In June 2025, the Ohio legislature passed H.B. 96, the state’s biennial budget, sending it to Gov. DeWine for his signature. Gov. DeWine vetoed 67 line items before signing it into law.
As passed by the legislature, the budget would have been devastating to Ohio families, schools, and communities. The governor’s vetoes made it somewhat less destructive, but it remains a budget crafted to benefit the wealthy at the expense of everyday Ohioans. Ohioans deserve better than the least-bad option, but for the next two years, that’s what our elected officials have enacted.
This scorecard highlights some of the most important actions the legislature could have taken, and describes what they decided to do instead. The color-coded frames provide an at-a-glance assessment of the quality of the legislature’s decisions.
The few bright spots came as a result of tireless advocacy by Ohio parents, teachers, child care providers, and others — showing that we can have an impact, even with a legislature bent on serving only the most powerful.
Truly awful
Wrong direction
No progress
Some progress
Meaningful progress
Total win
Fund schools fairly
Fully fund the Fair School Funding Plan (FSFP) based on the actual, up-to-date costs of educating every child.
Ohio’s operating budget for FYs 2026-27 marks a complete departure from the Fair School Funding Plan (FSFP), a bipartisan approach to fixing Ohio’s unconstitutional K-12 funding system, using current data on student demographics, property values, and districts’ personal income levels to determine the real costs of educating Ohio’s kids. Compared to FY25 funding levels, Ohio’s operating budget increases public education funding by $281.9 million over the biennium, while the FSFP would have increased funding by $3 billion — leaving Ohio school districts with a $2.75 billion funding shortfall.
Instead of considering districts’ capacity to raise funds locally, Ohio’s budget favors wealthier districts through an enrollment growth supplement and a so-called “performance supplement.” As a result, districts with the lowest student poverty levels and the most community wealth (representing less than half of Ohio students) will receive two-thirds of the state’s spending on the performance supplement, which represents a third of total public education spending.
Meanwhile, adjustments to how economically disadvantaged students are counted result in a $200 million funding cut for Disadvantaged Pupil Impact Aid targeted towards lower-income school districts in Ohio.
Stop expanding vouchers.
The total allocation to vouchers for FY26-27 is just over $2.4 billion, taking into account the Governor’s veto of $35 million for vouchers for private schools with “truly held religious beliefs.” This represents a 20% increase over the estimated spending of just over $2 billion in FY24-25 and a 110% increase compared to the FY22-23 biennium, when the state spent just under $1.2 billion
Support Ohio’s care workers
Help more families afford high-quality child care by expanding Publicly Funded Child Care (PFCC) to cover families making under 200% of the Federal Poverty Level (FPL), or $51,640 for a family of three as of 2024.
Eligibility for PFCC did not change during this budget cycle. In fact, the legislature chose to rescind $100 million from the Governor’s Budget proposal, and it is unclear where that funding was directed. The legislature did choose to continue the Governor’s Child Care Choice Voucher program (CCCV), which grants eligibility to families up to 200% FPL, albeit at a lower rate for families and providers. However, the CCCV program will align payment rates for providers with PFCC rates by November 2026, with no Step-Up-To-Quality enhancements.
Help child care providers make ends meet and plan for the long term by reimbursing them based on enrollment, not on attendance, as required by the federal Administration for Children and Families.
Funding this aspect was required by the Administration for Children and Families for continued federal support. Previously, if a child was absent for childcare, the provider would receive no reimbursement for the reserved spot. This inclusion will have a great impact on providers by allowing them financial stability, regardless of a child’s attendance.
Update: Federal policymakers are considering a new rule that would undo the requirements, deepening the child care crisis. See our press release for context.
Reimburse childcare providers at the 75th percentile of the market rate to ensure sustainability and quality care.
Two last-minute provisions were added to the budget that reduce effective payouts for providers for the next biennium. One rule change, to 5180:2-16-06, changes the level-of-service authorizations to have higher thresholds for payment categories. It increases maximum hourly authorizations from seven to ten hours, part-time authorizations from 7-25 hours to 10-33, and full-time authorizations from 25 hours or more to 33 hours or more. Providers receiving payment for children authorized for between 7-10 hours of care and 25-33 hours of care will see reductions in payments and may ultimately lead to children being turned away because businesses simply cannot afford to have a slot taken up by a child with lower level-of-service needs.
The second rule change, to 5180:2-16-10, reduces payment rates for the nearly 4,000 Type A providers in Ohio offering PFCC to the payment rates for Type B providers. Type A providers are paid at a higher rate for a reason: They have additional costs associated with staff, building, and zoning. Reducing payment rates disincentivizes Type A providers from continuing to invest in their business at the same level.
Make healthcare work for everyone
Make sure children from birth to age 6 have the health care they need to thrive by providing continuous early childhood Medicaid coverage, regardless of changes to parental income. This would allow children to have consistent pediatrician visits, vaccinations and specialty care.
As enacted, the budget eliminated a provision of law requiring the Ohio Department of Medicaid (ODM) to seek approval to provide continuous Medicaid enrollment for eligible children ages 0-3.
