Transcript Highlights:

• These provisions do not apply to appointments made by the governor.
• do not apply to appointments made by the governor.
• The provisions do not apply to appointments made by the governor.
• assessment workers that would do the initial family assessments.
• I'm wanting the best for you all, I really do. This is not something I'm...

Summary: The committee considered and advanced several bills. House Bill 4995, concerning video cameras in special education classrooms, was explained as requiring parents to be notified of recording interruptions, providing written notice of the law to parents and school employees, shortening the required random review of recordings from every 90 days to every 30 days, and clarifying that school boards must still conduct independent investigations even if DHS or prosecutors do not act. The committee adopted the motion to report the bill to the full Senate. House Bill 5214, dealing with drug testing in child abuse and neglect cases, would allow courts to order testing of parents in certain cases, require laboratory confirmation of positives, and require DHS to notify the court and other parties; the committee adopted the strike-and-insert amendment, then reported the bill as amended and adopted a title amendment. The committee also advanced House Bill 4025 and House Bill 5441, both restructuring state personnel systems. HB 4025 would exempt employees of the Department of Health, health facilities, and human services from classified civil service and grievance procedures beginning July 1, 2026, while preserving status for some current employees and allowing exemptions to comply with federal requirements; the committee adopted a piecemeal amendment and reported it as amended. HB 5441 would eliminate separate civil service systems for Transportation, Revenue, and the Bureau for Social Services and move classifications and compensation structures to the Division of Personnel, with testimony from the governor’s counsel emphasizing faster hiring and more flexibility; the committee adopted the strike-and-insert amendment and reported the bill as amended. House Bill 4602, a child welfare pilot program creating a private community-based system for post-removal services, drew testimony from DHS about concerns over costs, continuity, oversight, and child well-being outcomes, while supporters argued it could reduce caseloads and improve flexibility. The chair amended the bill to remove one of the two pilot regions, leaving only the Berkeley/Jefferson County pilot, and the committee then reported the bill as amended despite opposition from the senator from Marion. House Bill 4106, removing the provisional concealed handgun license requirement for ages 18 to 21, heard testimony from a pediatrician opposing the change and from a gun rights advocate supporting it; an amendment requiring firearms training for under-21 carriers failed by a 1-14 roll call, and the committee then reported the bill as amended. Finally, House Bill 4198, after a subcommittee rewrite, was advanced with a strike-and-insert amendment that refined E-Verify requirements for public and private employers, added exemptions for certain small or new employers and sole proprietors, clarified recordkeeping and notice requirements, and adjusted penalties and enforcement procedures. After a motion for the previous question, the committee adopted the amendment and reported HB 4198 as amended. House Bill 5319 was removed from the agenda, and the committee adjourned.

Transcript Highlights:

• If you meet the threshold for low income, then you do not have to put up the match.
• It is strongly encouraged, but we do not require it. You're good.
• It is strongly encouraged, but we do not require it. You're good.
• I'm not going to argue the point. We do not enforce home...
• We do not enforce homeowners having insurance, right?

