Transcript Highlights:

• To start us off today, we will be receiving program updates and conducting oversight regarding the programs
• A successful program since 2022.
• And you'll hear from some of our program partners on these three programs that I've just summarized.
• , Pathways Program.
• rollout, program coordination.

Summary: The subcommittee heard an informational update from the Governor’s Office of Business and Economic Development on the state’s Jobs First economic development strategy and related budget requests. Go-Biz described its regional planning process, priority sectors such as ag-tech, space defense, life sciences, and semiconductors, and requests including an extension of the CalCompetes tax credit, support for export promotion, additional film commission staff, innovation and emerging technology capacity, and a California brand campaign. Members questioned the campaign’s purpose, with some supporting efforts to counter misinformation about California and others warning it should not obscure regulatory and business-climate concerns. Go-Biz said the campaign would be nationally focused, could include business attraction efforts, and was intended to complement—not replace—policy work on permitting and workforce development. The item was informational only. The committee then heard from the California Office of the Small Business Advocate on the California RISE program, the Performing Arts Equitable Payroll Fund, and the Technical Assistance Program/Capital Infusion Program. CalOSBA reported that California RISE’s first round awarded $16.9 million to 61 employment social enterprises, which collectively increased revenue, secured contracts, and employed thousands of people facing barriers to work; a second round is being launched with a new administrator and expanded services. For the performing arts payroll fund, the office said all 100 awardees had been paid, but demand far exceeded available funding, and the program was oversubscribed within days. California for the Arts testified that the sector remains fragile after COVID and urged statutory changes to simplify eligibility and stretch dollars further. SBDC representatives described TAP/SIP as a statewide network supporting small businesses, capital access, and disaster recovery, emphasizing their role in underserved communities and the leverage of federal matching funds. Committee members focused on whether these programs produce durable outcomes and reach smaller or disadvantaged businesses. Questions centered on long-term job retention in California RISE, outreach to ethnic and community media in the civic media program, and whether TAP/SIP are accessible to entrepreneurs with limited capital or capacity. CalOSBA and its partners said they rely heavily on local community organizations for outreach, provide one-on-one counseling and training, and are working to collect more longitudinal data. The committee also discussed the film and television tax credit program, for which Go-Biz requested funding for three permanent positions and ongoing program support. Film Commission staff said the expanded program is tracking demographic and career-pathway data, with most productions opting into new diversity provisions, and that a formal report to the Legislature is expected in 2027. The item concluded without a vote, as the hearing was for oversight and budget discussion.

Transcript Highlights:

• to new grant programs created, looking at those and focusing on those newer programs and really asking
• , the SHEEP program.
• , the sheep program.
• It's not a standalone program.
• capacity of the current program.

Bills: SB5998

Committee: Senate Ways & Means

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

Transcript Highlights:

• of this program, protections offered under SIBTF are now provided by other policies and programs that
• But the initial program, which is okay because programs change... There have been others applying.
• But the initial program, which is okay, because programs change over decades, of course.
• So I appreciate the program. ...workers that we see. So I appreciate the program.
• I hope to continue to grow in this program and this organization as a full-time program associate.

