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Oregon Senate approves $23 billion DHS budget with increases for providers, oversight
Summary
The Senate passed Senate Bill 55‑26 A, the Department of Human Services budget, a $23 billion total‑funds package that includes provider rate increases, a new in‑home care option, and funding for oversight of residential care facilities, lawmakers said on the floor.
The Oregon State Senate on June 18 approved Senate Bill 55‑26 A, the Department of Human Services (DHS) budget, totaling roughly $23 billion in total funds and including increased support for Medicaid providers, new in‑home care options and additional oversight for residential facilities.
Senator Campos, who carried the bill on the floor, said the joint committee on ways and means recommended a $23,000,000,000 total‑funds budget that includes $7,400,000,000 in general fund and 11,351 positions. "The general fund budget is a $1,300,000,000 or 21.8% increase, which largely reflects growth in the current service level budget related to caseload growth, bargained wages and rates, and a declining federal Medicaid match," Campos said.
Key items described on the floor: $144,000,000 total funds aimed at increasing Medicaid provider rates with a focus on higher wages for direct care staff; $102,000,000 total funds to launch a new in‑home care option for seniors and people with disabilities called "agency with choice"; about $19.7 million to sustain youth homelessness prevention and intervention; and $5.7 million and 33 positions to improve oversight of residential care facilities and homes.
The budget report also includes four budget notes focused on wage transparency for direct care workers, new rate methodologies for aging and disability services, and safety and regulatory oversight of residential facilities. Senator Campos told colleagues the subcommittee held about five weeks of hearings on the budget and credited staff support from Gregory Jolivett of the Legislative Fiscal Office.
The Senate recorded final passage for SB 55‑26 A; the bill was declared to have received the constitutional majority required for enactment. Proponents urged the chamber to approve the budget, saying it addresses workforce and oversight challenges across DHS programs.
Why it matters: The package addresses workforce shortages, rate pressures and oversight gaps in services for seniors, people with disabilities and youth experiencing homelessness. Lawmakers said the funding recognizes caseload growth and rising costs tied to a lower federal Medicaid match.
What happens next: With Senate passage, the DHS budget proceeds through the legislative process and into final steps for enactment; detailed implementation and reporting requirements will be carried out by DHS and noted in the budget report.
