Transcript Highlights:

• We let OMB know so that the governor can build it into his budget recommendations.
• I'm the total rewards manager in HR management services, part of OMB.
• Our final agenda item before lunch is the, our recess, I should say, is a presentation from OMB regarding
• The OMB State Procurement Office awards contracts based on total cost and seldom requires itemized wage

Summary: The Employee Benefits Committee met to approve prior minutes, hear presentations on state employee health insurance, compensation, leave, and related policy issues, and then recess for lunch. PERS reviewed the history and structure of the state health plan, noting the long-standing state-paid family coverage, cost-control measures, wellness incentives, the current grandfathered PPO and high-deductible options, and the effects of recent benefit mandates such as insulin caps, prosthetic coverage, medication management, prescription copay changes, and ambulance balance-billing limits. Committee members questioned the fiscal impact of adding benefits and the possible cost of moving to a non-grandfathered plan, while PERS and HRMS emphasized that health insurance remains the top-ranked employee benefit and that any major plan changes should be considered carefully. HRMS also presented compensation comparisons showing state pay generally below private-market benchmarks, discussed targeted market equity adjustments, identified ongoing recruitment and retention concerns in fields like nursing, IT, engineering, and attorneys, and reviewed leave policies, tuition reimbursement, and family leave comparisons with neighboring states. Job Service provided labor market data showing low unemployment, high labor force participation, and wage growth that still trails some neighboring markets, and OMB explained that prevailing wage requirements apply to federally funded projects under Davis-Bacon, not to ordinary state contracts. After lunch, the committee took up the required process for health insurance mandate bills and adopted an amendment to Joint Rule 211. The amendment clarified that the deadline for submitting mandate measures is intended to allow time for all required reports, including both the cost-benefit analysis and any Employee Benefits Committee actuarial report, while leaving the existing deadline unchanged. The amendment was adopted on a roll call vote, with several members voting yes and a few no votes recorded. The committee then moved into its jurisdiction review of bill drafts, beginning with a bill that would automatically renew pre-tax dental and vision elections; members debated whether it had any actuarial or administrative impact on PERS or the state, and the chair explained that the committee’s role was only to decide whether further analysis was needed before later testimony and recommendations.

Transcript Highlights:

• I got to say a big thank you, first of all, to the OMB. National Guard.
• I got to say a big thank you, first of all, to the OMB folks and the Legislative Council folks that helped

Bills: HB1603

Committee: Senate Appropriations

Summary: The Appropriations Committee met with a quorum and announced it would begin meeting at 8 a.m. for the rest of the week to work through a growing bill list. The committee first approved House Bill 1603, a companion to the Historical Society budget dealing with NAGPRA, including a $500,000 matching grant to be divided among North Dakota’s five tribes and a committee to address repatriation of human remains and cultural items. The vote was unanimous, 15-0. The committee then considered House Bill 1225, which would increase penalties for reckless endangerment involving a firearm and create a mandatory prison term. After debate over public safety concerns versus the bill’s fiscal note and prison costs, the committee adopted a do not pass recommendation by a 9-6-1 vote. Members also discussed House Bill 1018, the State Historical Society budget, and approved an amendment that adjusted one-time funding items, including NAGPRA compliance, museum exhibits, military gallery funding, local historic grants, and line-of-credit repayment. The amended bill then received a due pass recommendation by a 14-2 vote. The committee next approved House Bill 1468, a behavioral health facility grant for St. Hayes, which supporters said would expand in-state access to acute and adolescent behavioral health care and reduce the need to send patients out of state. The bill passed 14-1. It then amended and passed House Bill 1485, increasing the personal needs allowance for certain Medicaid recipients by $15 and indexing it to inflation; the amendment and the bill as amended both passed 14-2. Finally, the committee approved House Bill 1016, the Adjutant General/National Guard budget, after adopting an amendment that funded disaster relief, response equipment, IT and website costs, and staffing changes for the watch center; the amended bill passed 14-2. The committee adjourned after completing six bills and planned to resume the next morning at 8 a.m.

