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DPHHS budget request asks for more state money as federal match falls; total HB2 request about $7 billion
Summary
Department of Public Health and Human Services presented a 2027 biennium executive budget request that is slightly smaller in total funds than the 2025 base but asks for substantially more general fund because of lower federal matching rates and one‑time facility funding.
The Department of Public Health and Human Services asked the Section B appropriations subcommittee on Jan. 10 to consider a 2027 biennium House Bill 2 request that totals roughly $7 billion and includes substantial increases in state general fund as federal matching dollars decline.
Legislative Fiscal Division analyst Dr. Josh Poulet said the executive request is “3.3% lower than the 2025 budget” in total funds but increases general fund by double digits because of changes to the federal medical assistance percentage (FMAP). The request proposes a 12% general fund increase in state fiscal 2026 and about an 18% increase in 2027 compared with the 2025 base.
Why it matters: the FMAP formula reduces federal participation as…
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