The Georgia General Assembly has approved the Amended FY2026 budget (HB 973), which adjusts spending for the current fiscal year and directs billions toward tax relief, infrastructure, and health investments while addressing several human-services pressures.
Many appropriations flow through state agencies that contract with nonprofit providers, meaning the budget has meaningful implications for Georgia’s nonprofit service infrastructure. We’ve put together a roundup of nonprofit-relevant highlights below. For a list of highlights, see this summary from the House Budget and Research Office. For a more complete breakdown, see the March 2nd update from Voices for Georgia’s Children.
Of direct benefit to nonprofits
Child Welfare & Foster Care: $81.1 million increase for out-of-home care
Following a major agency deficit and service disruptions, this increase will stabilize contracts with child-placing agencies and foster care service providers while restoring services that had been reduced. In addition, this funding will likely increase contracting opportunities for nonprofit providers.
Victims of Domestic Violence and Sexual Assault: $4.5 million for shelters and centers and $185,000 for child advocacy centers
To help make up for a reduction in federal funding over the last few years, one-time funding will go towards a) the operational and facility costs of domestic violence shelters and sexual assault centers, and b) eight Child Advocacy Centers and 19 satellite office locations that provide specialized services not currently receiving state funding, effective April 1st.
Housing & Homelessness: $45 million State Housing Trust Fund for the Homeless, with $5 million in additional funding for veteran homelessness services
This funding will support nonprofit housing development, rapid rehousing, and supportive housing services, promising a significant opportunity for capital and program funding.
Rural Health Clinics: $4.8 million Rural Medical & Dental Clinic Grant Program
To strengthen healthcare infrastructure and access in underserved areas, this program will fund the expansion of nonprofit health clinics and FQHCs.
School-Based Mental Health: An additional $1.4 million for school social workers and $750,000 for a mental health services pilot program
This funding promises to expand partnerships between school districts and nonprofit mental health providers, indicating an expansion of contract-based counseling services.
Emergency Preparedness: $6.1 million for security grants to nonprofits
The Georgia Emergency Management and Homeland Security Agency’s budget has been expanded to provide additional Nonprofit Security Grants for nonprofits at risk of attack by extremists, such as houses of worship, community centers, educational institutions, museums, and medical facilities.
Of potential benefit to nonprofits
Behavioral Health Infrastructure: $409 million for a new 300-bed Georgia Regional Hospital in Atlanta
The largest behavioral health infrastructure investment in decades, this development will likely create new opportunities for nonprofit outpatient, housing, and step-down services, as well as workforce training partnerships with nonprofit providers.
Health Workforce Development: $17.8 million for graduate medical education expansion
This allocation supports residency programs and healthcare workforce pipelines, funding partnerships with nonprofit hospitals and training programs while building long-term workforce stability for the healthcare subsector.
Benefits System Modernization: Funding to improve Georgia Gateway
Improvements in the infrastructure used for SNAP, Medicaid, and benefits enrollment means that nonprofits should see a reduction in the time and effort it takes to assist clients with these services.
Higher Education Access: $325 million endowment for needs-based DREAMS scholarships and an additional $12 million for the HOPE scholarship program
While expanding financial aid for low-income students, these investments will support college-access nonprofits and scholarship advising programs.
Rural Economic Development: $15 million in rural site development grants, $8.9 million for the Georgia Forestry Innovation Initiative, $35 million for natural gas infrastructure grants, and $60 million for rural infrastructure
These investments will create broad new opportunities in rural communities served by nonprofits, including potential partnerships with nonprofits addressing workforce and regional development.
Of potential concern for nonprofits
Health Insurance Reinsurance Cut: $50 million reduction in Georgia’s individual-market reinsurance program.
This cut to a program that helps stabilize premiums in Georgia’s health insurance marketplace will likely raise insurance premiums, creating a financial impact on nonprofit employers and clients served by healthcare nonprofits.
Behavioral Health Provider Rate Study Removed
A proposed study on reimbursement rates for providers serving people with intellectual and developmental disabilities (IDD) was cut from the final budget. This study had promised to alleviate strain on nonprofit providers who work with the IDD community, which means ongoing uncertainty about the adequacy of reimbursement rates.
Tension between institutional and community mental health providers
The budget’s large hospital investment raises policy questions about the balance of Georgia’s community-based mental health system, as developed under the Olmstead settlement. Monitoring will be needed to ensure that community services continue to expand. Expect policy debates to continue over nonprofit mental health providers.
Crossover Day: Where to track bills with potential nonprofit impact
March 6 was Crossover Day, marking the last day for bills to pass from one chamber of the General Council to the other. Any bills that did not pass by Crossover Day are effectively dead in the current session. Those that made it through one chamber will still need to make it through a vote in the opposing chamber’s committee, and then through the full House or Senate.
You can find WABE’s bill tracker here to check in on major legislation regarding the economy, education, environment, health, justice and safety, and the state budget. Though a complete list of Crossover Day legislation is not available, this update from Voices for Georgia’s Children covers a wide range of bills relevant to community services.
In good news:
- The Senate passed a bill to ensure that money meant for the Outdoor Stewardship Trust Fund stays in the Outdoor Stewardship Trust Fund. This fund provides money for Conserve Georgia grants and loans, which go to the stewardship of parks and acquisition of conservation land.
- The Family Justice Center Act passed in the House, which would allow for the creation of new multiagency centers that provide coordinated services to victims of particular crimes. If passed, these centers may be operated by nonprofits or public entities.
- The House passed HB 1132, providing tax exemptions for materials used in the construction, renovation, and rehabilitation of affordable housing when undertaken by qualifying nonprofits.
- HB 1077 passed in the House, which would extend sales and use tax exemptions for sales of tickets, fees, and admission charges for certain museums, fine arts performances, and exhibitions at nonprofit facilities.
Bottom line for the sector
The Amended FY2026 budget is generally positive for nonprofit service providers, particularly in terms of:
- Foster care and child welfare
- Housing and homelessness
- Rural health access
- Behavioral health services
However, the budget also introduces several areas of concern, including healthcare affordability and the long-term balance between institutional and community-based behavioral health systems. As always, GCN will monitor these and other Gold Dome developments on behalf of the sector, and provide updates accordingly.
Policy updates evolve quickly – bookmark our policy resources, follow us on Facebook or LinkedIn, and sign up for GCN communications here.