Summary: The State Administration Budget Subcommittee heard presentations from the Department of Financial Services on the My Safe Florida Home program, the My Safe Florida Condominium Pilot, and the Florida PALM financial system replacement project. For My Safe Florida Home, Stephen Fielder explained the wind-mitigation grant program, including its inspection-first process, two-to-one matching grants for most homeowners, low-income exemptions from the match, and eligible improvements such as roofs, clips/straps, water barriers, and opening protection. He reported roughly 109,000 initial inspections, nearly 59,000 grants approved, 31,000 final inspections, 25,000 reimbursements, and about $240 million paid out through the end of 2024. Members asked about premium savings, contractor pricing, fraud, owner-builder eligibility, reimbursement timing, and whether the program should have a dedicated funding source; Fielder said the program is currently closed, more than 40,000 people have signed up for updates, and the office has seen some price-gouging and impersonation issues but no major fraud trend. The committee also discussed the new prioritization rules that took effect July 1, 2024, which direct grant awards by age and income. Fielder said the program used a survey of existing applicants to implement the new priority groups and that the first group was over age 60 and low-income. Members raised questions about how premium reductions are measured, whether insurance company changes or rising insured values affect the data, and whether the program can track long-term outcomes after reimbursement. Fielder said the office reports raw premium changes based on declarations pages, knows the insurer for participants, and has validated results with multiple insurers, but does not track homeowners after they leave the program or enforce continued insurance coverage. For the My Safe Florida Condo Pilot, Fielder said the program is modeled on the home program but uses association-level applications, a maximum grant of $175,000 per association, and a similar two-to-one match. He said the application window opened briefly in November and was closed quickly because available funding could be exhausted and the department is prohibited from creating a waiting list. He identified several needed statutory changes, including better distinguishing condos from single-family homes, adjusting roof requirements for flat concrete roofs, and revisiting the unanimous unit-owner vote requirement, which he said has been a major obstacle. Chair Lopez noted the pilot is intended to be a learning process and thanked DFS staff for identifying implementation issues. The final presentation covered Florida PALM, the state’s effort to replace the 40-year-old FLAIR accounting system with a PeopleSoft-based financial management system. Fielder and PALM Director Jimmy Cox said the project began in 2014, the state contracted with Accenture in 2018, cash management went live in 2021, and the project was paused in 2022 for legislative review and remediation. They said the system is expected to go live in 2026, possibly in July rather than January, and that the project has spent about $225 million to date, with a current-year budget of about $60.9 million and a projected next-year request of about $64 million. Members asked about cybersecurity, cloud hosting, project scope, and whether the system is unique to Florida; staff said the system is not Florida-specific, access is credentialed through agency identity management, and the cloud host location is confidential. After the presentations, Chair Lopez assigned members to work with specific agencies on budget review meetings, asked them to discuss agency structure, priorities, staffing, waste reduction, and other budget issues, and set a deadline to report findings in the first week of regular session. The meeting then adjourned without objection.

Transcript Highlights:

• TSTCs and LSCs have their own instruction formulas and do not contribute statutory tuition to offset
• do not include 6.5 million unexpended balances from fiscal year 23 in the 24-25 base.
• Recommendations do not include this funding.
• They do not have have the access.
• You do not pay for out-of-students, you do not pay for our buildings, improvements for the buildings,

Committee: House Appropriations - S/C on Article III

Transcript Highlights:

• , but the majority do not.
• Businesses do pay sales tax on goods generally.
• We're not doing HAP anymore. We're not doing Homekey ever again. All of these things.
• And they're not doing the basic job.
• We need to reduce the cost of fees, but how do we do that while not also creating this other existential

Transcript Highlights:

• So I think, you know, if anything, I'm not sure you can do it this year, but, you know, in the future
• It's one of the things that we have to do. It's part of our DNA. We have to—it's paying it forward.
• And if I may add, we currently do not cover quite all the counties, and one of the long-term goals is
• to do a clinical trial that not only allows us to diagnose the cancer, but to be able to treat those
• So no matter what happens at the federal level, it's not going to compromise what we do, right?

Summary: The Health Care Budget Subcommittee held a panel discussion on Florida’s cancer research and funding programs, including the Casey DeSantis Cancer Research Program, the Florida Cancer Innovation Fund, the James and Esther King Biomedical Research Program, the Bankhead-Coley Research Program, and Live Like Bella. Dr. Ladapo and leaders from Moffitt, Sylvester/University of Miami, UF Health, and Mayo Clinic described how state funding has helped Florida’s four NCI-designated cancer centers expand research, recruit faculty, increase clinical trials, and build collaborations. They emphasized that the programs are intended to improve cancer care statewide, support innovation, and encourage more institutions to pursue NCI designation. The Governor’s budget recommendation was noted as including additional funding, and members asked about the cost and requirements of becoming NCI-designated and eventually comprehensive. Panelists said NCI designation requires major infrastructure, compliance, research, and training investments, with de novo development estimated at about $1 billion. They described Florida’s collaborative model as unusual nationally, with annual symposia, shared pilot funding, and joint projects across the four centers. Members also asked about rural access, home-based care, and recruitment/retention. Mayo described its “Cancer Care Beyond Walls” home-treatment model and said it could expand to rural counties within months; Moffitt and UF discussed mobile screening, satellite sites, and affiliations with local hospitals and practices. Several members raised concerns about workforce shortages, licensure delays, and the need to reach underserved areas. The discussion also covered outcomes, data reporting, and the broader economic impact of the cancer centers. Panelists cited growth in jobs, federal research funding, and clinical trial enrollment, and highlighted advances in immunotherapy, CAR-T, TIL therapy, carbon ion therapy, AI-driven screening, and the firefighter cancer initiative. They said the Florida Cancer Data System is being expanded to track recurrence and quality-of-life measures. Members also asked about philanthropy, medical tourism, and federal funding risks, including possible indirect cost reductions that could affect research budgets. The meeting ended with general support for continued investment, while some members noted an ongoing policy debate over whether future cancer research dollars should be concentrated in the four NCI centers or spread more broadly across the state.

