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Prepared by Precision Advocacy
This week marks a critical juncture in the legislative calendar: the bill introduction deadline. As of Wednesday, February 18, 2026, the state legislature has seen the introduction of just over 1,000 bills. A significant portion of this initial wave consists of "spot bills" – placeholder legislation that signals intent but lacks substantive statutory language. These spot bills are strategically introduced to meet the deadline, with the expectation that they will be amended later in the session to carry substantive policy language. We anticipate a substantial increase in the total bill count, anticipating that at least 1,000 additional bills will be introduced before the deadline officially closes.
County-sponsored legislation is making steady progress through the initial stages of introduction, and there are a few remaining bills that are expected to be formally introduced and assigned bill numbers in the coming days. Next week, we will provide a comprehensive update of County-sponsored legislation and projected committee assignments.
State budget deliberations are already well-underway, driven by the governor's January budget proposal and the major changes driven by federal policy changes. A strong focus of budget discussion centers on analyzing the potential and anticipated impacts of H.R. 1, particularly as it relates to services, programs, and financial support for California's vulnerable populations. Policymakers are closely examining how the proposed changes in federal funding and program requirements under H.R. 1 may necessitate adjustments to the state's spending priorities and its safety net programs.
Early Budget Action
Governor Gavin Newsom signed SB 106 into law last week, providing $90 million in additional General Fund support for Planned Parenthood clinics in response to federal Medicaid reimbursement cuts enacted under H.R. 1. The federal provision blocks Planned Parenthood from receiving Medi-Cal reimbursement for one year, not just for abortion services, which are already restricted under longstanding federal law, but for the broader range of care the clinics provide, including cancer screenings, contraception, Sexually Transmitted Infection testing and treatment, pregnancy care, and primary care. Because more than 80% of the 1.3 million Californians served annually by Planned Parenthood are Medi-Cal enrollees, clinics estimate losses exceeding $300 million. Several sites have already closed or reduced services. The $90 million allocation comes on top of $140 million appropriated last year, reflecting the state’s effort to backfill federal dollars and stabilize access for Medi-Cal patients until reimbursement is scheduled to resume in July, absent further congressional action.
This week, both the Assembly Budget Committee and Senate Budget & Fiscal Review Committee approved identical pairs of budget-related bills: AB 107/SB 107, which serves as a budget bill jr. by amending language in a prior budget act, and AB 117/SB 117, focused on Bay Area transit.
A key procedural note for budget-related legislation is that while each house introduces an identical bill, only one bill moves forward to the governor's desk. This practice enables simultaneous consideration of budget provisions in both houses, thereby accelerating the overall process.
AB 107/SB 107 amends the 2025 Budget Act to make technical corrections, adjust appropriations, and authorize the expenditure of newly awarded federal funds. The bill provides $15.485 million in new federal fund authority, including funding for CalFire’s Urban Forestry Program, orphan oil and gas well remediation through the Department of Conservation, and security improvements at Exposition Park. It also makes targeted adjustments to prior appropriations, including $6 million for the Bureau for Descendants of American Slavery, $20 million to promote tourism, $750,000 for LGBTQ+ archives, $20 million in Proposition 4 funds for Hollister Ranch public access, and $2 million for the City of Petaluma River Foundation. Additional provisions extend encumbrance periods, shift certain fund sources, clarify Greenhouse Gas Reduction Fund allocations for zero-emission vehicle infrastructure, and correct drafting errors. The measure is largely technical and cost neutral aside from authorizing the new federal funds.
AB 117/SB 117 authorizes the California Transportation Agency to loan up to $590 million to the Metropolitan Transportation Commission to address operating shortfalls for major Bay Area transit agencies, including BART, SFMTA, Caltrain (Peninsula Corridor Joint Powers Board), and AC Transit. The loan would be drawn from previously awarded but unallocated Transit and Intercity Rail Capital Program funds, with repayment backstopped by the agencies’ shares of State Transit Assistance funds. The legislation is framed as bridge financing in response to pandemic-related ridership and revenue declines and is aligned with prior budget actions and a potential future regional ballot measure.
