CaliforniaAB 1212025-2026 Regular SessionHouseWALLET

Budget Act of 2025.

Sponsored By: Jesse Gabriel (Democratic)

Signed by Governor

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

134 provisions identified: 95 benefits, 14 costs, 25 mixed.

$10,000 stipends for student teachers

If you complete 500 or more hours of student teaching, your local school agency pays you a $10,000 stipend when you finish. You must show a valid certificate or permit. The state funds the program with $300 million in 2025–26, including $5 million for Kern County to run outreach and grants. Starting July 1, 2026, up to $100 million a year may be available. If demand is higher than funds, awards are first‑come, first‑served, and the Commission uses a simple online process for LEAs to submit required candidate details.

Big awards for National Board teachers

The state funds a $250 million incentive program for National Board teachers. If you certify and teach at a high‑priority school (55%+ unduplicated pupils) for five years, you get $5,000 a year, up to $25,000. You can also get $2,500 for starting certification at a high‑priority school and, starting July 1, 2023, $495 for starting maintenance there. At least $25 million covers first‑time certification fees. Service before July 1, 2021 may not count toward the five‑year commitment, and awards depend on available funding.

Grants for math and reading authorizations

Credentialed teachers can get up to $6,000 to earn a Math Instructional Added Authorization or a Reading and Literacy Supplementary Authorization. Your district must provide a one‑third match in cash or in‑kind time. The program has $15 million and runs through June 30, 2030.

$1.7 billion for student support, training

The state creates a Student Support and Professional Development block grant with about $1.7 billion for 2025–26. County offices, districts, charter schools, and state special schools receive funds. Money can pay for teacher training in English and math, hiring and keeping teachers, career pathways, and local needs during 2025–26.

$200 million for literacy training

The State Board must post criteria for in‑service literacy training by September 30, 2026. The state provides $200 million to local agencies to use from 2026–27 through 2029–30 to train TK–grade 5 teachers and support staff. Recipients must report results, and the department will summarize outcomes for the Legislature.

$200 million for state education work

For 2025–26, the state provides $200 million to the Department of Education to carry out an education program under state law. The department uses these funds to implement the required work during that year.

$250 million for K–16 career pathways

The state provides $250 million for competitive grants to K–16 regional collaboratives. Each collaborative must include a K–12 district, a UC campus, a CSU campus, and a community college district, with at least 25% local employers on the steering committee. Applicants must join the Cradle‑to‑Career Data System, implement at least four Recovery with Equity recommendations, and create at least two occupational pathways. Full implementation and evaluation are due by June 30, 2028, and funds are available through June 30, 2030.

$6.3 billion for learning recovery

For 2022–23, the state puts $6.345 billion into the Learning Recovery Emergency Fund. School districts, county offices, and charter schools receive block grants for recovery activities. This supports programs for K–12 students across the state.

Billions to expand community schools

The state funds community schools with $2.84 billion for 2021–22 and bars spending on punitive discipline or campus law enforcement. At least $2.69 billion goes to start or expand community schools. Up to 72% funds five‑year implementation grants of $100,000 to $500,000 per site, with LEAs allowed the lesser of $500,000 or 10% yearly for admin. An extra $1.13 billion from 2022–23 supports implementation and extensions starting in 2023–24. Funds are available through June 30, 2032.

Conditional $150 million for career education

The state sets aside $150 million for 2025–26. If a named bill becomes law, funds move to that program by May 1, 2026. If not enacted by January 1, 2026, the money boosts the California Career Technical Education Incentive Grant Program instead. The encumbrance deadline is June 30, 2028 for the first use and June 30, 2027 for the fallback.

Extra LCFF funding in 2025–26

For 2025–26, the law provides $405.291 million from the Public School System Stabilization Account for the Local Control Funding Formula. The Controller transfers the funds to the State School Fund for distribution to school districts and direct‑funded charter schools.

Grants for zero-emission school buses

The state provides $375 million for zero‑emission school buses and $125 million for charging or fueling infrastructure. Grants can cover bus purchases, infrastructure, and workforce training. Districts have three fiscal years to spend funds, and at least 90% must go to buses and infrastructure. Old internal‑combustion buses must be scrapped within 24 months. Funds are available to encumber through June 30, 2029.

Learning recovery grants and new funding

The law adds $378.65 million in 2025–26 to the Learning Recovery Emergency Fund. The state divides money using each district’s 2021–22 attendance times its unduplicated pupil percentage. Districts can spend funds through 2027–28 on extra learning time, tutoring, early literacy, health and counseling, expanded learning, and staff training. The 2025–26 appropriation also counts toward constitutional school funding totals.

Major 2025–26 school funding boosts

Starting July 1, 2025, the state adds big one‑year funding for schools. It provides $1.696 billion for student support and staff training, $378.65 million for learning recovery, and $405.291 million through the school stabilization account. Counties, districts, charters, and state special schools receive these funds for 2025–26 to support services and teacher development.

More funding for teacher training and stipends

The law puts $300,000,000 in 2025–26 into the Student Teacher Stipend Program, with funds available to encumber until June 30, 2030. The teacher incentive program now also covers math authorizations, raises teacher award amounts, and lowers local matching. The $15,000,000 for that program stays available to encumber through June 30, 2030. The California Collaborative for Educational Excellence can use $50,000,000 until January 1, 2028. A $66,000,000 reappropriation for teacher residencies is available to encumber until June 30, 2027 and to liquidate until June 30, 2032; in 2025–26 it is available through reimbursement authority.

More funds for inclusive early education

The law funds grants to expand inclusive early education. It provides $167.242 million that was available to encumber through June 30, 2023, and $250 million available to encumber through June 30, 2027. Money goes to local educational agencies, not directly to families.