Transcript Highlights:

• But the laissez-faire economy of just not letting labor do what they do is not going to do us any good
• We do not need to lose tourism.
• , do not...
• And I do not have to remind you that this is all in addition to the governor's broader Jobs First initiative
• And I do not have to remind you that this is all in addition to the governor's broader jobs first initiative

Summary: The joint Senate and Assembly labor committees held a hearing on the Los Angeles wildfires and their impact on workers, employers, and recovery efforts. Chairs and members emphasized that rebuilding should prioritize worker safety, equity, local hiring, and strong labor standards rather than simply moving quickly or relying on the lowest bidder. They also stressed the need to learn from past disasters and to create a more coordinated state response for future emergencies. Worker advocates described how domestic workers, day laborers, firefighters, and other frontline workers were affected by the fires. Testimony focused on workers being trapped in evacuation zones, lacking timely information in Spanish, losing jobs and income, and facing exposure to toxic debris without adequate PPE. Speakers called for expanded outreach and education, stronger Cal/OSHA enforcement, broader occupational safety coverage for domestic workers and day laborers, recall and transfer rights, childcare and transportation support, and a centralized disaster relief system that can quickly deliver cash aid and equipment regardless of immigration status. Firefighter Derek Irwin said California firefighters face serious carcinogenic exposure and urged continued funding for the firefighter cancer prevention and research program, along with a long-term state health monitoring and research effort similar to the World Trade Center Health Program. Building trades and labor representatives argued that cleanup and rebuilding should be done through community workforce agreements, prevailing wage, apprenticeship requirements, and local hire provisions, and said the state already has trained workers available. They also said federal debris-removal work through the Army Corps has limited the state’s ability to impose some standards, but that state and local funding or subsidies should trigger labor requirements. Employer and business representatives described major losses to property, inventory, revenue, and jobs, especially in Altadena and nearby areas. The Altadena Chamber said it is coordinating recovery resources, while a construction business owner said small local firms are being shut out of disaster contracts and proposed a more accessible procurement process for local and minority businesses. LAEDC presented preliminary estimates of billions in property damage and business disruption, tens of thousands of potential job losses, and a recovery timeline of five to ten years, warning that low-income communities will be disproportionately affected and that workforce retraining and upskilling will be needed alongside the broader economic recovery.

Transcript Highlights:

• So ambulances, when they respond to a trauma, oftentimes you're not able to initiate, typically you're
• not able to initiate a transfusion of blood products until you arrive at a hospital.
• Not, I do have a follow-up with this particular subject, and then I have another question for our Surgeon
• I guess my question is, how do we do this legally without DOE having to initiate rule-changing, initiate
• The department says this is to prevent a budget deficit, but available figures do not support that analysis

Committee: Senate Appropriations Committee on Health and Human Services

Summary: The Appropriations Committee on Health and Human Services heard presentations on the governor’s proposed FY 26-27 budget for the health and human services silo, which totals $48.5 billion within a $117.4 billion state budget. Agency leaders outlined major spending priorities, including AHCA’s behavioral health redesign, APD waiver enrollment and facility needs, DCF’s integrity and self-sufficiency systems, opioid response, community-based care and mental health bed expansion, DOEA’s Alzheimer’s, home care, and community care programs, DOH’s cancer research, public health, EMS blood-transfusion initiative, and lab feasibility study, and the Department of Veterans’ Affairs’ facility, cybersecurity, and medication-management investments. Members generally praised several proposals, especially increased reimbursement for private duty nursing, behavioral health funding, Alzheimer’s support, and the EMS blood program. Senator Sharief raised concerns about the AIDS Drug Assistance Program (ADAP), warning that changes could leave many Floridians without coverage for HIV medications and asking whether manufacturers could provide rebates directly to patients. Surgeon General Ladapo said the issue was driven largely by funding and federal changes, not a legal barrier, and said the department had explored alternatives but could not fill the gap with current resources. Senator Rouson asked about the Office of Minority Health and Health Equity, and DCF said its budget includes about $7 million for the substance abuse and mental health data dashboard required by prior legislation. Public testimony focused heavily on ADAP. Former program leaders and advocates said the proposed changes would reduce enrollment and remove key drugs and insurance-premium support, calling the situation a crisis and criticizing the department for lack of transparency and stakeholder engagement. They urged a pause and collaborative review of the program’s finances. The committee also discussed KidsCare implementation, with AHCA saying federal conditions and litigation have delayed the expansion. The meeting ended after the chair noted the budget would still need to be adjusted for updated Medicaid caseload estimates, and the committee adjourned without taking any formal votes or other action on the budget items.

