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Shifting Support: State Budget changes impacting Ohio's HHS agencies

Community Solutions Team
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September 29, 2025
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The conclusion of the budget process for fiscal  (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 FY2026, 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 report provides an overview of spending in the major health and human services agencies and focuses on the major programmatic changes in this budget.

Ohio Department of Health

The Ohio Department of Health (ODH) works with over 110 local health departments across the state, as well as health care providers and public health associations to protect and promote public health. ODH received a total appropriation of $978.6 million in FY 2026 and $989.7 million in FY 2027.

Budget funding for ODH equates to a 14.1 percent increase and 1.1 percent increase in funding, respectively.

The increase in funding reflects additional anticipated federal awards over the biennium as GRF decreases 13.0 percent from FY 2025 spending.

Ohio Department of Medicaid

House Bill 96 (H.B. 96), as enacted by the 136th General Assembly, contains provisions that affect everything from Medicaid eligibility to payment structures to oversight and healthcare services. We'll walk through some of the major Medicaid and health related provisions highlighting some impacts, some fiscal effects and broader implications for the Ohio Department of Medicaid(ODM) providers, and ultimately, patients.

Mental Health & Addiction Services | Behavioral Health

The DBH was appropriated $1.23 billion in FY 2026 and $1.25 billion for FY 2027. Over half (52.2%) of the sources for the budget comes from the GRF. Other significant sources are Federal (29%) and state non-GRF (18.8%).

The Department of Behavioral Health Greenbook has made several notable changes.

  • The name changes of the agency from the Ohio Department of Mental Health and Addiction (OMHAS) to the Department of Behavioral Health (DBH).
  • DBH is also directed to collaborate with other government institutions/entities to develop and deploy a system of statewide mobile crisis services. This will be done if federal and state funding is adequate.
  • HB 96 also creates state block grants, which use GRF appropriations to provide flexible funds for ADAMHS boards. There are six block grants that were created. The allowed uses will be defined by the DBH Director. The six block grants are: Prevention State Block Grant, Crisis Services State Block Grant, Mental Health State Block Grant, Substance Use Disorder State Block Grant, Recovery Supports State Block Grant, and the Criminal Justice State Block Grant.

Aging Services

The Ohio Department of Aging (ODA) was appropriated $127,930,872 for FY 2026 and $131,571,109 for FY 2027. Most of the funds are from federal at 66.6 percent followed by 20.2 percent from GRF, and 13.2 percent from the Dedicated Purpose Fund.

Overall, the agency is getting a decrease in funding compared to FY 2025 when they were allocated $169,984,281.

Between FY 2025 and FY 2026, there was a decrease by 24.7 percent, however, there will be an increase from FY 2026 to FY 2027 at 2.9 percent.

Department of Job and Family Services

The Department of Job and Family Services (ODJFS) administers public assistance programs including the Supplemental Nutrition Assistance Program (SNAP) and the Temporary Assistance for Needy Families (TANF) program, oversees child support payments and unemployment services, along with other job readiness programming. The agency’s stated mission is “to improve the well-being of Ohio’s workforce and families by promoting economic self-sufficiency and providing assistance to some of Ohio’s most vulnerable citizens.”

Overall, over $2billion dollars, both state and federal, flow through ODJFS in 2026 and over $3 billion in 2027.

Highlighted here are the significant changes in this budget, compared to the last biennium, while the continued core functions of the agency are covered here. The Community Services Block Grant and other energy assistance programs will move from the Department of Development (DEV) to ODJFS, accounting for the significant increase in federal funding from 2026 to 2027. Additionally, the administration of Ohio Benefits, which is the online benefits portal for several public assistance programs, will shift from the Department of Administrative Services to ODJFS.

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.

The budget included changes to publicly funded childcare and a policy that established the Childcare Cred program. New programs include the Responsible Fatherhood Initiative and child wellness campuses.

Read the series, analysis by individual agency

Department of Health

Department of Medicaid

Department of Behavioral Health

Department of Aging

Department of Job and Family Services

Department of Children and Youth

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