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LD 978

An Act To Increase General Assistance Reimbursement For Municipalities And Indian Tribes

132nd Legislature (2025-2026) Introduced by Amy Arata and 3 co-sponsors

Increases state GA reimbursement to municipalities/tribes to 75% (from 70%) in 2025 and 80% in 2027, and caps housing assistance to 12 months in any 36 months.

Died in Possession of the Senate when the Legislature adjourned Sine Die and was PLACED IN THE LEGISLATIVE FILES. (DEAD)
#generalassistance #increased #statereimbursement
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Bill Summary · LD 978

Summary — LD 978: An Act To Increase General Assistance Reimbursement for Municipalities and Indian Tribes

Purpose

LD 978 seeks to increase the State’s reimbursement rate to municipalities and Indian tribes for expenditures made under municipal general assistance (GA) programs and to limit the duration of housing assistance provided under GA. The bill is intended to reduce the local fiscal burden of providing GA while also constraining long-term housing assistance.

Key provisions (as amended)

  • Increases the State reimbursement rate for municipal general assistance from the current 70% to:
    • 75% for costs incurred on or after July 1, 2025; and
    • 80% for costs incurred on or after July 1, 2027.
  • Limits housing assistance provided under general assistance to a maximum of 12 months in any 36-month period.
  • Expands the limitation on exceeding maximum benefit levels when emergency general assistance is provided for housing (details in amendment language).
  • Provides ongoing General Fund appropriations to the Department of Health and Human Services (DHHS) to fund the higher reimbursement rate.

(Notes: An earlier version of the bill proposed increasing reimbursement to 90% with a staggered phase‑in for the 6 highest‑cost municipalities; that version appears to have been superseded by the committee amendment adopted by the House.)

Fiscal impact (per Fiscal Notes)

  • As introduced (LR 1745(01)) — estimated General Fund cost:
    • $2,734,447 in FY 2025‑26 and FY 2026‑27
    • $4,252,209 in FY 2027‑28 and FY 2028‑29
    • (Reflecting a larger increase to 90% in that original draft.)
  • As amended (LR 1745(02) / LR 1745(03)) — revised General Fund cost:
    • DHHS appropriations of $1,821,933 in FY 2025‑26 and FY 2026‑27
    • $3,643,867 in FY 2027‑28 and FY 2028‑29
    • The housing-assistance 12‑month cap is estimated to reduce annual state reimbursement costs by $3,715,190 beginning in FY 2026‑27; because current reimbursement budgets are already insufficient, that reduction would narrow the gap between budgeted and actual expenditures rather than produce immediate budgetary savings.

Who is affected

  • Municipalities and federally recognized Indian tribes that administer general assistance — they would receive higher state reimbursement for GA expenditures (reducing their net GA costs).
  • Recipients of general assistance housing benefits — the 12‑month-in-36‑months cap may reduce the duration of housing assistance available through municipal GA.
  • Department of Health and Human Services — implementation and administrative oversight; receives appropriations.

Timeline / Status

  • Introduced: March 7, 2025 (Sponsor: Rep. Zager of Portland)
  • Committee: Health and Human Services — work session and divided report; Committee Amendment A (H-753) adopted.
  • House action: Majority "Ought to Pass as Amended" accepted (Roll Call 545: Yeas 75, Nays 71). Bill passed to be engrossed as amended.
  • Subsequent procedural steps: Sent to Senate, returned to committee in non‑concurrence; House receded and concurred to recommit to HHS.
  • Current status (6/25/2025): Carried over, in the same posture, to any special or regular session of the 132nd Legislature pursuant to Joint Order SP 800.

Considerations

  • The amended bill phases in more modest reimbursement increases than the original version and includes a housing‑duration cap that materially affects fiscal estimates.
  • Local governments would generally see reduced net GA costs; GA clients may face tighter limits on housing assistance.
  • Exact operational details (definitions, exceptions, administrative rules) would be in bill text and implementing guidance from DHHS.

Compiled from official sources — confirm details with the bill’s official record.

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