End Child Poverty California Urges Governor Newsom to Sign a 2026-27 California Budget that Requires Corporations to Pay their Fair Share and Protects Children and Families
End Child Poverty California (ECPCA) is urging Gov. Gavin Newsom to adopt the California Legislature’s state budget approach, which invests in urgent anti-hunger efforts to combat the increase in child poverty, when he signs his final state budget in the coming weeks. The California Senate and Assembly have agreed on a budget plan that raises new revenues to stave off cuts to key anti-poverty programs. Their plan helps mitigate a wave of cruel cuts to children and families due to federal H.R. 1, the Trump administration’s and Congress’s wealth transfer bill that aims to punish Democrat-leaning states.
“Millions of Californians are losing access to nutrition assistance, healthcare, and other services. It is high time for wealthy corporations in our state to start chipping in their fair share so that all Californians have the chance to live with dignity,” said Shimica Gaskins, President and CEO of End Child Poverty California powered by GRACE. “Gov. Newsom is bold in his criticism of the Trump Administration. He can turn that criticism into action by signing a state budget that prioritizes families and invests in his longtime ‘North Star’ promise to end child poverty.”
ECPCA thanks California legislators for heeding calls from hundreds of organizations across the state, including from our partners and other anti-poverty advocates. We have been fighting tirelessly for California to protect its people and stand up to Washington’s attacks over the past 17 months.
Up to 3 million Californians could lose Medi-Cal coverage and food benefits because of the federal cuts from H.R. 1. These cuts pay for massive tax cuts for wealthy corporations and billionaires. ECPCA endorses the Legislature’s and Gov. Newsom’s calls for structural changes to infuse needed new revenues into the state treasury and force wealthy corporations to pay their share.
We commend the Legislature’s two-party, bicameral agreement to protect children and families and immigrant communities. AB 109, the main state budget bill, makes key investments and rejects many cuts proposed in the May Revision. We thank lawmakers for including funding in the following areas:
- Helping to mitigate unprecedented attacks on households experiencing food insecurity by investing $5 million in CFAP Plus automations efforts to provide state-funded food benefits to people losing CalFresh under H.R. 1, $14 million to preserve the CalFresh Outreach Network, $108 million to power California Food banks via CalFood, and 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 22,700 new child care slots and rejecting a planned cut of 6,800 existing child care slots.
- Expanding the Community Schools Partnership Program with $1 billion of ongoing funding, 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.
- Investing $5 million for the Jails 2 Jobs Program in Los Angeles County.
- Fending off proposed cuts In-Home Supportive Services cuts.
- 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 this year and next for reforming inequitable healthcare policy that targets low-wealth, older adults and people with disabilities, and increases costs on immigrant households’ ability to access healthcare with higher premiums and discriminatory healthcare freezes and work requirements.
We hope that a final budget will add sales taxes on some digital software services, permanently cap the tax credits that large corporations can claim, and create a pathway toward a Fair Share Contribution program that holds large-scale employers accountable to Californians. These revenue sources, along with surplus funds, should be directed to protecting programs that children and families rely on to stay healthy, housed, and fed and to participate in their local economies.
Finally, we urge the governor to adopt investments in the CARE Fund to help residents of Altadena and Pasadena displaced by the Eaton Fire by providing gap funding, preserving and expanding affordable housing, and ensuring land preservation for impacted areas.
#EndChildPoverty #CABudget
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.
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