On Monday, June 15, the Legislature passed the Budget Act of 2026 (Senate Bill 101). It now goes to the Governor’s Desk, where he has until Monday, June 29, to act on it. While the Legislature has now fulfilled its statutory obligation to pass a budget by the June 15 deadline, budget-related negotiations are expected to continue into the summer, and the resulting negotiations will be reflected in budget trailer bills. Among the negotiations deferred to later in the summer are a restructuring of the state’s Cap-and-Invest program.
Among the highlights of this opening salvo are $1.25 billion allocated to CAL FIRE from the Greenhouse Gas Reduction Fund (GGRF), approximately $750 million for H.R. 1 implementation, $125 million to continue support for Mobile Crisis Services, a rejection of the Governor’s IHSS cost shift proposal, $200 million for distressed hospitals, $50 million for Prop 36, $720,000 for rural CUPAs and $900 million for HHAP Round 7.
RCRC’s full breakdown of the 2026-27 State Budget Package is available HERE.
For additional information, contact the RCRC Government Affairs Team.