--- title: "2.25.26 Senate DHS Budget Hearing: part 2" description: Senate DHS Budget Hearing (pt. 2) examined childcare fraud prevention, budget growth, federal policy impacts on SNAP and Medicaid, workforce shortages, and long-term fiscal sustainability with insights from Secretary Arkoosh. image: https://support.thedtfirm.com/hubfs/DHS%20Logo.png --- ![](https://support.thedtfirm.com/hs-fs/hubfs/DHS%20Logo.png?width=225&height=225&name=DHS%20Logo.png) Budget Related DHS # 2.25.26 Senate DHS Budget Hearing: part 2 ![The DT Firm](https://support.thedtfirm.com/hs-fs/hubfs/website/image/dt-favicon.png?width=48&height=48&name=dt-favicon.png) The DT Firm March 2, 2026 **Pennsylvania Department of Human Services Budget Hearing – Part 2 Overview** Part 2 of the Senate DHS budget hearing focused heavily on long-term care, workforce shortages, intellectual disability services, federal match issues, childcare workforce stabilization, and administrative capacity. Lawmakers pressed the department on structural sustainability challenges, while DHS leadership emphasized demographic shifts, community-based care preferences, and federal regulatory constraints. Below is a comprehensive issue-by-issue breakdown of the discussion, including legislator questions and agency responses. --- **1. Nursing Facility Closures & Private Equity Concerns** **Legislative Concern** Senators raised concerns about: Legislators referenced legislation passed in the House addressing private equity involvement and urged Senate consideration. **DHS Response** Secretary Arkoosh acknowledged concerns about ownership trends and quality outcomes. She noted: However, DHS emphasized a broader structural reality: **Key Policy Framing:** DHS views the shift toward home- and community-based services (HCBS) as consistent with participant preference and long-term system design. --- **2. Stabilizing Skilled Nursing Workforce** **Legislative Question (Senator Culver)** With Pennsylvania’s aging population and more facilities closing than opening, what is DHS doing to stabilize skilled nursing care in the Commonwealth? **DHS Response** Secretary Arkoosh candidly stated that stabilizing the nursing facility workforce is not currently a top DHS priority compared to expanding community-based care The department’s position: This exchange highlighted a philosophical divide: Legislators focused on maintaining facility capacity; DHS emphasized system transformation toward community living. --- **3. Office of Long-Term Living (OLTL) & Residential Habilitation Rates** **Legislative Concern (Senator Carney)** Residential habilitation providers have not received rate increases since 2010. Accountability appears unclear between OLTL and Community HealthChoices (CHC) managed care organizations. How can this be resolved? **DHS Response** DHS acknowledged the frustration and complexity of the issue, describing it as a longstanding tension between: The department indicated continued engagement but did not commit to a specific rate adjustment proposal during the hearing. **Implication:** Rate adequacy for long-term services remains unresolved and may require legislative budget intervention. --- **4. Workers with Job Success & Federal Match Issues** **Legislative Question (Senator Vogel)** Did DHS reapply for federal financial participation for the Workers with Job Success component of the Medical Assistance for Workers with Disabilities (MAWD) program? **DHS Response** **Fiscal Impact:** Loss of anticipated federal match limits revenue flexibility in the MAWD program. --- **5. Budget Deficit & Available Funds** **Legislative Question** Is DHS expecting any excess funds that could help offset the projected budget deficit? **DHS Response** DHS indicated: **Theme:** Limited near-term fiscal flexibility within DHS appropriations. --- **6. Office of Developmental Programs (ODP) & ID Waiver Waiting List** **Legislative Question** The proposed budget includes a $76.8 million increase for the ODP Community Waiver Program. How will the remaining $46.8 million be allocated? **DHS Response:** The remaining funds address: DHS referred legislators to detailed explanations in the DHS “Blue Book.” **Key Tension:** While waiver expansion is occurring, growth in utilization and complexity continues to outpace full elimination of the waiting list. --- **7. Childcare Recruitment & Retention Grants** **Legislative Question (Senator Cappelletti)** Last year’s budget included $25 million for childcare recruitment and retention bonuses; this year proposes $35 million. What challenges have emerged in implementation? **DHS Response:** The department framed bonuses as stabilization tools but acknowledged broader workforce shortages remain a structural issue. --- **8. Bureau of Hearings & Appeals (BHA) Capacity** **Legislative Concern** If courts require full merits hearings before placement on the child abuse registry, what would be the impact? **DHS Response** **Implication:** Judicial decisions could significantly increase administrative workload and require additional staffing. --- **9. Gender Dysphoria & Coverage Clarification** Early in the session, discussion referenced whether individuals carried diagnoses of gender dysphoria and whether certain procedures were being performed The Chairman redirected the discussion, suggesting broader policy issues should be handled in a dedicated oversight hearing. **Note:** No major policy shift or program change was announced during this exchange. --- **Key Themes Emerging from Part 2** **1. Long-Term Care System Transformation** DHS continues shifting policy focus toward home- and community-based care, even as legislators express concern about facility closures. **2. Structural Workforce Shortages** Whether nursing facilities, habilitation providers, or childcare centers, workforce shortages are systemic and not limited to any single program. **3. Federal Constraints Limit State Flexibility** From MAWD federal match denial to court-driven hearing requirements, federal decisions continue shaping DHS fiscal realities. **4. Waiver Expansion vs. Growing Demand** ID waiver funding increases are meaningful but insufficient to fully address long waiting lists. **5. Limited Fiscal Cushion** DHS signaled constrained ability to redirect funds to close projected deficits. --- **Conclusion** Part 2 of the DHS budget hearing highlighted the tension between: As budget negotiations advance, debates will likely center on: ## Share this post [mailto:https%3A%2F%2Fsupport.thedtfirm.com%2Fdts-budget-blog%2F2.25.26-senate-dhs-budget-hearing-part-2](mailto:https%3A%2F%2Fsupport.thedtfirm.com%2Fdts-budget-blog%2F2.25.26-senate-dhs-budget-hearing-part-2) ## Keep reading [![](https://support.thedtfirm.com/hs-fs/hubfs/PSP.jpg?width=225&height=225&name=PSP.jpg) PSP Budget Related ### 3.11.26 - House Budget Hearing Pennsylvania State Police ](https://support.thedtfirm.com/dts-budget-blog/3.11.26-house-budget-hearing-pennsylvania-state-police) [![](https://support.thedtfirm.com/hs-fs/hubfs/OOB2-1.png?width=847&height=460&name=OOB2-1.png) Budget Related OOB ### 3.12.26 - House Budget Hearing - Governor's Budget Office ](https://support.thedtfirm.com/dts-budget-blog/3.12.26-house-budget-hearing-governors-budget-office) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "The DT Firm", "url" : "https://support.thedtfirm.com/dts-budget-blog/author/the-dt-firm" }, "dateModified" : "2026-03-02T13:49:39.544Z", "datePublished" : "2026-03-02T13:49:31.000Z", "headline" : "2.25.26 Senate DHS Budget Hearing: part 2", "image" : [ "https://support.thedtfirm.com/hubfs/DHS%20Logo.png" ], "mainEntityOfPage" : { "@id" : "https://support.thedtfirm.com/dts-budget-blog/2.25.26-senate-dhs-budget-hearing-part-2", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://support.thedtfirm.com/hubfs/website/image/logo-DT-firm.png" }, "name" : "The DT Firm" } } ```