Senate Budget & Fiscal Review Informational Hearing on H.R. 1
The February 11 Senate Budget and Fiscal Review Committee hearing laid out in stark terms what H.R. 1 could mean for California’s safety net, and by extension, for Orange County’s health care system, working families, and county government finances. The discussion centered on the projected impacts to Medi-Cal and CalFresh, but the implications for Orange County were clear throughout: increased uninsured residents, higher indigent care costs, administrative burdens for counties, and significant debate over long-term fiscal sustainability.
At the outset, the Legislative Analyst’s Office described H.R. 1 as one of the most sweeping disruptions to Medicaid and SNAP in program history, noting that millions of Californians could lose coverage or food assistance due to expanded work requirements, six-month eligibility redeterminations, and new eligibility restrictions. For Orange County, where Medi-Cal enrollment remains substantial, the projected disenrollments translate directly into fiscal and service pressures.
The Department of Finance confirmed that the governor’s budget already reflects reduced federal support and anticipates significant caseload declines tied to federal work requirements and more frequent redeterminations. While these reductions may ease state General Fund obligations on paper, they raise immediate questions for Orange County about who absorbs the downstream costs when residents lose coverage and shift to emergency departments or county-funded indigent care.
Senator Kelly Seyarto framed the issue squarely as one of long-term sustainability. He emphasized the rapid growth in Medi-Cal spending over the past decade:
“Our Medi-Cal program… has gone from $93 billion to a current estimate about $222 billion… that’s something that is not sustainable.”
For Orange County policymakers concerned about structural deficits and long-term obligations, Seyarto’s comments reflected a familiar argument: without reforms, Medi-Cal’s growth trajectory could crowd out other priorities. His remarks also highlighted a philosophical divide for the legislature, typically between Democrats and Republicans.
He defended work requirements as a reasonable expectation for able-bodied adults, noting that qualifying activities include work, school, or community service:
“Why is it such a difficult lift to get them out of a house… into the world where they can open up some opportunities to not be so dependent anymore?”
At the same time, other members raised concerns about the real-world effects on working families and county systems. Senators questioned how counties would manage rising uncompensated care and CalFresh administrative costs, given that H.R. 1 reduces the federal administrative match for CalFresh from 50% to 25%, shifting approximately $190 million annually to counties statewide. Orange County would bear a proportional share of that shift, adding pressure to its social services and health care infrastructure.
The hearing also underscored economic ripple effects. Testimony highlighted that CalFresh brings more than $12 billion annually into California communities and generates up to $1.80 in economic activity for every dollar spent. For Orange County’s grocery retailers, local markets, and working-class neighborhoods, reductions in food assistance would not only increase hardship but also reduce local spending.
In sum, the February 11 hearing made clear that Orange County stands at the intersection of the state-federal policy shift. If H.R. 1 leads to significant Medi-Cal disenrollment, Orange County hospitals and clinics could see higher uncompensated care. If CalFresh caseloads drop due to work requirements and documentation burdens, the County will face increased administrative and humanitarian pressures. At the same time, concerns about Medi-Cal’s long-term cost growth and structural imbalance remain central to the debate.
For Orange County leaders, the hearing signaled that the coming budget cycle will require navigating both fiscal sustainability and safety-net stability, an increasingly difficult balance in the wake of federal policy changes.
January Revenues
The Department of Finance (DOF) and State Controller released reports on January’s revenues as compared to the 2026-27 governor’s budget proposal.
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Tax Revenues
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DOF January
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DOF Fiscal YTD
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Controller Fiscal YTD
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Personal Income
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$3.138 billion above projections
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$4.712 billion above projections
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$4.614 billion above projections
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Corporation
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$244 million above projections
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$1.463 billion above projections
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$1.409 billion above projections
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Sales and Use
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$236 million below projections
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$179 million below projections
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$20 million below projections
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Total Revenues
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$3.374 billion above projections
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$6.873 billion above projections
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$6.874 billion above projections
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Upcoming Hearings
Agendas are typically posted on the committee websites in the Assembly and Senate a few days prior to the hearings. To view hearings after they take place, you may access them in the Assembly or Senate media archives where they are generally available within a few hours of committee adjournment.
