Transcript Highlights:

• The matching criteria is not specific in federal regulation, but the federal regulation...
• The matching criteria is not specific in federal regulation, but the federal regulations point to the
• So I think for us, it'd be helpful not just to hear what the current federal administration says the
• All training purposes, projects, whatever the federal funds are used for, must meet federal eligibility
• Highway Administration.

Transcript Highlights:

• in federal fiscal year 2025.
• To explain further, the federal government. days within a 12-month interval to explain further, the federal
• We just want to note that the state is allowed to use up to 5% of its federal allocation for administrative
• and other federally eligible individuals from the Federal Office of Refugee Resettlement.
• Due to the federal funding cuts, our current unaccompanied children's program, the federal program, currently

Summary: The committee heard an extensive Department of Social Services presentation on child care budget issues, including the Governor’s proposed 2026-27 budget, federal CCDF changes, Prop. 64 revenue adjustments, and a one-time $11.5 million disaster-related infrastructure grant for licensed child care facilities affected by 2025 declared disasters. DSS said federal formula updates and lower Prop. 64 revenues would reduce funding and could result in about 4,176 CCTR slots being reduced, but the department said it was working to avoid impacts to currently enrolled children. The LAO supported aligning general child care funding with lower revenues and asked for more detail on the disaster grant. Members pressed DSS and Finance on why reductions were not being backfilled and why so many awarded slots remain uncontracted or unused; DSS said delays are largely due to providers building new infrastructure, licensing, staffing, and enrollment challenges, and that some unspent funds revert to the General Fund. The committee also discussed whether some contract dollars should be shifted to vouchers and whether more flexibility should be allowed for infrastructure and expansion costs. A second panel focused on the state’s commitment to expand child care and on rate reform. DSS reported that nearly 125,000 new slots have been awarded since 2021-22, but speakers from Stanislaus County Office of Education, Parent Voices California, and the California Budget and Policy Center argued that unmet need remains large and that the system still leaves many families without access. Stanislaus County described a large local shortage of infant and toddler care and said reimbursement disparities between child care programs and state preschool create disincentives for providers. Parent Voices gave testimony about the burdens and instability families face when trying to access care, especially for survivors and low-income parents, and called for a universal, publicly funded system. The Budget Center said only about 16% of eligible children were enrolled in 2024, urged expansion across the mixed delivery system rather than concentrating investment in TK, and called for faster rate reform and new revenue. LAO estimated that bringing certain CCTR adjustment factors up to CSPP levels would cost $88 million to $131 million ongoing. Members and witnesses discussed the single rate structure, automation needs, and the need for deadlines and a ramp-up plan; DSS said the goal is to eliminate disparities, but that policy decisions are still needed before automation can proceed. The committee then reviewed several trailer bill proposals. DSS outlined a 2026-27 COLA proposal that would apply a 2.41% increase through cost-of-care-plus payments, though the department said it had inadvertently excluded CalWORKs Child Care and the Emergency Child Care Bridge Program and would revise the proposal; LAO recommended making the COLA methodology uniform across programs. DSS also proposed replacing the market rate survey with the federally approved alternative methodology on a triennial schedule, limiting temporary absences in family child care homes to 20% of monthly hours, defining excessive unexplained absences as more than 30 days in a year, and aligning family fee deductions with new federal requirements so providers receive the full voucher value. Members generally supported the temporary absence change and asked about implementation timing for the family fee deduction, with DSS saying it was in contact with Riverside County. The committee also heard a brief update on the Early Childhood Policy Council reappropriation, which would extend unused funds through June 30, 2028 because prior costs came in higher than expected.

Transcript Highlights:

• MOBA system in the federal government, a state government can actually contract with the federal government
• We need to meet federal requirements.
• So the feds, unfortunately, so we have a UI administrative grant from the federal government.
• It has to do with the state and federal cost share for administration of unemployment insurance that
• So it's our money, it goes to the federal government, it comes back, it helps support administration

Transcript Highlights:

• It is subject to an agreement with federal highway or some other federal agency in terms of approval
• But any lands that were acquired with federal funds, the federal highway will need to be reimbursed,
• federal highway with federal funds, the federal highway will<00:10:17.200><c> need</c><00:10:17.360><
• administrative fee of administration administrative fee of $1,100<00:17:42.720><c> will</c><00:17:42.880
• </c> Hampshire Department of Administrative Hampshire Department of Administrative Services.

