June 16, 2026
Introduction
The Ohio Legislature may have finished their work for the first half of 2026 the week of June 8th. While an official schedule has not been released, there is an “if needed” session on June 24th that may be used to finalize legislation related to data centers. If they do not return for that session, it is likely they will not return to a normal committee and session schedule until after the November General Election. The legislature passed many bills during this session week including SB450, the 2027-2028 State Capital Budget, providing nearly $3.7 billion for statewide infrastructure, higher education, K-12 facilities, mental health projects, public works, and community investments. The package also includes more than $200 million for local community projects, with funding reaching all 88 Ohio counties. Even with the legislature out of session, G2G remains busy prepping for next year’s Operating Budget with state agencies, bringing legislators to tour organizations and businesses in their district, attending events for incumbents and candidates, and closely monitoring elections and what next year will bring with new leadership. This update includes more on the Capital Budget and two policy areas of high focus — data centers and Medicaid — as well as updates an education omnibus bill and on the election where Ohio is a nationwide focus.
Ohio Capital Budget
SB450 was introduced and passed swiftly, as is common with the State Capital Budget, in early June. OBM Director Kimberly Murnieks testified before House and Senate finance committees on the FY27–28 capital budget, noting it would likely be her final major appearance as the DeWine administration winds down. Lawmakers said they pared back some administration requests to keep the total spending at a “reasonable” level, making tradeoffs rather than rejecting projects outright. The proposal totals $3.696 billion, largely funded through GRF-backed bonds, with each project required to align with constitutional provisions. Murnieks emphasized Ohio’s strong fiscal position, citing historically low debt levels, reduced per-capita burden, and top credit ratings, and pointed to the state’s prior decision to fund a capital budget with surplus revenue instead of borrowing as a key factor strengthening its financial outlook.
Key funding includes $600 million for school construction, $500 million for local infrastructure through the State Capital Improvements Program (boosted by voter-approved Issue 2), $425 million for higher education, and significant allocations for behavioral health, natural resources, developmental disabilities facilities, and community projects in all 88 counties. The bill also adds policy changes, including a pilot program to help districts replace school buildings over 100 years old and a requirement that Central State University transfer facilities oversight to a state or third-party entity to access up to $25 million in renovation funds. Lawmakers emphasized the budget’s balance between rural and urban needs and the prioritization of fiscally responsible, high-impact projects statewide.
Education
HB455 contained a number of provisions related to education and was passed and sent to the governor this month. The bill is largely a technical cleanup and deregulation bill aimed at modernizing Ohio’s education statutes by removing outdated, unused, or redundant provisions. A major component of the bill is the elimination of numerous programs and requirements that are no longer in use or considered necessary and laws governing school districts of innovation and college-preparatory boarding schools. It also significantly reduces administrative burden by repealing a wide range of reporting requirements for school districts and the Department of Education and Workforce, including reports on mandate compliance, academic remediation strategies, and various health and performance metrics.
In addition, the bill cleans up laws related to the state report card system and standardized testing, including provisions tied to the former Ohio Graduation Tests and outdated report card frameworks from prior years. Beyond removing old law, HB 455 makes a few targeted policy changes: it expands the offense of contributing to a child’s truancy so that a prior court adjudication is no longer required, allows juvenile courts to maintain jurisdiction over habitual truants into the following school year, and clarifies existing exceptions to minor work permit requirements.
Many Democrats opposed concurrence on the bill because of youth labor provisions that would allow 14- and 15-year-olds to work until 9 p.m. during the school year only on nights when they do not have school the next day. DeWine previously vetoed a broader attempt to allow younger teenagers to work later hours. Democrats believe this will conflict with federal law, saying a mismatch of state and federal law in Iowa led to employers’ racking up big fines.
Data Centers
Data centers are at the center of conversation in the Ohio General Assembly as lawmakers, local leaders, and industry stakeholders grapple with how to balance rapid economic growth with long-term community impact. Ohio’s central location, robust fiber infrastructure, relatively low cost of land and energy, and favorable tax incentives have made it an increasingly attractive hub for large-scale data center development.
In response to the rapid expansion of the data center industry across the state, the Ohio General Assembly has convened bipartisan House and Senate Select Committees on Data Centers to examine the issue in depth. The House Select Committee on Data Centers is led by House Energy Committee Chair Adam Holmes (R-Nashport), who will handle the distribution list and notices for the joint meetings. Senate Energy Committee Chair Brian Chavez (R-Marietta) leads the Senate Select Committee on Data Centers. The other members of the respective select committees include Reps. Thad Claggett (R-Newark), Heidi Workman (R-Rootstown), and Chris Glassburn (D-North Olmsted), and Sens. Bill Reineke (R-Tiffin), Shane Wilkin (R-Hillsboro) and Willis Blackshear (D-Dayton).
