Transcript Highlights:

• Uh, there's a couple of projects in the draft plan that are currently funded with federal funds that
• How much funding would that free up for projects to add back into the federal program?
• </c> to add back into the federal program? to add back into the federal program?
• The toll increase projects that are currently in the plan funded with federal money could be switched
• That would free up some federal funds to fund some other projects.

Committee: House Public Works and Highways

Transcript Highlights:

• people connected to the project, the better off we are.
• Most of these projects are green energy projects.
• They're projects that have secured permits. They are projects with sites that are identified.
• My project, I have partners at Calamco.
• As the federal government stepped back in helping projects like this, I'm looking for states like California

Transcript Highlights:

• This is for statewide project management.
• So we've funded over 130 projects, and these projects can have multiple facility types on their projects
• So we've funded over 130 projects and so these projects can have multiple facility types on their projects
• captures projected expenditures of state, local, and federal funds.
• And so our budget projections, including projections of General Fund obligations, are part of that multi-year

Summary: The hearing opened with remarks from the chair and members about recent federal cuts to public health, mental health, family planning, and Title X funding, with strong concern about the impact on California programs and providers. The committee then turned to the Department of State Hospitals, which presented its 2025-26 budget proposal of $3.4 billion, including new positions, capital improvements, and funding tied to increased patient costs and incompetent-to-stand-trial services. DSH reported major progress in reducing the IST waitlist and wait times, said it had met the court’s 28-day treatment benchmark for those without extenuating circumstances, and described workforce recruitment and retention efforts such as residency programs, fellowships, outreach, and hiring streamlining. Members asked about future IST referral trends, SB 1323’s effect on diversion and community treatment, and workforce lessons in high-cost regions; public comment urged reconsideration of county IST growth cap methodology in light of new criminal justice initiatives. The committee next received an informational overview of Proposition 1 and its changes to behavioral health funding and governance. The Legislative Analyst’s Office explained that Prop. 1 restructured county MHSA funding buckets, expanded the Commission for Behavioral Health, shifted prevention and early intervention responsibilities, and authorized a $6.4 billion bond, including $4.4 billion for behavioral health facilities through BHCIP. DHCS said it had released guidance for county integrated plans and was receiving extensive public comment. Members focused on BHCIP application requirements, especially letters of support and tribal projects, and raised concerns about whether DHCS’s implementation matched statutory intent. DHCS said it had authority to set application requirements and that tribal entities were treated differently because of sovereignty and funding structure. DHCS then updated the committee on BHCIP, the Behavioral Health Bridge Housing Program, and related bond implementation. The department said BHCIP had awarded about $1.7 billion across five rounds, with more than 130 projects and 223 distinct facilities funded, and that it was preparing to award the new bond funds after receiving nearly $8 billion in applications. The LAO’s assessment found that more than half of awards served at least 80% Medi-Cal enrollees, but also raised concerns that the regional allocation model could reinforce inequities, that the program had not sufficiently addressed the highest-need regions such as the southern San Joaquin Valley, and that smaller counties and less launch-ready applicants faced barriers. For bridge housing, DHCS said more than $1.1 billion had been awarded, serving over 5,000 people and supporting more than 2,000 operational beds, but the Governor’s budget proposes to eliminate Round 4 funding as the administration weighs other statewide investments and Proposition 1 implementation workload. Public commenters and members urged more accountability, better regional equity, stronger labor and community involvement, and caution about funding for for-profit psychiatric facilities. Finally, the committee heard on the Children and Youth Behavioral Health Initiative. CalHHS and DHCS described CYBHI as a broad prevention- and equity-focused effort with more than 1,300 organizations funded, over $2.1 billion awarded, and multiple work streams spanning schools, community programs, workforce, and digital supports. DHCS highlighted school-based services, the fee schedule rollout, and digital platforms BrightLife Kids and Soluna, which it said are reaching users statewide and providing low-barrier access to coaching and support. Members and public commenters raised concerns about delays in school fee schedule implementation, the large share of funding going to digital tools, the need for more in-person services, and whether the initiative is sufficiently tracking outcomes and equity impacts. No formal votes were taken during the hearing.

