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Prepared by: Precision Advocacy
Prepared by Precision Advocacy Group LLC
Both the Assembly Budget and Senate Budget & Fiscal Review committees met on June 25 and approved the majority of a final budget package. The legislature is going to pass the primary budget bill junior AB/SB 102 on June 27 as well as the bulk of the trailer bills. Governor Gavin Newsom is anticipated to sign the full budget package, including the legislature’s budget, SB 101, on June 27.
$228 billion of spending comes from the state’s General Fund in 2025-26, $89 billion of special fund spending, and $4 billion of spending from bond accounts. As of the May Revision, $174 billion in federal funding was projected to come to California, but that amount may change significantly based on upcoming federal actions.
Negotiations between the legislature and the governor reduced General Fund spending in 2025-26, from $232 billion in the legislature’s budget, to about $228 billion.
Construction Worker Wage Scale. One unusual aspect of the final budget plan is that enactment of the full budget is contingent upon the governor’s signature on either AB 131 or SB 131, the housing and homelessness trailer bill. The bills are anticipated to contain:
- The Homeless Housing, Assistance, and Prevention (HHAP) Round 7 funding
- California Environmental Quality Act (CEQA) exemptions for housing projects of up to 25 units (10 units in San Francisco) without Labor Code prevailing wage/apprenticeship requirements.
- For projects greater than 25 units (or 10 units in San Francisco), new construction labor standards would be allowed as an alternative to Labor Code prevailing wage/apprenticeship requirements.
- In Los Angeles, Marin, Monterey, Napa, Orange, Riverside, Sacramento, San Bernardino, San Diego, Santa Barbara, Santa Cruz, Solano, Sonoma, and Ventura counties state law would require that 60% of the construction workers shall be paid at a wage rate of no less than $36 per hour and 100% at a wage rate of no less than $24 per hour.
- In Alameda, Contra Costa, San Mateo, and Santa Clara counties, and the City and County of San Francisco, 60% of the construction workers shall be paid at a wage rate of no less $40 per hour and 100% of the construction workers shall be paid at a wage rate of no less $27 per hour.
- For all other counties 60% of the construction workers shall be paid at a wage rate of no less than $28 per hour and 100% of the construction workers shall be paid at a wage rate of no less than $20 per hour.
- These new wage rates would be reduced by the hourly cost of health benefits.
- These new wage rates would be adjusted annually based on CPI.
- There would be no apprenticeship requirement.
In-Home Supportive Services (IHSS) Collective Bargaining. AB 129/SB 129 contains provisions related to moving IHSS collective bargaining to the state commencing no earlier than January 1, 2030. The budget trailer bills will require:
- The Department of Human Resources, in collaboration with the Department of Social Services, to appoint a statewide bargaining advisory committee to review the full cost of care for IHSS provided through the IHSS program under a statewide collective bargaining model.
- The advisory committee shall submit reports, between January 1, 2027, and January 1, 2029, to the legislature that contain completed analyses covering key issues associated with any transition of IHSS to statewide bargaining, including, but not limited to, all the following:
- Identification of the comprehensive fiscal structure and impacts of an IHSS statewide collective bargaining model, including any county maintenance of effort and potential impacts on realignment if the state were to adopt a statewide collective bargaining process with a continued county contribution.
- Analysis of state versus county responsibilities, potential litigation and workplace liability costs, and the role of IHSS recipients associated with a statewide collective bargaining model.
- Analysis of IHSS costs and savings, including all the following:
- Overall program cost growth, including to the state and counties, on a yearly basis.
- Estimates of IHSS costs that may be considered during bargaining, including, but not limited to, retirement, travel, time off, sick leave, training, and benefits.
- Automation and information technology changes associated with an IHSS statewide bargaining model.
- A landscape analysis examining other states’ IHSS statewide collective bargaining models, and the potential costs associated with adopting a similar statewide model in California.
Orange County directly made the following funding requests during the budget process.
