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September 30, 2025

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G2G Blog

Ohio Legislative Update

Last Updated: September 30, 2025

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Overview

September and October have been busy months in the Statehouse with fiscal updates, capital budget preparation, and legislative activities focusing on property tax reform, education oversight, and workforce development initiatives. Across the state, discussions around redistricting, election posturing, and funding priorities are driving both political and funding conversations. State agencies and local governments are preparing for the release of the preliminary Capital Budget guidance, which is expected soon.

G2G has already begun meetings and preparation for the Capital Budget with legislators and agencies as we expect House deadlines to be as soon as December. We connected U.S. Senator Husted (R) last week and discussed some key high-tech R&D initiatives in Ohio as well as some health and human services projects we are working on. He shared his insights about the current government shutdown and timing for reopening, which continues to look bleak. But the Senate is continuing to consider legislation and is working on the Defense appropriations bill.

Capital Budget

The DeWine Administration and Office of Budget and Management (OBM) have officially begun preparations for the FY 2027–2028 Capital Budget, releasing new guidance that launches the formal planning process for state agencies and institutions. Agencies anticipating capital needs over the next biennium are required to submit their Capital Improvement Plans by November 3, 2025, and reappropriation requests by November 21, 2025. These submissions will guide how the state prioritizes investments in infrastructure, facilities, and major equipment purchases for the six-year period beginning July 1, 2026.

The capital budget supports the acquisition, construction, and improvement of public facilities across Ohio’s agencies, universities, and communities. Each proposal must include detailed narratives outlining project justification, cost estimates, timelines, and long-term operational impacts. OBM’s new guidance reaffirms that capital dollars are limited to projects meeting strict state bond and allowability criteria funds must be used for assets with lasting public benefit such as education, transportation, corrections, mental health, or environmental infrastructure. Routine maintenance and operating expenses remain ineligible.

Early legislative discussions have pointed toward a stronger emphasis on broadband expansion, rural infrastructure needs, and workforce training facilities. These themes align closely with the administration’s ongoing goals of strengthening rural communities, connecting unserved regions, and advancing economic competitiveness through infrastructure investment.

Unlike the Operating Budget, the Capital Budget is a largely pre-negotiated process, meaning public hearings and amendments are limited once the bill is introduced. Community project requests are developed regionally in coordination with legislative delegations, local governments, and economic development agencies. Once introduced, the bill typically moves rapidly through the legislature with few changes.

G2G has already begun outreach with legislators, local officials, and client partners to prepare for this cycle. The House and Senate are expected to issue member guidance and project forms as early as December 2025, with regional discussions already underway to identify high-impact priorities. Given the limited window to submit project requests, it is essential that proposals be finalized and positioned for inclusion in the introduced version of the bill, where decisions are effectively made.

With the expiration of extraordinary federal infrastructure aid, this cycle’s capital budget will be more competitive and disciplined. State leaders have signaled that execution readiness and measurable community impact will drive decisions as much as need. Legislators want to deliver visible outcomes for their districts, and the administration aims to fund projects that demonstrate both fiscal responsibility and long-term return on investment. G2G will continue meeting with legislative offices and agencies to ensure clients’ projects are well-positioned under the new evolving criteria.

Elections

Former U.S. Rep. Tim Ryan (D) remains undecided about entering the 2026 governor’s race. He had previously committed to deciding by late September, but that date passed without a formal announcement. Former Ohio Department of Health Director Amy Acton (D) remains the leading Democratic contender while Republican frontrunner Vivek Ramaswamy (R) will likely win the Republican nomination as current Lieutenant Governor Jim Tressel, who many were hopeful would run, has declined to run in the primary.

State Senator Nathan Manning (R-North Ridgeville) announced his candidacy for the Ohio House of Representatives, seeking to fill the seat currently held by his mother, State Rep. Gayle Manning (R-North Ridgeville), who is term-limited. His candidacy is expected to deter primary challengers and further solidify the district as a GOP stronghold ahead of the 2026 election cycle.

Former State Rep. Craig Riedel (R-Defiance) has been publicly discussing a 2026 run for Ohio State Senate District 1, which includes much of Northwest Ohio outside of Toledo, and is currently held by term limited Senate President Rob McColley (R-Napoleon). Additionally, State Rep. Jim Hoops (R-Napoleon) is term limited and has expressed interest in running for the open State Senate seat.