Summary: The committee approved the minutes from its September 29 meeting and then took up a series of Department of Transportation and Department of Administrative Services property actions. Several DOT items involved disposal of land originally acquired for the now-dissolved Conway bypass or other highway projects, including a 445.6-acre Conway parcel proposed for sale to the town of Conway for conservation use, a 1.78-acre Chesterfield parcel for sale to an abutter, a 6.13-acre Madison parcel tied to the Conway bypass, and a bulk disposal package of 22 improved parcels in Merrimack, Litchfield, and Hudson. Members asked about appraisals, conservation easements, federal funding restrictions, tenant occupancy, and whether the state would recover its original investment; DOT said values were based on appraisal or market analysis, federal reimbursements may be required where federal funds were used, and proceeds from turnpike-related property would return to the turnpike fund. All of these disposal motions were approved. The committee also approved several DOT lease/easement items. These included a Greenfield railroad-corridor lease for equestrian use, a Lake Winnipesaukee dock lease to CE Realty Trust, a similar dock lease to Needle Eye Association, and an easement in Carroll for Industrial Wireless to build a private road and cross Mount Deception Brook for a cell tower project. Members focused on maintenance responsibilities, liability insurance, access limitations, fencing, and the relationship between the railroad corridor and adjacent uses. DOT said lessees would be responsible for maintenance, access to the railroad would be restricted, and liability insurance would be included where appropriate. The committee also approved a separate easement for Eversource in Rochester to install utility lines serving the new courthouse, with the department explaining that the easement is a narrow strip needed to complete construction. The Department of Administrative Services received approval for a use-of-premises agreement allowing Rockingham County to lease 300 square feet in the Brentwood courthouse for office space, and for a perpetual utility easement in Rochester for Eversource, with a waiver of the administrative fee. The committee also heard that the Rochester courthouse project needs the utility work to finish construction. Throughout the meeting, members repeatedly asked about insurance, public access, valuation, and whether tenants or abutters would have first opportunity to buy or lease the affected properties. All motions before the committee were adopted.

Transcript Highlights:

• So if this administration, I hope they do get it, if this administration passes something on the federal
• We have a partnership with the federal government to help administer that where the federal government
• And so you can see the federal major, major federal entitlements on slide 10 make up the vast majority
• The administration, previous administration had approved that hospital provider tax to pay hospitals
• For the next federal fiscal year, and remember, the federal government has not been able to pass a budget

Transcript Highlights:

• Starting in late November, several federal awarding agencies, specifically the Administration for Children
• Starting in late November, several federal awarding agencies, specifically the Administration for Children
• </c> monitoring and the administration. monitoring and the administration.
• </c> Department of Administration has. Department of Administration has.
• Um as at the federal level.

Committee: House Fraud Prevention and State Agency Oversight Policy

Transcript Highlights:

• This is the actual federal act that created the federal rural emergency hospital designation, effective
• When I spoke about the accreditation, I meant on the federal side.
• certified them on the federal side as an acute care hospital.
• That is the crux of the federal entitlement law.
• So, and also maybe to the federal government.