Transcript Highlights:

• It's not something the utilities can do right now.
• Please do not fix what's not broken.
• issues that the DPU has said they do not feel it has been...
• , not based on how much those customers actually pay.
• Again, ratepayers don't want to pay more. This is not affordability. This is not relief.

Committee: Joint Joint Committee on Telecommunications, Utilities and Energy

Summary: The committee heard testimony on H. 4144, the Governor’s Energy Affordability, Independence, and Innovation Act, with the administration arguing the bill would lower bills in the short and long term while expanding clean energy supply and innovation. The Governor and Secretary said the bill would reduce or restructure charges on customer bills, reform Mass Save, expand securitization as a financing tool, speed interconnection, create energy-ready zones, strengthen consumer protections in competitive supply, and allow broader state procurement of energy resources. They said the package could save consumers billions over time and would help address high energy costs, especially during extreme heat and winter spikes. Committee members pressed the administration on several provisions, especially securitization, asking whether the bill requires an apples-to-apples comparison of total costs over time, including interest and lost tax revenue, versus paying through rates. Administration witnesses said DPU review and public comment would be required and said they would work to clarify the language if needed. Members also questioned the bill’s solar and procurement provisions, including reduced net metering compensation for some large facilities, the scope of all-resource procurements, and whether hydro, solar, and nuclear would be included; the administration said those resources were contemplated and that procurement would still be reviewed by DPU. Other questions focused on the short-term relief from bill changes, the treatment of low- and moderate-income discounts, and whether the bill’s heat pump and Mass Save reforms would help customers who cannot afford upfront costs. Several witnesses and committee members discussed Mass Save reforms, including securitization of program costs, on-bill financing, pre-approval of rebates, and shifting program administration away from gas utilities. Administration witnesses said the changes were intended to reduce volatility, lower administrative costs, and better align costs with long-term savings. Questions also touched on geothermal permitting, municipal participation in offshore wind procurement, and the proposed repeal of the ballot requirement for nuclear power, which the administration defended as preserving future options under heavy review. No votes were taken during the hearing portion described. Supportive testimony came from labor, environmental, business, planning, and development groups. The AFL-CIO, NECA, and the Environmental League of Massachusetts backed the bill, emphasizing lower bills, job creation, labor standards, just transition protections, and cleaner energy. NAIOP, the Massachusetts Business Roundtable, and MAPC supported provisions on energy-ready zones, interconnection reform, microgrids, extreme-heat shutoff protections, and Mass Save improvements. A HEET representative praised the bill’s use of securitization, geothermal, and utility financing tools but urged guardrails and workforce protections. Overall, testimony was broadly favorable, with most witnesses calling for refinements rather than opposing the bill outright.

Transcript Highlights:

• /c><00:17:57.760><c> I'm</c> Zoom not present yes we do we do I'm Zoom not present yes we do we do I'm
• I think it's undisputed that the mortgage servicers do pay out monies initially.
• A lot of them, he said, either did not have lunch, were not packed lunch, or do not qualify.
• </c> Zoom not present um ulupono initiative Zoom not present um ulupono initiative in Good afternoon,
• </c> current budget not even doing any of current budget not even doing any of this<02:45:50.520><c>

Committee: House Finance

Transcript Highlights:

• It's not doing well. It's not doing well.
• I do not at this time.
• I do not at this time.
• While we do not have control over its operations, we were also part of the initial group to form ND-FIT
• I do not.

Committee: Joint Legislative Audit and Fiscal Review Committee

Transcript Highlights:

• Do you have a number on the ones that were not passed through? Not offhand, I do not.
• that are simply not doing their job.
• Recommendations do not include additional funding that would be statutorily required if the base pay
• They could not do so.
• Do you have a policy for repeat offenders? We do not. You don't.

Bills: SB 1

Committee: Senate Finance

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards

Transcript Highlights:

• It's not, though—I do want to say, it's not like arguing for the government to make cars or produce shoes
• and electric service providers, but we do not regulate their rates.
• For DWP, we at the PUC do not.
• paying as much into the fixed costs of the grid, as well as from net billing, Who are not paying as
• And the PUC is not doing anything. Fifty-three different things.