Summary: The Budget Subcommittee on State Administration heard presentations on the Department of Industrial Relations’ labor-related budget items, with the main focus on proposed trailer bill language to reform the Subsequent Injury Benefits Trust Fund (SIBTF) and a related budget change proposal for staffing. DIR said SIBTF has grown far beyond its original purpose, citing the 2020 Todd decision, expanded eligibility based on chronic or asymptomatic conditions, and a backlog that has grown to more than 30,000 pending cases. The administration argued the reforms would restore guardrails, reduce liabilities and employer assessments, and speed processing for severely injured workers; the LAO said the proposal was largely consistent with its prior recommendations. Members raised concerns about using trailer bill language for major policy changes, the retroactive application to open cases, and the impact on workers already in the queue, while supporters from employer groups and public agencies backed the proposal as necessary to control costs and restore sustainability. Public comment was split, with injured-worker advocates opposing the retroactive changes and business/public employer representatives supporting the reforms. The committee then heard the SIBTF workload request, which would phase in 177 positions over five years at a cost of $36.5 million, including staff for the Division of Workers’ Compensation, the Office of the Director Legal Unit, and administrative support. DIR said the additional staffing is intended to address very high caseloads and reduce processing times, but emphasized that the request assumes the reform package is adopted; LAO agreed the staffing increase made sense if paired with reforms. Members asked about vacancy rates, current staffing, and whether the workload request would become the new normal, and DIR said it would monitor caseload trends and adjust future requests as needed. Finally, the committee received an update on the California Workplace Outreach Program (CWOP), which DIR described as a partnership with community-based organizations to educate workers and help employers comply with labor laws. DIR reported that CWOP has reached 1.75 million workers and employers and made 8 million touchpoints since 2020, with the current round awarding $50.7 million to 87 partners for a two-year period through June 2027. Members and public commenters highlighted the program’s role in reaching immigrant, farmworker, janitorial, nail salon, and other vulnerable communities, and several speakers urged continued funding at $30 million per year for five years. No votes were taken during the hearing.

Transcript Highlights:

• WICHE offers three major student access programs. WICHE offers three major student access programs.
• Our graduate program is the Western Regional Graduate Program, or WRGP.
• Excuse me, student access programs—they were called student exchange programs, but we are...
• access programs they were called student exchange program but we are excuse me, student access programs
• , especially a program as important as the school safety program.

Committee: Senate Senate Education Committee of Reference

Summary: The Senate Education Committee of Reference first heard a sunset review of the Credit Enhancement Eligibility Board. Governor’s Office staff explained that the board was created in 2016 to lower borrowing costs for qualifying schools by providing a state guarantee that improves credit ratings, but the board has no dedicated staff or budget and is now largely in a monitoring role because it has reached its statutory leverage cap. Members discussed the long maturities of the approved financings, whether rural districts might benefit from additional capacity, and why a 10-year continuation was being requested. The committee voted to recommend continuing the board for 10 years until July 1, 2036. The committee then heard a sunset review of the Western Interstate Commission for Higher Education (WICHE). WICHE’s president described the interstate compact, its regional student access programs—WUE, WRGP, and PSEP—along with behavioral health fidelity reviews and cooperative purchasing savings. Testimony emphasized tuition savings for Arizona students, the return of health care graduates to Arizona, and the value of regional collaboration. The committee voted to recommend continuing WICHE for 10 years until July 1, 2036. Finally, the committee reviewed the Arizona Department of Education School Safety Program performance audit. The Auditor General reported that the program has grown substantially, but many sampled schools were not fully complying with requirements such as operational plans, safety teams, training, activity logs, and reimbursement documentation. The department agreed with the finding and said it would implement the recommendations. The school safety director responded that the department has already begun tightening monitoring, training, and documentation procedures, and he answered questions about emergency plans and campus safety. No further action was taken on the audit, and the meeting adjourned.

Transcript Highlights:

• PROGRAM COMPLETELY VOLUNTARY.
• THROUGH THE PARTICIPANT DIRECTED OPTION PROGRAM UNDER THAT PROGRAM.
• BUT NEVER ENROLLED IN THE PROGRAM.
• WE ALSO CREATED A NEW WEBSITE DEDICATED TO THE PROGRAM WHICH PROVIDED INFORMATION RELATIVE TO THE PROGRAM
• JOIN THE PROGRAM BECAUSE HE GOT TO START GOING TO AN ADULT DAY TRAINING PROGRAM.

Transcript Highlights:

• Take advantage of this program.
• hiring in other programs.
• For many years, It has been called the Pilot Agricultural Microloan Program, but we've had this program
• Time to develop a good program that works for farmers. So, we developed a pilot program.
• to get the program kickstarted.

Committee: House Agriculture, Veterans, Broadband, and Rural Development

Transcript Highlights:

• To start us off today, we will be receiving program updates and conducting oversight regarding the programs
• And you'll hear from some of our program partners on these three programs that I've just summarized.
• All productions that are a part of the program are in the internship, or in the apprenticeship program
• , Pathways program.
• rollout, program coordination.