State Sen. Steve Huffman (R-Tipp City) is term limited. State Rep. Rodney Creech (R-West Alexandria) and State Rep. Phil Plummer (R-Dayton) have both publicly announced their candidacy for State Senate District 5, which includes Butler, Darke, Miami, and Preble counties.

Former Rep. Scott Lipps (R-Franklin), has announced his candidacy for State Senate District 7 since State Sen. Steve Wilson (R-Maineville), is term limited.

G2G is actively watching all announcements related to the 2026 election and tracking how legislative and administrative changes may impact our work and developing and maintaining relationships with new and future legislators.

Health and Human Services Levies on November 2025 Ballot

Voters across Ohio will see 67 health and human services levies on the November 4th ballot. These measures collectively address funding for local public health, developmental disability services, mental health and addiction, and senior and social services. These levies play a central role in sustaining Ohio’s health and human services infrastructure, particularly since counties and boards of developmental disabilities rely on property tax levies as primary operating revenue.

Of the 67 levies on the ballot, 45 are renewals, representing the majority of measures and indicating a preference among local governments to sustain existing funding levels without burdening residents with taxes. There are also five levies that seek renewals with an increase, and eleven are classified as replacement levies that seek to adjust existing millage rates upwards to account for inflationary pressures. Additionally, there are six new levies that seek modest growth to expand services.

The November ballot will serve as an important barometer of voter sentiment toward local government funding. The results may inform leaders in the Ohio Legislature about attitudes toward property tax reform, and replacement levy legislation currently under consideration at the Statehouse.

Redistricting

The Ohio General Assembly missed its Sept. 30 deadline to adopt a new congressional map, failing to introduce a formal GOP proposal or engage in bipartisan negotiations. Responsibility now shifts to the Ohio Redistricting Commission, which has until Oct. 31 to adopt a map. If the Commission fails, map-drawing authority reverts to the legislature under a simple majority vote. Democrats introduced an alternative 8–7 map proposal in early September but it received no committee hearing. Republican leadership has indicated they will allow procedural deadlines to pass before moving their own draft later this fall. Minority leaders criticized the process for avoiding transparency and public accountability.

Tax Reform

In August, the House successfully overrode one of Gov. DeWine’s property-tax vetoes. As the Senate reconvenes, additional overrides, especially tied to school levies and local flexibility, are expected this month. Legislative leaders view these moves as central to tax relief messaging heading into campaign season. GOP leadership has characterized these votes as part of a larger GOP message on affordability and homeowner relief ahead of the 2026 election cycle. Representatives such as Dave Thomas (R-Jefferson) are continuing to push for more reform and has had several bills that he has introduced such as H.B 309, H.B 335, H.B 355, H.B 421, H.B 443, H.B 493. Each bill deals with a different aspect of property tax reform, and all can affect school funding, local government revenue, and the amount Ohioans pay in taxes. State Senate Finance Chair Jerry Cirino (R-Kirtland) has expressed interest in reviewing these bills as they make their way to the Senate. G2G is these bills and will provide updates on their progress.

SNAP Updates

The DeWine administration’s SNAP task force recommended applying for a USDA waiver to limit SNAP purchases of high-sugar beverages. Over the next few weeks, waiver language will be drafted, public comment gathered, and stakeholders may engage to influence final terms. The Department of Jobs and Family Services (ODJFS) is expected to draft the waiver application in October with stakeholder feedback in mid-October. If approved federally, Ohio would become one of the few states to implement such a program. Supporters frame this effort as a public health initiative aligned with Make America Healthy Again (MAHA) while opponents are cautioning that implementation could create a burden for local grocers and stigmatize individuals who want to purchase high-sugar beverages.

