
COLUMBUS, Ohio — June 25, 2025
The Ohio House of Representatives has passed a sweeping two-year state budget that promises historic tax relief, record investments in education, and substantial funding for local communities. Approved Wednesday through Amended Substitute House Bill 96, the budget now heads to Governor Mike DeWine for consideration.
The $94 billion plan includes what lawmakers are calling the largest property tax relief package in state history, alongside a simplified flat income tax system that would give Ohio the second-lowest income tax rate in the country.
📉 Major Tax Relief for Ohioans
Key highlights of the budget include:
Over $2.5 billion in property tax savings starting in January 2026, by redirecting unspent school district funds exceeding 40% of their budgets.
A flat income tax phased in over two years, reducing the top tax rate from 3.5% to 2.75% by 2026.
Structural reforms to property tax levies and new local options for 2.5% owner-occupancy credits and enhanced homestead exemptions.
“We’re building a stronger future for our state,” said House Speaker Matt Huffman (R-Lima). “By focusing on families and investing in schools, we’re giving back to the people who make Ohio great.”
Finance Chairman Rep. Brian Stewart (R-Ashville) added, “We’re telling the country that Ohio is open for opportunity, growth, and prosperity.”
📚 Record School Funding
Ohio’s public schools will receive an additional $700 million in state aid under the budget — the largest investment in K-12 education in state history. The bill also expands school choice, boosting scholarships for students with autism and special needs, and establishing education savings accounts for families with children in non-chartered private schools.
🏙️ Local and Community Investment
The budget includes new tools to:
Combat blight and redevelop brownfields.
Expand affordable housing construction through targeted state initiatives.
Grow the Welcome Home Ohio homeownership initiative.
One of the most talked-about provisions includes $600 million in performance-based funding for the Browns Brook Park stadium and economic development project in Cleveland. The funding is tied to guarantees that the state will recoup more than it spends through tax revenue over 16 years.
🧒 Supporting Ohio Families
The budget sets aside:
$100 million for the new Child Care Choice program, helping working families afford care.
More funds for Help Me Grow, supporting families with infants and children with developmental needs.
Boosts for OhioSEE early education and prenatal support initiatives.
👮 Safety, Education, and Workforce
Other notable budget items:
$65 million for local law enforcement training.
$27 million for the Ohio Narcotics Intelligence Center.
$8 million in grants for volunteer fire departments.
Expansions to higher education scholarships and workforce development efforts, including the Governor’s Merit Scholarship and Choose Ohio First.
🏥 Medicaid Oversight and Transparency
In a move to increase accountability, the bill strengthens auditing and reporting requirements for the Ohio Medicaid program to reduce waste and fraud.
Next Steps: The bill now moves to Gov. Mike DeWine, who is expected to sign it into law with possible line-item vetoes.