Transcript Highlights:

• It simply helps communities and companies know what projects count as pyrolysis projects.
• These are projects Narrow CEQA exemption for emergency egress route projects.
• This bill idea is a result of a transportation project in North County, San Diego, where a project to
• federal administration were to pass legislation or enact an executive order to eliminate federal protection
• It also applies if the federal government were to exempt a federally protected river from the provision

Committee: House Natural Resources

Summary: The committee heard several natural resources bills focused on climate, water, wildfire safety, and coastal policy. AB 70 would codify a definition of pyrolysis and allow procurement credit for projects using organic waste to produce pipeline biomethane; AB 30 would authorize E15 gasoline sales in California; AB 66 would create a CEQA exemption for emergency evacuation routes in high-fire-risk areas; AB 399 would let the Coastal Commission consider carbon sequestration and blue carbon demonstration projects; AB 491 would codify state nature-based climate targets; AB 436 would streamline siting and permitting for composting facilities; AB 43 would make permanent state authority to protect federally designated wild and scenic rivers; and AB 580 would extend Metropolitan Water District authority related to the Colorado River Aqueduct. The committee also took up AB 439, which would streamline certain Coastal Commission de minimis plan changes and reporting requirements, and AB 404 was pulled at the author’s request. Testimony was generally supportive on the organic waste, composting, wildfire egress, blue carbon, nature-based solutions, wild and scenic rivers, and water infrastructure bills, with supporters emphasizing emissions reductions, landfill diversion, climate resilience, and local government flexibility. AB 30 drew the most debate: supporters said E15 would lower fuel costs and emissions, while opponents from boating and marine groups warned about engine damage, misfueling, and the need for clearer labeling and continued E10 availability. AB 66 also drew concerns from environmental groups and some members about the breadth of the CEQA exemption and lack of guardrails, though supporters argued it was narrowly targeted to high-risk communities with safeguards. Most measures received due-pass recommendations and advanced on recorded votes, often with broad support. AB 70, AB 30, AB 66, AB 399, AB 436, AB 43, AB 439, and AB 580 all passed out of committee, with AB 491 also moving forward after some opposition from the Farm Bureau and questions about codifying targets in statute. The consent calendar items were approved as well, and the committee adopted its rules before concluding the hearing.

Transcript Highlights:

• It is the only federal funding source that can serve as federal match for other federal programs.
• This project was not a good fit for REPI funding.
• It is the only federal funding source that can serve as federal match for other federal programs.
• This project was not a good fit for Repi funding.
• This project was not successful.

Summary: The Joint Committee on Military and Veterans Affairs heard presentations on several military and veterans-related topics. Dr. Dan Calvert briefed the committee on the JBLM Sentinel Landscape Partnership, explaining its voluntary conservation work to reduce encroachment around the base by protecting prairie habitat, supporting agriculture, and managing sensitive species. He described REPI funding, recent and proposed projects, and possible policy support such as state designation, dedicated funding, management endowments, prescribed fire flexibility, and water-right transfer tools. Members asked about seed sourcing, the distinction between natural-resource encroachment and development-related encroachment, and the impact of federal REPI staffing cuts. David Puente of the Washington State Department of Veterans Affairs updated the committee on plans for a new state veterans cemetery in the Tri-Cities area and a replacement Spokane Veterans Home. He said the cemetery project has two candidate sites near Richland/West Richland, with pre-design funded by the legislature and a future request expected for land purchase and construction; he also noted the current cemetery funding source is limited and would not support a second cemetery without additional state operating funds. On the Spokane home, he described the current facility’s limitations and said the replacement would be a 120-bed, small-house model on a larger site, with the VA expected to cover 65% of construction costs if the state provides the match. He also reviewed agency budget reductions, including vacant positions, reduced outreach, cuts to counseling and wellness funding, and reduced support for veterans service organizations. Blue Star Families’ Puget Sound chapter also presented on its programs for military-connected families, including Coffee Connects, a children’s book club, outdoor programming, career support, and Blue Star Welcome Week. The group said it is expanding beyond the South Sound and is using local outposts and online networks to reach more families, while also helping with food insecurity through grocery gift cards and partnerships with local nonprofits. Committee members discussed the need to expand the organization statewide and the ongoing food-security challenges facing military families. During the final discussion on potential legislation, members raised ideas including restoring Washington National Guard retention efforts, expanding E-CAP eligibility to military families, revisiting the composition of the Veterans Affairs Advisory Committee, and addressing veterans’ preference issues for service members who have not yet received a DD-214. The committee did not take any formal votes or actions, but members and presenters discussed future policy and budget requests, and the chairs thanked the presenters and staff before adjourning.

