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2025 Legislative Update - Week 14

June 19, 2025

Paul D. Seltzer, DO, Legislative Chair

Stephen R. Winn, CEO

Michelle W. Larson, COO

Jason D. Winn, Esq.

Summary

After significant deliberation, Florida lawmakers approved a FY 2025-26 budget totaling $115.1 billion, a decrease from the current year's $117.4 billion, marking the first year-over-year decline since 2011. The reduction includes a $1.29 billion tax cut package that eliminates the business rent tax and introduces various sales-tax reductions and holidays. Overall spending was decreased by approximately $500 million compared to the governor's proposal. Legislators allocated roughly $560 million for locally driven projects and agreed to seek voter approval to dedicate at least $750 million annually to the state's reserves, safeguarding against future economic downturns.

L-R: Chairman Rodney Barreto of the FL Wildlife Commission, Steve Winn &

Jason D. Winn, Esq

Lawmakers approved a health and human services budget totaling $47.6 billion, 41 percent of the $115.1 billion state budget. The funding appropriated includes the following related to cancer and biomedical research:

$127,500,000: Casey DeSantis Cancer Research Program (Florida Consortium of National Cancer Institute Centers)
$70,850,000: Biomedical research grants (via the Biomedical Research Trust Fund)
$7,850,000: James and Esther King Biomedical Research Program
$10,000,000: William G. “Bill” Bankhead, Jr., and David Coley Cancer Research Program
$60,000,000: Florida Cancer Innovation Fund
$60,000,000: Cancer Connect Collaborative Incubator
$3,000,000: Live Like Bella Initiative (pediatric cancer research)

The Legislature's 2025-26 budget provides robust funding for GME totaling $635.5 million. These funds include $191.08 million for the Statewide Medicaid Residency Program to increase residency slots in teaching hospitals across the state. $100 million is designated for the Graduate Medical Education Startup Bonus Program, offering incentives to over 30 specialties experiencing shortages. Lawmakers also approved $80 million for the Slots for Doctors Program, established to create new residency positions in high-demand areas. Finally, $166 million is allocated to High-Tertiary Statutory Teaching Hospital Funding, supporting hospitals that exceed federal resident caps and provide critical services such as stroke care, Level 2 cardiovascular procedures, NICU II/III, and adult open-heart surgery.

Working within tight budget allocations for the Health & Human Services budget, conferees cut funding for the Florida Reimbursement Assistance for Medical Education (FRAME) program by $15 million. The House's original position in the conference was to cut last year's increase totaling $30 million. The FOMA's legislative team, in conjunction with our partners, secured the budget conferee's agreement to reduce the proposed cut, thereby preserving some of last year's increased funding. The FOMA and our partners will work to restore funding in the next session.