Fund Proposition 36 for behavioral health evaluations, treatment, and staffing; for probation departments to support the courts, conduct individualized assessments, and supervise an expanded caseload; and for indigent defense service providers to address the legal, social, and economic challenges faced by their clients.
Final Budget: Provides $100 million of General Fund resources in 2025-26 as well as some reporting and local match requirements:
- $50 million for behavioral health
- $20 million for judicial workload, including collaborative courts
- $15 million for pre-trial services (the budget summary states that pre-trial services help support probation departments).
- $15 million for public defenders
Governor’s Budget: Did not provide funding.
Legislature’s Budget: Provides $110 million of General Fund resources in 2025-26:
- $50 million for behavioral health
- $30 million for judicial workload, including collaborative courts
- $15 million for pre-trial services
- $15 million for public defenders
Fund Homeless Housing, Assistance and Prevention (HHAP) Round 7
Final Budget: Provides $500 million available after Round 6 HHAP funds are distributed (likely in 2026-27) to continue flexible support for local efforts to address homelessness backed by robust accountability mechanisms.
Governor’s Budget: Did not provide funding.
Legislature’s Budget: Provides $500 million available after Round 6 HHAP funds are distributed (likely in 2026-27) to continue flexible support for local efforts to address homelessness backed by robust accountability mechanisms.
Minimize disruptions to county administration of critical programs supporting families, children, seniors, and immigrant communities. For example, additional reductions proposed in the May Revise to programs such as the Family Urgent Response System, the Emergency Child Care Bridge Program, or the Foster Family Agencies Program will further destabilize support for hundreds of at-risk foster youths and their caregivers.
Final Budget
Family Urgent Response System (FURS): Modifies the May Revision proposal, reducing the cut to $9 million General Fund ongoing. Approximately $22 million ($21 million General Fund) remains to support the system.
Emergency Child Care Bridge Program: Modifies the May Revision proposal, reducing the cut to $30 million General Fund in 2025-26 and ongoing. Approximately $63.7 million General Fund remains to support the program for state operations and local assistance.
Foster Family Agencies: Provides $31.5 million ($23 million General Fund) in bridge funding for Foster Family Agencies to prevent agency closures, including matching federal funds.
Governor’s Budget
Family Urgent Response System (FURS): Reduces FURS, which provides 24/7 mobile response for children in foster care and their caregivers, by $13 million General Fund in 2025-26 and ongoing, and maintains $17 million General Fund ongoing.
Emergency Child Care Bridge Program: Reduces funding for the Emergency Child Care Bridge program, which provides childcare for children in foster care, by $42.7 million General Fund in 2025-26 and ongoing.
Foster Family Agencies: No proposal.
Legislature’s Budget
Family Urgent Response System (FURS): Modifies the May Revision proposal, reducing the cut to $9 million General Fund ongoing. Approximately $22 million ($21 million General Fund) remains to support the system.
Emergency Child Care Bridge Program: Modifies the May Revision proposal, reducing the cut to $30 million General Fund in 2025-26 and ongoing.
Foster Family Agencies: Provides $31.5 million ($23 million General Fund) in bridge funding for Foster Family Agencies to prevent agency closures, including matching federal funds.
Reject the trigger related to the foster care tiered rate structure.
Final Budget: Modifies the May Revision trigger proposal regarding the foster care tiered rate structure, instead making the implementation subject to a budget appropriation. Implementation of the foster care tiered rate structure is underway with rates scheduled to take effect on July 1, 2027. Approves trailer bill language on necessary and technical non-trigger components of the administration's proposal for the foster care tiered rate structure.
Governor’s Budget: Proposes trailer bill language that would trigger “on” the implementation of the tiered rate structure in the Spring of 2027.
Legislature’s Budget: Rejects the trigger proposal. Implementation of the foster care tiered rate structure is underway with rates scheduled to take effect on July 1, 2027.