Transcript Highlights:

• Our forecast for the federal funds interest rate, this is the rate the Federal Reserve controls, indirectly
• The federal H.R. 1 made three major changes to Medicaid.
• Development of the federal Columbia Basin Project slowed in the 1960s and '70s, and the state issued
• project.
• any large infrastructure project like transportation.

Summary: The Ways and Means Committee held a work session covering the state revenue outlook, caseload forecasts, wildfire costs, budget balance, tort liability, water supply, and pension policy. The Economic and Revenue Forecast Council reported modest near-term U.S. growth, no near-term Washington employment growth in 2026, continued personal income growth, and elevated inflation, with tariffs and federal policy cited as major risks. Revenue forecasts were slightly improved for the current biennium by about $105 million but down about $185 million for the next biennium. Members asked about income inequality and housing permits; staff said personal income is an aggregate measure and housing production remains below long-term needs. The Caseload Forecast Council then reported that most forecasts were unchanged or only slightly changed, but several programs increased, including Washington College Grant, Working Connections, aged/blind/disabled cash grants, nursing homes, home and community services, and developmental disabilities personal care. The largest policy-driven change was in Medicaid low-income adult caseloads, where federal H.R. 1 was projected to reduce coverage substantially through narrower eligibility, community engagement requirements, and shorter eligibility periods. The committee also heard a wildfire funding update and a 2025 fire season review. Staff explained that the state budgets $93 million annually for suppression and uses supplemental appropriations for costs above that level, with an estimated state supplemental need of about $139 million for the current year. Department of Natural Resources officials said 2025 fire activity remained below the 10-year average in acres burned, but fires were more complex and closer to communities, contributing to higher residence loss. They described expanded use of aircraft, firefighters from other states, corrections crews, and the Arcadia 20 hand crew, and said the state did not need National Guard ground support this year. A budget preview then showed that the near general fund outlook had worsened after vetoes, lapses, and forecast changes, and that maintenance-level costs alone would leave a projected negative balance by fiscal year 2027 and about $4.3 billion by fiscal year 2029, before any policy decisions. Jason Seams, the state risk manager, reported a sharp rise in tort claim costs, with indemnity expenses nearly doubling from fiscal year 2023 to 2025 and DCYF accounting for most of the increase. He said the state self-insurance liability account has run deficits for four straight biennia and is now facing nearly $600 million in deficits, driven largely by a surge in DCYF claims, especially juvenile rehabilitation and long-running sex abuse cases. Members asked about the role of old claims, comparisons with other states, excess insurance, and whether more Attorney General staff could reduce special assistant attorney general costs. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust. Tribal witnesses emphasized overappropriation, declining flows, climate impacts, and the need for legislative oversight and tribal participation in water policy. Ecology described major projects in the Odessa sub-area, Yakima Basin, and Dungeness, along with the need for storage, recharge, conservation, and policy changes to support water supply development. The Washington Water Trust argued that climate change is reducing summer flows and that the state needs more funding, enforcement, and long-term commitment to restore instream flows. The final item was a pension update on LEOFF 1 surplus assets; staff reviewed two 2025 bills that would have merged or restructured the plan and used surplus assets, but neither passed, and instead the budget directed the Select Committee on Pension Policy to study the issue and report back.

Transcript Highlights:

• of those projects.
• There are two projections: one is the December 2024 projection, and then the most recent information
• dollars to those local projects.
• And this can mean that the federal projects are priority for processing.
• for projects.