Committee: Senate Energy, Utilities and Communications

Transcript Highlights:

• I have a few questions that do not have to be answered.
• Let's not forget that the hydro... and pay for that. Thank you.
• But because we do not have healthy soil.
• So it's more about how do we integrate everything we do, not just having an individual, but that we're
• Did it not work well, or do we still have money? Mr.

Committee: House House Appropriations & Finance

Transcript Highlights:

• We may not have quite the capacity, but what we do have is a good vision.
• They're not doing a lot of primary care. So we have to come up with a solution.
• Once individuals reach this level, they usually do not leave the field.
• Are we paying people who should not be paid? Are we not paying people who should be paid?
• People that do qualify and are not on their programs.

Committee: House Legislative Health & Human Services Committee

Transcript Highlights:

• We do not want vote centers.
• Do they want to vote in this manner or do they not?
• HCR, which would essentially do away with an initiative that my colleagues on the other side did not
• I do not believe.
• If you want to join a union, this measure does not prevent you from doing that. Pay your dues.

Summary: The House convened, completed roll call, approved the journal, and took up several Senate bills and one Senate concurrent resolution through motions to reconsider, return bills for reconsideration, and refer measures to additional Committee of the Whole sessions for further amendment. Early actions included returning SB 1175 and SB 1198 to the Senate for reconsideration, rescinding passage of SB 1336 so it could be reconsidered, and referring SB 1111 and SB 152 to an additional COW. The House also recognized Representative Travers for a personal privilege statement honoring National Women Veterans Recognition Day and recorded attendance. In Committee of the Whole, members adopted floor amendments and recommended passage for SB 1511, SB 1552, SB 1198, SB 1110, SB 1618, SB 1431, and SCR 1004, with some debate on SB 1110’s home-confinement/reentry program, SB 1618’s Military Affairs Commission changes, and SB 1431’s city and town authority over residential project standards and streetscapes. The House later adopted the COW reports and moved the measures to engrossing or third reading as appropriate. SB 1336 and SB 1519 were also advanced from committee, while SB 1004 was reconsidered and ultimately failed on reconsideration. On third or final reading, the House passed SB 1127, SB 1180, SB 1428, SB 1198, SB 1336, SB 1511, SCR 1004, SB 1552, HB 2104, HB 2105, HB 2114, HB 2311, HB 2729, and HB 4117. SB 1687, SB 1004, SB 1519, and SB 1502 failed. Members explained votes on several measures, including support for tax administration clarity in SB 1180, objections and support for the May primary proposal in SB 1687, concerns about sex offender monitoring in SB 1004, support for the Arizona Beef Council in SB 1198, and debate over the photo enforcement referral in SCR 1004. The session also included recesses for caucuses, lunch, and dinner, plus a brief technical outage of the live stream.

Transcript Highlights:

• Yeah, there's not a facility. So who's doing those proposals for them?
• Is that the school doing it or are we paying consultants to do it?
• If we do not receive funding, your students may not graduate.
• community college home where did where do they go do they I genuine question do they get a you did not
• get admitted letter They do not.

Transcript Highlights:

• So they retain those fees, even if the student is not accepting it. They do.
• Do not call my office. But I couldn't let this day pass without bringing you.
• Do you have agreements with all the universities across the state of Texas? Not to the...
• I do not have crayons, but I'm happy for you to use yours while I'm here.
• But they are also students who do not take no for an answer. They are non-traditional.

Committee: House Higher Education

Transcript Highlights:

• In fact, it has nothing to do with statewide initiatives.
• Do not vote until you hear the bell. Thank you. HCR 2040.
• You do not have to do it.
• Please, Representative Calden, let's not do this again.
• And we should just do our jobs and not give them more work to do to do it for us. I vote no.

