Transcript Highlights:

• Rural Health Transformation Program grant funds.
• So the program came to us, the federal government of... So the program came to us.
• The federal government appropriated $50 billion for a five-year program and gave every state $100 million
• The bill is that the federal government also has contributed about $30 million of federal funds to support
• program. ...experienced legislators who understand this massive federal program, that according to some

Bills: SB2401, SB2402, SB2403, SB2404

Keywords: SB 2401, North Dakota, Century Code, occupational therapy, occupational therapy board, criminal history record check, background check, licensee investigation, physician continuing education, medical license renewal, nutrition education, metabolic health, chronic disease prevention, health occupation boards, medical board, licensure fee, audit response, disciplinary action, Title 43, board of medicine

Summary: The Senate convened with prayer, roll call, and a quorum present, then took up second reading and final passage of several House bills related to the Rural Health Transformation Program and other matters. House Bill 1621, requiring the presidential fitness test in school physical education with exceptions and a delayed effective date, passed 43-3. House Bill 1623, appropriating federal rural health transformation grant funds and creating a related loan program and reporting structure, passed 46-0 after extensive debate about using the federal money for community health, infrastructure, and sustainability. House Bill 1622, joining the physician assistant licensure compact, also passed unanimously 46-0. House Bill 1625, authorizing the Ray Richards Golf Course land sale to support a Grand Forks transportation project and golf course improvements, passed 46-0. House Bill 1626, clarifying that the primary residence credit is applied after the early payment discount so taxpayers receive the full $1,600 benefit, passed 40-6.

Transcript Highlights:

• These programs are North Loan Fund.
• prevention and assistance program prevention and assistance program funding. funding. funding.
• It is almost certain that federal funding will not be there next year.
• The continuum of care program traditionally provided a stable source of federal funding for these crucial
• be<01:08:30.560> issued<01:08:30.960> by federal funding notice will be issued by federal

Keywords: 918, senate, all

Summary: The conference committee on the housing omnibus bill began with member introductions and a staff walk-through comparing House and Senate provisions. House Research staff reviewed major policy differences affecting Minnesota Housing Finance Agency operations, including limits on how much the agency may retain from state appropriations for administrative costs, new reporting requirements, restrictions on transfers between appropriated accounts, and House-only language requiring annual expenditure of investment income from state appropriations. Senate provisions were also summarized, including tighter rules on when appropriations may be placed into Housing Development Fund bookkeeping accounts, updated operating-cost reporting, and Senate-only changes to how investment earnings may be used. Staff also described shared and differing provisions on program-money transfers, a lived-experience earnings exemption, and a long list of Senate-only policy changes, including manufactured home park tenant protections, low-income housing tax credit and bond-related changes, a task force on housing taxes and fees, and repealers affecting Housing Development Fund authority and certain older programs. Fiscal staff then reviewed the budget impacts. The House side included one-time appropriations for workforce housing development, family homeless prevention and assistance, a Minnesota Nice Home Share pilot, and homebuyer education, along with debt service for $100 million in housing infrastructure bonds and transfers/cancellations that produced a net zero general fund impact across the budget window. The Senate side noted a fiscal note for the housing taxes and fees task force and a smaller housing infrastructure bond authorization, with corresponding debt service costs and a total Senate budget-window impact of about $1 million in general fund debt service. After the staff presentations, the committee moved to public testimony. Commissioner Jennifer Ho of Minnesota Housing said the bill’s housing infrastructure bonds and continued support for family homeless prevention were important, and she supported the lived-experience earnings exemption, while noting concerns about the interest-earnings provisions. Testifiers from Greater Minnesota groups praised the workforce housing investments and Senate updates to the state housing tax credit and infrastructure grant program, though they suggested changes to the geographic distribution language. HOME Line urged funding for statewide tenant hotline services, citing rising demand and asking for $1 million if additional money becomes available. The Minnesota Consortium of Community Developers supported the bill’s investments and emphasized the need to pair housing development with supportive services. Housing First Minnesota praised housing infrastructure bonds and other investments but criticized the omission of the Minnesota Starter Homes Act. The Minnesota Multi Housing Association began testimony opposing certain rent-control-related provisions in the House bill. No votes or final actions were taken during the portion of the meeting provided.