Right size county administrative funding for the CalWORKs program by providing:
- A one-time investment of $245 million in 2025-26 to address immediate funding shortfalls
- An updated, sustainable administrative budget methodology starting in 2026-27 that reflects the true cost of delivering services
Final Budget: Approves trailer bill language to (1) require review of county program activities in the context of acknowledged funding gaps in the CalWORKs Single Allocation and (2) consider workload relief changes that enable effective county administration of the CalWORKs program. In accordance with Welfare and Institutions Code section 15204.35, DSS assessed the costs of eligibility administration in 2024-25. The information provided at the May Revision states that updating the eligibility worker rate and funding applications independent of caseload would require an increase of $239.8 million for the CalWORKs Single Allocation.
Governor’s Budget: No proposal.
Legislature’s Budget: Approves placeholder trailer bill language in concept to (1) require review of county program activities in the context of acknowledged funding gaps in the CalWORKs Single Allocation and (2) consider workload relief changes that enable effective county administration of the CalWORKs program. The information provided at the May Revision states that updating the eligibility worker rate and funding applications independent of caseload would require an increase of $239.8 million for the CalWORKs Single Allocation.
Maintain funding for Bringing Families Home, Home Safe, the CalWORKs Housing Support Program, and Housing and Disability Advocacy Program.
Final Budget
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Bringing Families Home: Restores $81 million in 2025-26.
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Home Safe: Restores funding $83.8 million in 2025-26.
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CalWORKs Housing Support Program: Approves governor’s budget proposal of $95 million.
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Housing and Disability Advocacy Program: Approves $44.6 million General Fund for 2025-26 on a one-time basis (above the $25 million base amount for this program already included in the governor’s budget).
Governor’s Budget
Bringing Families Home: No ongoing funding provided.
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Home Safe: No ongoing funding provided.
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CalWORKs Housing Support Program: $95 million General Fund in ongoing funding is included in the governor’s budget.
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Housing and Disability Advocacy Program: The governor’s budget continues its ongoing annual appropriation of $25 million General Fund.
Legislature’s Budget
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Bringing Families Home: Restores $81 million in 2025-26.
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Home Safe: Restores funding $83.8 million in 2025-26.
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CalWORKs Housing Support Program: Approves governor’s budget proposal of $95 million.
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Housing and Disability Advocacy Program: Approves $44.6 million General Fund for 2025-26 on a one-time basis (above the $25 million base amount for this program already included in the governor’s budget).
In-Home Supportive Services (IHSS): Restore $81 million cut to IHSS administrative funding and reject Community First Choice Option reassessment late penalties to counties.
Final Budget
- Modifies the governor’s budget to require counties to share 50% of penalty costs in 2025-26. In 2026-27, approves the proposal to pass 100% of any reassessment late penalties on to counties.
- Approves trailer bill language to (1) require review of IHSS county program activities in the context of acknowledged funding gaps and (2) consider workload relief changes that enable effective county administration of the IHSS program. In accordance with Welfare and Institutions Code section 12306.19, the Department of Social Services assessed the ongoing workload and costs to administer the IHSS program. The information provided in the May Revision states that the reassessment costs are $124 million General Fund and $246 million total funds for IHSS county workload.
Governor’s Budget: Passes the IHSS Community First Choice Option reassessment of late penalties of $81 million in 2025-26, $87.4 million in 2026-27, $94.4 million in 2027-28, and $101.8 million in 2028-29 to counties.
Legislature’s Budget: Modifies the governor’s budget to require counties to share 50% of penalty costs in 2025-26. In 2026-27, approves the proposal to pass 100% of any reassessment late penalties on to counties.
Retain Future of Public Health funding of $188 million annually.
Final Budget: Retained funding.
Governor’s Budget: Retained funding.
Legislature’s Budget: Retained funding.
Below is a list of the final budget bill, budget bill juniors, and trailer bills anticipated to be signed by the governor in the near future.
