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Prepared by Precision Advocacy
With the legislature back in Sacramento following its summer recess, lawmakers have entered the final and most compressed month of the 2025-26 legislative session. This update summarizes the remaining deadlines, the major budget and policy negotiations likely to dominate August, the latest state revenue information, and other developments with potential fiscal or operational implications for Orange County.
The pace is expected to accelerate quickly. The Assembly and Senate Appropriations Committees will decide the fate of hundreds of bills at their August 13 suspense file hearings and the legislature must complete its work by August 31. The closing weeks also are likely to bring late amendments, budget trailer bills, and major proposals inserted into existing legislative vehicles with limited time for review.
The principal remaining deadlines are:
- August 13 - Assembly and Senate Appropriations Committees are scheduled to take up their suspense files and determine which fiscal bills may continue through the legislative process.
- August 14 - Last day for fiscal committees to meet and report bills to the floors.
- August 17 through August 31 - Floor-session period. Policy committee hearings are generally prohibited, although leadership may grant rule waivers for priority or fast-moving measures.
- August 21 - Last day to amend bills on the floors under the regular calendar.
- August 27 - Last day to remove a bill from the Inactive File and return it to the second- or third-reading file.
- August 28 - Practical deadline for amendments subject to the Constitution's 72-hour in-print requirement.
- August 31 - Last day to pass bills; final recess begins upon adjournment.
- September 30 - Deadline for the governor to sign or veto bills passed before the legislature adjourns.
The major end-of-session themes include wildfire liability and insurance, allocation of climate and Proposition 4 funding, health and human services trailer bills, artificial intelligence and workplace technology, disaster rebuilding, competition policy, and a series of public employer labor measures. Because several major proposals are not yet in print, the substance and vehicle for some of the most consequential negotiations may not become clear until late in the month.
Unresolved Budget and Policy Negotiations
Climate Funding and Proposition 4. The June budget agreement did not resolve how the state will allocate major portions of the Greenhouse Gas Reduction Fund or the voter-approved Proposition 4 climate bond. The carbon market was previously estimated to generate approximately $4 billion annually, but new program rules could reduce available revenue by roughly half. That uncertainty has intensified competition among programs and contributed to disagreement between the legislature and the administration.
Legislative leaders have already agreed to direct $115 million toward administration-backed electric vehicle incentives and $1.25 billion to support the CAL FIRE budget. Still unresolved are funding levels for high-speed rail, safe drinking water, affordable housing, transit, renewable energy, and other climate programs. Proposition 4 bond allocations also remain under negotiation. For Orange County, the final package could affect the availability of statewide resources for wildfire resilience, water quality, transportation, housing, coastal protection, and other local infrastructure priorities.
Wildfire Liability and Insurance. The governor and legislative leaders are discussing a potential package addressing wildfire recovery, utility liability, insurance affordability, and the FAIR Plan. No bill text or final legislative vehicle has been made public at this time. Fire survivors and consumer advocates have expressed concern that a proposal could limit compensation for pain and suffering, restrict insurers' ability to recover wildfire costs from utilities or other responsible corporations, or cap attorneys' fees. Other reporting indicates that the negotiations could also change how victims recover losses and how FAIR Plan costs are allocated.
The issue is particularly important for counties with significant wildfire exposure and communities facing reduced insurance availability. Any late-session package could affect homeowners, utilities, insurers, recovery financing, and the distribution of catastrophic-loss costs. Orange County will need to evaluate the final language once a proposal is in print, particularly if it impacts local emergency response, land use, rebuilding, or residents' access to insurance and compensation.
State Budget and Revenue Outlook
The governor has signed the principal budget and trailer bills approved before the summer recess, but the 2026-27 budget is not fully settled. Important policy and spending decisions remain pending, including health trailer bills involving In-Home Supportive Services and potential county funding for individuals who lose health coverage, as well as unresolved climate and education items.
Indigent Care Bridge Funding: Statewide County Association Proposal. The final 2026 Budget Act included investments to address some H.R. 1-related Medi-Cal eligibility and administrative workload but did not provide funding for county indigent care programs serving individuals who lose coverage. Counties remain responsible under state law for providing indigent health care to eligible residents, even though many county programs were reduced or discontinued following implementation of the Affordable Care Act and the redirection of county health realignment funding to the state. The timing and scale of need remain uncertain because the new H.R. 1 community engagement requirements may cause individuals to lose coverage either because they do not meet the requirements or because compliance cannot be verified.
CSAC and allied county health and human services organizations are seeking $100 million in one-time bridge funding through August budget action. The funding would initially focus on the 12 public hospital counties and 11 Article 13 counties, including Orange County, that are expected to face the most immediate pressure to restart or expand indigent care services. The proposal treats the funding as an interim investment while counties and the state develop a clearer understanding of enrollment losses, service demand, and future costs. Counties participating in the County Medical Services Program would defer a similar state funding request for one year because that program currently has an available fund balance.