Transcript Highlights:

• To summarize, the bill provides state funding to supplement the federal LIHEAP program.
• To summarize, the bill provides state funding to supplement the federal LIHEAP program.
• To summarize, the bill provides state funding to supplement the federal LIHEAP program.
• To summarize, the bill provides state funding to supplement the federal LIHEAP program.
• To summarize, the bill provides state funding to supplement the federal LIHEAP program.

Keywords: 1183, house

Transcript Highlights:

• And so, and it's a federal program, so I'm perhaps counsel can help me out.
• <00:40:50.960> program,<00:40:51.440> so<00:40:51.680> I'm so, and it's a federal
• program, so I'm so, and it's a federal program, so I'm I'm<00:40:52.960> perhaps<00:40:53.680
• <00:49:41.520> Uh burning portions of federal programs.
• Uh burning portions of federal programs.

Keywords: 1187, senate, all

Transcript Highlights:

• One difference with the active care program that's somewhat unique is that the funding for that program
• tell us how they did actually end up funding that program.
• Y'all appropriate funds, but there are also federal funds in education that typically get appropriated
• One of the things that was a benefit of the federal funds is this was an unusual group of federal funds
• We run the foundation school program. We pass through federal funds.

Keywords: 1184, house, all

Transcript Highlights:

• DFA, and we're requesting DFA to fully fund the program. How does that work?
• Does DFA have discretion to allocate funds to a program, or is that something we need to include in the
• Fund, which is a federal grant program.
• But I'm curious how the cutbacks in federal funding to the...
• The funding that we get includes three specific federal funds: Land and Water Conservation Fund, U.S.

Transcript Highlights:

• /c> fund a PACE program here fund a PACE program here um<00:09:58.600> certainly<00:09:59.440>
• As we look through this program as well, what is it—the basic 50/50 match with federal dollars, or is
• Medicare eligibility is 62, so if the program starts at 55, what's the gap funding from 55 to 62?
• , so the cost allocation between state and federal government is similar across those two programs.
• , so the cost allocation between state and federal government is similar across those two programs.

Keywords: 1183, house

Transcript Highlights:

• In addition, the program has historically funded vehicle rebates through the utility programs for the
• ...any of it unless we have policy support through mostly the federal program, but also the state program
• In addition, federal programs are also important.
• LCFS is a critical component to funding infrastructure and funding the programs that we have to support
• The holdback-funded programs at SCE and PG&E...

Summary: The hearing was a select committee discussion on the transportation costs and impacts of California’s Low Carbon Fuel Standard (LCFS), with opening remarks from the co-chairs and members emphasizing affordability, climate goals, and the need to explain the program’s benefits to the public. The first panel from CARB and the California Energy Commission described how LCFS works as a market-based, declining carbon-intensity program that rewards lower-carbon fuels, supports zero-emission vehicle infrastructure, and is intended to reduce greenhouse gases and local air pollution. They argued the program has driven billions in private investment, increased alternative fuel use, and that LCFS credit prices are not the main driver of retail gasoline prices, which they said are dominated by crude oil, refining, and distribution costs. Members questioned the panel on the gap between the regulatory target and actual carbon-intensity performance, the role of credit banking, which fuels are generating the most credits, how the 2025 amendments affected the program, and whether LCFS credits are truly additional. CARB explained that banking helps cost-effectiveness and investment certainty, that ethanol, renewable diesel, and biodiesel currently provide the largest volumes while electricity is expected to grow, and that the updated targets were informed by the state’s 2045 carbon-neutrality goals and the 2030 scoping plan. The Energy Commission said its data show environmental programs add some cost to gasoline but do not drive price volatility, which is mainly tied to crude oil and refinery margins. The second panel, featuring academic and research experts, focused on program design, out-of-state credit generation, and broader economic effects. Speakers said LCFS is successful because it ties incentives to emissions benefit, uses life-cycle analysis, and allows flexible compliance that lowers costs compared with more direct regulation. They also said the program’s benefits generally outweigh costs, that it can reduce air pollution disparities and support equity, but that some issues—especially indirect land use change, additionality, and older program assumptions—need more research and may warrant future rulemaking. One researcher noted that while LCFS likely raises gasoline prices somewhat, the effect is uncertain by design and usually smaller than normal market fluctuations, and another warned that limiting credit generation too narrowly could create legal and efficiency problems.