Transcript Highlights:

• Senior escort programs will shut down. Youth prevention and know-your-rights programs will be cut.
• . lose more than programs.
• But these programs were able to leverage and continue and extend some of those programs as well.
• But these programs were able to leverage and continue and extend some of those programs as well.
• These programs were able to leverage and continue and extend some of those programs as well.

Committee: House Human Services

Transcript Highlights:

• program.
• poverty programs.
• One of our largest programs is the Women, Infants, and Children Program.
• Another program that we offer is the fruit and vegetable incentive program.
• branch of the SNAP program.

Summary: The House Agriculture and Natural Resources Committee held a work session on food systems and food security, with no public testimony. The first panel focused on household food security and data. Marie Spiker of the University of Washington explained what food insecurity means, its health impacts, and the importance of reliable measurement, warning that the federal Census food security data is being terminated and that there is no true replacement. She described Washington’s WaFOOD surveys as a useful complement, not a substitute, and noted that they show food insecurity affects households at a range of income levels. Katie Raines of WSDA described the state’s food systems work, the need for shared data and dashboards, and the role of agriculture in both food production and the hunger safety net. Committee members asked about the $2.2 million state food assistance allocation, the scale of the SNAP gap, and how household size, housing costs, and other factors intersect with food insecurity. The committee then heard from Tracy Roof of the University of Richmond on the history of SNAP and its relationship to agriculture. She traced the program from Depression-era commodity distribution through the modern farm bill, emphasizing that food assistance has long functioned both as anti-hunger policy and as an agricultural and economic stabilizer. She highlighted how SNAP expands during recessions, supports retailers and farmers, and has become more important since the Great Recession because participation stayed high even as the economy recovered. Roof also noted that Washington has relatively high SNAP participation and low payment error rates, but that recent federal changes could reduce eligibility and shift more costs to states. Members asked how Washington compares to other states and why the program is structured as it is. A later panel featured the Washington State Food Policy Forum and a joint systems presentation from the Washington Farm Bureau, Washington Retail Association, and Washington Food Industry Association. The Food Policy Forum described its consensus-based recommendations on food insecurity, climate and water, regional food infrastructure, farmland protection, and farm viability, including more support for producer purchasing, water planning, and farmland conservation. The industry groups presented a systems map showing how agriculture, processing, retail, and transportation are interconnected, and argued that rising costs, regulations, labor and fuel expenses, retail theft, and thin margins make it harder to keep farms and stores viable. They said food security depends on store viability and local agricultural profitability, and promised to provide a more detailed list of policy recommendations. The final panel included state agency staff from DSHS, DOH, and WSDA. Bryce Montgomery said the Basic Food program serves about 920,000 Washingtonians monthly and warned that H.R. 1 could require Washington to pay up to 15% of SNAP benefits, broaden work requirements, and restrict immigrant eligibility. Karen Mullen described DOH nutrition programs, including WIC, farmers market nutrition benefits, fruit and vegetable incentives, and a fruit-and-vegetable prescription program, while noting funding instability and the end of SNAP-Ed. WSDA’s Katie Raines began describing ongoing food assistance and farmer support challenges, including farmer mental health and the need to address food insecurity across both producers and consumers.

Transcript Highlights:

• The hurricane loss mitigation program is a state program.
• The hurricane loss mitigation program is a state program.
• Those state programs leverage not only IBHS science, Such programs.
• or so in that program.
• You talked about a lot of programs and accessing those programs.