Summary: The committee met to receive implementation updates on recently enacted health care laws from AHCA and the Department of Health. AHCA reported on rural emergency hospitals, explaining the new Class 4 hospital designation, rule changes completed June 1, 2025, and that no Florida hospitals have yet converted, though one North Walton/DeFuniak Springs-area hospital has expressed interest. AHCA also reviewed the non-emergent care access plan requirement for hospitals with emergency departments, saying 83 plans had been received since July 1 and 63 approved, with plans emphasizing patient education, referrals to primary care or urgent care, and coordination for Medicaid managed care enrollees through the Florida HIE/ENS system. Members asked about HIE capacity, data collection, and whether the plans would identify shortages or trigger accountability measures; AHCA said it had moved to a new HIE vendor and would continue gathering data. AHCA also updated the committee on the TEACH workforce program, reporting $6.8 million in FY 2024-25 spending across 59 parent organizations and 229 facilities, with more than 1,800 students and nearly 380,000 clinical hours reimbursed, and said a federal 1115 workforce waiver was unlikely to move forward under CMS. On KidCare, AHCA said House Bill 121’s expansion to 300% of the federal poverty level remains blocked by federal litigation and CMS action tied to premium nonpayment rules, and members and public witnesses urged prompt implementation and asked for enrollment/disenrollment data and the rural health transformation funding outlook. Public testimony largely supported the NCAP and TEACH programs and pressed for action on KidCare. Representatives from health centers said NCAP has strengthened hospital-health center relationships and improved care coordination, including reduced recidivism in some hospitals. A Bond Community Health Center physician said TEACH is helping offset the burden of training students and could help address workforce shortages, especially in rural and underserved areas. Advocacy groups urged the committee to push for implementation of the KidCare expansion, citing children in the coverage gap and rising uninsured rates. The Department of Health then presented on several programs from the 2024-25 session. It reported on the Florida Reimbursement Assistance for Medical Education (FRAME) program, including 78 dentists and 15 dental hygienists funded under the dental track and nearly 1,300 medical professionals funded overall, with 123 dental applications and 71 funded dentists in the most recent cycle. DOH also updated the Screening and Services Grant Program, the Health Care Innovation Revolving Loan Program, the statewide telehealth maternity care program, and the swimming lesson voucher program, noting strong participation and outcomes such as reduced ER visits and improved postpartum follow-up in the maternity program. Finally, DOH said implementation of the HIV prevention drug/pharmacist dispensing law is underway, with three certification courses approved and five certifications issued. Members asked about barriers to wider use of HIV prevention drugs, more detailed maternal outcome data, and the dental workforce program report; DOH said more detailed reports would follow.

Transcript Highlights:

• The law cuts federal Medicaid funding, putting benefits at risk.
• But let's be clear: this isn't because of an administration 3,000 miles away.
• It has nothing to do with an administration that's 3,000 miles away.
• administration.
• Recently, federal court decisions...

Summary: The Senate convened with a quorum, prayer, the Pledge of Allegiance, and a floor introduction welcoming Berkeley Mayor Adina Ishi. The body then moved through a series of third-reading bills, with most measures presented as responses to current policy concerns and several placed on call before roll votes were completed. Early measures included SB 1312 on abandoned cemeteries, SB 1112 increasing penalties for towing industry notice violations, SB 877 requiring insurers to disclose claim materials and revisions, SB 1046 directing Cal/OSHA to develop protections for workers exposed to transboundary pollution in the Tijuana River Valley, and SB 1091 creating a community anti-displacement and preservation housing program. These bills generally drew support and passed, with SB 1091 ultimately passing 34-2 after a call vote. The floor also considered SB 951 on AI-related layoffs and worker notice, SB 1030 repealing the “man in the house” rule in CalWORKs, SB 1218 tying vehicle registration renewal to payment of illegal dumping fines, SB 1013 tightening privacy and oversight rules for automated license plate readers, SB 1116 making technical changes to the Starter Home Revitalization Act, SB 1201 protecting veterans from food-assistance cuts, and SB 1164 strengthening state voting-rights protections. Debate on SB 1013 featured sharp disagreement over whether the bill’s 30-day retention limit and audit requirements were necessary guardrails or would hinder law enforcement investigations. SB 1164 also drew opposition over concerns about litigation and expanded Attorney General oversight, but supporters argued California should codify voting-rights protections amid federal uncertainty. Most of these measures passed, with SB 1013 and SB 1164 receiving notable no votes. A major portion of the session focused on AB 1768, an urgency measure authorizing Los Angeles and Contra Costa counties to place local sales-tax measures before voters to help offset federal funding cuts to health care and safety-net services. Supporters framed it as a local-control measure needed to backfill losses from federal disinvestment and protect Medi-Cal, CalFresh, hospitals, clinics, and county services; opponents argued it would worsen affordability, expand regressive taxation, and bypass normal committee review. After extensive debate, the urgency measure received the required votes and passed. The Senate also adopted SCR 171 designating May 20 as California Nonprofits Day by unanimous roll call. The session ended with committee announcements, including budget subcommittee meetings, and a notice that the Senate would recess and reconvene later in the week.

Transcript Highlights:

• Members, as of right now, the state and federal government split the administrative cost of SNAP 50-50
• Madam Chair, Representative, I'm sure that there—I haven't looked into federal grants and federal funds
• To my knowledge, there are no federal grants.
• Some denials are merely, purely administrative.
• What are the administrative fees?