Transcript Highlights:

• It would require general funds to support this program in an amount to be determined.
• The dollars that are budgeted there are only the federal funds.
• <00:53:53.400> program<00:53:54.400> may discussion that the federal program may discussion
• , or would it be other funds and not susceptible to federal matching?
• the matching federal funds available in the matching federal funds available in the amount<01:35

Keywords: 928, house, all

Summary: The committee first recessed briefly, then took up HB 570, the prescription drug affordability board (PDAB). The chair and several members discussed the House amendment to repeal the board, which removed the fiscal note. The main concern raised was that the PDAB had not yet produced a clear business case showing value for the taxpayer investment, despite several years of work and four annual reports. Supporters of the repeal said the board’s recent report was largely redundant and that the board should either demonstrate a strong return on investment or be shut down; others cautioned against discarding the program too quickly and urged more time to refine the mission and legislative language. No vote was taken, and the committee appeared to agree to retain the bill for further work, with the possibility of revisiting it in a formal executive session on Tuesday. Members also shifted into discussion of HB 2, beginning with Section 85 on opioid abatement trust fund dollars for shelter programs. Department of Health and Human Services officials explained that the provision would provide $10 million from the opioid abatement trust fund, replacing general funds in the governor’s budget, while also noting an additional $2.5 million prioritized needs request for shelter care that was already fully funded. Committee members asked about shelter bed capacity, job placement efforts, and the remaining balance in the opioid fund; DHHS said there are 934 contracted beds and that case management includes help with housing and employment. Officials also said the current proposed budget includes another $1 million later in HB 2 from the opioid fund. The committee then began discussion of Sections 86 through 87, which would preserve the department’s ability to transfer funds between personnel lines. DHHS said the provision is operationally critical and that losing it would make it extremely difficult to manage the department, though it would not have a direct fiscal impact. The next item introduced was Section 88, extending a suspension related to eligibility for services until July 1, 2027; DHHS indicated that if the suspension were not continued, it would likely increase expenditures for Community Mental Health Centers and potentially others. No votes were taken during this portion of the meeting.

Transcript Highlights:

• dollars and then maintained with federal funds.
• dollars and then maintained with federal funds.
• dollars and then maintained with federal funds.
• dollars and then maintained with federal funds.
• FEDERALLY FUNDED.

Keywords: 918, senate, all

Summary: The Minnesota Senate Subcommittee on Veterans heard a Department of Military Affairs presentation on bonding, tuition benefits, and cyber response. The department requested $3.5 million in design funding for a new hangar at the 148th Fighter Wing in Duluth, citing safety problems with the aging 1950s-era hangars and the need to improve the wing’s competitiveness for future federal military construction funding. It also sought $2.5 million for asset preservation at Army facilities statewide, emphasizing that state dollars are often matched by federal funds. A National Guard lieutenant also testified about the State Tuition Reimbursement Program, describing how it helped pay for her undergraduate and doctoral education and reduce student debt. The committee also received an update on Minnesota National Guard cyber operations, including the response to the July 2025 ransomware attack on the City of Saint Paul. Testimony described the cyber coordination cell’s role in planning, interagency coordination, and support during the incident, including helping re-image about 500 computers and assisting with network recovery. Members heard that the Guard’s cyber teams conduct extensive partner engagement and are prepared to support state and local entities when civil resources are exhausted and the incident exceeds local capacity. Three bills were then heard and advanced. Senate File 4075, as amended, would implement recommendations from the task force on Special Guerrilla Unit and regular forces veterans from the Secret War in Laos, including eligibility and benefit changes; the committee adopted an amendment and passed the bill to the full committee. Senate File 3956, as amended, would clarify that the Department of Veterans Affairs may partner with veteran-serving organizations using nonmonetary resources to address food insecurity, homelessness, and suicide prevention; it was also referred onward. Senate File 4056, as amended, would add veteran or military status as a protected class under the Minnesota Human Rights Act; testimony supported the change, including concerns about service members losing educational opportunities while on state active duty, and the bill was passed to the full committee.

