby McCall of Big Bend Technical College described how the college responded to hurricanes, mill closures, and regional economic disruption by expanding rural workforce training. She highlighted aluminum welding, millwright, welding technology, health sciences, and a new advanced manufacturing facility funded by state grants and local partnerships, along with a new LPN-to-RN bridge program. She said the college has strong placement and certification results and is working with employers such as Lippert, NAMO, and others to align training with local demand. Senator Simon praised the college’s role in Taylor County’s recovery and workforce development. Dr. Paul Brody of Santa Fe College said state workforce grants have helped the college expand nursing, skilled trades, apprenticeship, automotive, diesel, and manufacturing programs, including partnerships with Bradford County Technical College, UF Health, Habitat for Humanity, and local employers. He reported growth in CTE enrollment, nursing credentials, apprenticeship enrollment, and job placement rates, and described new efforts in semiconductor training, CDL training, and a charter school model that combines high school, an AS degree, and industry credentials. The committee took no formal action beyond hearing the presentations and adjourned after Senator Berman moved to adjourn.

Transcript Highlights:

• This is on the Learning Recovery Block Grants.
• The overhead costs of a grant like this are low.
• that a one-time grant is well suited to address.
• Do you feel confident enough that the grant, this grant in particular, is being used not to incur ongoing
• Do you feel confident enough that the grant, the, this grant in particular, is being used not to incur

Summary: The committee heard opening public comment and then took up several K-12 budget items in the Governor’s January proposal. On LCFF and necessary small schools, the Department of Finance described a 2.41% COLA, a roughly $2.2 billion increase for districts and charters, and a $30.7 million ongoing augmentation to raise necessary small schools funding by 20%. The LAO supported funding the COLA and said the small schools proposal had merit, but questioned the 20% figure and warned about a sharp funding cliff around the enrollment thresholds. Members and witnesses repeatedly raised declining enrollment, attendance, and the need to align funding with outcomes and local cost pressures. The chair and several members also asked whether consolidation, shared administration, or alternative formulas could better address small district costs, and the issue was left open for further discussion. The panel then discussed special education equalization. Finance proposed $509 million ongoing Proposition 98 funding to raise the statewide special education base rate to $999 per ADA, which would fully equalize SELPA base rates; the LAO said the same target could likely be reached with less money under current assumptions. CDE strongly supported equalization as an equity issue and said about 15% of students are identified with disabilities, with identification rising by roughly 20,000 to 25,000 students per year. Members raised concerns about staffing shortages, high caseloads, and the need to use any additional funds for inclusive practices, alternative diploma pathways, and the extraordinary cost pool. The committee also discussed whether the budget language should reflect the $509 million amount or the $999 rate, and the item was held open. For the Learning Recovery Emergency Block Grant, Finance proposed restoring $757.3 million one-time to complete the program, while the LAO recommended approval because learning loss remains unresolved and districts have generally used the funds for tutoring, supplemental instruction, and other academic supports. CDE explained that LEAs must revisit their needs assessments and that many districts are using the funds alongside other support systems, but members pressed for clearer accountability and better data on how much money actually goes to tutoring or other direct services. The committee then reviewed the Student Support and Professional Development Discretionary Block Grant, with Finance proposing $2.8 billion one-time and the LAO saying discretionary funding can help districts address local priorities but should be paired with fiscal oversight and possibly more targeted priorities. Members split between supporting flexibility for local needs and worrying that the grant could be used to cover ongoing structural deficits without clear evidence of student-outcome gains; the issue was also held open. Finally, the committee heard a high-level overview of school facilities funding under Proposition 2, with Finance proposing to continue $1.5 billion in bond spending in 2026-27. OPSC said that at the current pace all Prop 2 K-12 funds would likely be exhausted around 2029-30, and that demand is shifting toward modernization as enrollment declines in many areas. Members asked about school closures, reuse of unused sites, and the new small school district facilities program, which OPSC said is moving toward proposed regulations and would begin accepting modernization applications in November 2026 and new construction applications in January 2027. The committee also briefly noted community college facilities funding and asked for more information later in the process.

Transcript Highlights:

• That's what we submitted in the grant application. The application was submitted.
• December 29th, the awards were granted.
• And DHS put extensive effort forth to get public input on the grant consideration.
• At public input on the grant consideration.
• So those are the allocations in the first year of the grant.