Transcript Highlights:

• So I'm just curious, has there been any discussion on any of that, or is that an OMB thing? Mr.
• And so we did work well across agencies on that with procurement, OMB, NDIT.
• And so that's probably one of the larger... on that with procurement, OMB, NDIT.

Summary: The Budget Section’s Commerce and Legal Services Division met to review the Department of Commerce base budget for the 2027-29 biennium and to receive an update on Commerce programs. Legislative Council staff first walked the committee through the “blue sheet” base budget summary, explaining the major line items, the large share of federal grant authority in Commerce’s budget, and the continuing appropriations that support several Commerce funds. Members asked how grant funding is coordinated across agencies, and staff said collaboration varies by program but is strong in areas like UAS and LIHEAP. Commerce Commissioner Chris Schilken then presented on current activities, focusing heavily on grant administration, transparency, and economic development programs. Members questioned how grant applicants are selected, whether Commerce tracks applications and return on investment, and how long grant awards take to reach recipients. The commissioner said Commerce uses scoring criteria, outside reviewers, a minimum 30-day application window, and typically completes awards within two to three months. A lengthy exchange followed over whether Commerce should open some grants only to intended recipients versus running competitive application processes; Commerce said it follows best-practice grantmaking and that its attorney in the Attorney General’s office approved that approach. Commerce also highlighted the North Dakota Development Fund, citing long-term investment and job creation results, examples such as Red Trail Energy, Packet Digital, Valiance, Corvent Medical, child care loans, and the Automate ND program. Members asked about acceptable failures, lessons learned, regional economic development coordination, and the expansion of the fund into non-primary sectors. Workforce Director Katie Ralston Howell then outlined a statewide workforce ecosystem review, a new governor’s workforce sub-cabinet, and three task forces focused on simplifying entry, warm handoffs, and data integration. She discussed the in-demand occupations list, Workforce Pell, apprenticeships, and efforts to better connect students with employers and higher education. Commerce also briefly reviewed housing programs and a new housing sub-cabinet. No votes were taken; the committee simply received testimony, asked questions, and adjourned after setting up the next meeting to hear the Attorney General budget in June.

Transcript Highlights:

• We let OMB know so that the governor can build it into his budget recommendations.
• I'm the total rewards manager in HR Management Services, part of OMB.
• Our final agenda item before lunch is the, our recess, I should say, is a presentation from OMB regarding
• The OMB State Procurement Office awards contracts based on total cost and seldom requires itemization

Committee: Joint Employee Benefits Programs Committee

Summary: The Employee Benefits Committee met to hear presentations on state employee health insurance, compensation, leave policies, labor market conditions, and prevailing wage issues, then later took up committee rules and bill-draft jurisdiction. PERS reviewed the history and structure of the state health plan, noting the state has paid the full family premium since 1979, described cost-control and benefit-enhancement changes over time, and explained current plan options, wellness incentives, employer wellness discounts, and the upcoming bid process for the 2027-29 contract. HRMS then presented compensation comparisons showing state classified pay generally trails private and regional markets, with larger gaps at higher-level jobs, and reviewed benefits and leave policies, including the new enhanced annual leave and new-hire leave, the state’s unpaid family leave structure, and varying tuition reimbursement practices. Job Service reported on labor force trends, low unemployment, high labor force participation, job openings, and wage growth, and OMB said there are no state prevailing-wage requirements beyond federal Davis-Bacon rules for federally funded projects. The committee then considered a proposed amendment to Joint Rule 211 to better align the health insurance mandate review process with recent statutory changes. Members discussed how the rule should reference both the committee’s required actuarial reports and the Legislative Council cost-benefit analysis, and the amendment was adopted on a roll call vote. The committee also discussed how its jurisdiction decisions affect whether a bill draft receives actuarial analysis, with staff explaining that a decision not to take jurisdiction means the bill is not treated as impacting the relevant retirement or health plans for purposes of that analysis. After that, the committee began reviewing bill drafts for jurisdiction. The first draft, bill draft 33, would automatically renew pre-tax elections for dental and vision coverage during open enrollment instead of requiring annual re-election. Members debated whether it had any actuarial impact, noting the state does not pay those premiums directly, and the discussion was still underway when the transcript ended.