Summary: The Senate Transportation Committee met on October 16, 2025, for a budget and revenue overview, a traffic safety presentation, and a discussion of potential transit and active transportation grant programs. Committee staff reviewed the adopted 2025-27 transportation budget, noting $15.5 billion in expenditures, the large share for WSDOT, and the mix of revenue sources including fuel tax, vehicle-related fees, federal funds, Climate Commitment Act revenue, and new 2025 revenues from SB 5801 and SB 5802. Staff said the 2025 session produced a balanced four-year plan, preserved major project schedules, maintained highway preservation funding, and added money for culverts, local preservation, and other priorities. They also described a September forecast showing lower motor fuel consumption than previously expected, but still enough revenue growth to keep the transportation plan balanced. For the 2026 supplemental, staff said agency requests were relatively modest overall, with most capital requests reflecting reappropriations and timing shifts rather than new projects, while WSDOT’s addendum identified much larger future needs for maintenance, preservation, paving, culverts, and safety work. Senators asked for more detail on how revenues are distributed by fund type and geography, how much of the maintenance and preservation request is actual maintenance versus equipment, whether paving needs could be supported through bonding, and how electric vehicle sales trends might affect forecasts. The committee then heard a remote presentation from Dr. Jessica Chikino of the Insurance Institute for Highway Safety on traffic safety trends and countermeasures. She said U.S. traffic fatalities have risen sharply over the past decade, with especially large increases for pedestrians, bicyclists, and motorcyclists, and argued that the U.S. lags other high-income countries in roadway safety. Her presentation highlighted IIHS’s “30 by 30” goal to reduce fatalities 30% by 2030 through safer speeds, stronger impaired-driving countermeasures, better pedestrian protection, and safer commercial vehicles. She discussed research linking higher speed limits to higher fatality risk, the benefits of lower urban speed limits, speed safety cameras, traffic calming, lighting, pedestrian beacons, and safer intersection design. She also described ongoing work with Bellevue on smart signal technology and pedestrian safety pilots. Committee members thanked her for the presentation and said they would share the materials with others. In the final work session, the committee revisited transit and active transportation grant concepts that had been included in the Senate budget proposal but did not advance in 2025. Barb Chamberlain of WSDOT’s Active Transportation Division explained how grant programs need runway, staff capacity, applicant readiness, and clear criteria, and compared program design to getting a plane off the ground. She discussed the proposed Senior Transportation Emphasis Program and regional trails/cycle highways concepts, noting that some projects could be structured as funding-first programs while others would work better as project-line or project-first models. She said regional trail projects are already eligible under existing programs but often score lower because current criteria emphasize safety and population served. Justin Leighton of the Washington State Transit Association then reviewed transit grant programs and argued that transit safety and security needs remain underfunded, including operator barriers, lighting, shelters, behavioral health coordination, and non-uniformed security staff. He said many transit capital programs are oversubscribed, that operator barrier retrofits alone could cost $20 million to $30 million, and that agencies face uncertainty about how recent sales tax changes apply to security-related contracts. No votes were taken during the meeting.

Transcript Highlights:

• and federal level.
• The Midway Rising Redevelopment Project. ...of San Diego's Midway Rising Redevelopment Project.
• SB 344 establishes a narrow project-specific pathway for the Midway Rising Project by providing that
• Reuse Project Area Plan.
• This is a unicorn project.

Bills: AB40 , AB2674 , SB328 , SB344

Committee: House Natural Resources

Keywords: AB 2674, financial abuse, financial deception, elder financial abuse, bank fraud, scam prevention, consumer protection, depository institution, bank, credit union, suspicious transaction, fraud hotline, trusted third party, power of attorney, guardianship, conservatorship, elder abuse, senior citizen, treble damages, civil action

Summary: The Assembly Natural Resources Committee heard several measures, led by AB 40, which would require a full CEQA environmental impact report before approval of any new or expanded large coal terminal and require updated review if the project changes significantly. The author and supporters, including West Oakland community advocates and environmental groups, argued the bill was needed because an outdated environmental review did not analyze coal at the scale now proposed for the Oakland terminal and because West Oakland already bears heavy pollution burdens. Opponents, including business and terminal representatives, argued the project had already undergone extensive review and litigation and warned the bill would set a precedent for reopening settled approvals. Members questioned whether the air district had already approved the project and whether the bill was targeting a single facility. The author responded that the air district still had to issue a discretionary permit and that the bill was narrowly tailored to large coal terminals. The committee ultimately concurred in the Senate amendments to AB 40 on a recorded vote, with the bill passing out of committee. The committee also heard SB 344, which creates a project-specific pathway for San Diego’s Midway Rising redevelopment, a large mixed-use project with thousands of housing units, including affordable housing, parks, and a new arena. Support came from labor, the city, and business groups, while members raised questions about whether the bill was effectively insulating the project from CEQA litigation. The author said the bill does not exempt the project from CEQA but confirms the final EIR’s sufficiency once certified. SB 344 received a due pass recommendation and passed the committee. Finally, the committee heard SB 328 for the Concord Reuse Project Area, which would streamline implementation of the former Concord Naval Weapons Station reuse plan by creating an exemption within the Surplus Land Act and related disposition process for qualifying projects. The author and supporters emphasized decades of planning, extensive environmental review, a project labor agreement, and commitments to 25% affordable housing and open space. After questions about enforcement of affordability and tribal consultation, the bill received a due pass recommendation and passed. The committee also adopted a consent resolution and passed AB 2674, a transparency measure requiring CARB to post landfill temperature and monitoring data it already receives.

