Bills: SB6069 , SB6167 , SB6201 , SB6205 , SB6001 , SB6026 , SB6054 , SGA9278 , SGA9279

Committee: Senate Housing

Keywords: affordable housing, homelessness, homeless shelter, emergency shelter, emergency housing, supportive housing, permanent supportive housing, transitional housing, low-income housing, very low-income, extremely low-income, housing crisis, land use, zoning, local preemption, urban growth area, UGA, planning, development regulations, permitting

Bills: HB161 , HB146 , HB289 , HB290 , HB31 , HB146 , HB289 , HB290 , HB31

Committee: House Health

Keywords: consumer protection, app store, age verification, parental consent, data protection, minors, HB146, ivermectin, pharmacist, standing order, prescription drug, non-patient-specific order, dispensing, physician assistant, nurse practitioner, licensed health care provider, pharmacy board, medical licensure, disciplinary action, drug access

Transcript Highlights:

• It will be the following fiscal year where those local budgetary and state budgetary impacts will come
• It will be the following fiscal year where those local budgetary and state budgetary impacts will come
• Local budgetary and state budgetary impacts will come to fruition.

Summary: The Appropriations Committee first took up SB 7010, which would authorize Roth contributions in state and local deferred compensation plans. Senator Mayfield explained that current law only allows pre-tax contributions, and the bill would let the Department of Financial Services and local governments offer post-tax Roth options. The bill had one support appearance card, no debate, and was reported favorably by roll call vote. The committee then received a lengthy presentation from the Governor’s Office of Policy and Budget on the governor’s recommended “Floridians First” budget, totaling $117.4 billion and $53.2 billion in general revenue. The presentation highlighted reserves, debt paydown, tax relief, and proposed reductions and efficiencies, along with major spending areas in education, health care, public safety, corrections, transportation, and economic development. Key proposals included higher K-12 funding, teacher salary increases, funding for Everglades and water quality projects, emergency preparedness, corrections staffing and facility funding, cybersecurity, law enforcement recruitment bonuses, and affordable housing and infrastructure investments. Members asked extensive questions about property tax reserves, litigation funding, emergency response fund balances and spending, the Alligator Alcatraz detention facility and federal reimbursement, the Second Amendment sales tax holiday, animal abuse hotline funding, Hope Florida, corrections staffing, and teacher pay. A major portion of the discussion focused on the Department of Health’s planned changes to the ADAP HIV medication program, with senators and a public witness expressing concern about access to life-saving medications and possible misuse or redirection of funds. The committee did not take further action on the budget presentation, and the meeting ended after additional comments supporting the budget and the corrections funding, with SB 7010 already approved.

Transcript Highlights:

• and other issues, I look forward to working with the administration to continue pursuing meaningful reforms
• What reforms do you recommend, again, that would improve services, I suppose?
• I've got a question on PBM reform, one on artificial intelligence in healthcare.
• But I think that we need to reform the PBMs.
• I have questions about how you would reform Medicaid, and I didn't hear an answer.

Committee: Senate Finance Committee

Transcript Highlights:

• The governor is right to emphasize that reforms should be targeted and evidence-based, not broad changes
• When that elected office was eliminated by constitutional reform in 1976, she became the first clerk
• Whereas, during the defense of budgetary measures in Governor Martha Lane Collins's administration, a
• </c> by championing the educational reforms by championing the educational reforms and<03:08:53.279><
• </c> Whereas during the defense of budgetary Whereas during the defense of budgetary measures<03:09:53.120

Transcript Highlights:

• like this, it's the Question is always how quickly can we put it to work, and based on again the budgetary
• infusion, just like the infusion or retro has done, will help us manage those projects within our budgetary
• It's highly dependent on what our budgetary constraints look like from year to year.
• Probably as we came in to this budgetary year, budgetary 26, we didn't have a clear understanding that

Committee: House A&B Transportation Subcommittee

Transcript Highlights:

