Oklahoma Insights: December Edition

Oklahoma Homeowners Insurance Reform on the Horizon: Oklahoma’s sky-high insurance costs are driving lawmakers toward major reforms in 2026. Among the priciest in the nation, average premiums hit $4,613 for a $300,000 home. Proposed measures include longer cancellation notices, shorter claims lookback periods, rate approval changes, profit limits, and tighter rules on credit-score use. The challenge: protecting consumers without pushing insurers out of the market. Insurers, lenders, and real estate professionals should brace for closer regulatory scrutiny and possible shifts in rate structures as the 2026 legislative session approaches.

Oklahoma Signals Big Moves in Workforce Development: Oklahoma is stepping up investment in the state’s workforce, with a clear focus on advanced manufacturing, energy transition, and tech-sector jobs. Earlier this year, the Department of Commerce announced its first-ever Public–Private Partnership (P3) incentive, providing funding to expand training infrastructure and create pipelines for high-demand roles. More recently, the Oklahoma Employment Security Commission secured nearly $6 million in federal grants to support industry-driven skills programs, including aerospace, advanced manufacturing, and AI/data-center training.

For employers, workforce boards, and economic development stakeholders, the signal is clear: aligning training programs with these state-backed initiatives now can position organizations to fill critical roles and tap new funding opportunities in 2026.

The Nonprofit Tax Exemption’s Second Chance: Rep. Marilyn Stark’s interim study revisits sales tax exemptions for small Oklahoma nonprofits (under $3 million in revenue), a concept that failed as HB 1568 in 2023. The key question: should nonprofits get state relief to stretch donor dollars amid rising costs and shrinking federal funds? The fiscal question is trickier: what’s the revenue impact? Nonprofits should engage early, as interim studies often shape legislative priorities. Demonstrating both community impact and fiscal responsibility will be crucial. If the proposal fails again, the window may not reopen for years.

The Budget Squeeze - FMAP Drops and Unfunded Mandates: Oklahoma’s Federal Medical Assistance Percentage (FMAP) recently dropped from 67.08% to 66.47%, cutting $7.7 million for the Department of Human Services and $26 million for the Oklahoma Health Care Authority in FY 2026. Combined with partially funded long-term care rate increases, state agencies are faced with structural budget gaps. Organizations contracting with the state or relying on state services may see slower payments, tighter contracts, or reduced services. The 2026 legislative session will reveal whether lawmakers provide supplemental funding or force agencies to absorb costs. Early budget hearings will be a key signal of how leadership plans to manage these pressures.