Lawmakers to Address Data Center, Energy Policy |
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Ohio legislative leaders are accelerating work on the policy questions surrounding data centers and the energy demands fueling them. A new eight-member joint study committee, co-chaired by the Senate and House Energy Committee chairs, will convene May 27 and 28 to weigh the environmental, ratepayer, economic, and national security impacts of data center development. The panel is positioned to move faster than a previously proposed House commission and could shape subsequent legislative proposals. Items on the table for consideration include: - A potential veto override restoring elimination of the sales and use tax exemption for data centers, struck from the operating budget by Governor DeWine.
- Engagement with state agencies, including the Ohio EPA, Department of Natural Resources, and PUCO.
- Input from major developers such as Google and Meta.
Work is also underway in the House Energy Committee, which is examining how to unleash nuclear generation to meet surging demand. Members heard from industry players on safety, small modular reactor potential, and domestic uranium enrichment capacity—an area where Ohio's Piketon operation could reduce reliance on Russian-controlled supply. Industry representatives flagged that Indiana and Kentucky have built more aggressive regulatory and incentive structures for nuclear investment. |
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 With both legislative chambers expected to complete work before summer recess in mid-June, there is not a lot of time to develop and pass new bills. Nonetheless, leadership wants a tangible deliverable—possibly the tax exemption rollback—while keeping the longer nuclear and siting conversation alive. Expect data center policy to remain a defining issue through the 2026 session, with a proposed ballot initiative pressuring the General Assembly to act. |
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Push Emerges for Cabinet-Level Energy Office |
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A proposal is taking shape at the Statehouse to create a centralized Office of Energy, headed by a cabinet-level appointee, to coordinate Ohio's increasingly fragmented energy policy. Senate Energy Committee leadership is exploring legislation that would consolidate energy functions currently spread across the Department of Development, Ohio EPA, and the Public Utilities Commission of Ohio. Backers frame the concept as a structural realignment rather than an expansion of government. - West Virginia, Kentucky, and Indiana already operate dedicated energy offices that guide policy, attract investment, and interface with federal agencies.
- The Ohio Business Roundtable has endorsed the concept, citing the need for a single point of contact on regional and national energy initiatives.
- Both candidates for governor – Republican Vivek Ramaswamy and Democrat Amy Acton – have talked about energy as a major policy matter to address. Acton has publicly backed an Office of Energy; Ramaswamy has emphasized natural gas and nuclear as the foundation of Ohio's energy future without committing to the office itself.
The proposal arrives as utility bills, grid reliability, and surging data center demand have become top voter concerns. PJM Interconnection and independent analysts have warned that supply may not keep pace with load growth through the end of the decade. |
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 With a new governor taking office in January, the timing favors a structural reset. Whoever wins in November inherits a grid in need of work, an active legislative docket on siting and rates, and intensifying pressure from large load customers. A single executive branch quarterback would give the next administration a clearer lever to manage that pressure. |
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| Ohio Spending Tracking Below Target with Two Months Left in FY26 |
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State spending for all uses is running $241.4 million below target with only two months remaining in the fiscal year, according to the latest financial reports from the Office of Budget and Management. OBM's Monthly Financial Report showed the year-to-date variance flipped from a positive $10.5 million in March into negative territory after April's underspend of $251.9 million (8.5%). General Revenue Fund disbursements in April for all uses totaled $2.7 billion, with all but one major category posting below-forecast spending. Medicaid drove the bulk of the variance with a $171.1 million (20.8%) GRF underspend for the month, which OBM attributed to declining caseloads and the use of non-GRF sources to offset expenditures. Total April enrollment dipped to 2.85 million, down 21,349 from March and 151,530 (5.1%) below the same period last year. The Legislative Budget Office noted March marked the 35th consecutive month of negative caseload growth, with the program shedding more than 20% of its rolls since peaking at 3.59 million in April 2023. Other notable April variances included: - Health and Human Services: $27.1 million (12.4%) below
- Property Tax Reimbursements: $23.1 million (5.2%) below
- General Government: $16.0 million (22%) below
- Higher Education: $11.7 million (5.8%) above—the lone overage, driven by an OARnet infrastructure payment
On the all-funds side, Medicaid disbursements ran $1.9 billion (-4.7%) below estimate year-to-date, with roughly $1.6 billion tied to delayed CMS approvals for the 2026 Hospital Additional Payment and other State Directed Payments. |
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 With June close-out approaching and Medicaid caseloads still contracting, the administration enters the final stretch with breathing room on the GRF—but pending CMS approvals could compress that cushion quickly. Watch for Controlling Board action and any late-session transfer authority as fiscal staff close the books and frame the next set of FY 2027 baselines. |
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Ohio Launches $20M Marijuana Public Education Campaign |
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Ohio is directing $20 million toward a statewide public education effort warning of marijuana health risks, with expectant mothers, youth, and the workforce as primary audiences. Funded through the current operating budget and jointly announced by the Ohio Department of Commerce and the OneOhio Recovery Foundation, the campaign will roll out in phases beginning this summer. - Phase one focuses on maternal health, targeting expectant and prospective mothers;
- Subsequent phases will address youth prevention and employer partnerships;
- The largest share of funding is dedicated to preventing youth marijuana use; and
- The campaign was developed with guidance from Truth Initiative, a national nonprofit focused on youth and young adult substance use prevention.
The Department of Commerce will oversee implementation, with paid media, community partnerships, and on-the-ground outreach coordinated through the foundation. Additional program details are expected in the coming weeks. |
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 The DeWine administration has consistently signaled discomfort with recreational marijuana since voters approved Issue 2 in 2023, and this campaign reflects the latest effort to shape real-world consequences without disturbing the underlying statute. Expect continued legislative interest in tightening rules around minors, employer protections, and product marketing as the 2026 governor's race accelerates—and as candidates calibrate their positions on a legal market that remains politically contested.
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Access our curated list of federal grants, including the USDOT Pilot Program for Transit-Oriented Development Planning (up to $2 million) and the USDA Community Connect Grant Program (up to $5 million). Review the list of ongoing grant opportunities, click the link below. |
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