Transcript Highlights:

• And we've just heard in the Budget Committee, the OMB director claimed that it was rigged.
• The OMB issued an illegal and unconstitutional order freezing hundreds of billions of dollars of duly

Committee: Senate Senate Judiciary

Transcript Highlights:

• So, I'll defer to the president and OMB as they decide those top lines.
• I would defer again to the process that the president and OMB are going to lead. Thank you.
• I'll have to coordinate with the president and with OMB, obviously, on budgets, but my commitment is

Committee: Senate Commerce, Science, and Transportation Committee

Keywords: Senate Committee, Commerce, Science, Technology, Quantum Computing, Artificial Intelligence, FTC, Consumer Protection, Innovation, Emerging Technologies

Summary: The meeting of the Senate Committee on Commerce, Science, and Transportation featured significant discussions regarding technological advancements and their implications for the future. Notably, nominations were made for key positions in the White House's Office of Science and Technology Policy and the Federal Trade Commission. Committee members expressed the importance of leading in emerging technologies like artificial intelligence and quantum computing, emphasizing that the pace of innovation is crucial for maintaining the United States' global position as a leader in technology. The discussions also highlighted the role of the FTC in protecting consumers from deceptive business practices and ensuring fair competition in the marketplace. Attendees underscored the urgency of advancing research and development in areas such as quantum computing, as evidenced by a demonstration of a new quantum chip anticipated to redefine computing capabilities across industries. Various members engaged in vibrant exchanges, showing support for initiatives aimed at bolstering innovation through public and private collaboration. Overall, the meeting set a strong agenda for pursuing future science and technology policies that ensure the U.S. remains at the forefront of global advancements.

Transcript Highlights:

• We are in close discussions with OMB, with Justin Kringstad, and the Pipeline Authority.
• We are in close discussions with OMB, with Justin Kringstad, and the Pipeline Authority.
• This slide is from OMB, OMB's April forecast showing what they're projecting our North Dakota oil price
• So this is our latest forecast from OMB, and this is what we're using with the governor's office as we
• But since the OMB forecast has been updated as of April, I just wanted to show you here what OMB's forecast

Committee: Joint Water Topics Overview Committee

Summary: The Water Topics Overview Committee met to review several interim studies and receive updates from the Department of Water Resources. The committee approved the March 26, 2026 minutes, observed a moment of silence for the late Representative Conmy, and welcomed Representative Hansen to the committee. Staff then reported that the watershed management study and the stormwater/wastewater study had both satisfied the presentation requirements in their study directives, with no further required testimony unless members wanted additional information. The department’s main presentation focused on major water projects and agency operations. Reese Haas and staff updated members on the NAWS project, the Southwest Pipeline Project, Devils Lake outlet operations, low-head dam safety work, floodplain management repository implementation, data center water use, and the 2027 Water Development Plan. Members asked detailed questions about NAWS funding sources, remaining project costs, capacity concerns for All Seasons and other users, and whether current construction is being designed for future demand. The department said NAWS remains on track for substantial completion by October, that remaining NAWS funding will come from a mix of federal, state, and local sources, and that current construction is designed for ultimate capacity while some future components will be adjusted for increased demand. A large portion of the meeting was devoted to the department’s cash management, Resources Trust Fund revenues, carryover balances, and the State Water Commission’s cost-share program. The department reported $340.6 million in carryover remaining, explained that much of it is already obligated to long-term projects, and noted that oil price forecasts and stripper-well exemptions will affect future revenues. Members raised concerns about large carryovers, affordability for local sponsors, and whether the state should continue obligating money multiple bienniums ahead. The department said it is working with the commission on a revised prioritization framework, including high/moderate/low project categories and a two-tier pre-construction/construction approach, to better manage obligations and affordability. The committee also reviewed Deloitte’s finalized studies on regional governance/finance and cost-share policy. Deloitte presented options for Southwest, NAWS, and Red River governance, with stakeholders generally favoring keeping NAWS largely as is, using the current Southwest model with improvements, and pursuing a more structured governance option for Red River. On cost share, the department said Deloitte’s recommended package would cover projected needs through the 2030s, but would require policy changes such as lower percentages for some project types, a 25% replacement-project rate with a cap, and possible bonding or delayed reimbursement strategies. No votes were taken on these policy questions, and the chair indicated the committee would continue the discussion at future basin meetings and the September Water Topics meeting.

