CaliforniaSB 1012025-2026 Regular SessionSenateWALLET

Budget Act of 2025.

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Bill Overview

Analyzed Economic Effects

448 provisions identified: 319 benefits, 39 costs, 90 mixed.

Small tort claims paid up to $70K

If you have a tort claim tied to a state‑supported activity, this law can pay up to $70,000, not counting interest. The agency must first show it cannot pay from its own budget, and the Department of Finance must approve. Payments are in full and final settlement.

More subsidized child care slots for families

The law puts $1.618 billion into new subsidized child care slots. It funds the Alternative Payment, General Child Care, and Migrant Child Care programs. Priority goes to children ages 0 to 3. This expands access and can lower child care costs for eligible families.

More money for Dream for All

The state moves $300 million into the California Dream for All Fund. The Controller makes the transfer when ordered by the Department of Finance.

2025–26 Cal Grant maximums set

The law sets 2025–26 Cal Grant caps by school type. New students at private, non‑WASC for‑profit schools can get up to $4,000. New students at private, WASC‑accredited for‑profit schools can get up to $8,056. Private nonprofit students can get up to $9,358. Cal Grant B access caps at $1,648. Cal Grant C tuition caps at $2,462. Cal Grant C books cap at $1,094 for community colleges and $547 elsewhere. UC and CSU awards match the 2025–26 tuition and fee levels approved by their governing boards.

Higher Cal Grants and parent boosts

The law sets Cal Grant maximums for this award year. New students at private for‑profit schools get up to $4,000, or $8,056 if the school was WASC‑accredited on July 1, 2023. Private nonprofit students get up to $9,358. UC and CSU awards match their systemwide mandatory tuition and fees for 2025–26. Cal Grant B access is up to $1,648. Cal Grant C tuition is up to $2,462, and books are up to $1,094 at community colleges or $547 elsewhere. Parents get extra help: Cal Grant A/B access can be up to $6,000 with a dependent child. Cal Grant C at community colleges can be up to $4,000 for books if you have a dependent child.

Keep Cal Grants flowing; help undocumented students

The state can lend up to $125 million to the Student Aid Commission to cover Cal Grants when federal TANF reimbursements are late. The loan must be repaid within 90 days, and interest can be waived by law. UC gets $5 million ongoing to run services for undocumented students on each campus. The Dream Act Service Incentive Grant Program receives $7.5 million. Community colleges can host immigration help on campus by contracting through the state social services department.

More Cal Grant help for parents, foster youth

If you have a dependent child, your Cal Grant A or B access award can be up to $6,000. If you attend a community college with a Cal Grant C, your books and supplies award can be up to $4,000. Former or current foster youth also get up to $6,000 for Cal Grant A or B access. Foster youth at community colleges can get up to $4,000 for Cal Grant C books.

More training and apprenticeships for workers

The state invests in training and apprenticeships. It provides $20,000,000 for a goods movement training campus in Southern California, with funds eligible for advance payment. It creates HIRE grants with $23,000,000 through June 30, 2028 for reentry training, wages, stipends, and supportive services. It adds $256,000 for low‑carbon workforce apprenticeship and training. It also provides $30,000,000 for the California Apprenticeship Initiative, available until June 30, 2031.

RIGHT grants use points formula

Awards are based on points: 1 point if the budget is under $250,000; 2 points if $250,000–$500,000; 3 points if over $500,000. Programs can earn up to two priority half‑points. Total funding is divided by total points to set a dollar‑per‑point. Your award equals your points times that dollar‑per‑point.

Nonprofit tech to speed prison intake

Corrections gets $2 million to contract with a California‑based, CJIS‑compliant nonprofit. The work uses open‑source tech to cut reception center processing times.

One-time payments to cities and counties

The Controller sends $183.071 million to cities and counties once the Department of Finance provides an allocation plan. The law also pays 2023–24 shortfalls to three counties: $175,000 to Alpine, $3,556,000 to Mono, and $114,340,000 to San Mateo. These are one‑time payments to local governments.

Grid resilience funds through 2033

The Energy Commission can spend certain federal trust funds for grid work through June 30, 2033. The Commission must sign agreements that match U.S. Department of Energy grid resilience program terms. Local assistance funds tied to grid resilience also stay available through June 30, 2033 under the same federal rules.