Committee: House House Health & Human Services Committee of Reference

Summary: The committee heard a JLBC presentation on H.R. 1’s SNAP impacts, including expanded work requirements, higher state administrative costs, and a potential state share of benefits if Arizona’s payment error rate remains above 6%. JLBC estimated the administrative cost increase at about $33 million in FY 2027 and $44 million in FY 2028, and said a 2024 error rate of 8.8% could expose the state to about $139 million in benefit costs starting in FY 2028. The chair also opened the meeting by asking members and speakers to keep remarks shorter to improve efficiency. The committee then considered several SNAP-related bills. HB 2797, which requires DES to more frequently verify eligibility through data matching, post fraud/noncompliance data, and address out-of-state EBT purchases, passed 7-5. HB 2442, requiring certain able-bodied SNAP adults with school-age children to participate in employment and training unless exempt, also passed 7-5. HB 2448, which limits DES’s ability to seek work-requirement waivers or discretionary exemptions without legislative authorization, passed 7-5. HB 2206, which sets a goal of reducing the SNAP payment error rate to 3% by 2030 and adds reporting and corrective-action requirements, passed 7-5 after debate over staffing, technology, and whether the target was realistic. The committee also advanced HB 2180, appropriating $2.5 million to the University of Arizona for AZ REACH, a hospital transfer coordination program serving rural facilities. Supporters said it improves patient transfers and reduces burdens on rural hospitals; some health system representatives were neutral but asked for operational improvements. HB 2180 passed 11-1. HB 2184, as amended, passed 7-4-1; it would extend fetal death certificate filing and require patients to be informed of the option to transfer fetal remains to a funeral home, with supporters describing it as a matter of parental dignity and closure. HB 2188, as amended, creating a Language Acquisition Grant Program for deaf or hard-of-hearing infants and toddlers, passed unanimously after testimony about balancing spoken-language and ASL options. The committee then began hearing HB 2194, a bill requiring insurers to provide a contact for detailed explanations after claim or prior-authorization denials, but the transcript ends before action on that bill.

Transcript Highlights:

• of new federal 1915c waivers pursuant<00:21:28.919><c> to</c><00:21:29.080><c> federal</c><00:21:29.400
• </c> waiver Services increase the federal waiver Services increase the federal reimbursement<00:21:49.200
• </c> limited so I know there are federally limited so I know there are federally not<00:43:07.319><c>
• </c> the possibility that uh the federal the possibility that uh the federal program<01:08:04.799><c>
• We have a new administration coming in in Washington, so obviously any new administration will have a

Summary: The committee met with a quorum, approved the minutes, and then reviewed a long agenda of administrative regulations, most of which were advanced with staff-suggested amendments and no objection. Early items included the Kentucky Public Pension Authority’s 105 KAR 1:451, which updates reporting language and adds the contractor wizard for certain employers, and a large package of Board of Veterinary Examiners regulations that revise fees, facility and AHP registration requirements, continuing education, liability, and practice rules. The Board of Speech-Language Pathology and Audiology’s compact-related regulation and the Board of Licensed Professional Counselors’ complaint and compact rules were also reviewed and approved with amendments, along with fish and wildlife rules affecting elk hunting, youth deer season length, bear-dog approvals, and foxhound enclosure permits. The committee also approved transportation, education, workplace standards, horse racing, and several health and human services regulations, including Medicaid waiver reimbursement updates and a child care regulation that sends certain large claims to the Office of Inspector General for review. Several agencies briefly explained their regulations when members asked questions. Fish and Wildlife said the elk population is strong and the baiting change is intended to support harvest monitoring and fair chase, while the longer youth deer season was meant to give young hunters more opportunity. The Department of Community-Based Services said the $10,000 and $5,000 claim thresholds were meant to clarify rare cases involving possible fraud or unresolved recoupment issues. The Department of Financial Institutions’ 808 KAR 5:305 drew the most discussion: it would allow certain state-chartered credit unions with a low-income designation to participate in federal programs, including limited non-member deposits and supplemental capital, but the regulation was deferred again amid continued discussions. The Kentucky Bankers Association testified against the credit union regulation, arguing that allowing non-member deposits conflicts with existing statute limiting credit union deposits to members and other credit unions, and that an administrative regulation cannot override that statutory restriction. Committee members heard the agency’s explanation that the proposal is intended to help underserved communities and that the non-member deposit authority would be limited, but no final action was taken because the item was deferred. The meeting otherwise concluded with the remaining regulations being called, discussed briefly, and approved or advanced without objection.