Ohio’s House and Senate Select Committees on Data Centers heard extensive public testimony from a wide range of stakeholders, highlighting both the potential economic benefits and environmental concerns associated with data center expansion. Witnesses noted that while data centers can generate tax revenue and jobs, they may also strain water, electricity, and wastewater systems, with particular concern about unregulated pollutants like PFAS. Many speakers raised issues around transparency, including the use of non-disclosure agreements by local officials, and called for stronger regulations or even a statewide moratorium. Others urged legislative action to increase oversight, reconsider tax incentives, and ensure communities have a greater role in decision-making about data center development. Legislators are also examining whether current tax abatements and incentive structures appropriately reflect the long-term benefits to communities, particularly given that data centers typically generate fewer permanent jobs than other large-scale developments.
HB646 became the vehicle to move legislation related to data centers. After many long committee meetings and a few late nights, the Ohio Senate did not advance HB 646 on data centers, sending it back to committee after House and Senate leaders failed to reach agreement—mainly over tax exemptions and transparency concerns. House Republicans are divided on whether to continue granting tax breaks, while also raising issues about public officials signing non-disclosure agreements. Senate Republicans opted not to move the bill after the House signaled it wouldn’t concur, leaving next steps uncertain, though leaders hope to revisit it later in June.
Meanwhile, a revised committee version added provisions on energy and water use, ratepayer protections, and limits on tax exemptions, but removed a major incentive tied to brownfield development. Democrats opposed the bill, arguing it doesn’t address long-standing tax exemptions granted to major tech companies, though they acknowledged some improvements and expect further negotiations in the fall. We continue to monitor this bill as we know implications from data centers impact so many.
Medicaid Updates
Medicaid has become a major focus in Ohio as state leaders respond to rising concerns about fraud, program integrity, and spending. Recent investigations and prosecutions have highlighted significant abuse, including multi-million-dollar schemes involving fraudulent billing for services never provided, prompting heightened scrutiny from both state and federal officials. Governor Mike DeWine has announced new statewide fraud prevention initiatives, including expanded oversight tools, tighter provider requirements, and enhanced coordination with law enforcement to detect and prevent improper payments.
State officials, including the attorney general and auditor, are also increasing audits, prosecutions, and partnerships to recover funds and deter bad actors. At the same time, the Ohio General Assembly is actively examining alleged vulnerabilities in the Medicaid system and considering legislative fixes to close loopholes and strengthen accountability. These efforts come amid broader political debate, with lawmakers emphasizing fraud prevention while also disputing the scale and causes of the problem. Ohio policymakers are signaling a more aggressive approach to Medicaid oversight. The federal Centers for Medicare and Medicaid Services (CMS) and the state will be working together to identify and refer fraud to DOJ, while fraud investigators in the Ohio Attorney General’s Office and Ohio Auditor of State’s Office “reaffirmed” their commitment to cross-designate or assign prosecutors to federal offices fighting fraud and participate in national initiatives in coordination with the U.S. Department of Health and Human Services (HHS) Office of Inspector General.
Ohio lawmakers passed a sweeping Medicaid and SNAP reform bill (SB315) that strengthens fraud enforcement while scaling back some controversial provisions. The final version increases penalties for Medicaid fraud—up to a first-degree felony for high-dollar cases—and allows the Ohio Department of Medicaid and managed care organizations to suspend payments when fraud is suspected, while adding new oversight tools, reporting requirements, and data systems.
Lawmakers removed the most criticized proposal banning family caregivers from being paid and exempted live-in caregivers from GPS tracking, but still imposed tighter oversight, electronic visit verification requirements, and prior authorization for certain services. The bill also expands investigative authority, protects whistleblowers, and mandates new data-sharing and eligibility checks, while continuing a transition to more secure SNAP cards.
The legislation passed with broad bipartisan support after revisions, though Democrats raised concerns about the rushed process and potential unintended consequences, emphasizing the need to balance fraud prevention with access to care.
Elections
The Ohio governor’s race between Amy Acton and Vivek Ramaswamy has tightened into a true toss-up, with recent polling showing the candidates essentially tied and trading narrow leads within the margin of error. Earlier 2026 polling averages showed Acton holding a slight edge of roughly 1–3 points, underscoring steady Democratic gains in what has been a Republican-leaning state. At the same time, a new $25 million pro-Ramaswamy ad blitz signals growing GOP concern about the race’s competitiveness, as outside spending ramps up and the contest becomes one of the most closely watched in the country.
The Ohio U.S. Senate race between Jon Husted and Sherrod Brown is shaping up as another highly competitive, nationally watched contest, with polling showing a narrow and shifting margin between the two candidates. Recent averages give Husted a slight edge of roughly 2–3 points, though individual surveys have shown both candidates leading within the margin of error, underscoring the race’s toss-up status. With control of the Senate potentially at stake, both parties are investing heavily, and the outcome is expected to hinge on turnout among working-class voters and the broader political environment in a Republican-leaning state.
Beyond the marquee governor and U.S. Senate contests, Ohio’s other statewide races are also drawing increased attention in 2026, as all offices are open due to term limits. Republicans currently hold each of these positions, but competitive primaries and emerging general election matchups—such as the secretary of state race between Republican Robert Sprague and Democrat Allison Russo—are testing the GOP’s traditional statewide advantage. While these down-ballot contests have historically leaned Republican, Democrats are aiming to capitalize on a more competitive statewide environment, making several of these races ones to watch alongside the top of the ticket.