Transcript Highlights:

• We are projecting a federal revenue loss of more than $700 million a year and a deficit of $2 billion
• We are projecting a federal revenue loss of more than $700 million a year.
• Our projection...
• Was initially projected, but also there was significant additional federal relief that was targeted to
• This year we've projected a growth, but we've consistently over-projected.

Summary: The Budget Subcommittee on Health and Human Services heard an overview of the expected California budget and program impacts from H.R. 1, including changes to Medi-Cal and CalFresh eligibility, redeterminations, work requirements, immigration-related coverage rules, retroactive coverage limits, and reductions in federal matching for certain services and provider financing mechanisms. DHCS and CDSS described implementation plans focused on automation, data matching, clearer communications, county training, and outreach, while noting that many federal details are still pending. The Legislative Analyst’s Office also reviewed how H.R. 1 could increase pressure on county indigent care systems, explaining the history of county responsibility under Section 17000, 1991 realignment, and AB 85, and warning that counties may face large increases in uninsured residents seeking care without corresponding funding flexibility. An independent policy expert urged consideration of a more standardized statewide approach to indigent care and raised questions about governance, benefits, and financing. Department witnesses estimated substantial coverage losses and fiscal effects: DHCS projected major Medi-Cal disenrollment tied to work requirements, six-month renewals, narrowed immigrant eligibility, and reduced retroactive coverage, while CDSS estimated large CalFresh benefit losses and a significant increase in administrative workload and payment accuracy pressure. Members questioned how exemptions would work for older adults, people experiencing homelessness, undocumented residents, and cash workers, and asked about the effect on the CalFresh Minimum Nutrition Benefit Pilot and on county administrative funding. Officials said they would use available data and self-attestation where possible, but acknowledged that many cases would require manual screening and that the county workload estimates remain in dispute. They also said the state is still evaluating the impact of H.R. 1 on provider taxes and state-directed payments, which could create additional budget pressure. County representatives from Los Angeles, Santa Clara, Tulare, and San Bernardino described major local consequences if H.R. 1 is implemented as written. They warned of higher uninsured rates, more strain on emergency rooms and public hospitals, increased homelessness and food insecurity, and a likely need to rebuild or expand county indigent care programs that were largely scaled back after the ACA. Counties said they are already freezing hiring, cutting positions, reducing overtime, deferring spending, and launching outreach and coordination efforts with managed care plans and community partners, but argued that these steps are not enough without additional state support. Several counties backed the California County Welfare Directors Association’s request for $373 million in General Fund support for eligibility work and asked for a CalFresh match waiver to soften the new county share of administrative costs; Los Angeles and Santa Clara also emphasized that their local revenue measures would not close the projected gaps. No votes or formal actions were taken in the portion provided.

Transcript Highlights:

• If the Legislature— The other projects towards the UC Davis project.
• not approved specific projects.
• For those projects, UC's state share was about one-third of the total project costs, while for this project
• For those projects, UC's state share was about one-third of the total project costs, while for this project
• , and when comparing this project to other UC student housing projects, those were, ...project, and when

Summary: The Assembly Budget Subcommittee on Education Finance held an extended hearing focused primarily on University of California budget issues, enrollment, housing, and Title IX. Chair David Alvarez opened by noting the governor’s proposed 8% ongoing General Fund reduction to UC, the deferral of compact funding, and the College of the Law budget item, while emphasizing that no votes would be taken that day. Public commenters, including UC Davis employees and lecturers, urged restoration of UC funding and opposed the hiring freeze, saying cuts would worsen staffing shortages, reduce research capacity, and harm students and patients. On UC core operations, the Department of Finance said the governor’s budget maintains the compact but defers $240.8 million in ongoing support and continues a planned 7.95% reduction, while the LAO recommended rejecting the deferrals and instead making any changes in the budget year. UC San Diego’s chancellor and UC Office of the President argued the cuts and deferrals would create major campus shortfalls, force hiring freezes, larger class sizes, fewer course offerings, delayed projects, and possible layoffs. Committee members questioned whether cuts could be shifted away from students and toward administration, discussed UCOP reserves and bond debt, and noted that UC’s budget structure makes the campus-level impact larger than the headline reduction. The committee also reviewed enrollment trends and nonresident replacement. The LAO said UC resident enrollment has grown and recommended revisiting 2026-27 targets and pausing the nonresident replacement plan if state funding does not improve. UC said it has exceeded California undergraduate enrollment and nonresident replacement goals, but warned that continued growth without funding would force enrollment reductions and harm quality. Members discussed the role of nonresident and international students, tuition rates, and the value of UC as a pathway for California students and a source of talent for the state. A separate housing item covered the state’s Higher Education Student Housing Grant Program. UC reported that recent bond savings could support additional affordable beds at UC Davis and UC Santa Barbara, but the LAO and Finance noted the Legislature would need to decide how to use the $6.2 million in savings from the original projects. The committee also heard a Title IX update from UC’s systemwide civil rights office, which described campus Title IX structures, training, and policy enforcement, and said the system has been working to improve confidentiality guidance and streamline complaint processes after survey feedback showed confusion and lengthy procedures.