Transcript Highlights:

• that in our last rating cycle, we achieved a level five, the first earned in Washington State for an OMB
• that in our last rating cycle, we achieved a level five, the first earned in Washington State for an OMB

Bills: HB2099 , HB2317 , HB2318 , HB2350

Committee: House Early Learning & Human Services

Keywords: military families, early childhood education, access, assistance program, education equity, HB2317, early learning, child care licensing, day care, preschool, Head Start, DCYF, Department of Children, Youth, and Families, Washington State, RCW 43.216, child care center, family home provider, family child care, outdoor nature-based child care, school-age child care

Transcript Highlights:

• And the DHS bill outside of OMB is usually the last one to settle right before OMB does.

Bills: SB2399

Committee: Senate Appropriations - Human Resources Division

Summary: The committee reconvened and first reconsidered House Bill 1612, the aerospace medical and mental health support center bill. Senator Cleary offered an amendment to reduce the general fund appropriation from $500,000 to $250,000 and require the university or project sponsors to find the remaining funding from other sources. The amendment passed, and the bill was then recommended do pass as amended, with members citing concerns about university funding, but others supporting the project as a one-time seed investment. The committee also discussed a possible future FMAP increase beginning October 1, 2026, which could reduce general fund costs by roughly $9 million, though members noted the figures were still preliminary and could be addressed later if needed. The committee then returned to Human Services budget items, including early childhood and child care funding, a community cultural center grant, and several other adjustments. Members discussed reducing the “best in class” amount, changes to child care grants and quality/infrastructure funding, and clarifying that prior child care assistance appropriations were in fact being spent. They also agreed to reduce the 1915(i) Medicaid waiver line by $2 million, with the understanding that the entitlement would still be funded as needed. The committee also considered taking guardianship funding out of House Bill 1012 because a separate bill, Senate Bill 2029, would move that funding elsewhere; members agreed that removing it from the budget could help the overall bill and could be restored if the separate bill failed. Several study amendments were discussed. Senator Cleary proposed adding a maternal health study related to prenatal services, doulas, midwives, and Medicaid, and members expressed support. The committee also discussed a software/case-management study proposal, but the department said it had not requested it and would not support it as presented, so members leaned against advancing it unless the department first evaluated it. Another amendment would authorize the department to work with the city of Grafton on a long-term plan for the LSTC campus and require a report back to the legislature; members supported that as legislative intent. The committee also agreed to remove a truancy study section for later conference discussion, and it reviewed other possible study ideas, including assistive technology, before adjourning to await updated long sheets and bill text.

Transcript Highlights:

• That includes, again, OMB. You can't share information with OMB.

Committee: Senate Small Business and Entrepreneurship Committee

Keywords: SBA, small business, nominations, Bill Briggs, Casey Mulligan, regulations, capital access, public support

Summary: The Committee on Small Business and Entrepreneurship convened to consider the nominations of Bill Briggs for Deputy Administrator of the SBA and Dr. Casey Mulligan for Chief Counsel for Advocacy. The discussions highlighted the critical role of the SBA in promoting small businesses, with emphasis on overcoming challenges posed by excessive regulations and the need for improved access to capital. Several committee members expressed their concerns over recent layoffs within the SBA and the closure of district offices, which they believe undermine support for small businesses across the nation. The committee meeting saw extensive dialogue about the implications of regulations on small business operations and how the nominees plan to address these issues if confirmed. Public support for the nominees was acknowledged through letters from various stakeholders who advocate for small business interests.

Transcript Highlights:

• So first off, I'd like to start by just thanking the staff of OMB.
• First of all, I'd like to start by just thanking the staff of OMB.
• needs to be completed from year-end at June 30 through December 31st of the calendar year in order for OMB
• There are OMB policies that... ...that they are reviewed and approved by appropriate individuals.
• There are OMB policies that govern that.