Committee: Senate Banking and Insurance

Summary: The Banking and Insurance Committee heard a series of presentations focused on mitigation, flood and wind resilience, and insurance discounts. Kevin Guthrie of the Florida Division of Emergency Management outlined several funding streams for mitigation, including federal Hazard Mitigation Grant Program dollars, BRIC grants, flood mitigation assistance, and the state hurricane loss mitigation program. He emphasized the new Elevate Florida initiative, which will use about $400 million initially to elevate or reconstruct flood-prone homes, starting with National Flood Insurance Program properties and severe repetitive-loss homes, with no current per-home cap. Guthrie said the state will contract directly with licensed vendors and aims to reduce future flood losses, lower insurance costs, and keep properties on the tax rolls rather than relying on buyouts. Insurance Commissioner Mike Yaworski described Florida’s windstorm mitigation discount program, explaining that the 1802 inspection form is used to assess a home’s overall “envelope” and determine statutory discounts. He said the office is updating the program based on a new wind loss study, with likely changes including greater recognition of roof types such as metal roofs and possible territorial risk adjustments. He also said the Legislature now requires the office to revisit the study every five years. Stephen Fielder of the Department of Financial Services reported on My Safe Florida Home, noting that the program offers inspections and grants for roof and opening protections, has completed more than 100,000 inspections, and has reimbursed hundreds of millions of dollars. He said the department has validated its discount calculations with insurers and that the program is intended to help homeowners reduce premiums through verified mitigation work. Michael Newman of the Insurance Institute for Business and Home Safety said Florida’s building code is nationally leading and that post-Ian surveys found no wind-driven structural damage in buildings built after adoption of the code. He argued that mitigation should be treated as a system, not isolated upgrades, and suggested adding Fortified designation to the state’s mitigation form to better document verified resilience improvements. Bill Truex, a county commissioner and builder, stressed the need to educate homeowners about floodproofing and roof choices, citing examples where flood panels prevented damage and noting that asphalt shingles often do not last as long in Florida as their marketing suggests. In panel discussion, senators asked about program eligibility, outreach to elderly and digitally challenged residents, contractor vetting, roof-life disclosures, and whether flood insurance should be more broadly required. Officials said outreach will include call centers and in-person assistance, and several participants urged better consumer disclosure and more data-driven guidance on roof and mitigation choices.

Transcript Highlights:

• In the Medicaid program, we're referring to this as a family home health aide program.
• health aide program.
• to as the SMMC program.
• program to an opt-out.
• have in our Medicaid program.

Summary: The subcommittee held its first meeting of the 2025-2026 term, took attendance, confirmed a quorum, and heard introductory remarks from members and staff. Chair Anderson outlined the subcommittee’s jurisdiction over access and affordability issues, including health facility regulation, insurance, Medicaid, CHIP, and state employee health coverage. The main agenda item was an update on implementation of HB 391, which created a family home health aide program for medically fragile children. Representative Tramont, the bill sponsor, explained that the law was intended to let trained family caregivers be paid through Medicaid to care for their children, reduce reliance on private duty nursing, and relieve families. He and several members expressed frustration that implementation had taken nearly two years and that families still faced barriers. Deputy Secretary Brian Meyer of AHCA and Bridget Royce of DCF said the program was implemented October 1, 2024, with billing available, but no home health agencies had yet launched the required 80-hour training program and no claims had been paid. They described the program’s requirements, including agency employment, background screening, training, a $25-per-hour Medicaid rate paid to the agency, and an annual assessment report. A major issue discussed was that income earned by family caregivers counts toward Medicaid eligibility and could cause families to lose coverage. AHCA and DCF outlined two possible fixes that would require CMS approval: disregarding the income for eligibility purposes or treating the child as a family of one. Members and public witnesses strongly urged changes to avoid forcing families to choose between income and coverage. Several providers said they had begun preparing training programs, but asked for clearer approval processes and more patient-specific training requirements. The committee then heard extensive public testimony from parents and caregivers of medically fragile children, who described the financial, emotional, and logistical strain of caring for children with severe disabilities and argued that the bill should be expanded to include Florida KidCare families and others in the coverage gap. They also raised concerns about the eight-hour-per-day limit, low pay, and the need for simpler rules and direct support. Home health providers and associations supported the concept but asked for modifications, including more targeted training and clearer implementation guidance. The meeting then shifted to a second agenda item on the Andrew John Anderson Rapid Whole Genome Sequencing Program, which was funded in the 2023 budget. Deputy Secretary Meyer said the program has been implemented since January 1, 2024, but utilization has been lower than expected, with only about 60 claims paid and many denials occurring through managed care. Public testimony from a lab, a hospital, and a pediatric rare disease expert said the program is clinically valuable and cost-saving, but managed care billing barriers, prior authorization issues, and DRG-related denials are limiting access; they urged direct billing to Medicaid and possible expansion to all newborns.