More literacy coaches in schools

The state adds $215 million in 2025–26 for the Literacy Coaches and Reading Specialists Grant. $200 million goes to local school agencies to build literacy programs and hire coaches and reading specialists. $15 million funds training and credentialing through a selected county office or consortium, with state board approval.

More time to spend school grants

Schools get extra time to use $300 million in Prekindergarten Planning grants from 2021–22 and 2022–23. K–16 regional grants keep funding available to encumber or spend until June 30, 2030, and some deadlines move to June 30, 2028. Districts get one more year to encumber and report on $600 million for kitchen upgrades. The $4 billion Expanded Learning appropriation can be liquidated through July 31, 2025.

More time to use school clean energy funds

Schools get more time to use clean energy funds. The state extends the deadline to encumber or spend a $376.2 million allocation, and it extends a related item (6100‑139‑8080) to June 30, 2026 when certain over‑recovery or outstanding‑balance conditions apply. This helps complete planned energy projects.

Upgrade school kitchens for fresh meals

The state provides $600 million for school kitchen upgrades. Each eligible district gets a $100,000 base award. Half of the remaining funds are split by each district’s share of reimbursable meals served in October 2021. Funds must be encumbered by June 30, 2026. Districts seeking planning or implementation funds must commit to prepare at least 40% of meals onsite each week starting in 2023–24.

School dollars counted in state totals

The law counts certain school funds as General Fund revenues for specific years. Examples include $2.83666 billion for 2020–21, $1.132554 billion for 2022–23, $3.605173 billion for 2024–25, and $1.874781 billion for 2026–27. It also counts $8.041535 billion drawn in 2021–22 as revenue for 2020–21, and $624.692 million in the year drawn. This is an accounting designation for constitutional calculations and does not create new payments.

Big penalties for late LCAP adoption

If a district, county office, or charter does not adopt its Local Control and Accountability Plan (LCAP) by July 1, the state cuts 20% of its second principal apportionment payment. The cut grows by 1% for each business day late, up to 80%. The penalty can be changed if a specified event caused the delay.

Expanded Learning funds and rules updated

The Expanded Learning program got $754.0 million for 2021–22. Funding uses set per‑unit rates and unduplicated pupil thresholds, with $50,000 minimums through 2024–25 and $100,000 starting 2025–26. New and returning rules add spending and final reporting deadlines; missing them can mean forfeiting funds. For 2024–25, returned funds can be redistributed up to $2,000 per prior‑year K–6 classroom ADA unit times the LEA’s unduplicated percent, prorated if needed. Newly eligible LEAs get at least three years of funding; after four years not meeting requirements, they lose eligibility under that rule.

School payments shifted and tracked

For 2024–25, June principal apportionment draws are capped at $245,604,000 (or the total June payment, if lower). For 2025–26, $1,874,781,000 in June payments (or the total June payment) move to July. Three 2023 Budget Act items can be liquidated until July 31, 2026. For constitutional school funding, the law counts $5.626 billion for 2021–22 and $719.757 million for 2022–23 as General Fund revenue for calculations. By January 10, 2026, the Director of Finance must reassess the 2024–25 Proposition 98 amount and propose any added funding, which can only pay ongoing costs or reduce/avoid deferrals and is deemed applied to 2024–25.

Support network for community schools

The state can fund at least five regional centers to help community schools through 2027–28 (up to $141.833 million). County offices that support at least two grantees can receive $200,000 to $500,000 per year for seven years (up to $140 million total). Grantees and centers must submit program and spending data and join evaluations. The Superintendent must produce annual formative evaluations and a final report by December 31, 2031.

School funding formulas and cash-flow updates

For constitutional calculations, the law treats $22.574 million (2023–24), $1.020411 billion (2024–25), and $653.733 million (2025–26) as General Fund revenue for schools. The suspension of proration across education segments continues through 2025–26, keeping the alternative distribution method. If Education Protection Account revenue falls and a fourth‑quarter transfer does not happen, overpayments are taken back from the same year’s second principal apportionment.

Shifts in monthly school payments

For 2024–25, up to $245.604 million normally paid in June is paid in July. For 2025–26, up to $1.874781 billion is paid in July instead of June. For 2020–21 only, some districts and charters that certified cash need by December 15, 2020 could get part of a November payment early in February, up to $100 million (or up to $300 million with approvals).

More support for Special Olympics

The state gives $30 million to the Riverside County Office of Education to fund Special Olympics programs in Northern and Southern California. Riverside County serves as the fiscal agent. Households that use these programs may see more services and support.

More support for universal school meals

The state provides $160 million in 2025–26 to keep universal school meals going. $145 million funds local awards for kitchen upgrades, staffing and training, and California‑grown foods. Up to $10 million supports hiring and keeping food service workers (at least $2,500 per impacted worker, with at least two workers per grant). $5 million pays for a study of harmful ultra‑processed foods, with reports due in 2027, 2030, and 2032. LEA funds must be encumbered by June 30, 2028.

Schools must check Summer EBT yearly

Schools in the National School Lunch or School Breakfast Program must determine Summer EBT eligibility each year. If a school uses Community Eligibility or similar, it must use a Universal Benefits Application that meets federal rules. Other schools must use the School Meals Application and meet federal verification rules. This helps families access summer grocery benefits.

Early reading help for K–2

The state provides $40 million for K–2 literacy screenings and staff training. It adds $10 million to expand the free dyslexia screening tool for K–2 and requires yearly reports. It also funds guidance for English language arts and development materials, to be adopted by January 31, 2026. Families with K–2 students may see more screening and earlier reading support.

Expanded Learning help reaches more kids

Starting in 2025–26, the Expanded Learning threshold drops from 75% to 55% unduplicated pupils. The minimum per‑LEA funding doubles from $50,000 to $100,000. The Superintendent will do a one‑time ADA difference calculation for 2025–26, and some audits change.

