ECPCA Commends Key Elements of Final 2026–27 California State Budget
For immediate release July 1, 2026
End Child Poverty California Commends Key Elements of Governor Newsom’s Final 2026–27 Budget to Ensure Wealthy Corporations Pay Their Fair Share, Calls on Lawmakers to Do More to Protect Children and Families
End Child Poverty California (ECPCA) commends key elements in the 2026–27 California state budget signed by Gov. Gavin Newsom — his last in office. The budget employs new revenue sources and makes use of a brighter-than-expected budget outlook to mitigate the harm from cruel federal cuts included in reconciliation bill H.R. 1.
But much work remains. California must show up even stronger to protect children and families from sustained attacks on safety net programs, workers, and immigrant communities that are harming California children and families.
We are encouraged by many aspects of the final California state budget agreement. The agreement adds 22,770 new childcare slots, preserves In-Home Supportive Services funding, and offers a path forward for a Fair Share Contribution program to hold profitable, large-scale employers accountable to workers and taxpayers.
The budget also adopts $5 billion in new ongoing revenues that will come from extending a tax on healthcare insurers, capping tax credit giveaways for large corporations, and adding new sales taxes on some digital software. These new revenue streams will help California fight back against federal attacks on the programs that keep families afloat.
However, we are deeply disappointed that the budget only delays significant planned healthcare cuts, leaving difficult choices for lawmakers in the coming budget years. Further, the failure of the California state budget to invest in CFAP Plus automation efforts to provide state-funded food benefits to people who were targeted under H.R. 1 CalFresh cuts will leave hundreds of thousands without food for the foreseeable future. Unfortunately, the agreement also lacks promised cost-of-living increases for childcare providers that reflect the true cost of care.
“We’re grateful California is fighting back against federal cuts through innovative funding and crucial protections for Medi-Cal. However, this budget by no means closes the books on our fight to protect California from this administration’s attacks on children, families, seniors, immigrants, and vulnerable communities. There is much more work to be done,” said Shimica Gaskins, President and CEO of End Child Poverty California powered by GRACE. “We call on elected leaders to build on this budget to shape policies that combat child poverty and food insecurity, and preserve dignity for all Californians. There is still time for California’s leaders to act by August and protect Californians from the relentless and cruel policies coming from the White House and Congress.”
This budget heeds tireless calls from hundreds of organizations across the state, fighting for a fair California state budget including from our partners and other anti-poverty advocates, for California to protect its people and stand up to Washington’s partisan attacks. Up to 3 million Californians could lose Medi-Cal coverage and food benefits because of the federal cuts from H.R. 1 to pay for massive tax cuts for wealthy corporations and billionaires.
We are pleased that several proposals made it into the final budget, including:
- Investing $14 million to preserve the CalFresh Outreach Network
- $108 million to power California food banks via CalFood
- Minimizing cuts and maximizing federal drawdown of CalFresh benefits by investing $245 million for county eligibility workers.
- Addressing the state’s childcare gap, making progress to achieve the promised 200,000 childcare slots by adding 22,770 new child care slots and rejecting a planned cut of 6,800 existing child care slots
- Expanding the Community Schools Partnership Program, including partnerships with Promise Neighborhoods and cradle to career place-based initiatives
- Protecting immigrant communities with a $100 million investment for legal services and deportation defense
- Making a small increase of 1.8%, starting October 1, 2026, for CalWORKs grants, getting us closer to our North Star of raising grants above deep poverty levels.
- Investing $5 million for the Jails 2 Jobs Program in Los Angeles County.
- Fending off proposed cuts and protecting In-Home Supportive Services
- Sustaining investments in the CalEITC, the Young Child Tax Credit (YCTC), and the Foster Youth Tax Credit (FYTC) – critical anti-poverty tax credits that, unlike federal credits, are available for immigrants to claim.
We will continue fighting through August budget action, as well as the next California state budget cycle, to ensure that children and families across California have the food and healthcare they need to thrive. Our coalition of over 200 organizations will put forward policies that protect and expand access to healthcare and food, while securing investments needed to ensure children are healthy, housed, and fed.
Read more:
- 2026 End Child Poverty CA Coalition IMAGINE Priorities
- Hundreds of Workers, Advocates, and Youth to Call for Budget that Prioritizes Children, Families, and Workers over Corporate Profits
- End Child Poverty California Encouraged By Governor’s Plan to Add New Revenues
About End Child Poverty California:
End Child Poverty California (ECPCA) supports public policy and advocacy, collaborations and partnerships, and community efforts to end child and family poverty in California. End Child Poverty California is powered by GRACE (Gather, Respect, Advocate, Change, Engage) and sponsored by the GRACE End Child Poverty Institute.
For more information visit End Child Poverty California.