Summary: Legislative Management met with a quorum, approved the July 11, 2025 minutes, and then considered recommendations from the Legislative Procedures and Arrangements Committee. Beth Dittes explained proposed special session rule changes, which largely mirror prior special session rules and are intended to speed floor action. The changes would allow faster second readings and transmission between chambers, replace regular standing committees with two joint committees for the special session—Joint Appropriations and Joint Policy—and limit bill introduction methods. The package also included delayed-effective-date changes for the next regular session, such as moving the agency and Supreme Court prefile deadline earlier and advancing several resolution deadlines. Liz Fordall then reviewed revisions to the legislative workplace harassment policy, including clarified definitions, longer intake and review deadlines, an option for informal resolution before a review panel, and clearer disclosure rules. The committee adopted the report and forwarded the rules and policy changes. The committee also approved tentative first-day special session agendas for both chambers, with a Speaker-requested revision to allow time to swear in new House members. Megan Gordon outlined the schedule: early Rules Committee meetings, morning floor sessions, a joint session for the governor’s State of the State, then meetings of the joint appropriations and policy committees, with optional later floor and committee time. Members discussed how the joint committees would handle bills and confirmed the process would mirror the prior special session. The agendas were adopted. Chairman Bekkedahl then reported for the Rural Health Transformation Committee, which had completed its work and recommended five bill drafts for the special session: a Presidential Physical Fitness Test requirement for schools, a nutrition component for physician continuing education, joining a physician assistant licensure compact, expanding pharmacist scope for lab testing and prescribing, and a two-year appropriations bill to cover the program through the next regular session. He explained the federal rural health transformation grant, the state’s application, funding restrictions, and the need to keep the bills aligned with CMS requirements to avoid funding reductions or clawbacks. DHS officials said the department would measure outcomes through required metrics, use templates for awards, and set up an Office of Health Transformation to track long-term impacts. The committee adopted the rural health report and forwarded the bills. Finally, members discussed special-session logistics. Legislative staff said employment committees would approve a limited number of staff, Legislative Management would serve as the delayed-bills committee, and a letter would be sent to legislators explaining the process and a suggested Friday noon drafting deadline for bills to be considered at the January 20 meeting. The committee also discussed how many bills might be introduced and how to assign the rural health bills to the House or Senate for origin. No formal vote was taken on those logistics, and the meeting adjourned with plans to reconvene on January 20.

Transcript Highlights:

• So when a grant sunsets, so does the expertise and the resources that have been built through that grant
• One-time grants by time, systems by results.
• We recommend setting a minimum grant amount.
• They were formula grants.
• That would be a part of the grant proposal process, so it'd be a competitive grant this round as opposed

Summary: The committee heard a series of budget proposals focused on education finance, with repeated questions about whether the state’s investments are coordinated, targeted to the highest-need students, and likely to produce measurable results. On the first item, the administration proposed $1 million for a study of California’s curriculum framework, standards, and instructional materials process, plus $250,000 for supplemental ELA/ELD guidance. CDE and Finance said the study would examine how other states organize standards, frameworks, and adoptions, while the chair and members questioned why California has gone so long without updating some standards, what the study would actually accomplish, and whether the proposal was too vague to justify the cost. The issue was held open. The committee then took up a proposed $25 million statewide literacy network within the system of support. CCEE and CDE said the network would coordinate multiple existing literacy leads, create a clearinghouse of evidence-based resources, and improve coherence across the state’s many literacy initiatives. Members pressed on how a one-time, five-year allocation could support a long-term system, how the work would reach distressed and rural districts, and whether the proposal would translate into classroom change rather than just another layer of coordination. The issue was also held open. Next, the committee reviewed a $500 million proposal to expand literacy coaches and reading specialists and to create a math coaches program. CDE described the existing literacy coach cohorts as producing positive reports from participating LEAs, while the LAO recommended modifications, especially for the math coach portion, including limiting eligibility to elementary schools, setting minimum grant amounts, directing funds to eligible school sites, and making eligibility automatic rather than application-based. Members focused on whether coaches were actually being placed at the schools with the greatest need and whether the state has a coherent long-term strategy for literacy and math investments. The committee also heard a $40 million proposal for training and implementation of K-2 reading difficulty screeners, which the LAO said was reasonable but could be reduced because $25 million had already been provided for training; CDE said the new funds were needed for full implementation, procurement, and sustainability. Finally, the committee heard a $10 million proposal for a developmentally appropriate TK multilingual learner screener, with CDE explaining why the preschool language-identification process is different from K-12 EL assessment and the chair asking staff to explore whether a single, more consistent approach could be developed. The meeting concluded with a presentation on universal school meals and kitchen infrastructure, including a $31.5 million backfill, an $84.1 million increase for projected meal growth, a COLA adjustment, and $150 million for kitchen upgrades and training to support freshly prepared meals.

Transcript Highlights:

• They're using private funding and federal grants. Number three, UAMS.
• Let's go on to discretionary grant C. Thank you, Mr. Chair.
• They're amending an existing grant to Right of Passage Incorporated.
• They're adding $464,000 and extending this grant for another year.
• programs for grant programs.

