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Legislators

Florida Legislature Finalizes Budget with $500 Million in Cuts Amid Looming Federal Cuts

Strategic Insights

— 1 min read

Florida lawmakers wrapped up the state budget for the next fiscal year, tallying $500 million less than Governor Ron DeSantis' proposed $115.6 billion budget. The budget aims to address potential federal cuts and prioritizes tax relief, emergency preparedness, and education. Amid concerns about the impact of federal cuts, the state is preparing for a potential recession, with lawmakers earmarking $1.5 billion for reserves over the next two fiscal years.

Key Takeaways:

  • The finalized budget is $500 million less than Governor Ron DeSantis' proposed $115.6 billion budget for state fiscal year 2025-26.
  • Lawmakers are preparing for a potential recession with a $1.5 billion reserve set aside over the next two fiscal years.
  • The Senate agreed to provide $23 million for the Florida State Guard, despite Governor DeSantis' request for $62 million.
  • Lawmakers are concerned about potential cuts to Medicaid, with 44% of federal funds allocated to the state for Medicaid.
  • The state will allocate $560 million for local projects and $176 million in Medicaid rate increases for long-term care facilities.
  • The budget includes education initiatives such as $7.5 million for Florida Polytechnic University to increase enrollment and $10 million for security at Jewish day schools.
  • The Senate included $25 million for the Florida Job Growth Grant Fund and $50 million for a research incubator for cancer.

Statistics:

  • The budget is $500 million less than the proposed budget, totaling $115.1 billion.
  • The state has set aside $1.5 billion for reserves over the next two fiscal years.
  • The Senate agreed to provide $23 million for the Florida State Guard.
  • Medicaid funds make up 44% of federal funding allocated to the state.
  • The legislation will allocate $560 million for local projects.
  • The Medicaid rate increases for long-term care facilities will total $176 million.

Sources:

  • (https://floridaphoenix.com/2025/06/05/gop-led-legislature-expects-less-federal-funding-focuses-on-emergency-fund-in-budget-talks/)
  • (https://floridaphoenix.com/2025/04/30/medicaid-cuts-could-rock-states-budget-providers-pay-and-the-care-being-delivered/)
  • (https://floridaphoenix.com/2025/03/28/could-proposed-state-senate-funding-for-food-banks-soften-blow-from-federal-cuts/)

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