Summary: The House convened with prayer, the Pledge of Allegiance, a journal approval, and recognitions including the Doctor of the Day and guests. Members also adopted a proclamation honoring National School Social Work Week, with remarks emphasizing the role of school social workers in student mental health, crisis intervention, and family support. The chamber then moved through first readings and multiple Committee of the Whole calendars. On the first calendar, the House considered HB 2123, HB 2140, and HB 2144, all dealing with gold and silver or child support beginning at pregnancy. HB 2123 and HB 2140 were amended and recommended do pass; HB 2144 drew debate over paternity, genetic testing, rape-related pregnancies, and whether support should begin before birth, but it also received a do-pass recommendation as amended. The House adopted the Committee of the Whole report and engrossed those bills. On a later calendar, the House advanced HB 2492 on urban growth boundaries, HB 2875 with clarifying amendments, HB 2946 on housing affordability and construction costs, and HB 4115 and HCR 2051 on ballot initiative petition rules and disclosure. Supporters said those measures would improve transparency and ensure Arizona initiatives are driven by residents, while opponents argued they would make it harder for citizens to qualify measures and would burden direct democracy. The House also considered HB 2175 on hate-crime law, HB 2270, HB 2416, HB 2495, HB 2557, HB 2697, HB 2940, and HB 4010. HB 2175 prompted a failed attempt to add a Garcia amendment that would have included gender identity and removed political affiliation from the hate-crime statute; the House later adopted the Committee of the Whole report without that amendment. HB 2557 was described as a medical-records bill changing timing from calendar days to business days, and HB 2697 was explained as a Good Samaritan-style measure extending protections for expired opioid antagonists such as Narcan. HB 2940 drew substantial opposition from Democrats and health advocates who said it would cut people off SNAP and Medicaid/Access and could violate pension protections, while the sponsor argued it would reduce ineligible enrollment and save money; it still advanced as amended. HB 4010 also advanced as amended. In the final portion, the House took up HB 2324, HB 2573, HB 2601, HB 2876, and HCR 2004. HCR 2004, on photo enforcement, was amended to allow cities with photo radar to put the issue to local voters; supporters framed it as a compromise and a local-choice measure, while opponents argued photo enforcement saves lives and reduces speeding-related crashes. The House adopted the Committee of the Whole reports, then reconsidered earlier failed bills HB 2055, HB 2150, HB 2426, and HB 2755. The chamber also passed several third-reading bills, including HB 2264 and HB 2373, while HB 2413 failed. The transcript ends amid debate and voting on HB 2862, a sentencing bill involving crimes committed while wearing a mask.

Transcript Highlights:

• What we're able to do is have some initial planning conversations.
• We do not have a proposal at this time to change how we have set the rates.
• That's not how we should be doing business in the state of California.
• By not switching to prospective pay, the state could save the $43.8 million ongoing.
• After some initial input sessions on prospective pay, we have been waiting to implement prospective pay

Transcript Highlights:

• So there's definitely not enough money to do that right now.
• So you may or may not want to do that, but just it's not super clear in the document, but that's my understanding
• proposed modifications do not go into effect.
• And do you have in your business plan the 2026— and I have not been able to do a cursory review given
• We didn't do anything that would not have followed state law.

Summary: The Assembly Transportation Committee held an oversight hearing on California High-Speed Rail, focusing on the authority’s supplemental project update report and the newly released 2026 draft business plan. Committee leaders emphasized transparency, the project’s funding challenges, and the need for clear answers on costs, schedule, and scope. The High-Speed Rail Authority said the project has made major progress in the Central Valley, including substantial construction completion, right-of-way acquisition, and railhead development, and highlighted over $14 billion in savings from a rebased project plan, plus an additional $2 billion in savings in the draft business plan. The authority also said it expects to begin laying track by the end of the year and continues to pursue private-sector partnerships and clean-energy opportunities. The Legislative Analyst’s Office and the Inspector General both raised concerns about whether the current funding plan is sufficient and whether the authority has clearly identified the timing of future expenditures versus revenues. The LAO said the project likely still faces a funding gap for Merced-to-Bakersfield once financing costs and the loss of $4 billion in federal funds are considered, and warned that cap-and-invest revenues are volatile and may not be well suited for borrowing without additional safeguards. The Inspector General said the authority still has not provided a precise funding plan, estimated the project is about two years away from lacking funds on hand to stay on schedule, and urged lawmakers to focus on financing costs, procurement timing, schedule risks, and distinguishing true cost cuts from scope changes. Members questioned the authority about proposed statutory changes, including CEQA and permitting streamlining, court resources, third-party process changes, sales tax exemptions on materials, and expanded land-use/value-capture tools. They also pressed the authority on the loss of federal funds, the withdrawal of litigation over those funds, and whether the project’s revised savings depend on moving station locations away from downtown Merced and Bakersfield and on other scope changes such as more single-tracking and blended operations south of Palmdale. The authority said it is still committed to Merced-to-Bakersfield, believes the business plan shows a path to completion with sufficient funding, and will work with the Legislature on any needed changes before the final plan is submitted.