Client Alert: State Budget Expands Oversight of Local Government and Special District Spending

On June 9, 2025, the Florida Legislature approved the state budget for 2025–2026 that includes a last-minute  provision that could have a big impact on local governments, including special districts. The budget includes a section that gives the Governor’s Office of Policy and Budget (known as “OPB”) broad authority to review how local governments are spending their money.

The state budget authorizes the OPB to review local government expenditures from the most recent two fiscal years in order to identify three things: 1) whether local resources have been used to support diversity, equity, and inclusion (DEI) efforts that may violate state law; 2) whether there is any sign of waste, fraud, or mismanagement; and 3) whether there are overlapping or redundant government functions that could be streamlined.

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