Transcript Highlights:

• And having a structured program in the state that's funded is what would really make the difference for
• March 31 is the cutoff to participate in this federally funded debris removal program.
• This is a federal program administered by EDD and funded through FEMA.
• Both grants use federal Workforce Innovation and Opportunity Act, known as WIOA, funding.
• Both grants use Federal Workforce Innovation and Opportunity Act known as WIOA funding.

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

Transcript Highlights:

• Grants are funded from state and federal sources.
• There are 56 programs distributed from the Public School Fund, 14 from other state funds, and 29 from
• federal funds.
• federal funds are included on Attachment 6.
• Let me ask this: In the public school fund, are there any federal dollars?

Keywords: 1204, all

Summary: The committee first received a presentation from Legislative Audit on Arkansas Department of Education grant distributions for fiscal year 2025. Auditors explained the report summarizes $4.6 billion in grants to school districts, charter schools, education cooperatives, and other entities, with most funding coming from the Public School Fund and federal sources. Members asked about specific recipients and programs, including ClassWallet, master principal bonuses, Economics Arkansas, and CDC surveillance grants. Department of Education staff clarified that the audit report only shows distributions, not how recipients ultimately used the money, and noted that some funding declines reflected the end of one-time federal COVID relief dollars. Senators also asked about the special-language appropriation for Economics Arkansas and the use of public school fund revenues. The committee then heard a Bureau of Legislative Research presentation on Consumer Price Index projections from Moody’s Analytics and S&P Global, followed by a detailed adequacy-study update on teacher recruitment, retention, and salaries. The teacher report covered teacher counts, education levels, experience, shortages, preparation pathways, licensure exceptions, survey results, and salary trends. Key findings included about 32,800 teachers statewide in 2025, an average retention rate of 87%, and 30% of surveyed teachers saying they were considering leaving the profession. The report also noted shortages in special education, math, science, and other areas, growth in alternative preparation pathways, and the phaseout of several licensure exceptions under Act 304 of 2025. Members asked extensively about survey methodology, teacher satisfaction, preparation for classroom environment and special education, the cost and return on investment of alternative licensure routes, and whether exit-interview data exists statewide. The presenters said they could follow up on several questions, including details on alternative programs, incentives for ESL and special education endorsements, and comparisons to other surveys. On salaries, the report said the statewide average teacher salary in 2025 was $60,254, with districts averaging slightly higher than charters. Arkansas ranked 45th nationally on average salary in 2025, though 36th when adjusted for cost of living, and average district salaries had declined 8% in inflation-adjusted terms since 2016. Members also discussed the LEARNS Act minimum salary floor of $50,000, salary disparities among districts, and whether the state should focus more on retaining experienced teachers as well as raising starting pay.

Transcript Highlights:

• The rest is coming from other funds. In those funding streams, the federal here is...
• In those funding streams, the federal here is referring to the miscellaneous funds that are received
• funds for strictly EL-related program services.
• And it looks like there is a specific Title III fund from the federal funds.
• Where is that additional funding coming from? So federal funds are making up the largest portion.