More before- and after-school time K–6

Starting in 2023–24, schools that get Expanded Learning funds must offer in‑person expanded learning to all K–6 students. A parent can request placement, and the child must get a spot. On schooldays, the school offers at least nine combined hours of instruction, recess, meals, and expanded learning. At least 30 nonschool days also offer nine hours per day, with frontier exceptions.

More funding for teacher residencies

The state adds $70 million in 2025–26 to expand the Teacher Residency Grant Program. Funds can be encumbered until June 30, 2030. The Commission on Teacher Credentialing also has reimbursement authority to further augment the program, with funds encumberable until June 30, 2027 and liquidatable until June 30, 2032.

Protect special ed funds and digital IEPs

By June 30, 2026, the state fills any special education revenue shortfall compared to 2025 Budget Act estimates. The law also gives $1 million to create a free, interactive digital IEP template by June 30, 2026. Up to $1 million more funds translations into the top 10 non‑English languages if federal IDEA funds are not available.

Temporary rule for TK English learners

For 2025–26 and 2026–27, the state counts transitional kindergarten English learner pupils equal to kindergarten EL counts for a specific LCFF calculation. The Superintendent uses these counts to compute unduplicated pupil percentages. Funds under this section are not tied to using the state TK screening tool. This rule ends July 1, 2027.

$30 million for math training in Kern

The state allocates $30 million to the Kern County Superintendent of Schools for the Mathematics Professional Learning Partnership. The funds support teacher training, math coaches, and implementation of the new math framework. Kern County must submit an expenditure plan to the Department of Finance by January 31, 2026.

$50 million for teacher learning grants

The state gives $50 million to support evidence‑based professional learning in math, literacy, and language. CCEE runs the program through county offices, can keep up to $5 million for administration, and may reimburse Marin COE up to $750,000. Grants are competitive with priority rules, and funds are available until January 1, 2028.

Annual checks on teacher assignments

The state now creates a yearly file of teacher vacancies and misassignments and lets districts submit proof within 60 days. Monitoring authorities must decide within 90 days, and the Commission can make final calls. The Education Department also posts annual, searchable data on assignments, misassignments, and vacancies and keeps at least five years of data. Charter school data is shown separately, and no personal information is published.

Attendance recovery programs start July 2025

Starting July 1, 2025, LEAs can run attendance recovery before or after school, on weekends, or during breaks. The ADA from these make‑up sessions counts in the year the program runs for the student’s LEA. Programs must follow reporting rules and offer access at least once each term.

Backstop and release steps for special ed

By June 30, 2026, the state reviews whether certain special education revenues met the 2025 budget estimate. If revenues are lower, the state adds General Fund money; if higher, it reduces the appropriation. Before the Controller releases or reduces shortfall funds, the Director of Finance must notify the Legislature’s budget chair, and the Controller must wait at least five days.

Block grant election and protections

Districts, county offices, and charters must request block grant funding by August 30. The state pays block grant funds each November, and per‑student rates are adjusted yearly for inflation. Block grant payments first cover unpaid state‑mandate reimbursements. The Controller can only recover audit‑disallowed costs by offsetting other mandate payments owed, not by demanding money back from districts, and must report all offsets.

Block grant split by student attendance

The Student Support and Professional Development Discretionary Block Grant is allocated by an equal amount per ADA for TK, K, and grades 1–12 using 2024–25 second apportionment ADA. For state special schools, ADA counts as 97% of CALPADS Fall 1 enrollment.

County grants to plan universal preschool

The state creates a county planning grant program to expand preschool for three‑ and four‑year‑olds. One lead agency per county will coordinate partners and plan mixed‑delivery options. Funds must be spent by June 30, 2028; unspent funds revert June 30, 2029. The state reports on progress by October 1, 2029.

Free K–2 dyslexia screening statewide

The state provides $10 million for the California Dyslexia Initiative. The selected county office must contract with UCSF to expand and maintain a free reading‑difficulties screening tool for kindergarten through grade 2. An expenditure plan is due January 31, 2026, with a 30‑day notice to budget leaders before it takes effect. Annual summary reports begin February 1, 2027. Funding continues only if the tool stays free for K–2 public schools.

Grants to expand school support systems

The state provides $50 million (2021–22) to the Orange County Department of Education to expand schoolwide supports. At least $30 million was awarded as grants by December 15, 2021, with leftover funds allowed to be awarded by December 15, 2022. Grantees must use funds for integrated academic, behavior, and social‑emotional supports and report results each year; OCDE reports annually until funds are spent. By February 15, 2022, a partner is selected to expand trauma‑informed and culturally relevant practices (up to $20 million). OCDE may spend up to $1 million on administration with state finance approval and a 30‑day notice. Any funds not awarded by December 15, 2022 may support LEAs hit by the January 2025 fire emergency; up to 15% may cover admin costs.

Hardship help for school construction costs

Districts facing unusual, uncontrollable cost spikes can apply for construction hardship assistance. The state board will set standards and adjustment methods and may use an urban cost factor. This applies to applications filed on or after October 31, 2024 and includes a separate hardship path under the school facilities law.

Help paying National Board fees

The state provides $30 million in 2025–26 to support National Board certification. At least $3 million covers first‑time candidate fees; the rest funds incentive grants. Funds can be encumbered until June 30, 2030 and liquidated until June 30, 2034. Starting July 1, 2027, any unencumbered funds move to the credentialing commission to award grants.

Higher funding per TK pupil

Starting in 2025–26, schools receive $5,545 per eligible transitional kindergarten pupil, up from $2,813. Beginning in 2026–27, this add‑on increases each year with inflation.

