Transcript Highlights:

• Noguchi on the next panel, but effectively, this is a longstanding federally funded program that's just
• Well, that's a program that's paid for with the money that we've been receiving from the Federal Institute
• Well, that's a program that's paid for with the money that we've been receiving from the Federal Institute
• These are outreach programs, education programs, youth programs, job training programs, incubators for
• These are outreach programs, education programs, youth programs, job training programs, incubators for

Summary: The joint informational hearing focused on how recent federal actions are affecting arts, culture, humanities, libraries, museums, and the creative economy in California. Chair Ben Allen and Vice Chair Chris Ward opened by describing the hearing as a response to proposed and ongoing federal cuts to the NEA, NEH, IMLS, and public broadcasting, as well as grant terminations and leadership changes at cultural institutions. Several members emphasized the economic and civic importance of the arts, while one Republican member argued for greater ideological diversity in the arts and noted the loss of music programs in small schools. Testimony from Aaron Harky of Americans for the Arts and Jolie Fisher of SAG-AFTRA described the impact of federal policy on grants, jobs, and production. Harky said executive orders and the FY 2026 budget proposal threaten arts agencies and arts education, and that rescinded grants are causing hiring freezes, shutdowns, and losses for small organizations, especially in rural and underserved communities. Fisher focused on runaway film and television production, outdated tax rules, and the need for federal incentives, intellectual property protections, and action on AI and digital replicas. Members also discussed bipartisan support, the role of business and tourism partners, and the need to include more diverse voices in arts advocacy. The second panel featured Rick Noguchi of California Humanities, Greg Lucas of the State Library, and Danielle Purcell of the California Arts Council. Noguchi said NEH funding was cut immediately, putting California Humanities’ grantmaking and documentary programs at risk and prompting consideration of litigation and possible state support. Lucas reported that IMLS funding for California libraries was briefly canceled but partly restored, though a budget gap remains. Purcell said the California Arts Council is still awaiting federal award language for state partnership funds, but NEA grant terminations and the proposed elimination of federal cultural agencies create major uncertainty; she also said the council is assessing the damage and tracking impacts on grantees. Members asked about measuring outcomes, AI’s threat to creative work, documentary funding losses, and possible state and national strategies to protect cultural institutions and jobs.

Transcript Highlights:

• head start and some between the federal head start and some state<00:16:10.079> programs,<00:
• federal.
• > uh SNAP program the federal government uh SNAP program the federal government uh has<00:39:59.440
• bridge program.
• always look to the federal government. always look to the federal government.

Keywords: Meeting Start 00:00:00 Roll Call 00:00:11 Executive Budget 00:00:50, 958, all

Summary: The committee met to hear a presentation from Dr. Hicks on the governor’s recommended budget for the next biennium. He reviewed the revenue outlook, noting modest general fund growth, a large rainy day fund balance, and the impact of recent income tax reductions. He said the budget was built around recurring reductions, lower debt service and retirement contribution rates, and the use of excess restricted funds, while protecting K-12 education, Medicaid, postsecondary education, public safety, and pension obligations. Dr. Hicks outlined several major spending and reserve proposals, including $350 million from the Department of Insurance’s excess restricted funds to support Medicaid in the first year, $150 million for the affordable housing trust fund, $125 million for rural hospitals, $100 million to offset lost federal ACA premium tax credits, $75 million for utility assistance, and $50 million for food assistance. In education, the proposal included a phased pre-K for all plan funded by sports wagering tax revenue, a 3% annual salary increase for full-time school personnel, continued full funding of teacher pensions, a 2.5% annual increase in SEEK base funding, and additional support for career and technical education and school facilities. He also discussed Medicaid cost pressures, including higher managed care, pharmacy, behavioral health, and nursing facility costs, and explained the expected effects of federal HR1 changes on Kentucky’s Medicaid program. Those changes include work and community engagement requirements and more frequent eligibility redeterminations for expansion members, which the administration estimated would reduce enrollment by about 4,300 in the first year and 28,000 in the second year. No votes or formal committee actions were taken during the meeting, which was limited to the budget presentation and member questions.