Transcript Highlights:

• The health insurance counseling and advocacy program, or HICAP, is a program designed to educate and
• The health insurance counseling and advocacy program or high cap is a program designed to educate and
• Home Program.
• They're not new programs per se.
• But not any programs. No programs are going to be additional.

Transcript Highlights:

• The first program we're going to talk about is the Empower Program.
• Ashley Bradley is the director of the program. The program launched in 2017.
• And another program that we also wanted to discuss is the Autism Support Program, which is a similar
• Forge, supported employment program called Program Forge, that Marianne will cover.
• It is an individualized program.

Committee: All TASK FORCE ON AUTISM

Summary: The meeting opened with routine business, including approval of the January 13, 2026 minutes, and a brief recognition of Autism Awareness Month. The task force then heard a presentation from the University of Arkansas College of Education and Health Professions on two student support programs: the Empower Program for non-degree-seeking students ages 18–24 with mild intellectual disabilities, and the Autism Support Program for degree-seeking students with autism. Speakers described academic coaching, peer and career coaching, residential supports, person-centered planning, internships, and scholarship/fee structures, noting that both programs charge a $5,000 per-semester fee and rely on scholarships and fundraising to offset costs. Members asked about dorm arrangements, individualized plans, and how students transition in and out of supports; presenters explained that Empower students remain in the program throughout, while Autism Support Program students may enter or leave services as needed. The committee next heard from Pulaski Technical College’s 3D program, a three-year transition and post-secondary program for students with intellectual and developmental disabilities focused on culinary, baking, and hospitality training. Presenters outlined integrated classes with traditional students, faded support over time, internships, and outcomes such as 97 students enrolled since the program began, 57 graduates, strong completion rates, and many graduates obtaining and retaining jobs in the food service industry. Members asked about how success is measured, why rates are not 100 percent, the role of integrated classes, tuition, and community partnerships; staff explained that grading includes technical and professional skills, tuition is $5,700 per semester, and scholarships such as GETS and FAFSA help reduce costs. They also noted plans to expand offerings and pursue accreditation through the Inclusive Higher Education Accreditation Council. Finally, the task force received a presentation from SLS Community, a Fayetteville nonprofit serving neurodivergent adults through residential supports, supported employment, community activities, and advocacy. Leaders described a long-term vision tied to the Cato Springs mixed-use development, where housing, jobs, clinical services, and community amenities would be integrated in a “live, work, play” model. They discussed a residential program, a new vocational program called Program Forge, community events, and the challenges of the “services cliff” after age 21, especially for adults with complex support needs. Members and parents spoke about the importance of trained direct support professionals, ABA-based supports, and the need for better funding and service models for adults. The meeting ended with announcements about upcoming autism-related events and a request for future discussion on task force appointments and broader issues around ABA oversight and misuse.

Transcript Highlights:

• capacity in one of our programs.
• schools to use program monies to ...program provisions, including authorizing schools to use program
• So going back to 2018, the school safety program was a $12 million program. It's funny...
• Going back to 2018, the school safety program was a $12 million program.
• We appropriated money for the grant program, but no money to administer the program, apparently.

