A State Built on Unique Mechanisms
Ohio's funding picture depends on structures that do not exist anywhere else, and every one of them is being tested in 2026. JobsOhio is the only privately-funded state economic development agency in the country. It runs on liquor profits. The Ohio Controlling Board voted 4-2 in February 2025 to extend its franchise through 2053, giving it 28 more years of exclusive control over state liquor sales revenue. Since 2013, JobsOhio has paid more than $686 million to the state while operating independently of the legislative appropriations process. Intel is building a $20 billion semiconductor fabrication complex in Licking County, the largest private investment in Ohio history. The project depends on federal CHIPS Act funding, and the OBBBA's reconciliation process included discussions about clawing back unspent CHIPS Act allocations. Wright-Patterson Air Force Base employs 38,000 people and houses the Air Force Research Laboratory, which has close to a $6 billion budget. DOGE-related contractor layoffs have already hit the base, with Sumaria Systems laying off 57 employees and Astrion cutting its entire F-15 contract workforce. And Ohio expanded Medicaid under the ACA, which means the OBBBA's phase-out of enhanced federal matching and new work requirements create direct fiscal exposure that non-expansion states avoid. This guide covers the programs that are funded, the mechanisms that make Ohio different, and the specific risks that affect grant seekers in the state.
JobsOhio: Liquor Profits and No Public Accountability
There is nothing like JobsOhio in any other state. Created by Governor Kasich in 2011, it is a private nonprofit corporation that funds economic development using profits from state liquor sales. The structure was controversial from the start: by operating outside the normal appropriations process, JobsOhio can move faster than traditional state agencies. It can also operate with less transparency. Attorney General Dave Yost described the 2053 extension agreement as "one-sided," absent any stakes on JobsOhio's part. The numbers justify attention regardless of the governance debate. JobsOhio has paid more than $686 million to the state since its 2013 purchase of the liquor franchise. Ohio's liquor sales generate roughly $250 million to $300 million annually. The organization can make direct loans, grants, and equity investments in companies choosing to locate or expand in Ohio. The extension to 2053 matters for grant seekers because it means JobsOhio will remain the state's primary economic development vehicle for the next 27 years. Companies evaluating Ohio sites negotiate with JobsOhio directly, similar to how Texas companies negotiate with local Economic Development Corporations. JobsOhio focuses on six target industries: advanced manufacturing, aerospace and aviation, automotive and mobility, energy and chemicals, financial services, and food and agribusiness. It also administers the Ohio Site Inventory Program, which certifies development-ready sites to accelerate project timelines. The O.H.I.O. Fund, a $356 million private investment vehicle, complements JobsOhio by providing capital for companies that cannot access traditional financing. Ohio also introduced a Venture Capital Gains Deduction in 2026, allowing investors to deduct capital gains from qualifying Ohio startup investments on their state tax returns. For businesses evaluating Ohio incentives, JobsOhio is the first call. For defense contractors, the proximity to Wright-Patterson adds a strategic advantage that JobsOhio can layer onto its own incentives.
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Intel, CHIPS Act, and the Semiconductor Bet
Intel's Ohio One Campus in Licking County is designed to be one of the largest semiconductor manufacturing sites in the world. Two fabs are under construction, with Phase I completion expected in late 2026. The project represents more than $20 billion in investment and thousands of construction and permanent jobs. The project depends on federal CHIPS Act funding. Intel received preliminary approval for $8.5 billion in CHIPS Act grants and up to $11 billion in loans nationally. The Ohio site is a primary recipient. But the OBBBA reconciliation process included proposals to rescind unspent CHIPS Act allocations, creating uncertainty. As of February 2026, the funding has not been rescinded, but the political risk is real. What makes the Intel project matter for Ohio's broader funding picture is the supply chain it creates. Ohio State University expanded semiconductor research programs. Columbus State Community College and other institutions launched workforce training pipelines. Local governments issued bonds for infrastructure to support the site. If the project proceeds as planned, it anchors a semiconductor corridor that would attract suppliers, equipment manufacturers, and R&D operations. Beyond Intel, Ohio's Third Frontier technology program has invested over $2.5 billion in Ohio technology companies since 2002. The Technology Validation and Start-up Fund (TVSF) provides up to $200,000 per project for early-stage companies. The Third Frontier Research Scholars program connects university researchers with industry partners. For tech startups, Ohio offers the Venture Capital Gains Deduction, Third Frontier grants, and proximity to a growing semiconductor corridor. The OBBBA's restoration of immediate R&D expensing under Section 174A benefits Ohio manufacturers and startups equally.
Wright-Patterson and the Defense Economy
Wright-Patterson Air Force Base is the largest single-site employer in Ohio with approximately 38,000 employees. The Air Force Research Laboratory, headquartered at the base, has close to a $6 billion budget and more than 12,500 employees worldwide. AFRL obligations to Ohio businesses reached nearly $4.3 billion between 2013 and 2020. Ohio has 83,000 federal civilian employees statewide, many concentrated in the Dayton region around Wright-Patterson. The DOGE-driven federal workforce reductions have created anxiety but the direct impact on the base has been limited so far. Most layoffs have hit contractors rather than federal employees: Sumaria Systems filed a WARN notice for 57 employees, and Astrion is cutting its F-15 contract workforce. The executive order gives agency heads authority to exempt positions necessary for national security, which stakeholders expect will protect critical Wright-Patterson personnel. The FY2026 National Defense Authorization Act allocated $900.6 billion for defense programs, with specific Wright-Patterson investments including $20 million for reusable hypersonic aircraft research, $2.5 million for advanced metals research, and $45 million for a new Human Performance Wing Laboratory. NASA Glenn Research Center in Cleveland adds another federal R&D anchor with an $800 million annual budget focused on propulsion and power systems. The Defense Finance and Accounting Service (DFAS) in Columbus generates IT and financial services contracting. For organizations pursuing federal R&D contracts, Ohio's defense corridor is one of the most concentrated in the country. AFRL posts Broad Agency Announcements on SAM.gov that accept proposals from small businesses and research institutions. Ohio and AFRL recently renewed their economic development partnership to share knowledge and technology with state companies.