Transcript Highlights:

• > federal oversight of the program by the federal oversight of the program by the federal health
• The community programs that we offer as a result of the savings from the 340B federal program include
• The community programs that we offer as a result of the savings from the 340B federal program include
• c><00:37:27.680> important<00:37:27.920> to federal 340b program is is important to federal
• 340b program beyond expands the federal 340b program beyond what<00:38:05.160> was<00:38:05.319

Keywords: 00:00 Introductions 02:46 Roll Call 03:35 Discussion on SB 14 46:13 Vote on SB 14 48:07 Discussion on SB 17 50:38 Vote on SB 17, 958, all

Summary: The Senate Standing Committee on Health Services opened with the chair welcoming several new members and outlining session rules: hearings would start and end on time, the committee would limit the number of bills heard each meeting, prioritize bills heard during the interim, and generally avoid using the consent calendar except in extreme circumstances. The committee then briefly considered administrative regulations, which were treated as approved if members had no questions. The main item was Senate Bill 14, a measure addressing the 340B drug discount program. The chair said the bill had already passed the Senate in a prior session and had been heard in interim, so he did not present it again. He described the bill as prohibiting drug manufacturers from discriminating against 340B covered entities by refusing 340B pricing when the same drug is offered at that price in the state. He also said the committee would not debate the federal 340B program itself, but would hear testimony on the bill. Hospital leaders and Kentucky Hospital Association representatives testified in support, arguing that 340B savings are essential to rural hospitals, oncology services, transportation support, chronic care, addiction recovery, and new service lines such as chemotherapy and hepatitis treatment. They said the program helps keep care close to home and that manufacturer restrictions on contract pharmacies have reduced access and cost hospitals millions. Opponents from BIO Kentucky and the National Alliance of Healthcare Purchaser Coalitions argued the bill would expand federal law beyond Congress’s intent, create administrative burdens, and not lower patient out-of-pocket costs. The chair repeatedly pressed opponents to address why Kentucky should be denied the same 340B pricing available in other states. No vote on the bill was taken in the portion provided.

Transcript Highlights:

• In 2025, there were some federal funding pauses that impacted several beneficial programs, including
• This current funding cycle would be the last for that program, but there is talk at the federal level
• In the past, both programs have been 100% federally funded through the Farm Bill.
• This program is a federal program that started in 2014-2015, and it's designed to reimburse high-poverty
• When we know that federal programs are already shrinking, it's really concerning to me.

Transcript Highlights:

• The California Lifeline Program, along with the Federal Lifeline Program, provides a combined $28.25
• Affordable Connectivity Program, or ACP, which was a federal program that provided a discount for broadband
• This FFA program, the Federal Funding Account, is a multi-year program and to date 108 projects have
• Things that you're forecasting as impacts and cuts to federal, from federal programs that are going to
• Assemblymember Colosa, you mentioned the Affordable Connectivity Program, which was a federal program

Keywords: 988, house, all

Transcript Highlights:

• That means we give more in federal taxes than we get back, but federal funds make up more than 50% of
• This is due to newly created market volatility because of erratic federal action and the impacts of federal
• program.
• Medi-Cal program.
• Why would we give up $300 million from the federal? From federal matching funds?

Keywords: 988, house, all

Transcript Highlights:

• financial assistance programs, also known as federal awards or federal programs.
• However, OMB does not require all federal programs to be audited every year.
• Some large federal programs in the state can be tested only every third year if they have had no material
• Medicaid is the largest federal program in the state, reporting $6.5 billion, or 53% of the state's $12.2
• Federal code requires states and territories to establish programs to contract with one or more Medicaid