OneOhio Recovery Foundation

OneOhio has announced that its second regional grant cycle will launch in December 2025, deploying approximately $45.8 million statewide when combined with carryover funds. Priority areas will include recovery housing, legal services, behavioral health, and regionally driven prevention programs. Special emphasis is being placed on equity across Appalachian counties and long-term sustainability of funded programs. OneOhio has indicated it will provide additional technical assistance to smaller applicants and nonprofit partners. G2G is closely watching this process. The general timeline for the next grant cycle will begin in December 2025 at which they will release an RFP. Following the issuance of an RFP, they will begin accepting funding inquiries in January of 2026. Submission reviews would begin in February, at which interested parties who submitted funding inquiries would be notified if they were approved to receive funding. If you think you may want to apply for OneOhio funding, please let us know.

Ohio Fiscal Outlook

The September OBM Monthly Financial Report reflected modestly positive fiscal conditions. Personal Income Tax collections exceeded estimates by $27 million (3.4%), and the Commercial Activity Tax outpaced by $63 million (16.2%). However, auto sales and fuel tax receipts remain weaker than expected. Year-to-date collections exceed estimates by $1.7 million (2.4%), driven primarily by income-related categories. Upcoming quarterly return payments in September and January will determine whether that momentum is held. Despite encouraging figures, earlier fiscal-year shortfalls (1.7%) remain a risk factor. If receipts lag, the legislature may consider mid-biennium adjustments or targeted expenditure restraint heading into spring 2026.

G2G at Ohio Events

Over the past month, G2G has participated in several high-visibility gatherings spanning life sciences, public safety, women’s health, and economic development.

At Innohealth 2025, leaders in Ohio’s life science and biotech community convened in Columbus to explore how to grow the state’s innovation ecosystem. Panels covered topics including biomanufacturing, health tech investment, and the alignment of researchers, institutions, and capital. The event also featured Lieutenant Governor Jim Tressel, who spoke about needing to continue to strengthen Ohio’s position in the national health innovation landscape.

The OHCON Public Safety UAS conference held in Reynoldsburg drew first responders, agency officials, and drone technology companies. Presentations focused on operation use of unmanned ariel systems (UAS), regulatory challenges, and lessons learned in the real-world public safety deployments.

Ohio Women in Government hosted the luncheon panel, “Closing the Gap: Aligning Policy and Community to Reduce Infant Mortality in Ohio”. The event featured community health leaders, advocates, and public officials to spotlight strategies for improving birth outcomes and coordinating health services statewide.

The Ohio Chamber Future Forum brought together business, policy, and economic development leaders to discuss topics such as innovation, infrastructure, population trends, and quality of life improvements. It served as a platform for public-private interaction and surfaced emerging priorities for Ohio’s next decade.

The Ohio Chamber of Commerce hosted the “Unlocking Ohio’s Future Workforce, Education & Permitting Reform” event. Sen. Jon Husted (R), Congressman Mike Carey (R-OH-15), and Ohio Chamber of Commerce President Steve Stivers presented and spoke about permitting reform to expand Ohio’s energy sector and the need to make sure Ohio stays ahead in developing our young workers to obtain in-demand jobs. There were also appearances by Speaker Matt Huffman (R-Lima) and Senate President Rob McColley (R-Napoleon). They spoke about the importance of making sure our local and community colleges in smaller Ohio towns, are prepared and able to offer workforce training and 4-year degrees to their local student populations.

The National Association of Women Business Owners Columbus Chapter monthly meeting on October 2nd featured a panel that included Ohio Chamber President Steve Stivers and State Representative Cystal Lett (D-Columbus). The event was titled “From Policy to Profit: How Legislation & Policy Impact Your Small Business”. During the panel, Stivers and Lett discussed how recent and proposed legislation affects small businesses with topics centering around how small businesses and entrepreneurs can more effectively advocate for their industries. Stivers spoke about the Chambers' priorities when it comes to policy engagement to help small businesses, and Lett shared insights into how small businesses can navigate shifting priorities in the legislature.

G2G also attended an event in London, Ohio with Senator Husted (R) to discuss client priorities and to listen to his insights about the Federal Government Shutdown. He mentioned needing to work across the aisle to get the government open again, so federal operations do not stall in Ohio. He also noted that he is working on several pieces of legislation surrounding permitting reform to allow Ohio to continue to expand and reinforce its energy production, which will in turn help businesses across the state.

Upcoming Events

G2G remains active this fall attending events around Ohio to stay connected to our local, state, and federal legislators. Registration links for several of these events are below; we’d love to see you there!