2025 Budget Act (passed June 13): SB 101
Budget Bill Junior (2025): AB 102/SB 102
Budget Bill Junior (2022, 2023, and 2024): AB 103/SB 103
Health Omnibus Trailer Bill: AB 116/SB 116
Human Services Trailer Bill: AB 118/SB 118
Early Care and Education Trailer Bill: AB 120/SB 120
Education Omnibus Trailer Bill: AB 121/SB 121
Higher Education Trailer Bill: AB 123/SB 123
Resources Trailer Bill: AB 124/SB 124
Climate Change Trailer Bill: AB 127/SB 127
Transportation Trailer Bill: AB 128/SB 128
Labor Trailer Bill: AB 129/SB 129
Housing Trailer Bill: AB 130/SB 130
Housing II & HHAP Trailer Bill: AB 131/SB 131
Revenue and Taxation Trailer Bill: AB 132/SB 132
Public Safety Trailer Bill: AB 134/SB 134
Courts Trailer Bill: AB 136/SB 136
State Government Trailer Bill: AB 137/SB 137
Bargaining Units 9 and 12 Trailer Bill: AB 139/SB 139
MOU Trailer Bill: AB 140/SB 140
Cannabis Trailer Bill: AB 141/SB 141
Deaf and Disabled Telecommunications Trailer Bill: AB 142/SB 142
Developmental Services Trailer Bill: AB 143/SB 143
Grant Opportunities
Below is a list of the latest grant opportunities released by the state. All opportunities for local jurisdictions may be found here.
Application Deadline: 7/18/25 17:00
Title: Advancing 30×30 in Coastal Waters
State Agency / Department: Ocean Protection Council
Match Funding? No
Estimated Total Funding: $10,000,000
Funding Method: Advances & Reimbursement(s)
Governor’s Press Releases
Below is a list of the governor’s press releases beginning June 18.
June 25: California awards $15 million to support economic growth in tribal communities across the state
June 25: First Partner launches and expands her annual Book Club, celebrates libraries as community treasures open to all Californians
June 25: California enters final phase of construction on world’s largest wildlife crossing
June 25: More drugs at the border, fewer troops to stop them: One-third of California National Guard counterdrug forces pulled amid Trump’s LA militarization
June 24: California awards over $15 million to apprenticeship programs connecting youth to high-paying jobs
June 24: California awards over $15 million to apprenticeship programs connecting youth to high-paying jobs
June 24: Three years after the end of Roe, Governor Newsom, First Partner sound the alarm on Trump’s “Big, Beautiful” plan to defund Planned Parenthood
June 24: California needs more than groundwater to ensure water sustainability
June 24: California National Guard fire crews operating at just 40% capacity due to Trump’s illegal Guard deployment
June 23: Governor Newsom honors fallen Los Angeles Police Sergeant
June 23: Governor Newsom announces 48 new projects to film in California thanks to the state’s Film & Television Tax Credit Program
June 20: Governor Newsom announces appointments 6.20.25
- Soon-Sik Lee, of Bellevue, Washington, has been appointed Chief of Planning and Engineering at the California High Speed Rail Authority.
- Lilian Coral, of San Marino, has been appointed to the California Community Colleges Board of Governors
- Carson Fajardo, of Rancho Cucamonga, has been appointed to the California State University Board of Trustees
June 19: Governor Newsom vows to keep fighting as federal court rejects Trump’s military overreach
June 19: Governor Newsom proclaims Juneteenth Day of Observance
June 18: While Trump cuts suicide hotline for gay kids, California invests in their mental health
June 18: Governor Newsom announces appointments 6.18.25
- Dina El-Tawansy, of San Leandro, has been appointed Director of the California Department of Transportation
- Marta Barlow, of El Dorado Hills, has been appointed Chief Counsel at the Office of the Inspector General
- Patricia “Patti” Ochoa, of Elk Grove, has been appointed Special Assistant to the Secretary at the California Business, Consumer Services and Housing Agency
June 18: As fires burn across the state, Trump’s illegal Guard deployment is already leaving firefighting crews short-staffed
June 18: Governor Newsom proclaims LGBTQ Pride Month
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