End Child Poverty California: CA Senate Democrats’ Plan Asking Some Large Corporations to Pay More to Combat Draconian Federal Healthcare Cuts Signifies Good Starting Point
Coalition Urges Lawmakers to Build on Budget Proposal to Combat Food Assistance Cuts by Closing Corporate Tax Loopholes
End Child Poverty California (ECPCA) recognizes the California Senate Democrats’ new Foundation for the Future 2026-27 state budget plan as an important first step to help mitigate devastating federal cuts threatening California immigrants and low-income children and families. This thoughtful plan presents a solid starting point — including collecting up to $8 billion annually from the state’s largest corporations that are not paying healthcare coverage for their employees — to help counter some of the draconian rollbacks in the federal Budget Reconciliation bill (H.R. 1).
Millions of Californians are on the brink of losing the ability to meet basic needs and live with dignity. End Child Poverty California, a coalition representing 180+ groups, has called on elected leaders to fight back against Washington’s partisan attacks by raising revenues and investing in food for all Californians, healthcare for all Californians, and other critical anti-poverty programs that meet our right to live with dignity.
The Senate Democrats’ proposal includes several important protections and investments:
- Adds $127 million for 2026-27 and $384 million net ongoing for 44,000 child care slots.
- Adds $323 million for the preservation of In-Home Supportive Services (IHSS), protecting services for seniors and people with disabilities.
- Provides $50 million for legal aid for Californians impacted by federal immigration actions.
- Includes a $100 million investment to support local food banks through CalFood.
- Maintains full-scope Medi-Cal for vulnerable populations despite the loss of federal funding, resulting in a cost of $786 million in 2026-27 and $1.1 billion annually ongoing.
- Delays other harmful cuts including for dental benefits for adults 19 and over, regardless of immigration status, and Prop 56 Dental Supplemental Payments.
- Adds $125 million in 2027-28 to delay Medi-Cal premiums that would otherwise begin on July 1, 2027, until January 1, 2028.
We urge lawmakers to build on this plan by closing corporate tax loopholes to counteract looming cuts to food assistance for nearly one million Californians. California must lead the nation by investing in food for every resident –- because no child should ever go hungry in the fourth largest economy in the world. We also caution against any additional ongoing cuts that would further destabilize children and families already facing a humanitarian crisis driven by federal disinvestment in health, housing, and food programs. California must remain focused on its North Star: ending child poverty and ensuring every child and family has the resources they need to thrive.
Read the Senate’s budget plan: www.tinyurl.com/CABudgetSenate
Read End Child Poverty CA Coalition’s 2026 priorities: www.tinyurl.com/ImagineAgenda2026
#EndChildPoverty #CABudget
About End Child Poverty California: End Child Poverty California (ECPCA) is a campaign that 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.
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