Summary: The Medicaid Subcommittee of the Legislative Joint Auditing Committee met to receive a primer on the subcommittee’s history and on how Medicaid oversight works in Arkansas. Legislative audit staff reviewed the subcommittee’s origins in response to earlier Medicaid audit concerns and explained that Medicaid is audited every year in the statewide single audit because it is a high-risk, large federal program. Staff summarized recent audit findings, including issues with eligibility controls, data matching, contractor charging, incarcerated juveniles’ coverage handling, provider eligibility support, and the state’s Medicaid recovery audit contractor exception request. They also noted a DHS departmental audit finding involving employees who improperly received benefits, which was referred for possible prosecution. The Department of Human Services gave an overview of the Medicaid program, describing eligibility groups, delivery systems (fee-for-service, managed care/PASSE, and premium assistance for expansion adults), the size of the program, and the agency’s budget and provider base. DHS also outlined the difference between state plan amendments and waivers and said other committee materials would be sent to members. The Office of Medicaid Inspector General described its role in detecting and preventing fraud, waste, and abuse, explaining that it investigates suspected intentional fraud, suspends providers when there is a credible allegation of fraud, recovers improper payments in mistake cases, and recommends policy changes when trends are identified. The Attorney General’s Medicaid Fraud Control Unit explained that it prosecutes provider fraud criminally and civilly, handles neglect, abuse, and exploitation cases in long-term care settings, and works with DHS, OMIG, and federal partners. Members asked about where cases are filed, how provider suspensions work, whether beneficiary fraud is investigated, and how education is provided to providers. DHS confirmed that beneficiary fraud cases are referred to local prosecutors and said the expansion population will move toward community engagement/work requirements under federal changes, with a soft launch planned before full implementation. The meeting ended with no formal votes beyond adoption of the prior minutes and no other committee actions.

Transcript Highlights:

• The 31 federal findings related to nine different programs.
• two programs were not properly completed and submitted to Federal financial reports for two programs
• , federal programs that are being audited by the states.
• The CCDF block grant is 100% federal program.
• The CCDF block grant is 100% federal program. Now, on the state program, if you could, program.

Summary: The Legislative Joint Auditing Committee met on June 5 and first adopted prior minutes and several committee reports. The executive committee report noted adoption of its minutes, staff updates on scheduled audits, approval of an annual financial audit for the City of Horseshoe Bend, and an update on the intern program. The Counties and Municipalities report covered delinquent private water and sewer audits, compliance follow-up with towns including Denning, Gum Springs, Omer, Fargo, Jericho, and Haynes, and review of current and deferred reports; the committee filed most current reports but deferred several and referred some matters to prosecutors and the Attorney General. The Educational Institutions report said 103 education audits were reviewed, most with no findings, while several school districts had findings and one Booneville School District finding was referred to law enforcement. The State Agencies report included findings at the Department of Finance and Administration and a deferred Department of Health report, and the committee filed 13 reports. The committee then received lengthy presentations on the State of Arkansas annual comprehensive financial report and the state single audit for fiscal year ended June 30, 2025. Legislative Audit issued unmodified opinions on the state financial statements, but identified two material weaknesses: insufficient internal controls at the Office of State Technology to monitor threats and unauthorized access, and improper methodology changes and documentation issues at the Division of Workforce Services affecting year-end estimates for unemployment-related accounts. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed. Auditors reported 33 findings overall, including 31 federal findings, $12.9 million in outstanding questioned costs, and qualified opinions for the Summer Electronic Benefit Transfer program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Committee members questioned DHS, the broadband office, OST, DFA, Education, and Workforce Services about the findings, corrective actions, cyber protections, federal drawdowns, child care reporting, and accounting methodology changes. Several agencies described corrective steps. DHS said it had changed how it draws Summer EBT funds, addressed provider revalidation and incarceration-related Medicaid issues, and updated internal processes and staffing. The broadband office said the questioned costs reflected invoice documentation disputes rather than missing payments and expected Treasury review to resolve the issue. OST said it was expanding logging, endpoint detection, and enterprise monitoring, and described broader cybersecurity investments, training, and a roadmap. DFA and Workforce Services addressed the workers’ compensation and unemployment accounting issues, with Workforce Services saying it had updated its policy and submitted the methodology to DFA. After discussion, the committee voted to hold the two statewide audit reports over until the August meeting, with members asked to submit specific questions in advance so only needed agencies would return. The final item was a special report on the Hot Spring County Solid Waste Authority for January 1, 2023 through June 30, 2025. The audit reviewed compliance with laws, board procedures, bidding, payroll, permits, inspections, and cash handling. It noted prior private audit findings on segregation of duties, that recent private audit reports had not been obtained for 2023 through 2025, and that the current administrator said prior office staff and bookkeeping contractors resigned when he was hired. The authority’s operations and revenue sources were described, and the report was presented for committee review.