LA County school emergency flex 2025–26

For the 2025–26 school year, LEAs affected by the January 2025 Los Angeles County emergency can use temporary sites outside district boundaries and still collect ADA for those students. Leasing rules can be suspended. Site‑based charter schools may open alternative sites in the county, and some funding and material‑revision rules are suspended. These flexibilities run through June 30, 2026 and apply only to affected agencies.

Let schools reuse leftover funds locally

Starting January 1, 2026, districts can keep any money and interest left in county lease‑purchase funds and use it for school construction. Returned Community Schools implementation funds can extend existing grants. Unawarded MTSS funds are available to Orange County to support LEAs hit by the January 2025 fire emergency, with up to 15% allowed for administration.

More special ed funding for placements

Starting in 2024–25, SELPA funding counts students in short‑term residential therapeutic programs and community treatment facilities using average daily population. These rates adjust each year for inflation.

More staff and funds at Education Department

The law funds SDE program oversight and adds positions. Examples include $1,011,000 for dispute resolution, $1,140,000 and 8 positions for LCFF accountability, and other charter and accountability roles. Some positions can be set up as workload grows.

More support for National Board teachers

The law provides $30 million in 2025–26 for National Board certification incentives and fees. Prior funds get longer deadlines: encumbrance to June 30, 2030 and liquidation to June 30, 2034. Starting July 1, 2027, the Commission on Teacher Credentialing runs the program and receives any unspent funds. From that date, administration references to the department mean the Commission.

More teacher training and statewide networks

The state funds $15 million to convene statewide literacy and math networks ($7.5 million each). It provides $30 million to Kern County to train math coaches, teachers, and administrators, with a spending plan due by January 31, 2026. It adds $70 million to teacher residency grants to recruit and prepare new teachers. These steps support stronger teaching across schools.

More time and rules for preschool grants

Universal Preschool Planning Grant funds have longer spending and reporting windows. The prekindergarten grant program keeps base grants by size, splits remaining money 60% to enrollment grants and 40% to supplemental grants, and sets reporting rules. Prior $300 million appropriations in both 2021–22 and 2022–23 support planning and expansion. Funds must be spent by June 30, 2028, with stated reversion dates.

New supports for students with disabilities

The state creates the California Center for Inclusive College and funds it with $2 million a year starting in 2024–25. Up to $500,000 in 2024–25 pays for an advisory workgroup and reimbursements up to $100,000 per program, and the center reports yearly starting March 1, 2025. The state also provides $30 million for Special Olympics programs, available to encumber until June 30, 2028, with about $10 million planned each year from 2025–26 to 2027–28. In addition, $206,000 in matching funds supports coordinated services for disabled pupils in Corrections and Rehabilitation programs.

Regional help for English learner programs

If federal funds are not available, the state provides $2 million in 2025–26 and then $2 million each year starting in 2026–27 for regional English learner lead agencies. The department will select 5–7 agencies by July 1, 2026 for up to four‑year terms and require performance reporting.

Set aside for career technical education

The state sets aside $150 million for career technical education in 2025–26. If a related law passes, the money must go to the named program by May 1, 2026. If not, the funds are used for the California CTE Incentive Grant Program starting on or after January 1, 2026.

Statewide literacy and math help networks

The state provides $15 million to run two networks through 2029–30: $7.5 million for literacy and $7.5 million for math. The networks support evidence‑based teaching, curate resource hubs, and study high‑performing districts. Up to $450,000 reimburses Marin County Office of Education for administration.

Stronger school budget reporting and planning

Each year, the state education department must send charter ADA and LCFF files by March 1 and October 31, district and county appropriations limit data by April 15, and Proposition 98 savings estimates by October 31, March 31, and May 31. The law also records a $300,000 budget item for accounting. By January 10, 2026, the Director of Finance must update the 2024–25 Proposition 98 estimate, show any shortfall, and propose how to fund it before any allowed reductions.

Big penalty for late LCAP adoption

If an audit shows an LEA missed the July 1 LCAP deadline, the state reduces its second principal apportionment. The penalty is 20% plus 1% for each business day late, up to 80%. It cannot cut the final apportionment below constitutional minimums and may be adjusted for emergencies.

Funding withheld without required plans and budgets

County superintendents must stop payments to districts or charters that fail to adopt required LCAPs, annual updates, budgets, or reports. The State Superintendent must also withhold state or federal funds from county offices that miss these same requirements. Payments remain withheld until the documents are adopted. Emergencies can qualify for a temporary exception if described and followed by a fulfillment date.

Penalties and deadlines for after-school programs

Starting in 2023–24, if required expanded learning is not offered, the state withholds funds based on pupils not served. If a district misses required days or hours, the state withholds 0.0048 of the district apportionment per missed day; for charters the rate is 0.0049. LEAs may encumber certain 2021–22 and 2022–23 funds through 2023–24, but any amounts not spent by September 30, 2024 must be returned to the state.

Stiffer penalties for banned materials

If the state finds a district used disallowed materials, the district has 60 days to fix it. After that, the state can force compliance and take money from the district, up to what it spent on the violating materials, without cutting constitutional minimums. The law also changes how fines are calculated for discriminatory materials that are not corrected in 60 days.

Tighter funding for some school programs

The state caps the state-level systems funding in the Inclusive Early Education Expansion Program at $10 million, down from up to $50 million. The cap applies within the program’s $250 million appropriation. Charter schools that close during the year and teach fewer than 175 days get an ELOP funding cut in proportion to days missed.