Committee: All ALC-REVIEW

Summary: The committee reviewed methods of finance for 17 capital projects, including multiple university and agency projects such as UAMS renovations, ASU Jonesboro repairs, UCA track resurfacing, and other campus improvements. One item, the University of Arkansas Division of Agriculture Food Science Research Center project, was held until Friday so members could receive more detail on the large cost increase from the original estimate; the remaining methods of finance items were approved. Members then reviewed four discretionary grants: a suicide prevention training grant for the Arkansas Crisis Center, an amended youth services grant to Right of Passage, and two Arkansas Catfish Promotion Board grants for catfish marketing. All were approved. In the services contract section, the committee approved a ratification for an Economic Development Commission grant evaluation contract, several construction-related contracts, six intergovernmental contracts, 28 out-of-state contracts, and 16 in-state contracts. Several contracts drew questions. Members asked DHS about cloud hosting for the ARIES eligibility system and about staffing support for the Medicaid backlog, and DHS said the staffing contract is intended to maintain processing capacity and allow for future surges. The Department of Education explained a $12 million tutoring contract for rural districts funded by a federal grant. The Department of Corrections discussed a medical services contract and a separate transitional housing contract, clarifying that the housing item covers five beds only and that the medical contract includes oversight and staffing-ratio penalties. The committee also reviewed large marketing and communications contracts for the Department of Health, DPS, and UAMS, and then accepted the reports before adjourning.

Transcript Highlights:

• from the specialty dental clinic grant program, which is a grant program for infrastructure.
• As was mentioned, there's been several grant recipients who have declined multimillion-dollar grants
• As was mentioned, there's been several grant recipients who have declined multimillion dollar grants
• , and technology and tool grants as well.
• Over the... ...grants and technology and tool grants as well.

Summary: The Assembly Budget Subcommittee on Health heard updates on five health-related budget items. First, members reviewed state support for distressed hospitals and health facilities. The California Health Facilities Financing Authority and HCAI described the Distressed Hospital Loan Program as a lifeline for 16 hospitals, many of which remain financially strained and are expected to seek loan forgiveness rather than repayment. Speakers cited reduced contract labor, new service lines, strategic partnerships, and the reopening of Madera Hospital as signs of progress, but also warned that federal policy changes under H.R. 1 will likely increase uncompensated care and pressure emergency departments. Public commenters from hospital, dental, and consumer groups supported additional funding, including a request to refresh the program with another $300 million. The committee then heard HCAI’s update on the California Rural Health Transformation Program, a five-year federal initiative funded at $233.6 million for California. HCAI said the program will focus on rural care models, workforce development, and health technology, with grants to be rolled out on a fast timeline and all funds obligated by October 30, 2026. Members raised concerns about rural provider capacity to apply for grants, and HCAI said it will use a third-party administrator, a technical assistance center, webinars, and other supports to help applicants. HCAI also presented its budget request for the health care payments database, seeking ongoing non-General Fund support to continue operations and expand data, including pharmacy benefit manager data. The Emergency Medical Services Authority presented three budget change proposals: funding to replace disaster medical services fleet vehicles, funding for IT security work, and additional positions for HR, enforcement, and legal workload. A member also raised concern that EMSA has not yet completed the annual ambulance rate reporting required by AB 716, and EMSA said it remains committed to the requirement but lost prior funding through later budget reductions. Covered California reported that it is still finalizing its own budget, but expects a lower operating budget due to efforts to reduce baseline costs and align spending with actual expenditures; it also projected enrollment declines tied to the expiration of enhanced premium tax credits, H.R. 1, and federal rule changes, while noting that revenues may still rise because premiums are expected to increase. Finally, the Department of Managed Health Care outlined budget proposals tied to menopause coverage and education, PBM licensure and enforcement under AB 116 and SB 41, credentialing reforms under AB 1041, and prior authorization reporting under SB 306. Public testimony generally supported the menopause and PBM proposals, while also urging clearer language and attention to Medi-Cal parity. The hearing concluded after public comment, including additional advocacy for sickle cell services and rural health workforce funding.

Transcript Highlights:

• I've got five land grants: Carnival, Chula Lee, Torreonti, Hickey. And Manzano.
• They currently fund projects on a grant-loan basis.
• So we do loan grants.
• We give them a planning grant.
• Businesses with grant assistance to apply for the program directly, so they're offering grant writing

Committee: House House Rural Development, Land Grants And Cultural Affairs

Transcript Highlights:

• Of note, section 8, the term related entity is now defined. grants and expand the responsible grants
• </c><00:52:06.960><c> and</c> from participating in state grant and from participating in state grant
• </c> contracts and grants. contracts and grants.
• </c> fund, and capital grants fund, and capital grants from<00:55:00.120><c> general</c><00:55:00.480
• , sustainable grants, legal grants, all of the good things around grants because, as we all know and

Bills: HF4364 , HF4821 , HF4543 , HF3945

Committee: House State Government Finance and Policy