• Through CalAIM, California has reformed its health care system to better serve high-needs populations
• The CalFresh time limit rules have been in place since the 1996 welfare reform.
• These are targeted, necessary investments to preserve statewide progress in behavioral health reform,
• recipients on day one, but we are significantly under the gun in terms of time constraints, given the budgetary

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held a hearing on how H.R. 1’s new federal work and community engagement rules will affect Medi-Cal and CalFresh, especially for Californians with behavioral health needs, people experiencing homelessness, and justice-involved individuals. The Legislative Analyst’s Office outlined the scope of the changes, including Medi-Cal work requirements beginning in January 2027 and CalFresh changes beginning in June 2026, and estimated large potential coverage losses if people cannot document exemptions or comply with reporting rules. State departments said they are still awaiting some federal guidance but are already building implementation plans, data matching, outreach campaigns, and system changes to reduce disruption and automatically identify exemptions where possible. Department of Health Care Services and Department of Social Services officials described efforts to use existing data, CalSAWS, and cross-program coordination to streamline exemption screening, including for medical frailty, serious mental illness, substance use disorders, and student status. They said outreach will include text messaging, webinars, county training, and community-based partners, while also acknowledging that many people will still need direct worker contact. County representatives stressed that the new rules will create major administrative burdens, require significant new staffing, and could lead to coverage loss if counties are not adequately funded. They urged the Legislature to release the $20 million in current-year General Fund for CalFresh implementation and to consider a much larger county augmentation next year. Assembly members pressed the administration on outreach strategy, county funding, consistency across counties, and how to avoid harming eligible people through overly aggressive implementation. They also asked about coordination with universities, CDCR, and community-based organizations, and about how exemptions would be documented for mental health and substance use conditions. Department officials said they are working with counties, education institutions, and correctional agencies, and that they are trying to align Medi-Cal and CalFresh rules where possible, but not all federal definitions match. Public commenters from legal aid, counties, labor, and public hospitals warned that work requirements do not increase employment, will worsen food insecurity and health outcomes, and will strain county systems unless the state provides more funding and support.

Transcript Highlights:

• Whenever we pass tax reform, and whenever the governor signs a bill, the appropriations team will follow
• And whenever we pass tax reform, whenever the governor signs a bill, the appropriations team will follow
• We are not here saying that we won't have to negotiate the budgetary impacts, but at least we're going
• I understand what the tax reform bill is doing, and I understand the need not to leave it in a 529 after

Committee: House House Ways & Means Committee of Reference

Summary: The committee took up House Bill 2785, a major Arizona tax conformity measure that would align state law with the Internal Revenue Code as of January 1, 2026 and apply retroactively to tax year 2025. The sponsor and supporters said the bill would make Department of Revenue tax forms legal, provide certainty to taxpayers already filing under those forms, and deliver about $440 million in tax relief through provisions such as no tax on tips and overtime, a larger standard deduction, a $6,000 senior deduction, and changes to deductions and the SALT cap. Opponents argued the bill would significantly reduce state revenue, disproportionately benefit higher-income taxpayers, and should not move forward without a broader budget plan. After an amendment addressing retroactivity and foreign dividend language was adopted, the committee approved HB 2785 on a 5-4 vote. The committee then heard several Arizona State Retirement System technical cleanup bills. HB 2089, clarifying the health insurance premium benefit subsidy, passed 9-0. HB 2090, changing the disability timeframe for long-term disability benefits, passed 8-1. HB 2092, allowing certain employees over age 65 to waive ASRS participation within 30 days of eligibility, also passed 8-1. These measures were described by staff and the sponsor as simple corrections, with little opposition. Finally, the committee considered HB 2477, which conforms Arizona’s 529 education savings plan to federal law, expands allowable uses, and adds rules for 529-to-Roth IRA rollovers and ABLE transfers. Supporters called it a cleanup bill that would simplify administration for families, while some members raised concerns about the Roth rollover and possible use of funds transferred from ESA accounts. The bill passed 5-3 with one member voting present. The committee then adjourned.