Transcript Highlights:

• You're likely to see the federal government discontinue the AmeriCorps program.
• Our hope is that programs like transitional housing, suicide prevention, and other grant programs will
• the funding for federal VA.
• This places the DCIP and DCCA programs at odds, with both programs essentially telling projects the other
• in dollars available for this program?

Summary: The Joint Committee on Veterans and Military Affairs met to hear updates from Joint Base Lewis-McChord, the Washington Military Department, the Washington Department of Veterans Affairs, and the Department of Commerce on federal and state impacts affecting veterans, military families, and military installations. JBLM’s garrison commander said the base remains focused on housing, child care, and spouse employment, but is facing workforce reductions tied to federal personnel actions, especially in air traffic control, 911 dispatch, and firefighting. He also said JBLM is preparing for increased mutual-aid needs during fire season, and that the Army Transformation Initiative could change unit composition at JBLM over time without a major overall population shift. He confirmed that the Lewis Army Museum is on a closure list, but said the building will remain in use for training and that the base is exploring partnerships to keep museum functions operating, possibly with volunteers or local partners. The Washington Military Department reported about 400 Guard members deployed on federal missions and described ongoing state missions in cybersecurity and firefighting. The department said the Army National Guard’s 81st Stryker Brigade will transition to a mobile combat team, with associated changes in equipment, manning, and end strength. It also warned that continuing resolutions are delaying funding, limiting new military construction starts, and increasing costs. The Washington Department of Veterans Affairs outlined a $3.2 million reduction from the governor’s budget and related cuts affecting internships, vacant positions, outreach travel, claims support contracts, counseling and wellness, veterans’ innovation assistance, and the military transition and readiness council staff position. WDVA said it is ending or scaling back several programs, including in-house nursing assistant training, the veteran farm at Ordean, Vet Corps due to AmeriCorps funding changes, and the tobacco cessation program, while noting that the legislature funded about $23.7 million in capital projects for veteran homes, cemeteries, and transitional housing. The Department of Commerce presented on the Defense Community Compatibility Account, which funds projects that reduce conflicts between military installations and nearby communities. The program currently has 10 projects across five legislative districts, including school and child care improvements, water wells, land acquisition, and a joint firefighting training center in Everett. The presenter said the main challenge is that DCCA projects often need non-state funding secured before they can compete, which can make it hard to leverage federal Defense Community Infrastructure Program dollars; he recommended more flexible state timing to help projects qualify for federal funding. In closing discussion, members raised possible future agenda items including child care near bases, veteran homelessness, suicide prevention, Navy Day, military family housing, and a possible Department of Licensing issue involving guard and reserve designations on driver’s licenses. No formal votes were taken, and the meeting adjourned after members were invited to suggest topics for the October and December committee meetings.

Transcript Highlights:

• <00:03:36.920> This state match and a 25% federal. This state match and a 25% federal.
• So therefore if an program.
• What the administrative costs to run the SNAP program are and what we were able to claim in federal revenue
• has<00:21:39.360> very program, the federal government has very program, the federal government
• do that until we got this federal grant. do that until we got this federal grant.

Keywords: 1191, senate, all

Transcript Highlights:

• The federal Coverdale education savings account program.
• This federal voucher program would divert federal funds toward a program that is not required to serve
• You've brought a bill in front of us that would, um, opt in for a federal program.
• You've brought a bill in front of us that would, um, opt in for a federal program.
• >> Front of us that would, um, opt in for a federal program.

Bills: HF3490, HF4040

Keywords: education finance, scholarship-granting organizations, charitable purposes, student scholarships, nonpublic schools, K-12 education, tax credit, advance payment, Minnesota tax law, child education expenses, taxpayer assistance, 1183, house

Transcript Highlights:

• programs, often have a higher percentage of their revenue from federal sources.
• Okay, let's move to discuss a less short-term type of program: the federal funding uncertainty, and that's
• programs.
• Many of those dollars are federal dollars when we talk about the homelessness programs that are coming
• By 1 o'clock, we have a number of federal agricultural and nutrition programs groups here to present.

Transcript Highlights:

• The second is related to the federal Hemp Program.
• As such, the transition to a federal program with minimal state costs would be the most cost-effective
• And that's why we propose shifting the program to the USDA Federal Hemp Program.
• language to implement the federal workforce Pell grant program.
• , given the federal government is set to launch the program in July.

