INTRODUCTION

As Ohio enters 2026, legislators at the state and federal levels are balancing their new legislative agendas with the upcoming election cycle. Workforce initiatives, healthcare economic development, and behavioral health are among the recent topics surrounding new policy discussions. Below is our January overview of the most significant developments impacting Ohioans.

 

CAPITAL BUDGET UPDATE

At this stage, House and Senate leadership have not yet released formal guidance regarding timelines, submission requirements, or funding priorities for the upcoming process. In the absence of direction, those interested in the Capital Budget are refining their project concepts, updating cost estimates, and assessing alignment with statewide infrastructure, economic development, and workforce priorities. Once leadership guidance is issued, activity is expected to accelerate quickly as legislators move to finalize requests made to their respective offices. There was previously some concern that due to fiscal constraints, the state might not be able to do a Capital Budget this year. House and Senate leadership have since signaled that they are confident enough in their fiscal health to move forward and do a Capital Budget. G2G continues to monitor these developments closely and engage with policymakers as the capital budget process moves forward.

 

STATE LEGISLATURE UPDATE

The legislative calendar is expected to follow a familiar election year pattern. Lawmakers are actively back in session through February and March, before breaking in April and early May to focus on the May 5th primary election. Following the primary, the General Assembly is expected to reconvene in mid-May and remain in session to finish the Capital Budget by early July. Lawmakers will then break again until mid-November, when they return after the general election on November 3rd. They are then expected to finish the year to complete the remaining business they have during the lame duck session. 

At the beginning of this election year, Speaker Pro Tem Gayle Manning (R-Avon) introduced legislation aimed at strengthening innovation and accountability within the State’s higher education system. House Bill 644, introduced January 12th, would establish a Higher Education Evidence-Based Innovation Fund and Grant Program designed to support new academic models, program design, and data-driven reforms at Ohio’s public colleges and universities. 

Under the proposal, participating institutions could apply for competitive grants to pilot innovative approaches that improve student outcomes, align academic offerings, and enhance institutional efficiency. The bill also directs state agencies to study academic processes, with an emphasis on transparency, performance metrics, and long-term sustainability within higher education systems. 

Supporters of this legislation argue that H.B. 644 reflects growing legislative interest in tying higher education funding and policy more closely to measurable outcomes, workforce alignment, and economic development priorities. As institutions continue to face enrollment shifts, demographic changes, and cost pressures, lawmakers have positioned this bill as an early step toward encouraging modernization while maintaining access and affordability to students. 

 

2026 ELECTION UPDATE

The 2026 election cycle is beginning to take shape across Ohio, with competitive races emerging at both statewide and congressional levels. Several statewide executive offices are expected to be open or highly contested. This is who is notably running for each statewide office ahead of the May primary: 

• Governor
  • Republican: Vivek Ramaswamy and Casey Putsch
  • Democrat: Amy Acton 
• Lieutenant Governor
  • Republican: Senate President Rob McColley (R-Napoleon) and Kim Georgeton
  • Democrat: David Pepper 
• Attorney General 
  • Republican: Keith Faber (State Auditor)
  • Democrat: Elliot Forhan (Former State Rep) and John Kulewicz (Upper Arlington City Council) 
• Secretary of State
  • Republican: Robert Sprague (State Treasurer) 
  • Democrat: Allison Russo (State Rep)
• State Treasurer
  • Republican: Jay Edwards (Former State Rep) and Kristina Roegner (State Senator)
  • Democrat: Seth Walsh (Cincinnati City Council)
• State Auditor
  • Republican: Frank LaRose (Secretary of State)
  • Democrat: Annette Blackwell (Mayor of Maple Heights)

At the congressional level, Ohio’s 9th Congressional District is drawing increased attention following the announcement that former Deputy Director of ICE, Madison Sheahan, has resigned to launch a campaign for Congress. The race is expected to focus heavily on immigration, border security, and law‑and‑order issues, particularly since the district has shifted to the right since redistricting. She will face off against current Republican nominee front runner State Representative Josh Williams (R-Sylvania Twp). 

G2G remains active in this process by attending events in Columbus, in legislators’ districts, and in DC to support incumbents and meet potential new legislators. We are very closely monitoring the new Governor’s administration so we may make connections with new staff and Governor’s cabinet.

 

WORKOHIO

Lieutenant Governor Jim Tressel recently launched WorkOhio, a statewide initiative designed to provide more personalized support for Ohio job seekers. The program aims to better connect individuals with employment opportunities by tailoring services to individual skills, experience, and career goals.

WorkOhio emphasizes customized career guidance, skills training, and direct connections to in‑demand industries. State leaders have positioned the initiative as a way to address persistent labor shortages while helping Ohioans navigate changing workforce demands, particularly in manufacturing, healthcare, and technology. By focusing on individualized pathways into employment, WorkOhio seeks to strengthen workforce participation and support long‑term economic growth. G2G is actively seeking ways to engage with this initiative. 

 

CONGRESSIONAL UPDATE

U.S. Senator Jon Husted (R-OH) recently introduced legislation aimed at addressing the “benefits cliff,” a long‑standing challenge within federal assistance programs where modest wage increases can result in the sudden loss of public benefits. The proposal is designed to modernize how federal benefit programs phase out as income rises, with the goal of better incentivizing work while supporting smoother transitions to self‑sufficiency. Policymakers on both sides of the aisle have increasingly acknowledged the current structure of benefits can unintentionally discourage workforce participation, elevating the profile of this issue in Congress.

In addition to his work on benefits reform, Senator Husted has raised concerns with the U.S. Department of Commerce regarding the suspension of federal manufacturing funds designated for Ohio. According to the Senator, delays in releasing these funds risk undermining job creation and economic development efforts, particularly in communities where manufacturing remains a central economic driver. The dispute highlights ongoing tensions between federal agencies and state leaders over the pace and administration of economic development programs.

Healthcare affordability continues to be another focal point of congressional debate. Senator Bernie Moreno (R-OH) has argued reviving enhanced Affordable Care Act premium subsidies would amount to “putting America first,” framing the discussion around cost stability for working families facing rising insurance premiums. While disagreement remains over the long‑term structure and funding of these subsidies, the debate reflects evolving Republican messaging on healthcare access and affordability.

Separately, the Trump administration reversed a proposed $2 billion reduction in federal mental health and addiction funding following bipartisan concern over the potential impact on service delivery and recovery infrastructure. These funds support a wide range of organizations across Ohio, and advocates warned that the proposed cuts would have significantly constrained the ability of providers to meet growing demand for mental health and addiction services.

UPCOMING EVENTS

1/26: GCP All-In Leadership Forum