Committee: Joint Legislative Audit and Fiscal Review Committee

Transcript Highlights:

• That OMB, we had a couple that were authorized that were not filled until... ...that were not filled
• In fact, we'll have a full study presented to us in June from OMB, DMR, and the Tax Commissioner's office
• Of note on this, this is the same format that we send to our federal OMB people at the feds, which monitor
• As OMB reported, the motor vehicle excise tax is a little bit behind, so we are taking a little more

Summary: The Budget Section met with a quorum, approved the December 10, 2025 minutes, and received a general fund and revenue update from the Office of Management and Budget. OMB reported the state was about $2 million ahead of forecast biennium-to-date, with an estimated ending general fund balance of about $397.5 million. Joe Morset also reviewed balances in major funds, oil tax revenues, interest income, federal grant reporting, fiscal irregularities, the voluntary separation incentive program, vacancy savings, and the FTE pool. Members asked about the higher-than-forecast interest income, the effective oil tax rate and stripper-well production, the impact of temporary pay adjustments and vacancy savings, and whether the voluntary separation program could reduce institutional knowledge or shift duties to remaining staff. The committee then approved four Emergency Commission requests: $5.26 million for DPI to support an AI-enabled tutoring platform, $105,000 from the general fund contingency for Corrections GPS monitoring, about $1.963 million for HHS SPACES eligibility system upgrades tied to Medicaid work requirements, and about $1.2 million for SNAP eligibility IT improvements. Legislative Council reported remaining interim spending authority after those approvals, and NDIT gave an update on digital accessibility compliance efforts, saying the state has made substantial progress on websites and PDFs but that applications will take longer to remediate. NDIT also reported on the Infinite Campus student information system rollout, noting data migration remains the biggest challenge and that a supplemental vendor is being brought in to help get districts ready for summer go-live. Greg Hoffman then gave a brief update on NDIT’s operational fund, saying cash remains negative in PeopleSoft but accounts receivable keeps the fund functioning within federal limits. The Supreme Court reported on its new and vacant FTE funding pool, saying it has filled 7 of 10 new positions and has realized some vacancy savings, and Legislative Council provided a similar report for the legislative branch along with a reminder that budget action reports are available online. The Department of Transportation presented its Flexible Transportation Fund, explaining the fund’s allocation formulas and ranking process, and sought Budget Section approval for two projects over the $10 million threshold: a Medora city streets and sidewalk project and a Cass County bridge replacement. Members questioned whether funding Medora streets could set a precedent for city street reconstruction and whether the bridge application process fully reflects statewide needs. DOT said the projects were scored competitively and that the bridge list does not capture all deficiencies statewide.

Transcript Highlights:

• You were part of both OPM and the OMB during the first Trump term, and the guidance in that agency suggested
• number, I'm not sure where that comes from, but I know, I think you may be referring to what happened at OMB
• , where OMB Director Voth. time, did a similar analysis and came up with that number.

Committee: Senate Foreign Relations Committee

Transcript Highlights:

• And even though we call OMB, even though we call the team together at the district level...
• Even though we call OMB, even though we call the team together at the district level, there seems to

Committee: House House Government, Elections & Indian Affairs

Transcript Highlights:

• parameters will be monitored and secured directly through DHS, with reporting requirements for the OMB
• report to the legislative, the various committees that we'll have established at the same time, and OMB

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

Transcript Highlights:

• session, because it was a little cumbersome for some agencies where they had to make the request to OMB
• , and the pool sat, the money sat in OMB, and they felt like that…” “...they didn’t, you know, that added

