Week 4: House passes Amended FY26 budget and signals priorities for health and human services
On February 5, the Georgia House of Representatives passed its version of the Amended Fiscal Year 2026 (AFY26) state budget. The amended budget adjusts current-year spending and reflects lawmakers’ priorities for any remaining state dollars.
Here is what the House version means for health care, human services, and the programs Georgians rely on:
The Big Picture
The House budget totals $42.3 billion, a significant increase over the original FY 2026 budget, thanks to $3.3 billion in one-time investments of surplus funds. Among its health-related priorities, the House makes notable investments in Georgia’s foster care system, the health care workforce pipeline, rural health access, and mental health infrastructure. The House largely aligns with the Governor on Medicaid and PeachCare funding, with a few targeted additions.
Medicaid and PeachCare
The House budget adjusts Medicaid and PeachCare funding based on updated enrollment and utilization projections. The House added $732 million in total funds for the Aged, Blind, and Disabled population to keep pace with projected needs, including growth in utilization, rising Medicare premiums, and other cost drivers. However, for the Low-Income Medicaid and PeachCare programs, the House projected lower-than-expected enrollment, resulting in reductions of about $445 million and $33 million, respectively. These are not cuts to eligibility or benefits; they reflect updated enrollment projections.
Georgia Gateway and Eligibility Systems
Funding for Georgia Gateway, the state’s enrollment portal for Medicaid, SNAP, TANF, and other programs, appears in two places in this budget. The House supports the Governor’s recommendation of $35 million to modernize the system through the Georgia Technology Authority, and an additional $6.2 million in state funds ($19.2 million total) for modifications to reduce SNAP payment errors and maintain federal compliance. Together, these investments total over $54 million to improve the technology that Georgians use to access benefits.
Rural Health and Workforce
Some of the most significant House-made additions bolster rural health access and the health care workforce pipeline, including:
$4.8 million to create a new grant program for rural medical and dental clinics, expanding access to primary care in underserved communities
$17.8 million for graduate medical education (GME) expansion in South Georgia, which will support over 103 new residency slots.
Behavioral Health and Mental Health Infrastructure
The House builds off the Governor’s recommendations and makes significant additions to mental health infrastructure, including:
$27 million to begin design and construction of a new Georgia Regional Hospital in Atlanta to increase mental health and forensic bed capacity.
This is a House-only addition and the single largest new health-related capital investment in this budget.
$500,000 for a behavioral health provider rate study focused on the abandonment of patients with intellectual and developmental disabilities (IDD) in community hospitals.
This is a House-only add and could produce important data about whether current reimbursement rates contribute to abandonment of people with IDD.
Child Welfare and Foster Care
The House budget dramatically increases investment in Georgia’s child welfare and foster care system, including:
$82.7 million in state funds for Out-of-Home Care, nearly double the Governor’s recommendation of $41.5 million.
The House specifies that these funds prioritize reunification services, assessments, and specialized services for high-acuity youth.
This is the largest single-line-item increase across all health and human services departments.
$1.6 million to restore four foster care support contracts that had been cut and to fund efforts to place foster youth closer to their biological families.
Office of the Commissioner of Insurance (Department of Insurance)
For the Office of the Commissioner of Insurance, the most notable item is a $25 million reduction in the state’s 1332 waiver reinsurance program based on projected expenditures. Both the Governor and the House agree on this reduction. The reinsurance program helps stabilize premiums on Georgia’s individual insurance market.
Other Health-Adjacent Investments
The House maintained the Governor’s increases for several health-related investments that appear in other parts of the budget, including:
$50 million in one-time funds for the State Housing Trust Fund to address homelessness, providing matching funds to local governments and nonprofits. (Department of Community Affairs)
$1.4 million additional for school social workers and $750,000 for a pilot program to help school districts maximize mental health services reimbursement. (Department of Education)
What Comes Next
The House budget now moves to the Senate, where the Senate Appropriations Committee will make its own changes before the full Senate votes. After that, a conference committee will reconcile the differences between the House and Senate versions before final passage of the AFY26 budget.
Stay Informed
GHF will track every stage of this process and advocate for investments that improve health coverage, access, and affordability for all Georgians. We are particularly watching for whether the Senate maintains or builds on the House’s investments in rural health access, foster care services, mental health infrastructure, and Gateway modernization. We will also continue to push for the funding that continues to be absent from the budget, including:
Affordability of health insurance premiums for Georgia Access consumers
Medicaid provider rate increases
Public health workforce
Rural hospital sustainability
Understanding Georgia’s Budget Timeline
Georgia’s budget process can be confusing. Here’s what you need to know:
Two Budgets, Two Years:
Amended Fiscal Year (FY) 2026 = Updates to the current year’s budget (July 2025 – June 2026)
Fiscal Year (FY) 2027 = Brand new budget for next year (July 2026 – June 2027)
The Process:
Amended FY 2026
FY 2027
January
Governor proposes a plan → Agencies present their needs
Governor proposes a plan → Agencies present their needs
February–March
Lawmakers debate → House passes its version (we are here) → Senate passes its version → Joint negotiations → Final vote
Usually still in debate at this point in the session
Late March (Sine Die)
Usually already signed at this point in the session
Usually passes on last day of session
April–May
Usually already in effect at this point in the session
Governor signs into law
Why This Matters: The amended budget (AFY 2026) shows how Georgia is spending its surplus right now. The FY 2027 budget shows whether the state is preparing for long-term challenges or just short-term needs.
Advocate With Us At The Capitol!
Join These Advocacy Events During the Legislative Session
Each week during the legislative session, we’ll highlight legislative advocacy days hosted by our partner organizations. These events offer excellent opportunities to engage in lawmaking by meeting your legislators and advocating for critical health issues.
Please contact Anthony Hill at ahill@healthyfuturega.org if you have an advocacy event you’d like included in GHF’s legislative update.
We hope to see you at one or more of these impactful events!
GHF Has You Covered!
Stay up-to-date with the legislative session.
GHF monitors legislative activity on many critical consumer health care topics. Along with our weekly legislative updates and timely analysis of bills, here are tools to help you stay in touch with health policy under the Gold Dome.
State lawmakers talk budget priorities: What’s on the table for Georgia’s health care
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Department heads across state agencies began outlining their spending priorities this week in joint budgetary hearings hosted by the Georgia Senate and General Assembly. During the hearings, department heads broke down…