New timing rules for housing fees

Local agencies generally cannot make you pay most housing impact fees until final inspection or the certificate of occupancy. Utility connection fees can be charged earlier only up to the utility’s actual connection cost. For certain designated housing projects, fees are deferred until the first certificate of occupancy and do not accrue interest, but the agency can hold the certificate until payment. Earlier payment is allowed when the agency already appropriated funds with a plan or is reimbursing prior costs. If fees are unpaid at permit time, the agency can record a payment contract as a lien on the property; it must record a release when paid. A five‑year school facilities master plan is required before earlier collection of school facilities fees on designated projects.

New rules for attendance recovery

Starting July 1, 2025, alternative schools get tailored day and minute rules for attendance recovery programs. Hours from recovery programs can build ADA in one‑hour blocks, but a full day counts only after minimum daily minutes are met, and these hours do not count toward regular annual day/minute totals. Only pupils in classroom‑based programs can use attendance recovery; nonclassroom‑based pupils, including those in independent study more than 15 days, are excluded. Some charter schools are also excluded.

Community schools: planning, priority, extensions

At least 10% of funds go to planning grants up to $200,000, awarded in 2021–22 and 2022–23. Starting July 1, 2024, implementation grants prioritize planning grantees and schools meeting high‑need criteria, such as 80% unduplicated pupils and COVID‑19 impacts. At least 18% of funds allow extensions from five to seven years from 2027–28 to 2031–32, up to $100,000 per site per year, with a required dollar‑for‑dollar local match.

Grants to expand inclusive early learning

The state funds competitive grants to expand inclusive early education for children up to age five, especially those with exceptional needs. Priority goes to areas with high need and programs serving a wide range of disabilities. Districts must provide 33% of project costs unless they self‑certify hardship; in‑kind support can count. The state may reserve up to 1% for evaluation and up to $10 million for statewide supports and technical help.

State oversight and loans for Plumas Unified

The Plumas County Superintendent assumes the district board’s powers and appoints a Fiscal Crisis and Management Assistance Team (FCMAT)‑vetted administrator. FCMAT helps with recovery plans, budgets, and interim reports, and reports to the Legislature. The district pays 100% of takeover and FCMAT costs. Starting July 1, 2025, the district may borrow up to $20,000,000 from the General Fund at the prior‑year PMIA rate plus 2%, amortized up to 30 years, with payments deferred in 2025–26 and 2026–27. The Controller audits the district every year at district expense. By May 1, 2027 and yearly after, the district must choose state and/or local intercepts; starting in 2027–28, apportionments are intercepted for loan repayment.

State-backed K–5 reading training funds

The state sets rules for TK–5 literacy training by September 30, 2026 and posts an approved program list. It funds training for TK–5 staff, with each LEA’s share based on full-time TK–5 certificated staff. LEAs can spend funds from 2026–27 through June 30, 2030, and training must occur on paid time. LEAs that get this money must report by September 1, 2029 how many teachers trained and which programs they used; the state will publish a summary by February 1, 2030.

Stricter TK staffing and compliance penalties

Starting in 2025–26, the state withholds part of LCFF funding if a schoolsite’s transitional kindergarten average falls below one adult per 10 pupils. Since 2022–23, the state also withholds money when districts or charters fail to meet other TK rules, with different calculations before and after 2025–26. Some substitute permit holders in TK classrooms are exempt from one requirement.

Stronger oversight of school finances

The State Superintendent reviews county office budgets for compliance and ability to pay bills, and must approve or reject them by September 15. Audit filing extensions are capped at 45-day steps, up to 90 days total, and counties may hire a CPA and bill the district or ask the State Controller to intervene if audits are still missing. A new Education Audit Appeals Panel hears audit disputes and can approve settlements and order or waive repayments. County superintendents must send written alerts when a district faces a sudden, severe money crisis. The law also repeals Education Code Section 42120.

Stronger oversight of school finances and audits

The Superintendent must act when audits or reports show fiscal distress and can assign experts, require recovery plans, change budgets, and disapprove warrants that county treasurers cannot honor. Counties and districts pay 75% of administrative costs for these fiscal remedies; the state pays 25%. The Superintendent must also notify the State Board president when a county cannot meet its bills. Audit filing extensions are tighter: up to 45 days at a time and no more than 90 days total. LEAs must separately track certain legal settlement payments in their accounting.

Tighter rules for attendance recovery

Starting July 1, 2025, attendance recovery programs that count for ADA must be run by a certificated LEA teacher with grade‑level activities. Class sizes are capped at 10:1 for TK/K and 20:1 for grades 1–12. The department posts program guidance by June 30, 2025. Beginning with 2025–26 audits, the State Controller checks compliance and may apply loss of apportionment if an LEA is not following the rules.

Digital IEP tools and translations

The state funds a digital version of the standard IEP form. The public and districts get access by June 30, 2026, with features for drafting, tracking services, and reporting. At least $250,000 supports a special education IEP lead, and limited funds cover setup and Marin County administration. If certain federal funds are not available, up to $1 million translates the digital IEP into the top 10 non‑English languages.

Pay property fees at closing

Local agencies can delay collecting some property fees until the close of escrow. This can ease cash needs during a sale. The deferral does not apply to school impact fees under Education Code Chapter 6 (starting at Section 17620).

Easier paths to graduate high school

A stand‑alone one‑semester personal finance course can replace the one‑semester economics graduation requirement. A course in American Sign Language counts as a world language for the graduation requirement.

Help centers for homeless students

The state can allocate up to $2.5 million starting in 2025–26 to fund up to three county offices as technical assistance centers. Centers prioritize regions with more homeless children and youths, support local liaisons, build partnerships, and report on fund use. Awards depend on available appropriations.

Keep meal eligibility longer for LCFF

Schools using Provision 2, Provision 3, or Community Eligibility can set an LCFF base year. Free or reduced‑price meal eligibility can carry forward for up to three more school years. Newly eligible students can be included. Eligibility documents less than four years old can transfer within a district if updated at least once every four years. Alternative income forms must be kept confidential.