Governor DeWine vetoed the elimination, meaning that the budget again requires ODM to apply to the federal government for a waiver for continuous eligibility. But then, on July 17, 2025, the Centers for Medicare and Medicaid Services (CMS) issued a letter to state Departments of Medicaid committing not to approve any newly submitted waivers for continuous eligibility. Effectively, continuous eligibility for babies and children has been eliminated.
Block Medicaid work requirements that raise administrative costs and limit access to care.
Separate from Ohio’s state budget process in 2025, new work reporting requirements for Medicaid expansion eligibility were on the table at both the state level (through an Ohio Department of Medicaid waiver request under review by CMS) and the federal level. In July, H.R. 1, the federal budget bill, enacted Medicaid expansion work requirements.
Depending on how the state implements federal work requirements, an estimated 319,000 to 493,000 Ohioans will be at risk of losing their Medicaid expansion coverage as of 2034.
Eliminate the Medicaid expansion trigger provision.
The legislature included a trigger provision in the budget that would discontinue coverage for Ohioans who enroll in Medicaid via Medicaid expansion if the Federal Medical Assistance Percentage (FMAP), or federal match rate, drops. Under the Affordable Care Act, Medicaid expansion has allowed states like Ohio to expand those who can be covered by Medicaid to include adults ages 19 to 64, with incomes below 138% of the federal poverty level (FPL), who are not eligible for other categories of Medicaid.
If FMAP for Medicaid expansion ever falls below its current 90%, the trigger provision mandates that Ohio will discontinue coverage for those enrolled in Medicaid via expansion, effectively stripping close to 740,000 Ohioans of their health insurance. The one piece of good news is that on the federal level, Congress did not reduce Medicaid expansion FMAP in its enacted federal budget (though it made other massive cuts and eligibility changes to Medicaid and Medicaid expansion). However, moving forward, if FMAP drops by even one percentage point at any point in the future, the trigger for Medicaid expansion enrollees in Ohio would still go into effect.
Keep funding up-to-date by adjusting Department of Health (ODH) funding for inflation, and increase funding for line items that support lead abatement and lead safety programs, especially in high-risk communities with housing built before 1980.
The Ohio Department of Health (ODH) receives revenue from six different funding groups, with the largest of these, Federal, providing well over half of the department’s funding. For FY 2025 and FY 2026, appropriations for Federal and three other funding groups increased, while one group held steady. The only funding group that decreased appropriation was the General Revenue (or GRF) — the fund over which Ohio’s legislature has the most control.
While federal funding increased by 20.44% in FY 2026 and 1.29% in FY 2027, GRF funding decreased by -12.99% (-$13,536,474) for FY 2026 and -0.64% (-$577,193) for FY 2027. Much of the decrease can be explained by the transfer of the Help Me Grow and Infant Vitality programs from ODH to the Department of Children and Youth, and by the transfer of Emergency Preparation to a different funding group within ODH. But even when these three programs are removed from the equation, ODH GRF appropriations decreased from FY 2025 to FY 2026.
The Ohio legislature eliminated GRF funding for the Lead-Safe Home Fund Program, along with reducing Lead Abatement from $7.9 million to $250,000. Other GRF line items that received reductions of more than 10% were AIDS Prevention; Chronic Disease, Injury Prevention, and Drug Overdose; Public Health Technology Innovation; and Youth Homelessness.
Build a fair tax system
Raise taxes on earnings above $200,000 to ensure the wealthy pay their fair share.
The General Assembly approved a flat income tax of 2.75% on income over $26,050, eliminating the graduated tax and what was previously a 3.5% rate on income over $100,000. This will deprive Ohio schools and public services of more than $1.6 billion in revenue over two years. Ninety-six percent of the cut will go to the top 20% of earners, while fully 36% will go to the top 1%, who average earnings of almost $1.8 million a year.
Enact a state Child Tax Credit to give Ohio parents a tax cut, and make the state Earned Income Tax Credit refundable to put more money in the pockets of working Ohioans.
Governor DeWine proposed a child tax credit but it was not approved by the legislature, which also took no action on making the Earned Income Tax Credit refundable.
Eliminate wasteful tax expenditures and breaks for the wealthy and special interests.
The General Assembly limited or repealed nine tax breaks worth $325.5 million during the FY2026-2027 biennium. Some tax breaks deserved such treatment, including the new cap on the vendor discount, which had allowed big retailers to profit from collecting sales tax. However, the budget bill also boosts the cost of other tax breaks and walks back changes that had been proposed earlier. This underscores the need for a permanent, public mechanism for reviewing all of the state’s tax breaks.
Pass a circuit breaker to provide targeted yet inclusive property tax relief to those who need it.
The legislature did not approve a circuit breaker or other targeted property tax relief. Instead, it passed a series of measures that will deprive Ohio school districts of revenue while making it more difficult for them to raise the funds they need in the future. Thankfully, Governor DeWine vetoed these property tax provisions, and though some have subsequently been resurrected at least in part in other legislation, the General Assembly has overridden just one of the vetoes, outlawing certain kinds of local levies.