Keywords: 1204, all

Summary: The Senate and House Education Committee approved the March 9 and 10 minutes and then heard a presentation on the Arkansas Excellence in Teaching Fellowship Program from Department of Education staff and three third-grade teachers from Cabot, Poyen, and Drew Central. The teachers described the year-long fellowship for high-performing merit pay recipients, saying it provided collaboration with educators across the state, shared resources, and ideas they brought back to their districts. Members asked about the teachers’ experience levels, how they shared information locally, and whether the program should be expanded to more teachers and districts. A major focus of the discussion was third-grade reading, the new ATLAS testing system, and the state’s third-grade retention law. The teachers said they do not teach to the test, but use standards, data, interventions, small groups, and relationships to help students grow. They described progress monitoring throughout the year, early screening in K-2, and interventions such as before-school tutoring, RTI meetings, and co-teaching. One teacher reported that six students in a small group improved 10 to 15 points on ATLAS, and another said a student who started the year reading four words per minute improved significantly with targeted support. Secretary Jacob Oliva said the state is trying to create clarity and alignment through Arkansas Learns, science-of-reading support, literacy coaches, and faster test-result turnaround, with student scores now available within about 24 hours and district-level results expected later in the summer. Members also asked about student poverty, trauma, ACEs, DHS involvement, social workers, community supports, and the role of counselors. The teachers emphasized that relationship-building is essential, especially for students facing unstable home situations, and described local supports such as backpack food programs, church donations, fire department incentives, and family assistance. Oliva said the fellowship was intentionally small in its first year because it targeted top-tier merit pay recipients, but he expects participation to grow. He also said merit pay and fellowship eligibility spans many grade levels and subjects, including kindergarten and hard-to-staff areas, and that D and F schools receive state literacy coaches. No additional committee votes or formal actions were taken beyond approving the minutes.

Transcript Highlights:

• I have been particularly troubled by the process in federal funding to small businesses, inflationary
• opportunities by preventing pandemic fraudsters from accessing federal small business funds.
• opportunities by preventing pandemic fraudsters from accessing federal small business funds.
• Injury Disaster Program, and other relief funds were a lifeline for so many, but were also exploited
• Injury Disaster Program, and other relief funds were a lifeline for so many, but were also exploited

Keywords: U.S. House of Representatives Floor Proceedings on Monday, February 24, 2025, 1012, house, all

Transcript Highlights:

• The program leverages state and federal funds that help pay for the high-cost claims of the sickest individuals
• <01:01:07.920> funding especially with Federal funding especially with Federal funding uncertainties
• The program leverages state and federal funds that help pay for the high-cost claims of the sickest individuals
• The program leverages state and federal funds that help pay for the high-cost claims of the sickest individuals
• The program leverages state and federal funds that help pay for the high-cost claims of the sickest individuals

Bills: HF837, HF1903, HF499, HF794

Keywords: health insurance, premium security plan, federal funding, state innovation waiver, Minnesota, newborn safety, anonymity, healthcare provider, safe place, child welfare, HF499, nursing, nurse licensure, temporary permit, temporary nursing permit, Board of Nursing, endorsement licensure, reregistration, refresher course, health occupations

Transcript Highlights:

• programs are being squeezed or cut on the state funding side, and also the ongoing unfortunate threat
• In the meantime, there are some programs that are funded that people don't always know about.
• One would be to continue some of the temporary programs that they funded with previous one-time funds
• For the federal funds were weighted towards how much Title I funding a district received, for example
• You've already talked about changes, potential changes in federal policy and funding.