Language screening for Transitional Kindergarten

By March 31, 2026, the state selects TK language screening tools and provides $10 million for tools, training, and field tests. Starting in 2027–28, schools must screen TK pupils whose home language survey shows a language other than English. Schools must screen within 30 days of enrollment. Results cannot be used for high‑stakes decisions or to label a pupil as an English learner under Section 306.

Protections in teacher assignments and evaluations

LEAs cannot use the statewide assignment system or its data to rate performance or make employment decisions. If a certificated employee files the required written notice about a misassignment and uses local remedies, the district must respond in 15 working days on legality. During a confirmed misassignment, the employee is exempt from a related law and any evaluation done in that period is void.

Required personal finance class in high school

Starting in 2027–28, every high school must offer a separate, one‑semester personal finance class. Beginning with the class of 2030–31, students must complete that course to graduate. Schools may let students who pass that course skip the one‑semester economics class. The finance course must teach only the listed topics for grades 9–12. When the history‑social science framework is revised, money topics appear at least twice in each grade span.

Waivers from teacher performance and reading tests

If you got a listed COVID‑era waiver, you do not have to take the teaching performance test or reading instruction test. You must finish a commission‑approved induction by June 30, 2026, or complete two years of teaching with satisfactory evaluations by that date.

Grants to expand school mental health

The state provides $20 million for competitive grants to local school agencies to expand behavioral health supports. Sacramento County runs the program with Santa Clara County and must take required steps by March 1, 2026. The grants help students get more mental health services in participating districts.

Attendance funding relief during emergencies

Schools can submit affidavits for big ADA drops from events like fires, floods, impassable roads, epidemics, earthquakes, safety hazards, transit strikes, and certain orders. For attendance recovery programs, only weekend or intersession days that actually had recovery attendance are excluded from ADA. These rules can help stabilize funding when attendance takes a hit.

Continue school-based mental health help

The law provides $20 million in 2025–26 to continue the Children and Youth Behavioral Health Initiative in schools. The state allocates funds by October 1, 2025 to the Sacramento County Office of Education partnership, which awards competitive grants. Up to 5% may be used for outreach and administration. A report is due by May 1, 2026.

Credit for attendance recovery and better data

Students can get credit for up to 10 recovery days a year, or the number of days they were absent, whichever is less. Only one day can be credited per calendar day of participation. Districts and county offices can credit no more than five recovery days in a school week; charters can credit no more than one day per calendar day when school is taught. Schools must track and report recovery days, and the state will publish them. The Department will also study better absence reasons and an adjusted chronic absenteeism rate, with recommendations due January 1, 2026.

Districts keep leftover lease-purchase funds

Beginning January 1, 2026, districts can keep any remaining money in county school lease‑purchase funds. Districts may spend these balances on school construction instead of returning them to the state.

Earlier school dashboard data and new rules

School performance data posts on new dates: Dec 15, 2023; Dec 1, 2024; Nov 15, 2025; Oct 15, 2026; and each Oct 15 after. Timelines adjust so data meet these dates. By July 15, 2026, the State Board must update the performance criteria used to identify LEAs for help or intervention.

Faster reviews for small school audits

Local education agencies can use a voluntary, informal appeals path for audit findings that still show substantial compliance. If total exceptions are under 150 ADA units, the executive officer may waive or reduce repayments or penalties. If 150 units or more, waivers need written approval from the Department of Finance and the Superintendent. A normal independent appeal is still available.

Fix for 2024–25 ADA reporting gaps

The Superintendent checks TK–12 ADA first‑ and second‑period reports for 2024–25. If they differ, the state allocates the difference to named schools and districts, including several Los Angeles and Pasadena charter schools and the Los Angeles and Pasadena Unified School Districts.

Funding counts after district mergers

When districts reorganize, the state calculates prior‑year unduplicated pupil percentage and ADA by combining the original districts’ counts. County offices can submit three years of counts to the state; otherwise, the state uses the original district reports.

Funds for K–2 literacy screening

For 2025–26, the law provides $40 million to support K–2 literacy screenings (TK excluded). The state sets a per‑pupil rate by dividing $40 million by the statewide K–2 enrollment, then pays each district that rate times its K–2 count. Money must fund approved tools, administration, and training.

Funds for West Side Elementary upgrades

The law gives $1.2 million for capital improvements at West Side Elementary School in Healdsburg. Funds flow through the Office of Public School Construction to the West Side Union Elementary School District.

Grants to recruit STEM teachers

The state provided $3 million to recruit STEM teachers. Up to 5% could cover administration. Funds were available to spend until June 30, 2024.

Improve curriculum process and reading materials

For 2025–26, $1 million funds a study, through a county office and approved contractors, on how other states create curriculum guidance, with recommendations due January 1, 2027. Another $250,000 funds guidance to support adoption of evidence‑based reading and language materials, to be adopted by January 31, 2026.

Kids college savings added to curriculum

Financial literacy guidance in history‑social science may include the California Kids Investment and Development Savings Program as an example. This broadens topics schools can cover when teaching students about money and saving for college.

More time for LGBTQ+ staff training funds

Two one‑time amounts of $160,000 and $275,000 from 2021 remain available to encumber through June 30, 2025 for an online LGBTQ+ cultural competency training platform and advisory work. Another $770,000 from 2024 is available to encumber and spend through June 30, 2030.

More time to spend 2023 education funds

The state extends the deadline to spend certain 2023 education funds to July 31, 2026. This applies to Expanded Learning Opportunities, adult education in correctional facilities, and special education. It gives programs more time to use money already approved.