Keywords: 987, senate, all

Summary: The subcommittee heard several May Revision proposals, primarily from the Department of Food and Agriculture, the Government Operations Agency, the Department of Technology, and the Franchise Tax Board. CDFA presented funding for the animal care program under Proposition 12, a transition away from the state hemp program to USDA oversight by January 1, 2028, ongoing support for agricultural statistics reporting after USDA reorganization, and trailer bill changes to the department’s indirect cost cap. The LAO generally supported the animal care, hemp transition, and statistics proposals, while also urging future review of the Prop 12 funding once litigation is resolved. The indirect-cost-cap language was described as technical and not increasing charges to programs, and it was held open with no objections from the LAO or Finance. The committee also discussed the new federal Workforce Pell program and related Cradle to Career funding and trailer bill language. Finance said the state is still reviewing federal rules and is focusing on basic implementation steps, with the trailer bill assigning eligibility determinations to the California Student Aid Commission, requiring data sharing through Cradle to Career, and prioritizing public institutions first. The LAO urged caution because the federal rules were just finalized and said the Legislature should better define the process and costs before appropriating the $1.3 million requested for Cradle to Career. Members raised policy concerns about limiting the program to certain institutions and about aligning the proposal with pending legislation and broader workforce policy. The Department of Technology presented a $1 million request for Poppy, the state’s digital assistant, to expand a secure GenAI platform for state employees. Members asked detailed questions about data security, model training, bias controls, and whether the system could eventually support local governments; CDT said the system uses state-controlled cloud infrastructure, does not use user data for training, and quarantines new models for review. CDT also sought provisional authority for the Middle Mile Broadband Initiative to cover possible operating shortfalls while the network is still being built; the LAO remained concerned about broad spending authority, and several members questioned the revenue assumptions and oversight. FTB then proposed retaining a smaller set of CalFile resources after the federal Direct File program was discontinued, with the LAO saying the reduced staffing level was broadly reasonable but still worth legislative scrutiny. The committee also began hearing the administration’s revenue proposals, including a permanent limitation on business tax credits and a tax on electronically delivered prewritten software, with the LAO generally supporting the goal of raising ongoing revenue but recommending changes to the software proposal’s exemptions and business-use treatment.

Transcript Highlights:

• So, the elimination of NHP is not just the elimination of one federal program ending.
• So, so these federal, um, in the same way that the uncertainty is messing with your programs, it's also
• So, some of the basics about what is the Medicaid program: it is a federal-state partnership.
• Medicaid program uh it is a federal Medicaid program uh it is a federal state<01:12:36.719> partnership
• So, um, we—the Medicaid program operates using sort of like a contract that we have with the federal

Keywords: 910, house, all

Summary: The House Committee on Human Services held an informational briefing on the impacts of federal funding cuts, inflation, labor shortages, and chronic underfunding on Hawaii’s nonprofit social safety net. Hawaii Community Foundation opened with a story about a federal worker family relying on food pantry support, then described a “perfect storm” facing human services nonprofits: historically high demand, rising costs, staffing challenges, federal cuts, and state and county contracts that do not cover true service costs. The foundation said it has reactivated its Hawaii Resilience Fund, launched strengthened service grants, and is tracking policy changes and data to help nonprofits respond. Trey Gordner of UHERO presented research on the vulnerability of Hawaii’s nonprofit sector, explaining a framework that assessed political, financial, and structural risk. He said about 8,200 501(c)(3) nonprofits are active in Hawaii, but only about 200 receive direct federal funds; 74 grants to 59 organizations were flagged as politically at risk, totaling about $126 million in unpaid obligations. He said about 68 of the direct-funding recipients rely on federal funds for more than 20% of annual revenue, and that human services nonprofits are among the most exposed subsectors because they serve vulnerable populations and depend heavily on federal support. Catholic Charities Hawaii and the Hawaii True Cost Coalition said community-based organizations were already under strain before the current crisis, with most contracts not covering full costs and many groups depending on private philanthropy to fill gaps. They reported that half of surveyed organizations expect to reduce programs, more than a third may decline future contracts, and some are waiting months for reimbursements. Examples included reduced shelter admissions, fewer case management hours, and cutbacks in kūpuna services. The coalition urged higher contract rates, regular inflation and cost-of-living reviews, and timely reimbursement; no votes or formal actions were taken. Partners in Development Foundation described the loss of Native Hawaiian education funding as especially damaging, saying the federal Department of Education has zeroed out support that creates a roughly $46 million gap, including about $20 million for early childhood programs. The speaker shared a family story from the Nā Pono program to illustrate how early learning services support both children and parents, and warned that the organization’s federal funds make up 72% of its budget. The briefing ended with a call for continued emergency funding and longer-term structural changes to sustain nonprofits statewide.