Transcript Highlights:

• Changes to liability reform. You all may remember some of those a couple of sessions ago.
• We obviously have a very difficult budgetary circumstance, and I'm wondering if significant public investment
• housing, temporary housing, emergency housing, permanent supportive housing; the condo liability reforms
• we talked about; SEPA reforms; tiny homes; and then the co-living bills to allow co-living.

Summary: The committee met for work sessions on land banking/shared homeownership and on maximizing existing housing stock. Members first heard an overview from Commerce on alternative homeownership models, including community land trusts, limited equity cooperatives, condominiums, accessory dwelling units, middle housing, church land for housing, and public land transfers. The discussion focused on how these models can help households build equity while keeping housing permanently affordable. Committee members asked about statewide counts of co-ops and land trusts, and Commerce said it does not track all of those entities directly. Pierce County staff then described the Pierce County Community Development Corporation’s rapid acquisition fund and its role in acquiring, holding, and transferring public land for affordable housing. They said the county used general fund and affordable housing sales tax dollars to buy properties, preserve a manufactured home park through resident ownership, and create a pipeline of sites for future development. Members asked about the advantages of a public development authority, funding sources, the use of surplus and underutilized public property, and how the model works with housing authorities. Spokane land bank staff followed with testimony that land banks can reduce blight, preserve affordability, and help nonprofits acquire land quickly, but that holding costs and taxes can make the work harder without state support. They also described brownfield assessments, donated properties, and work on Black homeownership and public surplus properties. The committee then heard from the Northwest Cooperative Development Center on limited equity cooperatives, especially in manufactured housing communities. The witness said Washington now has about 43 limited equity co-ops and that recent subsidy funding and legislation have accelerated resident purchases of manufactured home communities. Members asked how residents benefit from capped equity, how values are affected, and whether the model improves access to lending; the witness said the model stabilizes costs, allows modest equity gains, and that a recent law allowing manufactured homes in co-ops to be titled as real property should improve access to traditional financing. The committee also discussed House Bill 1974 from the prior session and possible updates to land banking legislation. In the second work session on maximizing existing housing stock, Commerce reviewed recent housing laws and implementation timelines, including ADUs, middle housing, condo liability reform, SEPA changes, tiny homes, and co-living. Members raised concerns about the long implementation horizon, vacancy data, corporate ownership of homes, and the need for better support for small landlords and first-time ADU owners. Sightline then testified on mobile dwelling units, arguing that RVs, tiny houses on wheels, and similar units are a low-cost, quick-to-install housing option that is often blocked by zoning; the witness said many Washington residents already live in these units, often informally. Finally, AARP discussed housing options for older adults, including ADUs, missing middle, manufactured home communities, co-living, universal design, and village-style support models, emphasizing aging in place and the need for more accessible, affordable housing choices.

Transcript Highlights:

• of two to share a little bit with us around our continuing efforts as a state around health care reform
• remember that I think it was last year—we did sort of a little bit of a history walk into health care reform
• Appropriations tomorrow with a little bit of update on H.R. 1 as well, because there is certainly some budgetary
• The Center for Health Insurance Reform just put out a report about middlemen in the health care system

Committee: Joint Joint Select Committee on Health Care and Behavioral Health Oversight