Summary: The Assembly Budget Subcommittee on Education Finance met for its annual Proposition 98 overview, with Chair Alvarez outlining the committee’s focus on K-12 funding, student outcomes, and use of one-time funds. Superintendent Tony Thurmond gave an update on education issues, including wildfire recovery support for affected school communities, ongoing concerns about federal threats to education funding and immigration enforcement, progress on literacy and math, dual-language immersion, educator housing, and support for dual enrollment. Members broadly expressed support for these priorities, while also raising concerns about implementation, funding stability, and the need for schools to remain safe places for students. The committee then reviewed the Governor’s Proposition 98 proposal. The Department of Finance said the 2025-26 Proposition 98 guarantee is projected at $118.9 billion, with higher revenues and TK-related rebenching driving the increase. The LAO said the budget adds about $7.5 billion over two years and discussed the volatility of the guarantee, especially in 2024-25, when changes in revenue could have an outsized effect on school funding. Members questioned the proposed $1.6 billion delayed settle-up payment, the legal basis for delaying it, and the impact of possible federal funding freezes. The LAO presented alternatives such as a reserve deposit or delayed disbursement, while Finance said the proposal is intended to manage uncertainty. Members also raised concerns that ethnic studies implementation was not funded in the January budget, and Finance said the administration was not proposing funding for it. The committee next heard on the Proposition 98 rainy day fund and education deferrals. Finance said the reserve would receive a mandatory deposit of about $1.2 billion in 2024-25 and a discretionary deposit of $376 million in 2025-26, leaving a balance of about $1.5 billion. The LAO supported rebuilding the reserve as a way to manage volatility. On deferrals, Finance described the Governor’s plan to eliminate remaining deferrals by 2025-26, and the LAO said paying them off improves cash flow and budget resilience. Members generally supported eliminating deferrals and rebuilding reserves, though some asked about acting earlier if revenues allow. The committee also reviewed the proposed $1.8 billion student support and professional development block grant; Finance said it would fund professional development, recruitment and retention, and dual enrollment, while the LAO recommended clearer language on local discretion and use for one-time costs. Members were divided, with some supporting flexibility and others warning that one-time block grants can create instability and confusion for districts.

Transcript Highlights:

• And federal pre-K was another multi-funding source that got paid on top of an ABC amount.
• The state-funded ABC program runs on a 178-day schedule. It's very...
• The state-funded ABC program runs on a 178-day schedule.
• for a grant with us, or summer programming, and we're pulling that funding out of a different fund,
• I feel like we have shifted from federal program to state program and vice versa what makes sense.

Summary: The Early Childhood Committee met for an update from the Office of Early Childhood within the Department of Education. Members heard that the office’s goals under the LEARNS Act are to improve kindergarten readiness, support families, ensure quality providers, and expand affordable, accessible child care. Staff reviewed the local lead system, licensing, quality efforts such as CLASS and QRIS, and the two main funding streams: School Readiness Assistance (SRA), a federal CCDF-funded voucher program serving about 14,600 children with a wait list of a little over 3,000, and Arkansas Better Chance (ABC), a state-funded program serving about 21,000 children with authority recently increased to 24,000 slots. A major topic was the difference between market rate surveys and cost analysis studies. Officials said the department is procuring both through an RFP, hoping to begin by August and have results by late in the year. Members pressed for current reimbursement levels, the gap between ABC and SRA funding, and whether ABC funding should be increased to better match costs. Staff explained that SRA rates are set at 75% of the market rate, while ABC per-child funding is much lower, and that ABC slots are limited by the overall allocation. They also explained that some ABC slots were increased by moving children from a discontinued federal pre-K arrangement into ABC to preserve continuity of care. Committee members raised concerns about rural access, infant and toddler shortages, provider stability, workforce pay, and communication with families and providers. Officials said local leads are now helping identify underserved areas, that no county with absolutely no care is known, and that the department is trying to get a truer statewide count of children and providers. They also described efforts to improve communication through monthly provider calls, website postings, and direct case contacts with families. Members discussed possible funding increases, including ideas to reduce the SRA wait list and raise ABC funding, but no formal vote or action was taken beyond approving prior meeting minutes and receiving the update.

Transcript Highlights:

• Yeah, miles to fund our our programs.
• <00:29:29.039> we balance the federal funds as much as we balance the federal funds as much
• program that's required by the Federal program that's required by the Federal Highway<00:29:36.640
• it's a federally funded project or a state-funded project.
• Um, you mentioned federal funding.