Transcript Highlights:

• in federal money for.
• in federal money for.
• in federal money for.
• that we could crowd in also projects that we could crowd in federal<00:26:00.360><c> money</c><00:26
• Uh, what were those projects again, out of those three projects? There were three projects.

Committee: Senate Energy, Utilities, Environment, and Climate

Transcript Highlights:

• , which would be the first large reservoir project in a generation; open space projects that are critically
• It is made up of state, federal, and bond funds.
• Project.
• We've identified eight projects that will build on projects and investments and improvements that completed
• those 20 projects are.

Summary: The Senate Budget Subcommittee on Resources, Environmental Protection, and Energy opened its first hearing with remarks from the chair and members emphasizing climate change, resiliency, clean energy, natural resources, and the need to make careful budget choices in a constrained fiscal environment. The Legislative Analyst’s Office presented an overview of the natural resources and environmental protection budget, warning that although current revenues are strong, the state faces significant out-year deficits and should apply a high bar to new ongoing spending, use special funds and fees carefully, and focus on critical health and safety needs. The LAO said the Governor’s Proposition 4 spending plan was generally reasonable and consistent with bond requirements, but urged legislative oversight and reporting, especially where bond funds interact with General Fund proposals. Secretary Wade Crowfoot then described the Natural Resources Agency’s recent accomplishments and priorities, including wildfire resilience, water reliability, coastal protection, outdoor access, biodiversity, tribal partnerships, and streamlining project delivery. He highlighted major investments in climate and resilience, the role of Proposition 4 in continuing those efforts, and the need to modernize water infrastructure, including Delta conveyance and other regional conveyance projects. Members asked about Delta conveyance, invasive species, permitting delays, and the impact of federal staffing cuts; Crowfoot said the administration is pushing projects forward, supports a beneficiary-pays approach for conveyance, and is filling gaps left by federal reductions where necessary. The committee then heard from the Department of Parks and Recreation. Director Armando Quintero reviewed the state park system, outdoor access programs, tribal agreements, wildfire and forest resilience work, and deferred maintenance funded by the climate bond. The LAO recommended rejecting the proposed ongoing General Fund transfer for the California State Parks Library Pass program, saying it did not meet the high bar for new spending, while several members strongly supported the program as a low-cost, high-value access tool. Members also pressed Parks on reservation system problems and no-show vacancies; staff said new rules and enforcement will take effect July 1 and that vacancies are being opened up sooner. The department also presented low-cost accommodation projects, which the LAO supported. Finally, the Department of Fish and Wildlife introduced its new director, Megan Hurdle, who outlined the department’s mission, staffing, service-based budgeting, and Proposition 4 proposals for salmon tagging, hatchery improvements, and public access lands. She emphasized the department’s role in biodiversity conservation, permitting streamlining, law enforcement, and human-wildlife conflict outreach, and said the agency is working to close a service gap identified in its budgeting analysis. No votes were taken during the hearing.

