JUST IN: Democratic leadership in the California State Senate and California State Assembly including Senate President Pro Tempore
@MoniqueLimonCA (D-Santa Barbara) and Assembly Speaker
@RobertRivas_CA (D-Salinas) have reached a budget agreement ahead of Monday’s deadline. Much to read up on this. They say many proposed cuts were either delayed or avoided altogether. Here is what was just released (1/2):
“The following is an overview of the 2026-27 budget agreement:
Health
•Rejects immediate Medi-Cal asset limit cuts: There is no change to the asset test in 2026-27, and the asset limit would be lowered to $21,000 in 2027-28, instead of moving to the Governor’s proposed $2,000 limit now.
•Delays immediate Medi-Cal dental cuts: Delays dental supplemental payment cuts and UIS dental cuts by 12 months.
•Prevents an automatic UIS premium increase next year: Gives the next Governor authority to decide whether UIS premiums should increase next year, rather than locking in the increase now.
•Delays restricted-scope Medi-Cal changes for asylees and other qualified immigrants:Adopts the Governor’s May Revision proposal to shift asylees and other impacted qualified immigrants to restricted-scope Medi-Cal, but not until 2027-28.
•Funds Medi-Cal eligibility workload: The agreement provides additional funding for county eligibility workload tied to H.R. 1.
•UIS fee-for-service options:Gives the state time to investigate alternatives before moving forward with the UIS fee-for-service transition.
•Delays most clinic cuts: Delays most clinic cuts by 12 months, giving providers and patients additional time.
•Supports distressed hospitals: Authorizes up to $190 million in distressed hospital loans
•Lowers Covered California premiums: Provides $110 million to lower premiums for low-income Covered California enrollees, for a total of $300 million
•Protects reproductive health care and gender-affirming care:Adds $40 million for reproductive health care and $26 million for gender-affirming care.
Human Services & Safety Net
•Rejects IHSS cuts: The agreement fully rejects the Governor’s proposed IHSS cuts, protecting seniors and people with disabilities who rely on in-home care.
•Supports food banks: $100 million for CalFood, including $70 million above the Governor’s proposal, to help keep food banks stocked.
•Funds CalFresh eligibility workload: The agreement provides additional funding for county eligibility workload tied to H.R. 1.
•Rejects Adult Protective Services cuts: Rejects the Governor’s proposed cut to Adult Protective Services.
•Protects immigrant communities: $80 million more than the Governor for immigration legal services across several programs.
•Supports diaper banks: $16.5 million for diaper banks.
Housing & Homelessness
•Invests in homelessness solutions: Provides $900 million for HHAP, the state’s local homelessness program, which is $400 million more than the Governor proposed.
•Builds affordable housing:Provides $500 million for the Low-Income Housing Tax Credit.
•Supports multifamily housing:Provides $200 million for the Multifamily Housing Program.
•Keeps housing bond work moving: Anticipates a November 2026 housing bond to build more affordable homes faster and improve housing opportunity.
•Keeps families housed: $100 million for housing stability programs.
Schools & Child Care
•Delivers higher Prop. 98 funding and a payback commitment: Compared to the Governor’s May Revision, the agreement provides roughly $2.7 billion more for schools and community colleges across 2025-26 and 2026-27, while committing to a reliable schedule to pay districts the $3.9 billion omitted from the May Revision.
•Invests in special education: Increases special education base rates and cost pools by $2.4 billion ongoing.”