Governor Ron DeSantis has released the Focus on Fiscal Responsibility budget proposal for Fiscal Year 2025-26, outlining $115.6 billion in spending priorities that focus on tax cuts, workforce pay increases, health care funding, infrastructure improvements, and environmental conservation. His proposal includes $2.2 billion in tax cuts, a reduction of 741 government positions, and a goal to pay down 50% of the state’s tax-supported debt by 2027-28.

While the governor’s proposal highlights his policy priorities, it is important to note that Florida’s Constitution vests the responsibility of crafting and passing the budget with the legislature. Lawmakers are not required to adopt the governor’s recommendations and will debate, revise, and negotiate the final budget during the 2025 Legislative Session, which begins March 4.

Key Budget Highlights

The budget makes major investments in Medicaid, home- and community-based services (HCBS), behavioral health, hospital support, and cancer research.

Medicaid & Health Care Services

• $400+ million in Medicaid funding, covering:
  • Children’s health care programs, including Florida Healthy Kids.
  • Long-term care and Medicaid reimbursement programs.
  • The Low-Income Pool (LIP), which provides funds for hospitals serving uninsured patients.
• Continued investment in Medicaid managed care programs.

Elder Care & Home-Based Services

• $130 million for Community Care for the Elderly & Home Care for the Elderly programs, providing:
  • Adult day care services.
  • Home-delivered meals.
  • Respite care for caregivers.
• $73.1 million for Alzheimer’s Disease Initiative (ADI) programs, ensuring continued access to specialized dementia care.

Hospital & Specialty Care Funding

• $596 million for graduate medical education, hospital residency programs, and behavioral health workforce development, addressing shortages in:
  • Primary care.
  • Psychiatry.
  • Pediatric subspecialties.
• Funding for specialty hospitals, emergency care centers, and public hospitals.

Behavioral Health & Substance Use Treatment

• $151.4 million for mental health and substance use treatment services.
• $175.8 million from the Opioid Settlement Agreement for addiction recovery programs.
• $31.8 million for the Coordinated Opioid Recovery (CORE) Network.

Cancer Research & Specialty Care

• $266.9 million for cancer research, including:
  • $60 million for the Florida Cancer Innovation Fund.
  • $132.5 million for the Casey DeSantis Cancer Research Program.
  • $30 million for the Cancer Connect Collaborative Incubator.

Tax Cuts & Economic Relief

• $2.2 billion in tax cuts, including:
  • Gradual elimination of the commercial-lease tax by 2027.
  • Multiple sales-tax holidays, including:
    • Back-to-school and hurricane preparedness tax holidays.
    • New “Second Amendment Summer” tax holiday for firearms and ammunition.
• $170 million in homebuyer tax relief, suspending the intangible tax on residential mortgages up to $500,000.

Education & Workforce Development

• $1.5 billion for teacher pay increases.
• $632 million to maintain the Bright Futures Scholarship Program.
• Per-student K-12 funding increases by $222, totaling $9,205 per student.
• No tuition or fee increases at Florida’s public colleges and universities.

Public Safety & First Responder Pay Increases

• $118.3 million in pay raises for state law enforcement officers and firefighters.
  • 20% pay increase for entry-level law enforcement officers.
  • 25% pay increase for veteran officers and state firefighters.
• $23 million in continued recruitment bonuses for first responders.

Infrastructure & Environmental Conservation

• $13.8 billion for transportation projects.
• $805 million for Everglades restoration and water quality improvements.
• $3 million for Burmese python removal efforts.

What’s Next?

HCAF is committed to securing an increase in Medicaid reimbursement rates for home health, personal care, and private duty nursing services to promote equitable payment rates and address workforce shortages during the 2025 session. While Governor DeSantis’ budget proposal does not include any Medicaid rate increases, the fight isn’t over!

We urge home care advocates to join us for Home Care Day at the Capitol on March 18-19, 2025, in Tallahassee. This free advocacy offers a vital opportunity to connect with lawmakers and advocate for policies that strengthen the home care industry.

Click here to learn more and register today to champion the home care provider community, support your workforce, and protect access to care for your patients/clients.