The conclusion of the budget process for fiscal year (FY) 2026 and 2027 has made notable expenditures across Ohio departments and agencies. House Bill 96 of the 136th General Assembly (GA) provides $44.42 billion of federal and state appropriation to the General Revenue Fund (GRF) in FY 2026, and $46.08 billion for FY 2027. State GRF appropriations amount to $29.84 billion in FY 2026 and $30.72 billion in FY 2027. There is a grand total of $99.53 billion for FY 2026 and $101.16 billion in FY 2027 across all funds. This provides an overview of spending in the major health and human services agencies and focuses on the major programmatic changes in this budget.
State GRF appropriations amount to $29.84 billion in FY 2026 and $30.72 billion in FY 2027.
Department of Children and Youth
The Department of Children and Youth (DCY) was established by Governor Mike DeWine through the 2024-2025 budget process. This biennium (2026-27) is the first in which DCY is operating as an agency for both years. The mission of the agency is to “provide efficient and effective services to children and their families that will promote positive, lifelong outcomes for all youth.” Nearly all infant, child and youth serving programs now operate under DCY, including childcare, child welfare, maternal and infant health, and other services for children.
Changes to publicly funded childcare and childcare policy
Childcare Choice voucher
The 2026-27 budget made a collection of changes to publicly funded childcare (PFCC) that DCY will implement. Families in Ohio are initially eligible for PFCC if their income is equal to 145 percent of the federal poverty level or below. They can maintain access to PFCC as their incomes rise to 300 percent of the federal poverty level with a sliding copay scale. Childcare advocates and the Governor sought to increase initial eligibility for childcare in this budget. While eligibility for PFCC remains at 2024-25 levels, a continuation of the Childcare Choice voucher program was included in the 2026-27 budget which provides access to childcare for families with incomes up to 200 percent of FPL. To the family, this eligibility expansion from 146 percent of FPL to 200 percent of FPL means increased access and will function similarly to PFCC. The funding mechanism though for the voucher portion of the program brings into question whether it is sustainable beyond this biennium. The initial launch of the voucher program, in 2024, was funded with one-time federal American Rescue Plan funds. The continuation in this budget is funded partially with federal childcare dollars and partially with TANF funds. Both sources are stretched thin to meet the demand for childcare and programs and services for poor people.
PFCC rates and payments
Per the budget, DCY will implement new rate and payment policies. The changes related to rates include:
- requiring payments to be made prospectively to PFCC providers,
- changing the contractual payment rate for PFCC to the rate established in DCY rules, instead of the lower of the provider’s customarily charged rate and the rate established in rules, and
- requires DCY, beginning not later than July 5, 2026, to calculate PFCC payments based on a child’s enrollment rather than on the child’s attendance.”
DCY must also develop payment policies associated with a child’s enrollment status: hourly (fewer than 10 hours of care per week), part-time (between 10 and fewer than 33 hours of care per week) and full-time (33 or more hours per week), with no categories beyond these allowed. Home based providers, categorized as either type A or type B, saw an expansion in the number of children that they can care for in these settings based on changes in the budget bill.
Childcare Cred program
The budget established the Childcare Cred program a three-way partnership between an employer and an employee and the state (DCY) to split the cost of childcare. The state (DCY) share is 20 percent, while the employer and employee each contribute 40 percent of the cost of childcare. Employees whose household income is between 200 and 400 percent of the FPL are eligible if his/her employer participates in the program. Employers can engage one or more eligible employees in the program. Childcare Cred is modeled after programs in other states, including Michigan, and is funded at $10 million in only the first year of the biennium. Employees must utilize a licensed childcare provider in the state. Employers and employees can submit an application to DCY from September 1, 2025 through May 1, 2026.
New initiatives
Responsible Fatherhood Initiative
The DCY budget includes $5 million in FY 2026 and $15 million in FY 2027 to support the development and implementation of the Responsible Fatherhood Initiative. DCY is tasked with working with a nonprofit organization to develop and implement the initiative and subsequently award grants to nonprofits that engage in outreach and awareness and provide support to fathers.
Child wellness campuses
Child welfare agencies across the state have at times faced the vexing problem of a lack of suitable placements for children in their custody. There has been media coverage of children spending the night (or multiple nights) in county buildings due to a lack of placement options in residential or other appropriate settings. Early on, DCY gathered a working group of experts to address this issue. Child wellness campuses were identified as a part of the solution to this issue. Funding to establish wellness campuses is included in the 2026-27 state budget, at $10 million per fiscal year. The wellness campuses would be established regionally and selected by DCY through a competitive selection process. An eligible entity will be able to provide all necessary services and would need to show that there are local funding commitments to support all the start-up costs and be able to maintain services on an ongoing basis.
Read the series, analysis by individual agency
Department of Behavioral Health
Department of Job and Family Services
Department of Children and Youth