New manager for Inclusive College center

The State Superintendent selects county offices to run the California Center for Inclusive College. The advisory group now includes 2 to 6 representatives from existing inclusive college programs. This clarifies who runs the Center and adds more voices.

Ongoing support for English learner services

The state provides $2 million a year for county offices that lead English learner services. In 2025–26, the $2 million applies only if certain federal funds are not available. The department will select 5 to 7 regional lead agencies by July 1, 2026 for terms up to four years.

Pilot to redesign some high schools

The state creates a Secondary School Redesign Pilot with $10 million. Schools that join must participate for two years. Up to $1 million funds administration and evaluation, and up to $300,000 reimburses Marin County. The lead agency will report results to the Legislature by September 1, 2029.

Pilot to rethink middle and high schools

The law creates a Secondary School Redesign Pilot and gives $10 million to the state’s collaborative agency to lead it. Participating schools and LEAs must commit for two years, launch redesigns (such as personalized, hands‑on learning and better use of technology), and report data. The lead agency evaluates results and reports by September 1, 2029. Up to $1 million funds administration and evaluation, and up to $300,000 reimburses Marin County Office of Education.

Plan to streamline CTE grants and reports

The Superintendent must study how to combine career education grant applications and reports into one system. Information is due October 15, 2025, and a feasibility report is due January 31, 2026.

State backfills fire‑hit school revenues

The Controller reimburses basic aid school districts in Los Angeles County for local property tax losses from the Eaton and Palisades Fires. Reimbursements cover losses in 2024–25 and 2025–26 and apply only to districts that meet the basic aid definition and whose losses came from those fires.

State backfills school fire tax losses

The state reimburses basic aid school districts in Los Angeles County for property tax losses from the January 2025 Eaton and Palisades fires. The backfill covers 2024–25 and 2025–26. The Controller must pay districts by September 30, 2025, using the County of Los Angeles schedule.

State tracks teacher pay and benefits

By July 1, 2026, the Department of Education builds a system to collect salary and benefits data for teachers and some entry‑level classified staff. Districts, county offices, and direct‑funded charters must submit data by August 31, 2026, and each July 1 after. The Department reports to the Legislature starting January 31, 2027, with yearly updates on pay trends and inflation comparisons.

Study to speed curriculum guidance

The state provides $1 million in 2025–26 for a county office to hire researchers to review how other states build curriculum guidance. The study will recommend ways to improve and streamline California’s process.

Support and tracking for teacher stipends

From the 2025–26 appropriation, $5 million goes to the Kern County Superintendent to recruit educators, build a public grants system by April 1, 2026, include National Board program work by April 1, 2027, and deliver an independent evaluation by July 1, 2029. The grants system work is exempt from some state procurement and tech reviews. The Commission must also report each year starting January 1, 2027 on who was paid and key program details.

Support centers for homeless students

Beginning in 2025–26, the state may allocate up to $2,500,000 to up to three county offices to sustain technical assistance centers for homeless education liaisons, subject to the Budget Act. The centers are no longer limited to the life of certain federal grants.

Teacher shortage tracking, test flexibility

The statewide assignment system now records teacher shortages when a class is vacant or filled by someone not fully credentialed on Census Day. The Commission can adopt an off‑the‑shelf reading assessment, and candidates can pass it by October 31, 2025. Some candidates get expanded exemptions and an extra year to complete induction for those exemptions. Passing reading scores can count for up to 10 years.

Technical school funding accounting updates

For constitutional school‑funding calculations, the law treats two prior appropriations as General Fund revenues for school districts. One applies to 2017–18 and the other to 2020–21. This changes the state’s budget math for those years.

TK tools to spot multilingual learners

By March 31, 2026, the state selects approved TK screening tools to identify multilingual learners. For 2025–26, $10 million buys the tools, training materials (free to schools), and supports field tests; funds are available through June 30, 2028. Tools must measure English listening and speaking, be reliable and age‑appropriate, work for non‑English primary language pupils, be usable by teachers, and not discriminate. These screening rules cannot be waived.

Early education grants only one‑time costs

Inclusive Early Education Expansion Program grants can only pay one‑time costs like renovations, adaptive equipment, or training. The law bars using these grants for ongoing operating expenses.

EPA overpayments cut current payments

If Education Protection Account revenue drops and the fourth‑quarter payment is not made, the state takes any school overpayment out of the current year’s second principal apportionment. The money goes back into the EPA. The Controller then makes the fourth‑quarter EPA payment as soon as possible, and no later than August 15 of the next fiscal year.

Five-year deadline to spend residency grants

Teacher Residency Grant funds awarded from the 2025–26 augmentation must be fully spent within five fiscal years of the award year.

Late school plans can pause leader pay

Districts, county offices, and charter schools must submit their Local Control and Accountability Plans (LCAPs) and updates on time. If a required report is more than 14 days late, the county superintendent may withhold stipends, expenses, benefits, or wages for named superintendents, charter administrators, or board members until the report is filed.

Plumas district reorganization on hold

The State Board of Education cannot act on any Plumas Unified reorganization until emergency loans are fully repaid. Any request filed before full repayment is dismissed without a hearing.

School districts must do needs assessments

LEAs that get Learning Recovery Block Grant funds must create needs assessments for 2025–26, 2026–27, and 2027–28. They must identify students most in need and review test results and chronic absenteeism. LEAs may add local metrics and partner with community groups.

Schools must track lawsuit payments separately

Local educational agencies must keep separate accounting for payments of legal settlements, judgments, or special assessments by a joint pool. They must also track similar civil‑claim payments in a separate account.

Small hybrid-learning research grant repealed

The law repeals a $4,000 allocation to research hybrid and remote learning models and create guidance. That small research task and its funding are no longer in place.