Committees: House Education , House House Education Committee of Reference

Transcript Highlights:

• has significant overlap with the Cal Grant program.
• Program.
• Since it is a program that addresses the total cost of attendance, the program would need to increase
• More accelerated programs, three-year degree programs as opposed to four.
• So when we look at graduate programs, professional programs, are there any thoughts to possibly think

Summary: The subcommittee on Education Finance heard an overview of the governor’s budget proposals and higher education financial aid trends, with a major focus on the Middle Class Scholarship (MCS), Cal Grant spending, and the effects of recent federal student aid changes. The Department of Finance said the budget would fully fund Cal Grant at projected levels and reduce MCS coverage from 35% to 17.5% of unmet need in 2026-27, while the Legislative Analyst’s Office supported considering the reduction as a cost-saving measure given out-year deficits. UC and CSU representatives opposed the cut, saying MCS is important to affordability and debt-free degree goals; they estimated average awards would fall substantially and that campuses do not have funds to backfill the loss. The Student Aid Commission said the proposal would reduce aid but simplify administration, and members questioned how lower awards would affect students, borrowing, and work-study options. No vote was taken, and the issue was held open for possible future action. The committee then discussed federal changes to student loans and Pell Grant policy under H.R. 1, including caps on Parent PLUS loans, elimination of Grad PLUS loans, and new proration rules for federal direct loans based on enrollment intensity. The LAO said these changes would likely push some borrowers into the private market, especially graduate and professional students and some parents of students at private institutions. CSU said the changes would affect thousands of graduate and part-time students and could reduce access by about $97 million in loan availability for part-time borrowers, while UC said the new definitions of professional degrees were too restrictive and would reduce access for nursing, teaching, law, dentistry, and other programs. Community colleges said they use relatively little federal loan aid but are monitoring Workforce Pell. Members raised concerns about workforce impacts, social mobility, and whether the state should consider alternative loan programs or other ways to reduce student costs. This issue was also held open. In the segment financial aid update, the LAO reported Cal Grant spending is projected to rise to about $3.2 billion in 2026-27, driven by more recipients and higher awards tied to UC and CSU tuition increases, while CSAC said FAFSA and CADAA applications are up significantly year over year. CSU, community colleges, and UC described their aid packaging and rising aid totals, with CSU reporting over $5.5 billion in aid to 381,000 students, community colleges reporting over $4.3 billion to more than 920,000 students, and UC reporting $3.17 billion in grant aid to undergraduates. Members asked about Cal Grant reform, application trends, and long-term outcomes; UC and community colleges pointed to alumni and wage dashboards, and the LAO noted the state’s Cradle to Career data effort. The committee then took public comment, including testimony on library funding and other education-related priorities, and concluded by holding the issues open without formal action.

Transcript Highlights:

• It's a balancing act in the program, and they set a very ambitious and unique program for us.
• examples of how implementation looks in the program, as well as how change happens in the program.
• DNR also employs a program administrator who oversees the program.
• And lastly, it's a developing and responsive program. There will be changes in this program.
• Our F2P program, the Family Forest Fish Passage Program, invested nearly $50 million since its inception

Committee: House Agriculture & Natural Resources

Transcript Highlights:

• To start us off today, we will be receiving program updates and conducting oversight regarding the programs
• , Pathways program.
• , Pathways program.
• rollout, program coordination.
• 6 of the program.

Summary: The subcommittee heard an overview from Go-Biz Director D.D. Myers on the administration’s economic development strategy, centered on the California Jobs First framework. Myers described regional planning across 13 regions, the Jobs First Council, and pilot sectors including ag-tech, space and defense, life sciences, and semiconductors. She also outlined budget requests for CalCompetes, CalExport, the California Film Commission, innovation/emerging technologies, and the California Civic Media Fund, along with the new California brand campaign. Committee members raised questions about misinformation about California, regulatory burdens, tourism versus broader economic messaging, and how the brand campaign would highlight underrepresented communities. No vote was taken; the item was informational. The committee then reviewed CalOSBA’s work on small business support, including California RISE, the Performing Arts Equitable Payroll Fund, and TAP/SIP technical assistance and capital infusion programs. CalOSBA reported that California RISE’s first cohort awarded $16.9 million to 61 employment social enterprises, with growth in revenue, contracts, and jobs; the performing arts payroll fund paid all 100 recipients but was heavily oversubscribed; and TAP supported more than 112,000 businesses in the past year, helping leverage federal and local funds. Testimony from program partners emphasized the importance of small business counseling, community-based outreach, and support for arts organizations facing post-pandemic and AB 5-related cost pressures. Senators pressed for more data on long-term job retention, better outreach to smaller and ethnic media, and possible program changes to speed grants and stretch funding further. Finally, the committee heard Go-Biz’s request for additional staff and funding for the California Film and Television Tax Credit Program. Staff said the request would support application review, DEIA implementation, and data tracking. The Film Commission reported that about 147 productions had been approved and roughly 90% were opting into the new diversity provisions, with career pathways reporting to include demographic and participation data and a future report expected in 2027. Senators asked about accountability, apprenticeship and internship hours, and whether the program was producing real career pathways and inclusive hiring outcomes. The item remained informational, with no vote or action taken during the hearing.