Build a compassionate justice system
The state should pay cost-of-care fees for room, board, and medical and dental care. Lawmakers should allocate funds from the GRF to cover the average annual amount the Department of Youth Services (DYS) receives from these fees. Lawmakers should also strike section 2151.36 (Support of Child) from the Ohio Revised Code (ORC) and eliminate the practice of allowing judges to order families to pay for their child’s incarceration.
The budget for this line item remained the same, with no reallocation from GRF to cover the allocated amount of this budget line item, and ORC section 2151.36 remains intact.
Increase wages and job opportunities
Increase funding for wage and hour enforcement to $2.6 million annually.
Funding for the Bureau of Wage and Hour Administration increased from $1.3 million annually in the current biennium to $1.5 million annually in the upcoming biennium. Only five wage and hour investigators are employed by the state to protect 5.6 million working Ohioans from unscrupulous employers. To ensure workers are being paid the wages they are owed and offending employers are held accountable, the Bureau needs more staff. Currently, they operate on a reactive model, investigating claims when they are received. Ample funding would allow the Bureau to be proactive in their investigations, preventing wage theft and labor violations before they happen. What’s more, state legislators removed a provision recommended in the Governor’s Budget that would have imposed a modest fine on offending employers.
Make higher education affordable for all
Increase funding for the State Share of Instruction (SSI), Ohio’s main source of funding for public colleges and universities, so that it at least keeps up with inflation to ensure that every Ohioans can access training and education after high school and be fully supported in their learning.
The total SSI allocated for FY26-27 is just over $4.3 billion, a 2.9% increase over estimated spending of $4.2 billion in FY24-25. While this is a move in the right direction, it doesn’t make up for overall cuts since 2006 when inflation is taken into account.
Further complicating this funding decision by legislators is the passage of Senate Bill 1 in 2025, which eliminated many programs and services that provided inclusive support for traditionally marginalized students and created new compliance costs for public colleges and universities. Other concerning moves include creating more carveouts in the SSI formula for specific legislative goals, rather than looking at what is needed in different regions of the state to ensure access to postsecondary training and education for all.
Support more students by continuing to increase funding for the Ohio College Opportunity Grant (OCOG), the state’s main way of providing aid to lower-income Ohioans.
The House and Senate stayed with the Governor’s proposal, allocating $428 million for FY26-27 for OCOG, an 11% increase over FY24-25 spending of $385.2 million. Coupled with increases included in the last biennial budget, this is a step in the right direction — but one that still falls short of the need for grant aid in Ohio.
Allow the OCOG to be used for more than just tuition and general fees, enabling Ohio students who choose the most affordable postsecondary options to access this grant.
Neither the legislature nor the Governor has taken steps to expand eligibility for OCOG to include Ohioans who cannot use the grant simply because they choose our state’s most affordable public options, like community colleges and regional four-year campuses. Restructuring OCOG so low-income students can use it to pay for a broader range of education-related expenses is essential to support every Ohio student in meeting their training and educational goals after high school. This is especially important given recent and potential changes to eligibility for the federal Pell grant, which determines eligibility for OCOG, as well as new limits on federal student loans.
Support young people in the foster-care system by funding the Foster-to-College Scholarship Program.
The FY26-27 budget does not include funding for the Foster-to-College Scholarship Program, leaving it up to the legislature to create this vital program through Senate Bill 13 and House Bill 25, both introduced in January 2025. A similar bill passed the House during the last General Assembly, but stalled in the Senate.
Expand healthy, affordable food access
Provide free school meals for all children regardless of their family’s income.
Line item GRF 200505, the state match for the school meal programs, received a 5.19% reduction in funding for FY 2026 and FY 2027, compared to FY 2025. Maintaining the program would have required an increase to match inflation. On a more positive note, the budget does still require the line item’s funds “to provide reimbursements to make reduced-price school meals free and to provide matching funds to obtain federal funds for the school lunch program.” In other words, students who qualify for free or reduced-priced meals will still receive free meals, but school districts will need to purchase the meals with reduced funding.
Support public transportation
Increase state support for public transportation: GRF allocations should make up 10% of total statewide public transportation investments.
Ohio’s operating budget maintains flat state funding for public transportation, allocating $37 million per year from the GRF. Lawmakers would have needed to increase FY2024-25 funding levels by $4.44 million over the biennium just to keep pace with inflation. At the same time, annual GRF allocations for public transit represent 2.9% of statewide transit investments across all funding sources (based on FY23), far below ODOT’s recommendation of 10% by 2025.
Finally, Ohio’s transportation budget earmarks $33 million annually for public transit using appropriations from the Federal Highway Administration’s flexible funding program — the same as the previous budget cycle. The transportation budget additionally earmarks $13.5 million per year for the Ohio Workforce Mobility Partnership Program using federal highway construction appropriations, which funds transit projects designed to improve access to public transportation and connect workers to employment opportunities. This is a $3 million decrease over the biennium.