Summary: The committee first welcomed new DSHS Secretary Angela Ramirez, who introduced herself and described her background in public service, federal and state legislative work, and health and human services leadership. Members emphasized the importance of building strong relationships with her and noted her focus on protecting services, using strategic approaches in a tight budget environment, and improving partnerships with the Legislature. Ramirez said she wanted to keep communication open and that her priorities would be shaped by what she learns from lawmakers and agency partners. The next work session focused on the West Coast Health Alliance and the broader Governor’s Public Health Alliance. Department of Health and governor’s office staff said the West Coast alliance, involving Washington, Oregon, California, and Hawaii, was formed to coordinate science-based public health guidance, especially around vaccines, return-to-work guidance, and responses to federal changes. They said the alliance is intended to reduce confusion, counter misinformation, and preserve access to evidence-based recommendations, with early actions including vaccine guidance for COVID-19, flu, and RSV, a statement rejecting any vaccine-autism link, and preparation for possible ACIP changes. Members asked about workload and coordination with other regional alliances, and staff said there is informal coordination but no formal regular meetings. The committee then heard from the Washington State Health Benefit Exchange about open enrollment and the effects of federal policy changes. Exchange leaders said the expiration of enhanced premium tax credits, HR1 provisions, and immigration-related eligibility changes are affecting affordability and enrollment, with some customers facing large premium increases and some counties becoming harder to serve. They reported early open-enrollment traffic increases, nearly 10,000 new sign-ups, and nearly 12,000 active coverage drops so far, while noting that many more people may disenroll later if subsidies are not extended. They also described mitigation efforts such as silver loading, Cascade Care Savings, outreach through navigators and community partners, and planning for future HR1 requirements like ending auto-renewal and adding verification steps. In the final work session, staff from the Health Care Authority and Insurance Commissioner’s office reviewed Washington’s health reform history and the state’s current affordability and access efforts. They highlighted past ACA-related coverage gains, continued work on prescription drug affordability, PBM oversight, primary care and behavioral health access, and a pending legislative proposal to preserve access to preventive services. They also discussed federal changes affecting Medicaid and the exchange, including work requirements, six-month redeterminations, and the need to coordinate across agencies to implement new rules. Members raised concerns about network adequacy, provider access, and the complexity of the health care system, while staff said they are trying to mitigate harm, simplify administration, and keep coverage and access as stable as possible.

Transcript Highlights:

• So that means when we lose federal funds, it creates a budgetary obligation on other state funds for
• So that means when we lose federal funds, it creates a budgetary obligation on other state funds for
• fiscal and budgetary ramifications for the<00:15:35.440><c> state.
• </c><01:08:38.239><c> consequences</c> uh and budgetary consequences uh and budgetary consequences um
• </c> going to be significant budgetary going to be significant budgetary savings. savings. savings.

Summary: The Senate Rules and Administration Select Subcommittee on Federal Impacts on Minnesotans and Economic Stability met on February 20, 2026, to hear from Minnesota Management and Budget State Budget Director Anna Mingi about federal funding changes affecting the state budget. Before testimony began, Senator Rasmusson objected to a draft committee report that had been prepared in advance of the hearing, arguing it was inappropriate to summarize testimony before it occurred. The chair responded that nonpartisan staff had prepared the draft from Mingi’s submitted presentation and could revise it after the hearing if needed. Director Mingi explained that federal dollars make up more than one-third of state spending and support about 650 federal awards totaling over $23 billion this year, with more than $15 billion supporting state entitlement programs. She said the federal funding environment had changed significantly since January 2025 through executive orders, pauses, terminations, new grant conditions, delayed awards, and the July 2025 passage of H.R. 1, the federal reconciliation bill. Her main focus was H.R. 1’s effects on health care and food assistance, including work requirements for some adults, changes to eligibility for legal non-citizens, limits on retroactive Medicaid coverage and directed payments, new limits on provider taxes, and SNAP changes that shift some benefit and administrative costs to the state and counties. She estimated H.R. 1 would reduce federal funds to state-administered programs by about $327 million in the current biennium and $1.6 billion in the next, with additional costs to hospitals, counties, and other partners beyond the budget horizon. Members asked follow-up questions about whether the estimates were relative to the forecast and whether federal Medicaid funding would still rise over time. Mingi said the estimates were based on the November forecast baseline and that Medicaid federal dollars would likely continue growing overall, though the law still creates significant losses relative to prior projections. Senator Rasmusson emphasized that point in remarks to the committee. The discussion then shifted to federal grant pauses and cancellations: MMB’s tracker showed about six awards on hold totaling roughly $491 million, 13 confirmed cancellations across areas including clean energy, education, food assistance, and public health, and additional threatened or litigated cuts not included in those totals. Mingi identified two canceled violence-prevention-related grants, including a FEMA public safety grant and a justice reinvestment grant, and noted that CDC had recently moved to cancel or seek cancellation of several Minnesota public health grants, including a $65 million public health infrastructure award.

