Gov. John Kasich has vetoed a piece of the two-year budget that would bar the state's Medicaid program from covering the additional low-income residents allowed under the Affordable Care Act.
The Republican governor also vetoed 21 other provision in signing off on the $62 billion spending plan Sunday night.
Kasich's proposed budget had initially called for expanding Medicaid. But GOP leaders stripped the idea from the House version of the state spending plan in April. The House went even further, inserting a provision blocking the expansion.
Roughly 366,000 Ohioans will be eligible for coverage beginning in 2014 if the state expands Medicaid, a key component of Democratic President Barack Obama's federal health care law.