Transcript Highlights:

• The February federal policy changes.
• </c><00:14:20.800><c> funds</c> a significant amount of federal funds a significant amount of federal
• </c> currently pending um administrative currently pending um administrative hearing.<00:37:45.440><c
• </c><01:06:28.079><c> For</c> hours at federal minimum wage. For hours at federal minimum wage.
• </c><01:15:13.440><c> If</c> waiver to the federal government. If waiver to the federal government.

Committee: Senate Health and Human Services

Transcript Highlights:

• “Which, again, it came from the administration the last time.
• Again, that just makes the administration a little hesitant.
• Again, that just makes the administration a little hesitant.
• So we have Medicare, which is a federal program.
• Madeline McLean, CDCR Director, Division of Administrative Services.

Transcript Highlights:

• So does the administration have any thoughts about best ways to do this?
• It's also these federal monuments.
• And so how about the administration, what's the administration done to improve disseminating information
• But I can't speak to how we'll solve the federal problem.
• Federal programs that are focused on local foods for schools...

Summary: The Assembly Budget Subcommittee heard the administration’s spending plan for Proposition 4’s climate smart agriculture and biodiversity chapters, along with related trailer bill language. CDFA outlined proposed funding for existing programs such as SWEEP, Healthy Soils, Urban Agriculture, and invasive species work, plus new or phased-in programs including year-round and mobile farmers’ markets, tribal food sovereignty, and regional farm equipment sharing. The Department of Conservation described funding for the California Farmland Conservancy Program and Working Lands and Riparian Corridors Program, while the Department of Finance and LAO discussed pending allocations and generally found the overall approach reasonable, though LAO suggested the Legislature may want more statutory guidance and reporting, especially for new programs. Members focused on implementation details, equity, and accountability. Questions covered how programs would serve vulnerable and disadvantaged communities, whether new solicitations would be reopened for previously oversubscribed grants, how outcomes are tracked, and how to structure guidance for new programs such as farm equipment sharing. The chair emphasized that the Legislature wants clearer direction on program design and noted that AB 2313 should guide implementation of the regional farm equipment sharing allocation. The committee also discussed the administration’s request to directly appropriate bond funds to departments and to exempt bond program guidelines from the Administrative Procedures Act; LAO supported the APA exemption with possible legislative guardrails for public notice and comment. The committee then heard on the farm-to-school proposal, with CDFA requesting $24.9 million General Fund for incubator grants, technical assistance, and network support. CDFA said the program has reached nearly half of California schoolchildren and has shown strong demand and positive evaluation results. LAO supported the core program but recommended rejecting the $3 million technical assistance component as too broad and suggested the Legislature consider using Proposition 98 for some of the funding. Members debated that point, with some expressing concern about using General Fund dollars for a new discretionary request during a tight budget year. The biodiversity and nature-based solutions chapter included funding for the Wildlife Conservation Board, state conservancies, and tribal nature-based solutions. WCB described major recent investments and proposed projects tied to 30 by 30, habitat restoration, tribal partnerships, and public access. Members raised concerns about long-term stewardship, the size of the WCB allocation, and whether the Legislature should receive more detail on how funds will be distributed. The committee also heard requests for Bolsa Chica wetlands maintenance and Rincon Island decommissioning funding from the State Lands Commission, with members questioning long-term liability, remediation costs, and the role of private oil operators. No votes were taken, and the hearing ended with public comment from stakeholders largely supporting the APA exemption, farm-to-school funding, biodiversity investments, and related conservation programs.

Transcript Highlights:

• And right now, I guess they're prohibited under federal law.
• And right now, I guess they're prohibited under federal law.
• When you mess with the federal government, they tend to want to punish us and take away federal dollars
• When you mess with the federal government, they tend to want to punish us and take away federal dollars
• So as an administrator, if I'm going to ask or have another administrator volunteer to go through the

Committee: House General Laws

Transcript Highlights:

• use of administrative warrants to detain people, quote, "Civics lessons to the government.
• Um to quote a recent federal record.
• Administrative warrants government.
• These administrative warrants did not even exist until the 1950s.
• You know, the federal government is now.