Transcript Highlights:

• This program is both a federal program, the Supplemental Nutrition Assistance Program, and also our state-funded
• would otherwise qualify for the federal program but for their immigration status.
• I also want to say this is a two- ...bars make them ineligible for the federal program.
• the federal ledger onto state-funded programs and campus operating budgets.
• program, which all states do, and draw down federal Medicaid matching funds.

Summary: The committee held a work session focused first on juvenile rehabilitation system capacity. DCYF officials said the juvenile rehabilitation population is older, includes more adult-sentenced youth, and has longer lengths of stay, especially for “post-25” youth who must remain in secure facilities and cannot go to community beds. They described overcrowding at Green Hill School, placement limits at Echo Glen and Harbor Heights, staffing turnover, mental health acuity, and the need for more medium-security and specialized mental health beds. DCYF said it is pursuing a Parkland facility proposal, a staffing model decision package, and a broader feasibility study and master plan update. No votes were taken; members were asked to follow up with questions later. The committee then heard on behavioral health system capacity from the Behavioral Health Administration and the Health Care Authority. DSHS described growth in forensic and civil bed need, expansion at Olympic Heritage, Maple Lane, and Brockman, and construction of a new 350-bed forensic hospital at Western State expected to open in 2028. HCA reported progress on long-term civil commitment beds, intensive behavioral health treatment facilities, PACT teams, and intensive residential treatment teams, saying the community-based system is being expanded to support step-down care and reduce hospital reliance. Members asked about whether capacity is right-sized, the difference between facility types, and federal match eligibility for services. A federal funding update followed, covering the effects of H.R. 1 and H.R. 5371 on SNAP, Medicaid, marketplace coverage, long-term services and supports, K-12, higher education, and hemp regulation. OFM and agency staff said H.R. 1 adds work requirements, changes non-citizen eligibility, increases state administrative and benefit costs, reduces Medicaid and marketplace subsidies for some groups, tightens redeterminations, and may significantly affect provider payments and state-directed payments. H.R. 5371 extended federal funding through January 30, 2026 and included some agency appropriations and other provisions, including changes affecting hemp producers. Members asked about SNAP error rates and special enrollment periods. Finally, budget coordinator Mary Monroe gave a 2026 supplemental budget preview. She reviewed the state’s near general fund outlook, noting revenue declines since the enacted budget, the effect of reversions, and a preliminary maintenance-level outlook showing a projected increase in NGFO spending over the four-year period. She said the supplemental will reflect updated caseload and cost forecasts and mandatory impacts from H.R. 1, but not policy proposals. No actions or votes were taken during the session.

Transcript Highlights:

• earlier unknowns regarding federal earlier unknowns regarding federal policy<00:02:41.280> changes
• not incorporate any effects of federal not incorporate any effects of federal worker<00:10:36.480
• When the Federal Reserve raises the federal funds rate, it puts upward pressure on mortgage rates by
• <00:30:36.240> federal blue in the total the federal federal blue in the total the federal
• entitlement program.