Transcript Highlights:

• </c><00:49:22.280><c> federal</c> for the federal federal for the federal federal money<00:49:24.200>
• These two projects here were requested in federal fiscal year 24 and again in this federal fiscal year
• It was a $2.3 million project, almost a $2.4 million project.
• These FAA projects typically have a 90% federal share, 5% state funds, and 5% local or community funds
• and the FAA match for the FAA projects and the FAA federal<03:13:25.920><c> funds</c><03:13:26.920><

Summary: The committee heard a Department of Corrections capital budget presentation on HB 25, focused largely on urgent maintenance and security needs at the New Hampshire State Prison for Men and other DOC facilities. DOC officials described the governor’s proposed priorities: boiler surge and radiator tank replacements, electronic controls and camera upgrades, and replacement of HVAC units using R22 refrigerant. They also outlined additional requested projects totaling $15.4 million, including a body alarm/man-down system at Northern New Hampshire Correctional Facility, steam line and trap repairs, fire alarm replacements, and removal of an underground diesel tank in favor of above-ground storage. DOC testified that many systems are well beyond their expected service life, including 40-year-old boilers, outdated analog cameras, and HVAC equipment using discontinued R22 refrigerant. They said the men’s prison is relying on a leased temporary boiler, has significant steam leaks causing major water loss and reduced boiler efficiency, and is dealing with frequent fire alarm faults and deteriorating wiring. On the body alarm system, they said the vendor no longer supports the equipment and replacement parts are no longer available. On the diesel tank, members questioned whether it could be abandoned in place or whether fuel could be reused; DOC said it had not explored all alternatives and would follow up, while noting the tank is underground and tied into the warehouse system. Members also asked whether some current investments could be reused in the planned new men’s prison. DOC said some items, such as air handlers, might potentially be moved, but most projects are needed to keep the current facility operational and would not be practical to transfer. Questions were also raised about the leased boiler arrangement, the use of the man-down system by staff and visitors, and whether the kitchen project could be converted to a modular unit. DOC said the modular kitchen approach is necessary because the existing kitchen cannot remain fully operational during repairs. The committee then moved to lapse extensions, and DOC identified several projects no longer needing extensions, including items numbered 64, 65, and 66 in HB 25, with the chair noting those balances would be deleted and that the lapse amount was $550,500.

Transcript Highlights:

• We have $55 million in the bank on one project, $50 million in another project that's compatible, the
• We've got this project to the brink.
• CalVet does not need to wait for federal funding to move this project forward.
• And what is unique about this project is it is a bipartisan project, and it is rare in politics to not
• The governor supports this project. The governor supports this project.

Summary: The hearing focused on the long-delayed Southern California Veterans Cemetery project at Gypsum Canyon in Anaheim, with opening remarks from Assemblymember Sharon Quirk-Silva, Senator Tom Umberg, and Assemblymember Avelino Valencia emphasizing the project’s importance to Orange County veterans and families. Anaheim city leaders, including the mayor pro tem and council members, voiced strong support and described the city’s role in planning, utilities, and final approvals. Quirk-Silva reviewed the project history, including prior legislation, county and state funding commitments, and the recent federal determination that the site meets VA criteria for a state veterans cemetery. The first panel, representing the veterans community, included the American Legion, American Gold Star Mothers, and Valor. They argued that Orange County—home to a large veteran population—still lacks a local veterans cemetery, forcing families to travel long distances to Riverside or elsewhere. Testimony stressed the emotional and practical burden on aging veterans and grieving families, and called for immediate action and possession of the property. Some speakers were sharply critical of CalVet and the pace of the process, saying veterans have waited too long and that the project should move forward without further delay. The second panel, from Orange County, described the county’s and cemetery district’s support and the unique opportunity to develop a shared site for a public cemetery and a separate state veterans cemetery. County officials said the county has dedicated land and funding, and that shared infrastructure—roads, utilities, grading, and access—could reduce costs substantially if the two projects are coordinated. They also said the county is ready to transfer the property to CalVet when appropriate and that the project has already cleared major local approvals and litigation. The final panel from DGS and CalVet explained the state’s feasibility study and current planning work. DGS said the 2023 study estimated the state’s portion of phase one at about $126 million, largely driven by site work and grading, though that estimate may change as assumptions are updated. CalVet said it is working with DGS and the county on a revised concept plan to lower costs and refine the timeline, and that legislative budget action will be needed to authorize spending from the Southern California Veterans Cemetery fund. No formal vote was taken; the hearing was informational, and the main action was continued coordination among the state, county, city, and veterans groups, with public comment at the end overwhelmingly urging faster construction.

Transcript Highlights:

• We have over 20 federal employees paid by the federal government to assist with family readiness mental
• So, the federal funding shutdown and changes in federal funding have not impacted us at all.
• It's a small component of the bigger project because the bigger project also involves new hardware and
• This is not a projection.
• You guys are spending on projects.