Committee: House Appropriations - Government Operations Division

Summary: The House Appropriations Government Operations section reconvened and first took up an amendment for the Industrial Commission related to a proposed west-to-east natural gas pipeline. Members discussed increasing the state’s capacity commitment from $60 million to $120 million so the project could move forward and support a future FERC permit, with supporters citing growing demand from data centers, agricultural users, and oilfield gas capture needs. The committee also discussed a separate motion to exempt the mill and elevator from the vacant FTE pool; that motion failed on a roll call vote. The committee then reviewed other Industrial Commission items, including housing authority funding, the abandoned well fund, Bank of North Dakota-related changes, and a decision not to add more to litigation funding. The discussion then shifted to the Department of Transportation budget and a major transportation funding framework. Speaker Weiss explained a proposal to consolidate and rework transportation funding into fewer buckets, including moving Prairie Dog-style funding into the flexible transportation fund, adding $370 million to that fund, and providing $171.3 million for federal match needs. The plan also included $50 million for statewide discretionary projects, $50 million for bridges, and grant flexibility for cities, counties, and townships, with some debate over eligibility thresholds and how much discretion DOT should have in awarding grants. Members also discussed whether small communities could realistically apply for grants and how the new structure would coordinate statewide transportation investments. Additional DOT topics included a proposed gas tax increase, changes to distribution percentages among DOT, cities/counties, townships, and transit, and the treatment of electric vehicle registration fees. The committee noted that transit funding would rise under the formula and that EV registration fees would continue to flow into the highway distribution fund. No final action was taken on the broader DOT package during this portion of the meeting, but members agreed to continue work on the amendment and revisit the issue the next day, with a suggestion to brief the caucus before floor action.

Transcript Highlights:

• We expect to have some procurement flexibilities as we coordinate with OMB and NDIT, but the process
• And that's part of the reason why we are going to be working closely with OMB and NDIT on procurement

Summary: The Joint Policy Committee met to hear an overview of North Dakota’s Rural Health Transformation Program before taking up the related policy bills. Department of Health and Human Services staff explained that the state received a $198.9 million CMS award, with funding focused on four pillars: strengthening rural workforce, bringing care closer to home, connecting technology and data, and improving population health through prevention. They emphasized that the program is intended to benefit rural and frontier residents statewide, including areas near urban centers when the project serves rural patients, and that CMS approval, provider readiness, and sustainability will drive what can be funded. Committee members asked about how the program would treat border communities, frontier counties, urban providers serving rural patients, multilingual outreach, tribal consultation, and whether there would be information sessions for applicants. HHS said the website will include sign-up and translation features, more listening sessions and training will be offered, and a rural health tribal liaison will work alongside the existing Medicaid tribal liaison. Members also raised concerns about reimbursement timing, cash flow for providers, and whether projects in urban areas could qualify; HHS responded that urban projects may be eligible if they clearly benefit rural residents. The department then outlined the four policy bills tied to the grant scoring: nutrition continuing medical education for physicians, the presidential fitness test, the physician assistant compact, and pharmacist scope of practice. HHS said these policy actions were incentivized in the federal funding opportunity and that failure to pass them could reduce future funding. The committee did not take final action on the bills in this portion of the transcript and recessed for lunch before moving on.

Transcript Highlights:

• Service is fee-for-service... service, then we pay whatever the negotiated rate is, or in some cases the OMB
• Excuse me, I know I'm using an acronym, but I can't remember what OMB means.
• The OMB directive required all federal agencies to review federal financial assistance to ensure compliance

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• In House Bill 1015, OMB oversees the project and has established a steering committee to oversee the
• steering committee consists of two representatives from the governor's office, two representatives from OMB
• And right now, OMB is working on that, looking at that structure and doing a facility condition assessment
• Again, OMB is looking at the facility conditions.