The coalition also is requesting changes to the existing AB 85 health realignment framework. The proposal would allow formula counties to make redirected funding percentages permanent only at the county's discretion and would establish a process to restart annual determinations when fiscal circumstances materially change. It also seeks to restore accurate statutory references for petitioning the Health Care Funding Resolution Committee, giving counties an avenue to change their redirection methodology as H.R. 1 alters local indigent care responsibilities.
One-time state support could help the County prepare for increased demand from residents who are disenrolled from Medi-Cal while meeting its state-mandated indigent care obligation. The proposal would not resolve the longer-term fiscal exposure, making future state funding, federal implementation guidance, and flexibility under the AB 85 redirection process important issues for the County.
June Revenues. General Fund revenues were $665 million above the 2026 Budget Act forecast for June and $828 million above forecast for the full 2025-26 fiscal year. The June monthly result reflected corporation tax receipts that were $896 million above forecast, sales and use tax receipts that were $129 million above forecast, and personal income tax receipts that were $107 million above forecast, partially offset by lower other revenue.
For the full fiscal year, corporation tax receipts were $920 million above forecast, sales and use tax receipts were $410 million above forecast, and personal income tax receipts were $381 million above forecast. Personal income tax withholding was $1.255 billion above forecast, largely because of a strong May. Estimated and final payments also exceeded projections, while other payments were lower and refunds were higher than anticipated.
The corporation tax overage was driven in substantial part by Pass-Through Entity Elective Tax payments that were $546 million above forecast. Those payments increase corporation tax revenue in the near term but are generally offset later by credits against the personal income tax, making much of the timing benefit neutral over time.
The revenue results are modestly positive but do not materially change the state's structural budget challenges. The final budget already incorporated stronger revenues than the May Revision, and a portion of the corporation tax gain reflects timing rather than new ongoing resources. The results may reduce near-term downside risk, but they do not provide a reliable basis for assuming expanded local assistance. Pending trailer bills remain important because they could change county funding, administrative obligations, or service responsibilities after the main budget has already been enacted.
Little Hoover Commission Highlights IBHS Findings on Wildfire Mitigation
California’s Little Hoover Commission recently highlighted research conducted by the Research at the Insurance Institute for Business and Home Safety (IBHS) that supports a central finding in the Commission’s report, Building a Stronger Home Insurance Market for California – reducing wildfire risk is essential to creating a more stable and affordable homeowners insurance market. The Commission recommended expanding programs that help homeowners harden their homes against wildfire, requiring insurers to recognize mitigation efforts, and establishing consistent, evidence-based standards that reduce fire risk. These findings are particularly relevant to Orange County homeowners, including residents of wildfire-prone communities who may face increasing premiums, nonrenewals, or difficulty obtaining coverage.
The IBHS research was also featured in a New York Times article examining wildfire science. Through controlled experiments, IBHS researchers are testing which improvements to defensible space, building materials, and spacing between structures are most effective in preventing the rapid spread of wildfires through neighborhoods. The research team has burned down more than 14 test homes equipped with extensive sensors and monitoring equipment to measure how different materials, conditions, and mitigation strategies affect fire behavior.
Insurance companies, which provide much of the funding for the research, have a strong interest in identifying the home-hardening measures that most effectively reduce wildfire losses. California requires insurers to offer discounts when homeowners make their properties more fire-resistant. However, some of the greatest potential savings may come from meeting a comprehensive set of standards, such as those required for certification under the IBHS Wildfire Prepared Home program, rather than completing individual improvements. CSAA Insurance Group, California’s fifth-largest insurer, now guarantees coverage to homeowners who obtain the certification.
As California seeks to attract insurance companies back to the market, the IBHS research provides policymakers with actionable, evidence-based information about how communities can prevent the widespread destruction of neighborhoods and reduce insurers’ exposure to catastrophic losses. The findings may also help Orange County homeowners and local officials better prioritize investments in defensible space, structure hardening, vegetation management, and neighborhood-level wildfire preparedness.
The research is also relevant to the continued debate around the proposed Zone 0 regulations for residences. AB 3074 (2020) established a requirement for an ember-resistant zone within five feet of structures, and Executive Order N-18-25, issued in February 2025, directed the Board of Forestry to complete and adopt final Zone 0 regulations by December 31, 2025. That deadline has passed, and final regulations have yet to be adopted.
The IBHS findings reinforce the Little Hoover Commission’s recommendation that California more effectively incentivize and recognize wildfire mitigation. The Commission’s report offers 11 recommendations to help stabilize California’s home insurance market, including greater transparency in catastrophe modeling, stronger recognition of property- and community-level mitigation in insurance underwriting, and expanded assistance for homeowners seeking to make their properties more resilient to wildfire.