Transcript Highlights:

• Remember I was talking about bringing some stuff after I brought a little budgetary item for the State
• Um, you know, I think help me reform. Um, let's— we'll see how quickly is he coming?

Committee: Senate Senate Health and Human Services COR

Summary: The committee heard and voted on several health and human services bills. SB 1192 would exempt good-faith basic first aid given without compensation from Arizona Medical Board licensure requirements, with added consent and law enforcement notification rules for injured minors; an amendment clarifying that the bill does not limit existing liability protections was adopted, and the bill passed 5-2. SB 1398 would require AHCCCS to redetermine eligibility for members over 21 every six months and report eligibility data annually; AHCCCS testified it would create significant administrative costs and that the bill lacked federal-population exemptions and an appropriation, while supporters argued it was needed for transparency and fraud detection. The committee adopted a technical amendment and passed the bill 4-3. SB 1399 would require prepaid capitated AHCCCS contractors to report spending on direct patient care versus administrative costs; supporters framed it as taxpayer accountability, and it passed 6-1. The committee also considered SB 1494, a strike-everything amendment making it a felony for providers, institutions, or drug manufacturers to pay premiums or otherwise steer enrollees to change health plans for financial gain, while exempting licensed insurance producers. Blue Cross Blue Shield and brokers supported the anti-patient-brokering goal, but ARMA warned the language was too broad and could chill ordinary provider-patient conversations and navigator/social worker assistance. The committee adopted the striker and passed the bill 4-3, with several members saying they wanted to refine the language on the floor. SB 1813 would remove the Maricopa County 55-bed cap at the Arizona State Hospital and require admission based on clinical need; supporters said the cap is outdated and leaves beds unused, while ADHS and others warned about rural access, fiscal costs, and possible litigation under Arnold v. Sarn. The committee adopted an amendment removing a citizenship requirement and passed the bill 5-2. Later, SB 1821 passed 6-1. It would let JLBC audit teams review DCS’s case-management system, allow unannounced inspections of licensed group foster homes, prioritize placement with relatives or other significant adults, and require newly hired child safety workers to train for a year under experienced staff. Finally, SB 1557 would require signed informed consent before medical interventions except in emergencies; supporters said it simply codifies standard practice, while the ACLU argued the bill lacked clear standards and could create burdens for ongoing or controversial care. The committee passed SB 1557 4-3 and then adjourned after completing its agenda.

Transcript Highlights:

• exists outside the general revenue fund, preventing competition from other funding sources. other budgetary
• This targeted reform allows the state to respond quickly and appropriately when support is most urgently

Bills: HB 104 , HB2054 , HB3459 , HB3745 , HB4486 , HB4488 , HB4601 , HB104

Committee: House Appropriations

Keywords: Texas Future Fund, investment review board, economic stabilization, innovative technology, national defense, HB 2054, Texas volunteer fire department assistance fund, Rural Volunteer Fire Department Assistance Program, volunteer fire departments, wildfire mitigation, wildland fire, rural fire protection, insurer assessment, insurance premium tax, state appropriations, firefighting grants, emergency services, high-risk wildfire areas, Texas Comptroller, Texas Government Code

Transcript Highlights:

• As of today, the budgetary process of each city in Texas is affected by the travesty that befell Odessa
• In the 80s, the legislature started to pass some serious annexation reforms to prevent these kinds of

Bills: SB1079 , SB1243 , SB1504 , SB1579 , SB1708 , SB1844 , SB1851 , SB1879 , SB1921 , SB1951 , SB2237 , SB2238 , SB2406 , SB2407

Committee: Senate Local Government

Transcript Highlights:

• During times of budgetary pressures, shouldn't we be looking at other revenue streams that During times
• of budgetary pressures, shouldn't we be looking at other revenue streams that are directly related to
• During the times of budgetary pressures, shouldn't we be looking at other revenue streams that During
• the times of budgetary pressures, shouldn't we be looking at other revenue streams that are directly

