Overview
- Lawmakers advanced a $356 billion spending plan on Monday that largely rejects or delays billions in social‑service reductions proposed by Gov. Gavin Newsom.
- Top legislative Democrats won a delay of proposed Medi‑Cal restrictions and premium increases for undocumented residents, with the budget postponing cuts to July 1, 2027 while negotiators seek softer alternatives.
- The Legislature added funding for education and child care, proposing about $2.7 billion more for TK–12 schools and community colleges and 22,000 new state‑funded child care slots.
- Lawmakers increased homelessness and county supports to $900 million and set aside $125 million to help counties restore indigent care and carry out new federally required eligibility checks.
- Negotiators agreed to spend $300 million on private‑care subsidies and backed three of Newsom’s tax proposals while holding $55 million in DMV funding as leverage and weighing a voter measure to raise the rainy‑day fund cap before the June 25 ballot deadline.