Ohio’s GOP-backed budget keeps anti-LGBTQ provisions, Governor’s Merit Scholarship changes

The final version of Ohio’s two-year state operating budget retains anti-LGBTQ provisions, requires Governor’s Merit Scholarship recipients pledge to remain in Ohio after graduation, and ties state funding to compliance with a new higher education law.
The budget now heads to Ohio Gov. Mike DeWine’s desk for his signature, which he must sign by June 30. He can line-item veto provisions in the budget.
Anti-LGBTQ provisions
A handful of anti-LGBTQ+ provisions are sprinkled throughout the budget, including a provision that would only recognize two sexes — male and female.
“Do we really have to make a law that says that men are men and women are women?” state Rep. Gary Click, R-Vickery, asked. “Do we really have to define that? We shouldn’t have to, but apparently we do.”
The budget would require public libraries to put books related to sexual orientation or gender identity in an area of the library that is out of sight for minors.
“If moms and dads want their kids to be indoctrinated within that, that’s up to the moms and dads, but we’re not going to put it in children’s faces in the children’s sections of the libraries,” Click said.
Ohio House Minority Leader Dani Isaacsohn, D-Cincinnati, called out the library provision.
“If you are one of the 20% of young people who identify as LGBTQ, you’re not going to be a hero in that story,” he said. “We have to have more books that show you as a leader, as a champion, as a hero.”
The budget would also ban Pride flags from being flown at public buildings and prohibit giving funds to youth homeless shelters that house transgender youth, even if they also serve youth who are not transgender.
“We are not hanging out the welcome mat for people from the LGBTQ community,” said Ohio Senate Minority Leader Nickie Antonio, D-Lakewood. “We should be a place where folks can just be who they are authentically and live and let live.”
Higher education provisions
The Governor’s Merit Scholarship awards the top 5% of each high school graduating class a $5,000 scholarship each year to attend an Ohio college or university.
Under the final version of the budget, scholarship recipients must sign a statement of commitment to live in Ohio for three years immediately after graduation starting in fiscal year 2027.
“If we want our young people to stay in Ohio, to start their careers in Ohio, to start a family in Ohio, we need to put our money where our mouth is, and we are doing that in this budget,” said Ohio House Finance Chair Brian Stewart, R-Ashville.
The Senate’s version of the budget would have required scholarship recipients sign a promissory note, but the final version of the budget instead requires students to sign a statement of commitment to live in Ohio for the first three years after graduating college.
“It was deemed (the promissory note) was a little bit heavy-handed and so we tried to roll that back,” Ohio Senate President Rob McColley, R-Napoleon said.
The budget allocates $47 million for fiscal year 2026 and $70 million in fiscal year 2027 for the Governor’s Merit Scholarship.
The Governor’s Merit Scholarship was enacted through the last state budget two years ago and 76% of the state’s 6,250 eligible students from the class of 2024 accepted the scholarship. Eighty-seven percent of Ohio students accepted the scholarship in its second year and 11 rural counties had a 100% acceptance rate.
The budget ties a portion of the State Share of Instruction to compliance with Senate Bill 1, a new higher education law banning diversity efforts, creates post-tenure reviews and an American civic literacy course, among other things.
The law affects Ohio’s public universities and community colleges and each university must submit a report showing compliance to the House and Senate higher education committees by March 1, according to the budget.
Housing provisions
The budget kept housing provisions the Senate added to the budget — $90 for the Residential Development Revolving Loan Program and $10 million for the Residential Economic Development District.
The Residential Development Revolving Loan Program supports new, single-family residential homes in rural areas of the state.
“If we want to grow our population, we have to have places for folks to live,” Stewart said. “This is going to be directed to small counties. We can’t be growing housing just in the three C’s, we need to be growing housing all across Ohio.”