Keywords: 919, house, all

Summary: Minnesota Management and Budget presented the February 2025 budget and economic forecast, with Commissioner Aon Campbell, State Economist Anthony Becker, and Budget Director Anam Mingi outlining updated revenue, spending, and long-term balance projections. The state’s FY 2026-27 general fund outlook remains positive but weaker than in November, with an ending balance of $456 million, down $160 million from the prior forecast. Looking ahead, the planning years FY 2028-29 show a projected deficit of just under $6 billion, driven largely by spending growth outpacing revenues. Officials emphasized that discretionary inflation is a major factor in the forecast, but also noted that those amounts are not automatically appropriated and would require legislative action. Becker said the national outlook has changed since November, with higher expected inflation, higher interest rates for longer, and slower growth in later years. He highlighted uncertainty around tariffs, trade policy, immigration policy, federal spending, and possible changes to tax and debt-ceiling policy, all of which could affect Minnesota’s economy and revenues. Minnesota’s labor market remains tight, with low unemployment and rising wages, and the revenue forecast was revised upward overall for FY 2026-27, including higher income and sales tax receipts, though corporate tax revenue was slightly lower than previously projected. Mingi said projected general fund spending is up $79 million in FY 2026-27 and $960 million in FY 2028-29 compared with November. The largest increases are in education and health and human services, especially due to inflation, higher pupil counts, special education costs, long-term care, and higher Medical Assistance spending. She noted that higher utilization of weight-loss drugs also raises Medicaid costs, and that a smaller assumed bonding bill helps offset some debt service costs. The commissioner and staff repeatedly warned that federal policy changes, especially possible Medicaid reductions, pose a major risk; they said Minnesota could face billions in lost federal funding, including a potential $2.4 billion hit if the enhanced Medicaid match for adults without children were eliminated. No votes or legislative actions were taken in the presentation.

Transcript Highlights:

• . programs. programs.
• And so at the federal level, programs run on deficits.
• called the federal deficit. called the federal deficit.
• And so at the federal level,<00:53:49.680> programs<00:53:50.160> run<00:53:50.400>
• in bachelor degree programs. in bachelor degree programs.

Keywords: 1187, senate, all

Transcript Highlights:

• The services in this bureau depend on state and federal partnership subsidy programs to make child care
• The services in this bureau depend on state and federal partnership subsidy programs to make child care
• The services in this bureau depend on state and federal partnership subsidy programs to make child care
• The services in this bureau depend on state and federal partnership subsidy programs to make child care
• Okay, so by us doing the Child Care Workforce Program, that is not bringing any supplemental federal

Keywords: 928, house, all

Summary: The committee held a Division 3 budget work session focused on the Department of Health and Human Services’ Division of Economic Stability. Karen Hebert, the division director, and Nathan White, DHHS chief financial officer, walked members through the governor’s operating budget pages and a briefing book, explaining that the division was consolidated in 2018 and serves programs aimed at financial stability, poverty reduction, child care access, and related supports. Members repeatedly asked for clearer breakdowns of general fund spending, historical growth since consolidation, and how the division’s broad mission areas map onto specific budget lines. A major portion of the discussion centered on the Bureau of Child Development and Head Start collaboration and the child care subsidy program. Hebert said the child care scholarship/subsidy helps low- and moderate-income families access daycare so parents can work, attend school, or receive treatment, and that eligibility is based on state median income up to 85%. She reported a 45% increase in utilization, 4,032 children receiving daycare support as of the end of January, and about 15% of eligible children being served. She also described the quality improvement system “Granite Steps for Quality,” with 160 providers enrolled out of 717 licensed programs, and noted that 1,200 child care professionals added credentials in the last year. Members pressed for cost-benefit information, asking for data on how much the state pays, how many providers and children are served, and whether the department could quantify unmet need. The witnesses said some projects were funded with short-term ARPA child care dollars and that detailed cost data for specific examples, such as the Gorm Community Learning Center expansion, would need to be looked up. They also explained that the child care fund is a federal block grant with required spending set-asides of 9% for quality, 3% for infants and toddlers, and up to 5% for administration, and that unused funds remain available. The committee also reviewed slide 10’s accounting units, including that the Child Care Workforce Fund is 100% general funds and was created as a priority item under HB 2 from the 2024 session, while some other child care-related units are 100% federal funds.

Transcript Highlights:

• Many BFAN programs depend on time-limited federal grants, and recent staff layoffs at the federal level
• Without federal support, these programs and the families who rely on them face uncertainty.
• Because it is a federal program, it's not our program.
• We are facing potentially devastating cuts in our programs in the future from the federal government.
• government, the SNAP program is federally funded.