Summary: The committee first approved the December 10 minutes and then received a DEQ base budget summary and agency overview. DEQ staff explained that the agency is largely federally and special funded, with major ongoing costs in salaries, operating expenses, grants, and continuing appropriations. Director Dave Glatt and accounting director Beth Jacobson highlighted core programs, the move to a new chemistry laboratory, the new state fuel inspection program, wastewater-related funding from HB 1577, and implementation of SB 2267 for on-site wastewater rules. They also noted the agency’s spending patterns, possible federal EPA cuts, and the likelihood of some fee adjustments or program changes if federal support declines. Members asked about DEQ’s travel, field offices, future staffing, and how the agency would respond to reduced federal regulation. DEQ said most staff are based in Bismarck, with field offices in Fargo, Sawyer, and Gwinner, and that travel is driven by inspections and spill response. Glatt said the agency would continue to rely on science and law, and that any future federal retrenchment could mean more state responsibility but likely not a wholesale increase in FTEs. The committee also discussed a feedlot enforcement case in the Minot area, with DEQ explaining its role in ensuring compliance, permitting, and animal-waste management standards. The Department of Health and Human Services then presented on FTE block grant reporting, TANF balances, child care transfers, and the Rural Health Transformation Program. Donna Ockland explained that no line-item transfers had occurred yet for the new rural health work, but about 33 positions were planned and some current staff time could be reimbursed through approved cost allocation. HHS also reviewed TANF’s frozen eligibility and block grant structure, the transfer of up to 30% of TANF funds to child care, and recent program changes that increased benefits and raised the income limit. Staff said the department is using TANF more strategically to support child care and other allowable uses, while still carrying over unused funds as many states do. Finally, Pat and HHS staff gave an update on the Rural Health Transformation Program, saying the first funding opportunity was being posted and that the state is on track to obligate the federal funds within the required timeline. They described priorities such as workforce retention, preceptor development, technical assistance for critical access hospitals, community wellness projects, and ambulance upgrades. Members asked about rural versus urban eligibility, immigrant recruitment, evaluation of year-two funding, and how the program would address varied local workforce needs. The meeting then shifted to an Office of Management and Budget update on the new State Hospital project, where Lindsay Ashley reported continued construction progress, updated cost information, and selected alternates, with photos and details showing work underway in multiple building sections.

Transcript Highlights:

• Do you think that it's possible for the director of OMB and the governor's office to establish some of
• I know OMB has also been monitoring those.
• I know OMB has also been monitoring those.
• I know OMB has also been monitoring those.

Summary: The committee opened with roll call and a review of special-session procedure: bills would be heard in filing order, with related school-lunch bills grouped together, and any bill advancing would require a motion, second, and majority vote to be introduced. Members also discussed that the committee was functioning much like a delayed-bills committee, with final referral to either Appropriations or Policy depending on the bill’s fiscal impact. The first major proposal was Senator Schibley’s bill to create a narrow, statewide Bank of North Dakota bridge-loan program for struggling nonprofit medical facilities, prompted by Jacobson Memorial Hospital’s financial crisis. He argued the hospital and surrounding EMS services could close without short-term help, while committee members questioned the added language, the population cap, the $10 million fund with $5 million per applicant limit, and whether the program could open the door to future requests. Representative Headland then presented two cleanup bills from the prior property-tax session: one to fix notice and tax-certification issues for local taxing districts, and another to correct how the primary residence credit is applied so taxpayers receive the full benefit rather than counties retaining part of the reimbursement. Members asked about township hearing timing, the estimated $10–15 million annual impact, and whether the credit issue could be fixed retroactively; Headland said the bill was intended to correct the problem going forward. Three school-lunch bills drew extensive discussion. Representative Vetter proposed a small administrative appropriation to add an FTE to help eligible families enroll in the existing free/reduced lunch program, saying the goal was to ensure needy children are signed up and that the state should not subsidize meals for wealthy families. Representative Nathe offered a broader bill mirroring the pending initiated measure but placing the program in statute instead of the Constitution, moving implementation up a year, and funding it with a one-time $65 million from the strategic investment fund; he said this would preserve legislative flexibility and avoid constitutional entrenchment. Representative Dressler proposed raising the state-funded eligibility threshold from 225% to 300% of poverty, arguing it would expand access while still preserving federal reimbursements and encouraging better enrollment systems. Members debated costs, future budget pressure, whether the bills set a precedent for responding to ballot measures, and whether the program should include breakfast and other operational details. Other proposals included Senator Powers’ bill to create a hyperbaric oxygen board and support rural access to hyperbaric chambers for wounds, concussions, PTSD, and other conditions; Representative Tolman’s reporting-requirements bill to force new or expanded programs to justify purpose, alternatives, evaluation methods, and full implementation costs; Representative Frelich’s bill addressing the ongoing redistricting litigation and what happens if the Supreme Court or lower courts alter the current map; and a bill requested by the Public Service Commission and ITD for FERC litigation support and ADA website/document compliance. The committee also heard a rural-health eligibility bill from Representative Twait aimed at steering federal rural health dollars toward rural providers, with questions focused on whether the mileage limits would exclude some communities. One Holocaust education item was deferred until the sponsor could be located.