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Governor Ron DeSantis Approves Budget, Investing $49B in Healthcare Delivery

FOR IMMEDIATE RELEASE
June 29, 2026 
CONTACT: [email protected]

 


The signed budget invests in the healthcare workforce, expansion of rural and maternal health, and care for vulnerable residents across Florida    

Tallahassee, Fla. — Governor Ron DeSantis today signed the state budget for fiscal year 2026-2027, investing $49 billion in Florida’s health care delivery system.

Florida’s healthcare system is critical infrastructure. Strengthening its framework better positions hospitals and healthcare systems to meet the rising demand for high-quality care as the state’s population grows and ages.

"Investing in Florida's healthcare workforce development, supporting rural and maternal health initiatives and maintaining Medicaid reimbursement for hospital services that support care for Florida's children, the elderly, the disabled and low-income patients is essential to meeting the state's growing healthcare needs," said Mary C. Mayhew, president and CEO of FHA. "We thank Governor DeSantis and the Florida Legislature for prioritizing the health of Floridians. These investments will strengthen hospitals' ability to deliver care in every corner of the state."

Healthcare investments in the 2026-2027 state fiscal year budget include:

Rural Health

  • Continued budget authority for the Rural Health Transformation Program, a federally funded program signed into law in HR 1, designed to bolster the healthcare workforce, implement modern technologies and establish rural care partnerships
  • Continued investment in the Rural Hospital Capital Improvement Grant Program

Workforce Development

  • Establishment of a formula to allocate funds related to the Slots for Doctors Program
  • Continued investment for the LINE and PIPELINE nursing education programs
  • $12 million in additional funding for Graduate Medical Education to support the state's physician and healthcare provider pipeline

Medicaid Proviso & Hospital Reimbursements

  • Inclusion of proviso language to direct the Florida Agency for Health Care Administration to seek federal approval from the Centers for Medicare and Medicaid Services to establish coverage for Institution for Mental Diseases (IMD) services through a federal IMD Medicaid waiver
  • $1.7 billion in additional funds to support projections for Florida's Medicaid and KidCare programs
  • $15 million in additional funding to implement a tiered reimbursement model for Statewide Inpatient Psychiatric Program services

Specialized Services and Innovation

  • $700,000 in additional funding to establish a Doula Support for Healthy Births Pilot Program, targeting pregnant and postpartum women who have overcome or are overcoming substance use disorders
  • $5 million in additional funding to support research on Neurofibromatosis Disease
  • $30 million for the Cancer Connect Collaborative Incubator, currently focused on pediatric cancer research
  • $70 million in funding for the Florida Cancer Innovation Fund to research life-saving innovations
  • $127.5 million for the Casey DeSantis Cancer Research Program
  • With the Governor’s signature, Florida’s 2026-2027 state fiscal year budget will take effect on July 1, 2026.

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ABOUT FHA

Founded in 1927, the Florida Hospital Association (FHA) is the leading voice for health care in the State of Florida. Through representation and advocacy, education and informational services, the Florida Hospital Association supports the mission of over 260 hospitals and health care systems to provide the highest quality of care to the patients we serve. Led by President and CEO Mary Mayhew, the Florida Hospital Association is located in Tallahassee and is governed by a Board of Trustees and officers elected by the member institutions. To learn more, visit www.fha.org.

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