Summary: The Assembly Committee on Revenue and Taxation heard two bills. AB 796 by Assembly Member Lowenthal proposed a California Social Media Accountability Act that would impose a recovery fee on social media platforms’ advertising revenue and direct the proceeds to a Social Media Safety Trust Fund for education, mental health care, research, and social services related to youth harms from social media. The author and supporters, including a Long Beach Unified School District administrator and a pediatric emergency physician, argued that social media is contributing to youth mental health crises, cyberbullying, self-harm, and related school and health system costs, and that platforms should help pay for mitigation. Opponents, including taxpayer, business, and industry groups, argued the fee would raise costs for businesses and consumers, especially small businesses that rely on targeted digital ads, and warned of likely legal challenges under federal law, including the Internet Tax Freedom Act. Committee members discussed the bill’s legal distinctions from Maryland’s digital advertising tax, the potential pass-through of costs to advertisers, and whether the proposal would meaningfully address youth harms. Several members expressed support for the bill’s goal and concern about social media’s effects on children, while others raised questions about how the revenue would be allocated and whether the tax burden would fall on small businesses. After testimony and debate, AB 796 was held in committee and referred to the suspense file. The committee also took up AB 1265 by Assembly Member Haney, which was already on the suspense file. The chair recommended an aye vote on the bill as amended, with a clarification to reporting requirements, and the committee approved it 5-0, sending it to Appropriations.

Transcript Highlights:

• The third issue that I want you to keep in mind is that the last piece of the tax reform that was enacted
• In order for our economy to digest this tax reform, especially on the corporate side, I would say that
• members and to the public as well that's listening today is this is our first year with the new tax reform
• The transition, as we are talking today, was budgetary, logistics, personnel.
• The reforms of the special session of 2024 are working, and we are well in our...”

Committee: House Appropriations

Summary: The committee began a series of House Appropriations budget hearings focused on the fiscal year 2026-2027 executive budget, the preamble, and the executive department. Staff presented revenue and spending trends showing projected declines in revenues alongside increasing expenditures, with members emphasizing the need for a standstill budget and additional efficiencies. The House Fiscal Division also reviewed the FY25 surplus and FY26 excess, the constitutional uses of surplus funds, and the overall FY27 budget structure, including the distinction between discretionary and non-discretionary spending. The commissioner of administration described the administration’s use of one-time money, efficiency reviews, and budget reductions, while members asked about revenue forecasts, the motor vehicle sales tax dedication, corporate tax changes, and the impact of federal policy changes on state costs, especially SNAP and Medicaid administration. The committee then moved through several executive department agencies. The Division of Administration presentation covered its budget, vacancies, debt service, and reductions tied to statewide adjustments and efficiency measures. GOSEP’s functions were described as transferred into the Department of Military Affairs under Act 262 of 2025, and military officials outlined the new combined structure, emergency response duties, overseas deployments, youth programs, and concerns about future federal funding. The Coastal Protection and Restoration Authority reviewed its largely dedicated funding and explained that large apparent balances reflect long-term project planning and multi-year capital work. The Office of the State Inspector General presented a budget increase for consulting services tied to the governor’s DOGE-style efficiency initiative, and the inspector general said the effort had identified nearly $1 billion in savings across the executive branch, largely through eligibility reviews in Medicaid and SNAP and implementation of prior audit recommendations. Members raised questions throughout about how budget figures were calculated, why some totals appeared to rise while state general fund support fell, and how federal changes would affect state agencies. There were also questions about the transition of GOSEP into Military Affairs, the status of school safety centers, and whether the new structure would change local emergency responsibilities. No formal votes or amendments were taken during the portion provided; the meeting consisted of presentations, explanations, and member questions.

