House Ways and Means committee finalizes FY2026 budget language, limits reprogramming for hiring and adds financial transparency provisions

The House Committee on Ways and Means on Thursday concluded deliberations on the proposed fiscal 2026 budget bill and approved multiple amendments clarifying reprogramming authority, strengthening financial reporting and reserving targeted funding for agency operations.

Committee members left in place a provision granting the executive branch broad reprogramming authority but inserted a condition that “reprogramming shall not be used for the hiring of new personnel or for the salary adjustment of active personnel,” language read into the record by legal counsel during the session. That restriction was adopted after discussion and a voice vote by the committee.

Committee leaders said the broader reprogramming authority is intended to let the executive move funds within the executive branch to meet pressing obligations, while the newly inserted hiring restriction preserves the House’s appropriation role. Vice Chair and other members repeatedly urged monthly and quarterly reporting so the legislature could monitor collections and possible shortfalls.

Why this matters: the changes balance administrative flexibility with legislative oversight. Members argued the added transparency and reporting language is intended to reduce surprise proportionate cuts and give each branch time to adjust spending or request supplemental appropriations.

Key outcomes and provisions

- Reprogramming and hiring: The committee retained language giving the executive branch authority to reprogram up to 100% of executive-branch appropriations but inserted the explicit limit that reprogramming cannot be used to hire new personnel or to increase salaries of current employees. The committee discussed and clarified that transfers of existing positions moved to external (for example, federal grant) funding are treated differently from creating new FTEs.

- Reporting and notice: The committee added reporting requirements for the secretary of finance and other expenditure authorities. The bill now requires (a) quarterly expenditure reports for certain non-general (CW) funds within 30 days after quarter-end, and (b) a 30-day notice to affected expenditure authorities before any proportionate cut or reduction of allotments. Members discussed, but did not adopt in this section, a separate monthly forecast proposal that would require reporting within 10 days after month-end; that idea was noted for placement elsewhere in the bill.

- Passport Office funding: Committee language reserves no less than $150,000 of Passport Office collections to support the office’s personnel and operations, a floor insertion adopted by consensus after members described operational shortfalls that impede passport processing.

- Public School System (PSS) programs: The committee increased interscholastic sports, cultural and academic competition funding for the school year to $500,000, up from $300,000 in the current budget, to cover a full school year.

- Department of Public Lands (DPL) and parks: Members inserted a provision requiring DPL to provide payments for landscaping and ground maintenance of properties falling under the purview of the Division of Parks and Recreation; the insertion responds to members’ concerns about delayed payments for services rendered.

- Hiring restrictions and essential positions: The committee debated language that would allow filling essential positions “as determined by the governor.” After discussion about potential contradictions with the hiring restriction under the reprogramming section, the committee restored the governor-exception language; members flagged the issue for future clarification and practice guidance.

- Salary cap and non-general funds: A new citation corrects the statutory reference for the salary cap and explicitly allows federal and non-general revenue sources to fund salaries in excess of the local cap for FY2026 where authorized by law.

What members said

Representative Joel Camacho pressed for clearer advance notice and planning before any proportionate cuts, saying short notices in past years had forced difficult mid-quarter adjustments. The floor leader and vice chair argued for requiring monthly reporting to give the legislature a timely view of revenue trends.

Legal counsel read inserted language for several amendments. For the judicial branch protection, legal counsel read the added clause: “Notwithstanding any Commonwealth law to the contrary, there shall be no reduction of allotments or proportionate cuts to the judicial branch absent a new annual budget submission.” The committee adopted the judicial-branch protection and the companion legislative-branch provision.

Procedure and next steps

Committee members directed bureau staff and legal counsel to produce a clean copy reflecting all adopted amendments. The chair said the finalized draft will be filed with the House clerk for prefiling and placement on the full House calendar for a vote. The meeting concluded with the committee in recess and then adjourned for the day.

Votes at a glance

- Insert hiring restriction into reprogramming section (prohibiting reprogramming for hiring or current salary adjustments): adopted by voice vote; specific recorded tallies not provided.

- Require quarterly expenditure reports for CW/non-general funds within 30 days after quarter-end: adopted by consensus.

- Require 30-day notice from the secretary of finance before proportionate cuts that reduce allotments: adopted by consensus.

- Reserve no less than $150,000 for Passport Office personnel/operations from Passport collections: adopted by consensus.

- Increase PSS interscholastic and cultural competition funding to $500,000 (from $300,000): adopted as added language.

Discussion-only items

Committee members debated but did not finalize in this session a separate monthly forecasting clause requiring the secretary of finance to report within 10 days after month-end; the chair and members asked staff to place related language elsewhere in the bill.

Speakers quoted in this report are drawn from the meeting record and are identified by role in committee proceedings. Direct excerpts used in this article were read aloud by legal counsel while recording proposed statutory or budget-language insertions.

Ending

The committee’s actions will be reflected in a clean, prefiled version of the proposed FY2026 budget bill to be circulated to members and submitted to the full House for consideration. The chair said the committee had completed its work for the day and adjourned after the clean-up period began.