State Programs: Brownfields, Clean Ohio, and Environment
Ohio's state grant programs are distributed across agencies without a centralized application system. The grants.ohio.gov portal serves as a directory, but each agency runs its own process. Brownfield remediation is one of the state's most active programs. Ohio allocates approximately $100 million per year for brownfield assessment and cleanup through the Department of Development. The program shifted from first-come, first-served to merit-based evaluation, which means applications are now scored competitively rather than funded in submission order. This is a significant change for organizations accustomed to getting in line early. The Clean Ohio Fund supports land conservation and recreational trail development through state bonds. FY 2025-26 bond authorization includes $12.5 million for the Clean Ohio Trail Fund and $40 million for the Agricultural Easement Fund. The program has operated across all 88 Ohio counties since voters first approved it in 2000. The Ohio EPA runs the H2Ohio Conservation Ditch Program for agricultural water quality, the Un-Sewered Area Assistance Program, and various loan programs for stormwater, solid waste, and dam safety. The Ohio Department of Natural Resources administers 21 programs including the Abandoned Mine Land Economic Revitalization (AMLER) grant at up to $2 million, the Boating Infrastructure Grant at up to $1.5 million, Coastal Management Assistance Grants at up to $300,000 for Lake Erie projects, and the Recreational Trails Program at up to $150,000. Ohio's BEAD broadband program received $793 million in federal allocation to reach 262,000 unserved and underserved locations. The first $227 million has been awarded to 22 sub-awardees. State officials estimate the full deployment will cost less than allocated because satellite reduces the cost of reaching remote areas. For environmental and infrastructure projects, Ohio's combination of brownfield, Clean Ohio, and BEAD funding creates multiple entry points depending on project type.
Housing: The Trust Fund Gap
Ohio's Housing Trust Fund illustrates a problem common to states that fund housing through transaction-based fees rather than appropriations. The fund's maximum annual allocation was increased to $65 million per year in the FY 2024-25 budget. But the fund is supported by 50% of deed recording fees, and actual collections in FY 2024 totaled only $41 million. High interest rates and home price inflation have deflated the real estate market, driving fee revenues far below the cap. State statute targets Trust Fund resources toward Ohio's neediest populations: at least 75% of funds must help people at or below 50% of area median income with a preference for those below 35%. At least half of funding must be awarded to rural areas. The fund supports home repair, accessibility modifications, rental housing development, homeless shelters, and supportive housing operations. The Ohio Housing Finance Agency (OHFA) administers tax credit programs separately. The state Low-Income Housing Tax Credit (OLIHTC) program has a $100 million statutory ceiling per fiscal year. For 2026, $10.3 million in annual 4% LIHTC credits are available, with $10 million of Housing Trust Fund dollars allocated as gap financing for rural LIHTC projects. Housing advocates expressed concern in May 2025 about proposed changes to the Housing Trust Fund in the state budget that could reduce its effectiveness. The tension between the $65 million cap and $41 million in actual revenue means the fund is already operating below its intended capacity. For housing developers, Ohio's system is less complex than California's multi-layered financing but faces its own constraints. The OBBBA creates additional pressure: the proposed federal budget seeks to restructure Section 8 rental assistance as block grants to states, which could shift costs to state housing programs that are already underfunded.
The OBBBA and Ohio's Medicaid Exposure
Ohio expanded Medicaid under the ACA, covering approximately 1 million additional residents. This creates direct fiscal exposure under the OBBBA that non-expansion states like Florida and Texas avoid. The OBBBA phases out the enhanced 90% federal matching rate for Medicaid expansion populations, eventually requiring states to cover a larger share of costs. New work requirements of 80 hours per month begin January 2027 for expansion adults aged 19 to 64. Eligibility redeterminations shift from annual to every six months starting December 2026. Each of these changes creates administrative costs and potential coverage losses. SNAP is a separate exposure. Ohio's error rate, while lower than Florida's, still creates cost-sharing risk under the OBBBA's 6% threshold. Estimates project $318 to $540 million in potential annual state costs from SNAP provisions, depending on the final error rate calculation. Ohio has 83,000 federal civilian employees, concentrating the impact of DOGE workforce reductions. The Dayton-Springfield region, anchored by Wright-Patterson, is the most federally dependent area in the state. Federal spending reductions flow through to local economies, affecting tax revenue, housing demand, and consumer spending. The practical implication for grant seekers: state programs funded through dedicated mechanisms (liquor profits for JobsOhio, deed recording fees for housing, bond issues for Clean Ohio) are more insulated from OBBBA-driven budget pressure than programs funded through general revenue. Programs that depend on federal pass-through funding, particularly Medicaid-related services and SNAP administration, face the greatest uncertainty. Ohio's fiscal year runs July 1 through June 30. SAM.gov registration is required for all federal contracting. Ohio's MBE/EDGE certification through the Department of Administrative Services provides procurement preferences with a 15% participation goal on state contracts. Search Ohio funding opportunities