IBHS President Roy Wright emphasized that mitigation cannot eliminate wildfire risk entirely. Rather, the objective is to reduce the risk to a level where a wildfire no longer produces catastrophic losses. For Orange County, the research underscores the importance of ensuring that homeowners receive clear guidance, meaningful insurance benefits, and financial support when they invest in proven wildfire mitigation measures.
Upcoming Hearings
- Agendas are typically posted on the committee websites in the Assembly and Senate a few days prior to the hearings.
- To watch live: Assembly/Senate
- 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, August 10, 2026, 11:00 a.m.
Assembly Joint Hearing Select Committee on Cybersecurity and Privacy and Consumer Protection
State Capitol, Room 447
Informational Hearing: How Frontier Artificial Intelligence is Reshaping the Cybersecurity Landscape, and the Implications for Critical Infrastructure, Consumer Protection, and Preparedness
Tuesday, August 11, 2026, 1:30 p.m.
Assembly Joint Hearing Assembly Environmental Safety and Toxic Materials and Senate Environmental Quality
1021 O Street, Room 1100
Oversight Hearing: Putting Public Protection First: Is California's Pesticide Program Achieving its Purpose
Tuesday, August 11, 2026, 2:00 p.m.
Assembly Housing and Community Development
State Capitol, Room 444
Oversight Hearing: Outcomes Review of AB 519 (Schiavo), Chapter 742, Statutes of 2023 - Affordable Housing Finance Workgroup: affordable housing: consolidated application and coordinated review process.
Wednesday, August 12, 2026, 9:00 a.m.
Senate Budget and Fiscal Review Subcommittee No. 2 on Resources, Environmental Protection and Energy
1021 O Street, Room 2200
All Departments - Open Issues
Wednesday, August 12, 2026, 9:30 a.m.
Senate Budget And Fiscal Review Subcommittee No. 3 on Health and Human Services
1021 O Street, Room 1200
All Departments - Open Issues
Wednesday, August 12, 2026, 9:30 a.m.
Senate Budget and Fiscal Review Subcommittee No. 4 on State Administration and General Government
State Capitol, Room 113
All Departments - Open Issues
Wednesday, August 12, 2026, 9:30 a.m.
Senate Budget And Fiscal Review Subcommittee No. 5 on Corrections, Public Safety, Judiciary, Labor and Transportation
1021 O Street, Room 2100
All Departments - Open Issues
Wednesday, August 12, 2026, 1:00 p.m.
Assembly Select Committee on Downtown Recovery
State Capitol, Room 447
Informational Hearing: Downtown Recovery and the Future of Public Transit
Wednesday, August 12, 2026, 2:00 p.m.
Senate Transportation Subcommittee on Lossan Rail Corridor Resiliency
1021 O Street, Room 1200
Informational Hearing: The Senate Bill 1098 Report: Reviewing Findings and Recommendations
Grant Opportunities
Below is a list of the latest grant opportunities released by the state. All opportunities for local jurisdictions may be found here.
Expected Award Announcement: May 2027
Title: California Community Reinvestment Grants Program
State Agency / Department: Department of Pesticide Regulation
Match Funding? No
Estimated Total Funding: $48,000,000
Funding Method: Advances and Reimbursement(s)
Application Deadline: 10/20/26 17:00
Title: Quantum FAST Challenge
State Agency / Department: Governor's Office of Business and Economic Development
Match Funding? No
Estimated Total Funding: $2,700,000
Funding Method: Reimbursement(s)
Governor’s Press Releases
Below is a list of the governor’s press releases beginning July 29.
August 5: California’s tax agency cracks down on $168 million in illicit cannabis, tobacco
August 4: Governor Newsom secures federal assistance to support response to Gann Fire in Calaveras County
August 4: Governor Newsom announces appointments 8.4.2026
- Luis Garnica, of Sacramento, has been appointed Warden of Mule Creek State Prison at the California Department of Corrections and Rehabilitation
- Jolie Poper, of Sacramento, has been appointed Chief Deputy General Counsel of the Enterprise Division in the Office of Legal Affairs at the California Department of Corrections and Rehabilitation
- Joseph Cannata, of San Francisco, has been appointed to the Tahoe Regional Planning Agency Governing Board
- Vincent Hoenigman, of San Francisco, has been reappointed to the Tahoe Regional Planning Agency Governing Board
- Natalie Arroyo, of Eureka, has been reappointed to the Klamath River Renewal Corporation Board of Directors
August 4: Governor Newsom invites President Trump to deliver overdue wildfire recovery funding during Los Angeles visit
August 4: Governor Newsom announced the deployment of additional firefighting resources and specialized personnel to Washington and Oregon
July 31: California launches next phase of state cybersecurity plan as AI changes threat landscape
July 31: California mobilizes to protect communities as summer heat builds across the West
July 31: Governor Newsom announces California will raise statewide minimum wage
July 29: Governor Newsom deploys elite wildfire team to Washington State as western fires surge
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