Transcript Highlights:

• So articulate reforms if they say you can keep USF and. Replacement if they say you cannot.
• I just want to know reforms. Yes, Senator.
• So, there could be distribution reforms or contribution reforms, depending on what the facts tell us.
• for us to even progress farther out into our solar system if we have, if we are in an unlimited budgetary
• So as the committee is looking at potential reforms to USF, perhaps there's an opportunity to to make

Committee: Senate Commerce, Science, and Transportation Committee

Keywords: state policy, governance, legislative processes, public concerns, policy improvement

Summary: During the committee meeting, various issues surrounding state policy and governance were deliberated. Although the specifics of bills under discussion were not highlighted, comments from several committee members indicated a focus on improving legislative processes and addressing public concerns. The chairman facilitated discussions that included several points of critique as well as suggestions for enhancement of existing laws. The atmosphere remained constructive despite the complexity of the topics at hand.

Transcript Highlights:

• Um, but to highlight that our main concern is taking out the contracts outside of the normal budgetary
• Uh, process, but then a review process, um, bad things tend to happen and we just think the, the budgetary
• the basic testimony that, that I provided and, and we'll provide here is that the, um, the, the budgetary
• We just want to see those contracts come through the normal budgetary processes at the counties and then
• So there is, I push back a little bit on this budgetary thing because the reality is, is that there's

Transcript Highlights:

• One, this program previously had a caseload cap, a budgetary cap.
• This program previously had a caseload cap, a budgetary cap.
• We ask that you protect the emergency food funding as you go through the budgetary process.
• agencies are facing growing financial pressure from liability, insurance costs, and the lack of tort reform

Bills: SB5998

Committee: Senate Ways & Means

Keywords: fiscal appropriations, budget, state funding, financial management, operating expenses

Transcript Highlights:

• One, this program previously had a caseload cap, a budgetary cap.
• This program previously had a caseload cap, a budgetary cap.
• We ask that you protect the emergency food funding as you go through the budgetary process.
• agencies are facing growing financial pressure from liability, insurance costs, and the lack of tort reform

Summary: The Senate Ways and Means Committee heard an overview from OFM Director Katie Chapman See on Governor Ferguson’s 2026 supplemental budget proposal. She said the budget was built in response to higher caseloads and inflation, a roughly $390 million revenue forecast drop, new federal costs tied to H.R. 1, and a relatively small ending fund balance. The proposal would increase near general fund spending by about $1.1 billion and solve an estimated $2.3 billion two-year gap through about $800 million in reductions, revenue shifts and tax preference changes, use of other funds, and about $1 billion from the budget stabilization account. She also noted the budget is balanced over two years but not fully over four years under the state’s outlook rules. Chapman See highlighted reductions in Working Connections Child Care, including a soft cap on enrollment and holding subsidy rates at the 75th percentile, delays to long-term care and developmental disability-related changes, and across-the-board reductions to higher education and administrative spending. She also described investments in wildfire suppression and preparedness, affordability programs like utility rebates and home energy assistance, housing-related planning and permitting support, One Washington IT replacement, behavioral health workforce programs, and continued support for some K-12 initiatives such as ninth grade success and homeless student stability. In response to questions, she said some proposed cuts were based on the governor’s subjective judgment about what was critically necessary, that current child care enrollees would not be cut off immediately, and that the budget would maintain services for about 500 highest-acuity Medicaid clients who lost eligibility under federal changes. Public testimony was largely critical of the proposed cuts in K-12, early learning, and higher education. School officials, educators, nurses, and advocacy groups opposed reductions to Transition to Kindergarten, Local Effort Assistance, Running Start, MSOC, school leadership and support grants, and higher education funding, arguing the cuts would worsen existing funding gaps and harm student outcomes. Several witnesses supported restoring or maintaining funding for ninth grade success, Treehouse’s foster youth graduation program, homeless student stability, and Science on Wheels. In early learning, child care providers and advocates opposed the Working Connections cap and subsidy-rate reduction, warning it would reduce access and destabilize providers. In higher education, campus leaders and labor representatives opposed across-the-board cuts and fund shifts, while some institutions and advocates supported targeted investments such as behavioral health workforce programs and DigiPen aid restoration. In human services, Planned Parenthood advocates praised restored abortion access funding and Medicaid reimbursements. The committee took no votes or final action in the transcript provided.