Transcript Highlights:

• The administration of DUA is federally funded through the U.S.
• Base federal funding is determined by the U.S.
• The federal government is backing out on key programs, including federal research funding, all the while
• EA was how this administration, and I want to thank the administration for responding to the crisis,
• We are aware of this particular federal rule. We are aware of this particular federal rule.

Committee: Joint Joint Committee on Ways and Means

Transcript Highlights:

• Things that you're forecasting as impacts and cuts to federal, from federal programs that are going to
• administration level.
• And with that, are there any other things on the federal administration before I go to the next kind
• Recently the Trump administration has threatened to claw back federal funds and try to halt federal grant
• So, I think, while that money may not go back to the federal administration, the deadline is still relevant

Committee: House Communications and Conveyance

Transcript Highlights:

• /c><01:03:24.880><c> federal</c> derivatives from federal or federal derivatives from federal or federal
• , and the federal—are there federal limits on how much money you can spend for administrative cost?
• are</c> state versus federal and the federal are state versus federal and the federal are are<01:26:34.560
• , and are there federal limits on how much money you can spend for administrative cost?
• . administrative. administrative.

Summary: The Tobacco Settlement Agreement Fund Oversight Committee met to review how tobacco settlement dollars are being used and to press recipients for detailed information on total funding, administrative versus program spending, and measurable outcomes. The chair emphasized that the committee was not there for general program overviews, but to assess return on investment and whether each program should continue to receive tobacco settlement support. The committee approved the minutes from its December 22, 2025 meeting and then heard presentations from several agencies and organizations. Volunteers of America Mid-States described its southeastern Kentucky restorative justice program, which uses an evidence-based New Zealand model for juvenile cases in nine counties. The group reported tobacco settlement funding of $516,000 in FY24 and $233,500 in FY25, representing about 17% and then about 5% of the program budget, respectively. It said the funding helped expand the program from 13 cases in 2021 to 180 youth served, and cited an independent evaluation showing recidivism of 24.5% compared with 40.4% in AOC data, along with a cost of a little under $20 per day versus detention and other placements. Some members questioned whether the program fit the tobacco settlement funding categories and suggested it might be better supported through other justice-related funding sources. The Energy and Environment Cabinet’s Division of Conservation explained that tobacco funds support $1 million in direct aid to conservation districts and $2 million in cost-share projects for farmers, with 5% of the cost-share appropriation allowed for administration, or about $100,000 in FY26. Officials said the direct-aid line was moved into tobacco funding in 2019, reducing money available for farmer cost-share, and described a multi-year project approval and reallocation process. Senator Webb asked for a more specific breakdown of the $850,000 direct-aid amount, and the cabinet said it would provide that information. The Kentucky Office of Drug Control Policy reported that in FY24 it expended just under $30 million across tobacco funds, general funds, restricted funds, and a one-time federal grant, with less than 2% used for administration. Officials said most tobacco settlement money goes to Kentucky ASAP local boards in all 120 counties, supporting prevention, treatment, and some law enforcement work. The Department of Agriculture then began its presentation, describing strategic investments, loan programs, county funding, administrative costs, and a reported return of about $2.30 for every dollar spent, but the transcript cuts off before that presentation was completed.

Transcript Highlights:

• </c><00:01:26.720><c> dollars</c> their money comes from federal dollars their money comes from federal
• </c><00:03:56.079><c> level</c> what's happening at the federal level what's happening at the federal
• Representative Angen asked whether changes in federal cuts, regardless of administration, impact O&M
• uh regardless of those cuts federally uh regardless of the<00:29:33.679><c> administration</c><00:29
• then we take Administration base the then we take Administration base the grant<00:30:56.360><c> Administration

Transcript Highlights:

• So since this sounds like USDA, federal, federal court, why is the state involved in this?
• So since this sounds like USDA, federal, federal court, why is the state involved in this?
• Judge Susan Hickey in the Western District of Arkansas, she was the federal judge on the federal case
• Issued by the federal judge. Yes.
• That's, like she said, they set after you go to federal court, and the federal court orders the county

Committee: All ALC-CLAIMS REVIEW/LITIGATION REPORTS OVERSIGHT