Transcript Highlights:

• We have five main program areas.
• Care Affordability, the CalRx program, and the Hospital Fair Billing Program.
• We are actively coordinating the program design now to build out those programs.
• prepare for this program.
• screening program and the voluntary prenatal screening program.

Summary: The hearing began with a stakeholder presentation from Let California Kids Hear urging coverage of pediatric hearing aids for children in the large group market. Advocates described the issue as a long-running developmental emergency, argued that existing state efforts have been inefficient, and said the new proposal would cover about 70% to 80% of affected children without new spending by redirecting existing dollars. Public commenters, including parents, audiologists, and children’s advocates, strongly supported the proposal and emphasized the need for timely access to sound. The chair thanked the group and noted hope for a future fix, including continued work on the exchange market. The Department of Finance then gave a broad budget warning about the state’s more than $20 billion structural deficit and said new investments must be weighed against out-year shortfalls. HCAI followed with an overview of its programs, including CalRx insulin and naloxone, reproductive health grants, the Office of Health Care Affordability, seismic hospital compliance, workforce programs, and the Data Exchange Framework. Members asked about geographic targeting of workforce funds, behavioral health pipeline programs, the status of the 21st Century Nursing Initiative, and future CalRx products such as EpiPens and GLP-1s. HCAI also described its enforcement approach for health care spending targets, saying the board would not change the targets in response to H.R. 1, and outlined the diaper access initiative, which will distribute diapers through hospitals in higher-need areas. Several HCAI budget items were discussed and held open, including additional expenditure authority, the transfer of the Data Exchange Framework and Office of the Patient Advocate, long-term care payment transparency staffing, and reporting on health care worker waiting periods. The department also presented its Behavioral Health Services Act workforce initiative and a proposed $100 million General Fund offset, which both the LAO and the chair questioned as unclear and potentially one-time in nature. HCAI said the final workforce plan would be adjusted after stakeholder consultation if the offset proceeds. The department also described the Rural Health Transformation Program, saying California received $233.6 million in federal funds, had to revise its proposal to satisfy CMS, and must obligate the money by October 30; the program will fund rural care models, workforce development, and technology, with grants rolled out on a phased basis. The Department of Managed Health Care then presented its budget and three legislative implementation requests: SB 41 on PBM reform, SB 306 on prior authorization transparency, and AB 1041 on provider credentialing timelines. Finally, the administration outlined a menopause care proposal requiring coverage and education for menopause-related services, provider training, and an outreach campaign, with DMHC requesting staffing and funding to implement and enforce the new requirements. Throughout the hearing, most items were held open for later action, and no final votes were taken in the portion provided.

Transcript Highlights:

• Now I'm going to break out rp and programs for says are are are in program.
• When we look at our current programs, I'm going to present the are in programs divided by program type
• , the ad and programs and the DS and programs statewide.
• the approved programs.
• The program is allowed us to offer nursing program for Citrus County residents.

Transcript Highlights:

• , our training program, the broader technical assistance that we provide, and then a couple program updates
• Various dollar amounts for the different programs, but in general there's a program here for just about
• And on to a couple program highlights. First, the Children Pedestrian Safety Program.
• This program began back in 2018.
• Crossing the midpoint of the program, what we're calling the midpoint of the program, we found a number

Committee: Senate Transportation