Keywords: 995, all

Summary: The hearing was an informational and oversight session of the Joint Committee on Children, Families, and Persons with Disabilities, with chairs and members hearing agency updates from several commissioners. The Department of Public Health’s Bureau of Family Health and Nutrition described its maternal and child health work, including home visiting, early intervention, WIC, newborn hearing screening, and cross-agency efforts on prenatal substance exposure, respite care, children’s vision, and maternal health initiatives. DPH emphasized that federal grant cuts, layoffs, and the loss of data systems such as PRAMS would weaken services and planning, and members asked about Title V funding and the impact of federal uncertainty. The Massachusetts Commission on the Deaf and Hard of Hearing highlighted communication access services, interpreter and CART referrals, emergency after-hours support, family navigation, and independent living services. Commissioners and members discussed the shortage of ASL interpreters and the need to expand training pipelines, including partnerships with colleges and possible ASL programming for younger students. The Department of Developmental Services reported serving nearly 50,000 people and focused on youth and adult services, transition-age supports, autism services, self-direction, respite, and new high-acuity residential models. Members asked about respite availability, self-direction outcomes, and workforce shortages; DDS said it was expanding clinical capacity and provider rates while monitoring possible federal Medicaid, SNAP, and immigration-related impacts. The Commission for the Blind described services for about 28,000 legally blind residents, most of whom are older adults, including social rehabilitation, orientation and mobility training, children’s services, assistive technology, vocational rehabilitation, and Turning 22 supports. The commissioner discussed a UMass-based effort to build the workforce pipeline for blindness services and said the agency was watching federal restructuring but had not yet seen direct cuts. MassAbility’s leadership then warned about major federal changes affecting Social Security disability determinations, including staff restructuring, office closures, and a new overpayment repayment policy, and said the agency was preparing for possible increases in claims and uncertainty around reallotment dollars that help fund services. The Disabled Persons Protection Commission closed the hearing with an update on its abuse investigations and protective services for adults with disabilities. DPPC reported rising hotline calls and investigations, a growing caseload, its sexual assault response team, the abuser registry, and a new interagency protective services integration system funded by ARPA dollars through 2027. The agency also flagged new federal rules that could affect funding eligibility and said it may need statutory changes to comply. Members asked about funding, reporting pathways, and how complaints reach DPPC, and the commissioner said the agency uses both mandated reporting and proactive outreach to identify and respond to abuse.

Transcript Highlights:

• funding programs and our Office of Manufacturing through our traditional state and federal funding programs
• I was a program manager back in 2010 until 2013, administering a federally funded program for the agency
• , but I do believe the most impactful program that we have is a federally funded program.
• You focus on the federal programs that you would cut the federal programs that don't have federal funding
• If a federal program lost, it would be either the federal low-income housing tax credit program.

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Summary: The Committee on Director Nominations met to consider Ruby Dylan Williams for Director of the Arizona Department of Housing. Chair Jay Kaufman opened with remarks about the committee’s role in scrutinizing nominees’ commitment to faithfully executing state law. Williams, who has served in housing roles since 2020 and as interim director since March 2025, described her background in both public service and the private sector and said her priorities would be expanding housing supply, preserving housing stability, and improving technology-driven operations and transparency. Members questioned Williams extensively about department oversight, fraud prevention, auditor general findings, homelessness policy, budget priorities, and the cost of affordable housing programs. She said the department had strengthened internal controls, added verbal verification steps for wire transfers, increased site inspections and grantee monitoring, and was tracking 68 performance metrics. She also defended the use of LIHTC and other federal housing programs as key public-private tools, said the department was working on a real-time homelessness data system, and explained that if state funding were cut, staffing would likely be reduced before core programs. Several members pressed her on past fraud and audit findings and on whether the department had been sufficiently proactive in preventing them. Public testimony was overwhelmingly supportive. Developers and industry representatives praised Williams’ experience, her knowledge of housing finance, and her role in streamlining the qualified allocation plan and improving the department’s responsiveness. They argued that her leadership has helped attract investment and increase housing production in Arizona. After debate, the committee voted 3-2 to recommend Williams’ confirmation to the full Senate, with Senators Kavanagh and Shope voting no and Senators Bravo and Ortiz voting yes.