Ethnic studies now required to graduate

Starting in 2025–26, high schools must offer at least one semester of ethnic studies. Students graduating in 2029–30 and later must complete at least one semester to earn a diploma. Schools may require a full year. Courses must meet curriculum standards and may not promote bias or religious doctrine. Locally developed courses require a public presentation and approval meeting.

New reading test and score rules

The Commission creates and runs a reading instruction test for first‑time credential applicants. Some candidates have until October 31, 2025 to take and pass it. A passing score counts for 10 years: a 198 total on the 2009 single test, or 198 on each subtest on or after July 26, 2021 for the three‑part test.

Personal finance course to graduate

Starting in 2027–28, all high schools must offer a separate one‑semester personal finance course. Students graduating in 2030–31 and later must complete it to receive a diploma. Completing the personal finance course may replace the one‑semester economics requirement.

Clear spending reports for recovery funds

Local education agencies that get Learning Recovery money must post interim spending reports by December 15, 2024, using the state template. The Department created this plain‑language template by June 30, 2023. If a charter school closes, it must file a final report within 60 days and return any unspent funds, including from the prior year. This improves transparency and gets unused money back into the system.

Faster budget review committees and waivers

Counties get a state list of at least five candidates and have five working days to pick a three‑person budget review committee, or the state will do it within 10 working days. Committees must report by November 30. A committee can be waived if the district and county agree and the Department approves; then the county superintendent must ensure a balanced budget by December 31. The Superintendent sets reimbursement rates for members, but some Fiscal Crisis and Management Assistance Team employees are not eligible. Regional committees are allowed.

Longer window to spend block grants

Student Support and Professional Development Discretionary Block Grant funds are available through June 30, 2029. Final spending reports are due by September 30, 2029, and the state will begin collecting unspent funds by January 31, 2030. The report format is posted by January 1, 2026. If a charter school closes before June 30, 2029, it must file a final report within 60 days and unspent funds are recovered.

More help and oversight for after-school programs

Starting in 2022–23, the state may give up to $5 million each year to county offices for technical help, training, and evaluation for expanded learning. Training must help districts braid funds from community schools, school meals, and State Preschool. Starting in 2025–26, each LEA must declare yearly if it will run an expanded learning program; funds from non‑operators can be reallocated. From 2023–24, LEAs using off‑campus providers must report provider details yearly; data are shared with Social Services. By February 1, 2024, the Superintendent reports on off‑site TK/K programs and licensing for 2023–24 and 2024–25.

State to publish school pay data

By July 1, 2026, the state will build a system to collect salaries, benefits, and FTE counts for certain certificated and specified classified nonmanagement staff. Districts and direct‑funded charters must submit data by August 31, 2026 and every year by July 1. The Department reports to the Legislature starting January 31, 2027. This increases transparency but adds reporting work for local agencies.

Targeted use of literacy training funds

If an LEA gets literacy professional development money, it must first train TK–5 teachers who did not pass the literacy performance assessment or lack aligned training, using state‑approved programs or ones that meet the same criteria. Any leftover funds can support other grades or extra training for TK–5 teachers who already passed.

Tighter limits on education department spending

The law tightens oversight of the education department’s spending and reports. It bars spending on certain statewide test summaries and on data for very small private schools. It restricts use of copyright‑fee reimbursements, requires a legal opinion and a 30‑day wait, limits outside counsel to $300,000 without Finance approval, and needs a certification of need. It also caps contractor pay to within 10% of comparable state jobs, requires financial disclosure, and bars replacing represented civil service staff. If a district misses audit deadlines, the State Controller can complete the audit and charge the cost to the district or county.

Sponsors & Cosponsors

Sponsor

Jesse Gabriel
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 168 • No: 18

House vote • 6/27/2025

Item 1000 — Assembly AFLOOR

Yes: 70 • No: 0

Senate vote • 6/27/2025

Item 83 — Senate SFLOOR

Yes: 32 • No: 1

legislature vote • 6/25/2025

Vote in CS62

Yes: 13 • No: 0

House vote • 3/20/2025

Item 51 — Assembly AFLOOR

Yes: 53 • No: 17

Actions Timeline

Chaptered by Secretary of State - Chapter 8, Statutes of 2025.
6/27/2025Senate
Approved by the Governor.
6/27/2025legislature
Enrolled and presented to the Governor at 3:15 p.m.
6/27/2025legislature
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 70. Noes 0. Page 2334.).
6/27/2025House
Assembly Rule 63 suspended. (Ayes 54. Noes 19. Page 2329.)
6/27/2025House
In Assembly. Concurrence in Senate amendments pending.
6/27/2025House
Read third time. Passed. Ordered to the Assembly. (Ayes 32. Noes 1. Page 1805.).
6/27/2025Senate
Read second time. Ordered to third reading.
6/26/2025Senate
From committee: Do pass. (Ayes 13. Noes 0.) (June 25).
6/25/2025Senate
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F. R.
6/24/2025Senate
Referred to Com. on B. & F. R.
4/2/2025Senate
In Senate. Read first time. To Com. on RLS. for assignment.
3/20/2025Senate
Read third time. Passed. Ordered to the Senate. (Ayes 53. Noes 17. Page 723.)
3/20/2025House
Read second time. Ordered to third reading.
3/18/2025House
(Ayes 53. Noes 17. Page 643.)
3/17/2025House
Ordered to second reading.
3/17/2025House
Withdrawn from committee.
3/17/2025House
Referred to Com. on BUDGET.
2/3/2025House
From printer. May be heard in committee February 8.
1/9/2025House
Read first time. To print.
1/8/2025House

Bill Text

Chaptered
6/27/2025
HTML
Enrolled
6/27/2025
HTML
Amended Senate
6/24/2025
HTML
Introduced
1/8/2025
HTML

Related Bills

Back to State Legislation