Committee: House A&B General Government Subcommittee

Transcript Highlights:

• That's the federal excise tax.
• That 2% reflects stalled potential projects.
• And of course, most of this is on federal government projects.
• But if the projects came forward, we are going to have expenses from the state and federal government
• It doesn't say which projects will be funded by which ways.

Committee: House Resources and Conservation

Transcript Highlights:

• projects.
• There are just project after project after project that we have to to refuse. And Mr.
• We fund projects.
• the projects...
• So when it comes to the analytics, it's just based upon the project on a project-by-project basis?

Transcript Highlights:

• If a project is being done on federal land purchased with federal dollars years ago, that requires an
• It's the Middle Snake Tamarac River Watershed District, a large project, and the watershed and the federal
• is being done on and if a project is being done on Federal<00:23:42.159><c> Land</c><00:23:42.440><c
• > purchased</c><00:23:42.840><c> with</c><00:23:43.000><c> federal</c> Federal Land purchased with federal
• </c><00:24:21.919><c> is</c> project site and that project is project site and that project is effectively

Transcript Highlights:

• Our forecast for the federal funds interest rate, this is the rate the Federal Reserve controls, indirectly
• The federal H.R. 1 made three major changes to Medicaid.
• Development of the federal Columbia Basin Project slowed in the 1960s and '70s, and the state issued
• project.
• any large infrastructure project, like transportation.

Committee: Senate Ways & Means

Summary: The Ways and Means Committee met for a work session and first heard an economic and revenue forecast update from the Economic and Revenue Forecast Council. The forecast described moderate U.S. growth, elevated near-term inflation, weak Washington employment growth in 2026, continued personal income growth, and slower housing permit activity. Revenues were revised up about $105 million for the current biennium and down about $185 million for the next biennium, with uncertainty tied largely to tariffs, federal policy, and the recent federal shutdown. Members asked about the outlook for February, income inequality, and housing affordability; the presenter said the forecast does not measure income distribution and that housing permit data does not directly address affordability. The committee then received a caseload forecast update. Most forecasts were unchanged or nearly unchanged, but several programs moved: Washington College Grant caseloads rose, TANF and Working Connections changed due to immigration-related assumptions and updated policy timing, and long-term care caseloads increased. The largest change was in Medicaid low-income adults, where federal H.R. 1 was projected to reduce caseloads significantly through narrower non-citizen eligibility, community engagement requirements, and shorter eligibility periods. Members raised concerns about downstream effects such as uncompensated care and higher premiums, and the presenter noted some effects could be delayed depending on federal implementation guidance. A wildfire funding and 2025 fire season update followed. Staff explained the state’s base wildfire suppression funding and estimated a supplemental need of about $139 million in state funds. DNR reported a busy fire year with lower snowpack, drought, more than 1,100 DNR jurisdictional fires, about 76,000 acres burned, 31 aircraft used, 690 DNR firefighters, and 350 out-of-state resources brought in; the agency said its suppression effectiveness improved to 94.1% of fires kept under 10 acres. Questions focused on National Guard use, aircraft counts, and the higher number of residences lost in complex fires. The committee then heard a budget preview showing the near general fund outlook worsening to about a $4.3 billion ending balance by fiscal year 2029 after maintenance-level costs, while noting that policy items such as wildfire costs and liability account decisions were not yet built in. The final major topic was the state’s tort liability and self-insurance account, where the Risk Manager reported a sharp rise in indemnity costs, from $223 million in fiscal year 2023 to nearly $500 million in fiscal year 2025, driven largely by DCYF claims, especially sex abuse cases. Defense costs also rose as the Attorney General’s Office relied more on special assistant attorneys general to handle volume. Members asked about older claims, comparisons with other states, insurance coverage, and whether costs might decline if the AG’s office hires more attorneys. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust about statewide water shortages, declining snowpack, drought, overappropriated basins, and the need for more storage, recharge, conservation, and enforcement. Tribal witnesses emphasized water sovereignty, salmon habitat, and the need for tribes to be involved early in legislation, while Ecology described major projects in the Odessa and Yakima basins and the challenges of climate change and legal constraints. No votes were taken during the work session.

Transcript Highlights:

• to award federal penalty funds to CMS-approved local projects that directly improve the quality of life
• Federal cuts under HR1 threaten to increase administrative burdens and reduce access to Federal cuts
• Mass Social Services Foundation, part of the CRDP project.
• Federal cuts under HR1 threaten to increase administrative burdens and reduce access to Federal cuts
• . mass social services foundation part of the CRDP project.