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July 3, 2025

Federal Legislative Updates
Ohio Legislative Updates
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Ohio Legislative Update

Last Updated: July 3, 2025

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Overview
Governor DeWine was sent HB96, the $90.5 billion biennial state operating budget, and for the first time in 20 years, not a single Democrat voted in favor of it. The budget passed the Senate with 23 yes votes and 10 no votes. Senator Louis Blessing (R-Cincinnati) was the only Republican to join all Democrats in voting against the bill. The House approved it 59 to 38 with Reps. Tim. Barhorst (R-Fort Loramie), Levi Dean (R-Xenia), Ron Ferguson (R-Wintersville), Scott Oelslager (R-Canton), and Michelle Teska (R-Centerville) joining the House Democrats in voting against.

Also, the Ohio House was called back from summer recess on July 21 to override some of the Governor's vetoes on property tax reforms. It will need 60 votes to override the veto, and then the Senate follows suit and will need 22 votes. We expect both chambers will have the votes to succeed in this effort.

Why was this so partisan this year? Due to significant cuts to health and education programs, much fewer earmarks, and some policy changes because there is no more COVID federal funding that supported many expansion programs and the new 2.75% flat tax.

Note: From 2020 to 2021, the federal government passed six relief bills in response to the COVID-19 pandemic that provided significant funding for state and local governments, Medicaid, and particularly hard-hit public sectors such as transit. In total, states received an unprecedented $800 billion, including $307 billion in flexible fiscal recovery funding that went directly to state coffers. Now most pandemic funding has ceased.

Budget Projections
The Office of Budget and Management (OBM) lowered its revenue projections for both fiscal years compared to the Blue Book numbers, while the Ohio Legislative Service Commission (LSC) has increased its projections. Both project around $29.6 billion for FY26, while the FY27 forecasts aren’t far apart -- $30.3 billion for OBM and $30.4 billion for LSC. Both agencies have increased their expectations for FY25 revenue. Both OBM and LSC also projected higher Medicaid spending compared to what they estimated upon introduction of the budget. These estimates impact how the Statehouse crafts their budget legislation, so critical in the legislative process.

Conference Committee
Once both chambers had passed their versions of the State Operating Budget, they needed to come together in a conference committee to iron out differences. Made up of Representatives Brian Stewart (R-Ashville), Mike Dovilla (R-Berea), Bride Rose Sweeney (D-Westlake) and Senators Jerry Cirino (R-Kirkland), Brian Chavez (R-Marietta), and Paula Hicks-Hudson (D-Toledo), the Conference Committee had less than a week to find compromise between the House and Senate versions of the operating budget. See major changes below.

Some budget highlights include:

  • Restores House language to decrease the State Board of Education to five members, all appointed by the governor with the advice and consent of the Senate.
  • Reduces the Department of Children and Youth Infant Vitality line to $5M per FY, a $5M cut in funding over the biennium. This line of funding supports programming by community and local faith-based service providers that invests in maternal health programs, provides services and support to pregnant mothers, and improves both maternal and infant health outcomes.
  • Maintains the Senate’s 2.75% flat tax, which is a loss of $1.6 billion in revenue over the biennium
  • Uses $600 million from unclaimed funds to build a new Cleveland Browns stadium. A class action lawsuit has already been threatened by former Attorney General Marc Dann and former Rep. Jeffery Cross claiming it is an unconstitutional taking of property.
  • Further expands support for private school students with the adoption of the educational savings account to be used at non-chartered private schools. The Legislative Service Commission estimates this program will increase the Department of Education and Workforce’s Foundation Funding line item by $35.1 million annually.
  • Pays 32% into public schools, the lowest amount ever given to schools.
  • Caps school districts carryover balances at 40% of the prior year’s total expenditures.
  • Abolishes the Joint Medicaid Oversight Committee, instead using the Legislative Service Commission to assist standing committees that have Medicaid oversight.
  • Requires libraries restrict access to materials related to sexual orientation or gender identity.
  • Increased age from 25 to 26 for Complex Medical Help (CMH) Program and adds $500,000 in fiscal year 2026.
  • Bans the creation and distribution of a fabricated sexual image of another person without their consent.
  • Created Drone For First Responders Pilot Program with $2.5 million in fiscal year 2026.
  • Appropriates $5 million per fiscal year for Women Owned Business Loans.
  • Appropriates $2 million per fiscal year for Minority Business Development Loan Administration.

Governor Line Item Vetoes
For his last budget as Governor, DeWine vetoed 67 items from HB 96 before signing it into law at 11:15pm on June 30th. Two notable items that were kept in the budget: the use of unclaimed funds to build the new Brown’s stadium and the 2.75% flat tax rate that will reduce the State’s tax bracket to one.

Some key vetoes include:

  • Removing Non-Chartered Educational Savings Account Program and Education Tax Cuts.
  • Removing ban on using SNAP to purchase sugar sweetened beverages and creates working group to be determine recommendation to tailor waiver request.
  • Reversing the repeal of Continuous Medicaid Enrollment for Children.
  • Striking out the 20-Mill Floor Calculation and School District Property Tax Levy Restrictions and convenes a working group that will include legislators, agency officials, school officials, community members, and property tax exports to ensure the property tax crisis is addressed.
  • Removing restrictions on public libraries pertaining to sexual orientation or gender identity literature as there are already laws in place to address this.
  • Protecting youth homeless shelters as they will not lose funding if they use preferred pronouns or gender affirming language.

General Assembly Updates
The House Democrats announced new leadership after Rep. Allison Russo (D-Upper Arlington) stepped down as House Minority Leader. The new House leadership team includes:

  • Rep. Dani Isaacshon (D-Cincinnati) — Minority Leader
  • Rep. Phil Robinson (D-Solon) — Assistant Minority Leader
  • Rep. Beryl Brown Piccolantonio (D-Gahanna) —Minority Whip
  • Rep. Desiree Tims (D-Dayton) — Assistant Minority Whip

In other House news, Rep. Don Jones (R-Caldwell) resigned from his seat in the Ohio House to take an appointment from President Trump to serve in the U.S. Department of Agriculture as State Executive Director for the Ohio Farm Service Agency. Ty Moore was sworn in to fill that empty House seat. Moore is the co-owner of R.C. Moore Lumber Company. This district includes all of Harrison, Noble and Morgan counties, and portions of Belmont, Guernsey, and Athens counties.

Next Up? State Capital Budget — Be sure to dial into our Ohio Advocacy Webinar on July 30 to get the scoop on what was included in the State Operating Budget and how to plan for the State Capital Budget. Register here