Monday, February 23, 2026, Upon Adjournment of Assembly and Senate Floor Sessions
Assembly Joint Legislative Committee on Climate Change Policies
State Capitol, Room 126
Oversight Hearing: California's Cap-and-Invest Program
Monday, February 23, 2026, 2:30 p.m.
Assembly Budget Subcommittee No. 1 on Health
State Capitol, Room 127
California's Response to HR 1:
Defending Health Care Affordability and Access – Part 1
Physician Workforce Development in the Wake of H.R.1:
Education, Training, and Retention
Item No. Description
6440 University of California
4140 Department of Health Care Access and Information
Overview of H.R.1s federal student loan policy changes and impact on medical education access
Proposition 56 and Song-Brown state investments: graduate medical education and the physician supply in California
Physician retention trends and workforce stability
Tuesday, February 24, 2026, 9:00 a.m.
Assembly Water, Parks, and Wildlife
State Capitol, Room 444
Informational Hearing: Efficiency of Large Commercial, Industrial, and Institutional Water Users
Tuesday, February 24, 2026, 10:00 a.m.
Assembly Emergency Management
State Capitol, Room 437
Oversight Hearing: Active and Mass Shooter Preparedness, Prevention, and Response
Wednesday, February 25, 2026, 9:30 a.m.
Assembly Housing and Community Development
State Capitol, Room 437
Oversight Hearing: Outcomes Review of AB 2011 (Wicks), Statues of 2022 - Affordable Housing and High Roads Jobs Act of 2022
Wednesday, February 25, 2026, 9:30 a.m. to 1 p.m.
Assembly Utilities and Energy
1021 O Street, Room 1100
Oversight Hearing: Energy Entities Progress Report: Outcomes Review of AB 2316 (Ward), Statutes of 2022 - Public Utilities Commission: customer renewable energy subscription programs and the community renewable energy program
Wednesday, February 25, 2026, 1:30 p.m.
Assembly Budget Subcommittee No. 2 on Human Services
State Capitol, Room 126
Item No. Description
5180 Department of Social Services
Anti-Poverty, Anti- Hunger, and Equity Programs
Expected Impacts of Federal H.R. 1 on People and Proposals to Reduce Harm in California
All Related January Governor's Budget Proposals
5180 Department of Social Services
6980 California Student Aid Commission
Proposal for CalFresh Enrollment for Eligible Students in Higher Education When Applying for Financial Aid
Thursday, February 26, 2026, 9:30 a.m. or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 2 on Resources, Environmental Protection, and Energy
1021 O Street, Room 2200
Item Description
0540 Natural Resources Agency
Ocean Protection Council
3125 California Tahoe Conservancy
3360 Energy Resources Conservation and Development Commission
3480 Department of Conservation
3600 Department of Fish and Wildlife
3720 California Coastal Commission
3760 State Coastal Conservancy
3790 Department of Parks and Recreation
3820 San Francisco Bay Conservation and Development Commission
3825 San Gabriel and Lower Los Angeles River and Mountains Conservancy
3835 Baldwin Hills Conservancy
3845 San Diego River Conservancy
3860 Department of Water Resources
3875 Sacramento-San Joaquin Delta Conservancy
Thursday, February 26, 2026, 9:30 a.m. or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 3 on Health and Human Services
1021 O Street, Room 1200
Item Description
0530 California Health and Human Services Agency
4100 State Council on Developmental Disabilities
4120 Emergency Medical Services Authority
4700 Department of Community Services and Development
4265 Department of Public Health
Program and Budget Overview
Center for Infectious Diseases
Emergency Preparedness Office
Laboratory Field Services
5160 Department of Rehabilitation
5175 Department of Child Support Services
Thursday, February 26, 2026, 9:30 a.m. or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 4 on State Administration and General Government
State Capitol, Room 113
Item Description
2240 Department of Housing and Community Development
2255 Interagency Council on Homelessness
Thursday, February 26, 2026, 9:30 a.m. or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 5 on Corrections, Public Safety, Judiciary, Labor, and Transportation
