Ohio sets aside $5 million for defense and aerospace development

Ohio sets aside money for defense and aerospace grants and the advisory commission. The money comes from the General Revenue Fund and supports both the grant program and the commission. The Department of Development may award grants; the funding does not guarantee an award. The department must set application rules, require grant agreements, and set limits on award amounts and the share of project costs covered. The funding took effect July 7, 2026. The law provides $0 for fiscal year 2026 and $5 million for fiscal year 2027.

The Ohio Defense and Space Advisory Commission would advise the Department of Development on grants and ways to support defense and aerospace industries. Its nine members would include state officials, lawmakers from both parties, and three people with defense or aerospace knowledge. Appointed members must follow the stated conflict-of-interest rules. Members receive no pay for serving, but their actual and necessary expenses are covered. Starting in 2027, the commission would have to meet at least six times each year.

Grant recipients would have to follow their agreements, report spending, and provide records when the Department of Development requests them. Only the recipient awarded a defense and aerospace grant could spend its money. The department could demand repayment of any or all grant money if a recipient violates the agreement. Recipients would have to keep grant-funded equipment and use it as agreed throughout its useful life. The department could require an audit. Final spending reports would be due within 30 days after all money is spent or committed. Requested spending documents would be due within 10 days. Records must be kept for two years after the final report is accepted.