Keywords: This meeting was recovered from a back up copy and uploaded after the original meeting took place., 958, all

Summary: The committee received an update from the Kentucky Transportation Cabinet on the FY 2025 road fund. Officials reported road fund revenues came in $38.5 million above the enacted estimate, but were down about $11 million from FY 2024, largely because a motor fuels tax rate reduction took effect at the start of FY 2025. Motor vehicle usage tax receipts were stronger than expected, and the cabinet said the road fund ended the year with a $61.6 million surplus, which the budget bill directs to state highway construction. Members also discussed how the motor fuels decline affects formula distributions to cities, counties, and rural/secondary roads, with officials saying about $122.8 million had been planned for revenue sharing but was not distributed because receipts were lower than forecast. Members asked about broader revenue trends, including fuel efficiency, electric vehicles, and the removal of a hybrid fee. Cabinet officials said improved fuel efficiency and CAFE standards reduce gasoline consumption and therefore fuel tax receipts, while EVs and plug-in hybrids are subject to a user fee. They also said toll revenues from the Louisville bridges are covering bills and commitments, though they did not have detailed figures at hand. On project delivery, officials said delays are often caused by right-of-way acquisition, utility relocation, and the large volume of projects in the highway plan, and that much of the work happens behind the scenes before construction begins. The committee also reviewed the cabinet’s cash management approach, which was adopted after 2000 to avoid setting aside full project costs all at once and to keep the road fund cash balance above a required minimum. Officials said the balance typically rises in winter and falls in summer as project bills come due, and that the current balance was about $166 million. They also reported that project awards for the year were nearing $998 million and expected to exceed last year’s total. No formal votes or legislative actions were taken beyond approving the prior meeting minutes.

Transcript Highlights:

• This program has very stringent requirements from the federal government as to what we can do and what
• the federal fiscal year.
• Expansion of existing programs is allowable. What we can't do is supplant existing funding.
• in a program.
• what we can fund.

Summary: The committee first heard extensive public testimony from youth and advocates urging stronger restrictions on vaping. Speakers described vaping as a youth-targeted public health problem, citing flavored products, social media marketing, nicotine addiction, brain development concerns, school disruption, and exposure to harmful aerosol. They recommended prohibiting vaping in public indoor spaces and aligning vape rules with smoke-free laws. Committee members praised the speakers and encouraged them to continue building support for future legislation. The main presentation was on Arkansas’s Rural Health Transformation Program, administered through DFA. Secretary Jim Hudson and program director Brad Andi explained that Arkansas received about $209 million in the first year under the federal program, with potential for roughly $1 billion over five years if performance is strong. They emphasized that the program is meant for long-term rural health transformation, not general operating support, debt relief, or new construction. The state’s plan centers on four initiatives: HEART for prevention and community health, PACT for access and provider collaboration, RISE for workforce development, and THRIVE for technology and telehealth. Officials said applications will be handled through upcoming notices of funding opportunity, with a focus on local, shovel-ready projects, regional collaboration, and transparency. Committee members asked how the program would work for hospitals, clinics, nonprofits, schools, faith groups, and urban providers serving rural patients. Officials said eligibility is broad if applicants can show a connection to rural health, and that targeted renovations, mobile units, school-based clinics, farm-to-school or garden projects, EMS equipment, residency expansion, and behavioral health initiatives may fit if they align with the plan. They stressed that the program cannot fund working capital, routine maintenance, or new buildings, but can support repurposing space and collaborative networks. Members also raised concerns about protecting existing rural providers from being displaced, and officials said applications would be reviewed by a state committee with technical assistance and a reimbursement-based process. The committee then reviewed and took no objection to several DHS and Health Department rules. DHS presented a Medicaid/CHIP rule implementing federal requirements for incarcerated youth, including pre- and post-release coverage, care coordination, targeted case management, and screening services, with no public comments received. The Health Department also presented a licensing rule for audiology and speech pathology that implements recent acts and changes the renewal deadline; that rule was likewise reviewed without objection. The meeting adjourned after no further business.

Transcript Highlights:

• This is made up of both projects that are authorized through their operating budget, so federal funds
• Regarding the Target Zero recurring funding requests, we will be establishing a safety corridor program
• From the state road fund revenue. Yeah, because you can't use federal funds to back, to match. Mr.
• And so we do use a portion of federal funds to pay back the debt on existing bonds now.
• departments that are funded through the federal budget.