State Capitol, Room 112
Item Description
0250 Judicial Branch
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: 2/12/26 00:00
Title: Geo-Regional Experts for Multilingual Students Grant Program
State Agency / Department: CA Department of Education
Match Funding? No
Estimated Total Funding: $2,000,000
Funding Method: Advances & Reimbursement(s)
Expected Award Announcement: July 2026
Title: Empty Glass Beverage Transportation Grant Program, FY 2026-27
State Agency / Department: Department of Resources Recycling and Recovery
Match Funding? 100%
Estimated Total Funding: $4,000,000
Funding Method: Reimbursement
Application deadline: 3/17/26 15:00
Title: Regional Coordination Project (RCP) Grant for Program Year 2025-26 (PY 25-26)
State Agency / Department: Employment Development Department
Match Funding? No
Estimated Total Funding: $10,000,000
Funding Method: Reimbursement
Application deadline: 5/5/26 23:59
Title: Strategic Growth Council Factory Built Housing Pilot Program Round 3 Catalyst Grant
State Agency / Department: Strategic Growth Council
Match Funding? No
Estimated Total Funding: $10,000,000
Funding Method: Advancements and Reimbursements
Application deadline: 5/5/26 23:59
Title: Strategic Growth Council Factory Built Housing Pilot Program Round 3 Planning Grant
State Agency / Department: Strategic Growth Council
Match Funding? No
Estimated Total Funding: $10,000,000
Funding Method: Advancements and Reimbursements
Expected open date: Spring 2026
Title: CAL FIRE Forest Health
State Agency / Department: Department of Forestry and Fire Protection
Match Funding? No
Estimated Total Funding: TBD
Funding Method: Advancements and Reimbursements
Governor’s Press Releases
Below is a list of the governor’s press releases beginning February 11.
February 17: Governor, First Partner statement on passing of Reverend Jesse Jackson
February 16: Governor Newsom launches UK climate partnership, welcomes nearly $1 billion Octopus Energy clean tech commitment
February 14: Munich Security Conference: Governor Newsom reinforces climate partnerships as Donald February 14: Trump abandons long-standing American allies
February 14: Governor Newsom, German Environment Minister pledge further climate and environment cooperation at Munich Security Conference
February 14: At Munich Security Conference, Governor Newsom advances climate action and
February 14: partnerships as Trump abandons America’s allies
February 13: California’s historic investments to curb retail theft result in 29,060 arrests $226 million in recovered goods in two years
February 13: Governor Gavin Newsom, Governor Katie Hobbs, and Governor Joe Lombardo release joint statement on Colorado River deadline
February 13: Fighting fraud, saving time, cutting costs: Governor Newsom’s efficiency strategies are improving state government
February 13: Top 12 reasons to ♥️ California on Valentine’s Day
February 12: Donald Trump declares the Republican Party the pro-pollution party
February 12: Governor Newsom announces major expansion of mortgage relief program, with a four-fold increase in payments to survivors
February 11: Governor Newsom announces appointments 2.11.26
- Paula Stigler Granados, of San Diego, has been appointed to the California Air Resources Board
- Tania Pacheco-Werner, of Sanger, has been reappointed to the San Joaquin Valley Air Pollution Control District
- Julie Lee, of Auburn, has been reappointed to the Delta Stewardship Council
- Ann Patterson, of Sacramento, has been reappointed to the Delta Stewardship Council
- Monique Moyer, of San Mateo, has been reappointed to the San Francisco Bay Area Water Emergency Transportation Authority
February 11: Governor Newsom announces permanent closure of AllenCo oil wells, ending years of community harm
February 11: Governor Newsom signs legislation delivering $90 million in emergency funding for Planned Parenthood after Trump defunds organization
February 10: Governor Newsom signs legislation 2.10.26
February 10: Governor Newsom signs consumer protection bill cracking down on veteran fraud and abuse, launches tax cut for vets
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