Loans and backups keep benefits flowing

Recovered opioid settlement money now pays for medical care, and the General Fund can loan up to $1 billion to the Health Care Deposit Fund to cover cash needs. The state may also loan up to $1.271459 billion to Developmental Services to bridge delays and repay when reimbursements arrive. Finance can increase appropriations if caseloads, payment timing, rules, or court actions push costs higher in 2025–26. In disasters, the state can run county eligibility and grants when asked, and may shift funds to cover the work. If a county fails to pay the EBT contractor, the state must pay and then recover the money from the county. The Department of Finance can also direct AB 85 county reconciliation payments into county health trust accounts.

Loans bridge delays in federal reimbursements

The state can lend up to $2 billion from the General Fund when federal reimbursements are late so payments go out on time. Loans are repaid when federal money arrives. If a county fails to reimburse, the state may offset its IHSS share and charge interest under law.

Loans for LA wildfire recovery and transit

Finance can make loans up to $1 billion for eligible Los Angeles County entities to recover from the January 2025 wildfires. It can also loan up to $750 million to eligible non‑LA entities to keep transit services running. Loans need repayment assurances, the Legislature is notified of applications and decisions, and authority ends June 30, 2027.

More time to spend clean energy funds

The law extends deadlines so the Energy Commission can commit and pay out clean energy funds. EPIC funds can be encumbered until June 30, 2027 and liquidated until June 30, 2031, with budget lines adjustable if the PUC approves more EPIC money. Alternative and renewable fuel funds can be committed until June 30, 2029 and paid until June 30, 2033. Greenhouse Gas Reduction Fund appropriations can be used through June 30, 2026. Other unspent energy balances are reappropriated and extended as listed.

More transit, highway, and EV charging

The budget provides $812 million for formula transit and rail and $384 million for competitive transit and rail. It adds $75 million for grade crossings and $200 million for port projects, with a ban on buying fully automated cargo gear with port funds. It sets longer allocation and spending windows for many transportation items, and GARVEE debt‑service funds stay available until spent. It also designates $228.501 million for federally eligible EV charging, allocated with Energy Commission grants.

Stronger disaster readiness and 9-1-1 support

OES may advance up to 25% of a grant to nonprofits and local governments with cashflow problems. $12.5 million funds Listos California outreach, $30 million keeps legacy 9‑1‑1 running through June 30, 2026, and $25 million supports regional pre‑deployment through June 30, 2027. The state sets aside $100 million for its share of disaster response and recovery. CAL FIRE can get a short‑term loan up to 45% of its listed reimbursements, due by November 15 of the next fiscal year. OES can receive federal disaster funds, move them to the General Fund across fiscal years, and receive transfers from the Disaster Response–Emergency Operations Account. $4 million runs the Nonprofit Security Grant Program through June 30, 2028.

Update unemployment systems (EDDNext)

Up to $163.415 million is available again for EDDNext modernization. The money can be spent or encumbered until June 30, 2026. This supports better unemployment and related benefit systems statewide.

Career training and reading investments

The state provides $300 million for the Career Technical Education Incentive Grant Program in K–12. From 2025–26 through 2028–29, the state integrates the federal literacy grant into the Literacy Roadmap. It also provides $475,000 each year from July 1, 2025 through June 30, 2029 to support that grant. The University of California receives funds for the California Subject Matter Projects that support K–12 educators.

Extra transfers to the State School Fund

The Controller transfers $86.156 million, $110.601 million, $126.119 million, and $135 million to the State School Fund. The money supports prior apportionment purposes and helps repay deferrals where stated.

More before- and after-school programs

The state provides $4.263 billion to expand before‑ and after‑school and nonschool‑day programs for K–12 students. Districts and charters use the money to add seats and hours. This helps students and working families.

More CCC seats and campus COLA

Community colleges receive $139.981 million for 2.35% enrollment growth (FTES). They also receive $217.442 million for a 2.30% cost‑of‑living adjustment. The Chancellor’s Office can move unused growth funds to cover unexpected shortfalls.

More faculty and staff training at colleges

The state spends $150 million to hire new full‑time community college faculty. $20 million funds regional and online trainings for college staff, with annual and three‑year reports due by December 31. $200,000 supports a chief business officer mentorship program. $1 million funds statewide leadership for adult education through a competitively selected contractor.

More funding for UC agriculture

The state gives $124.321 million to the UC Division of Agriculture and Natural Resources. The money must add to, not replace, other UC funds for the division. This supports agriculture and natural resources programs statewide.

More stable K–12 and college funding

Each year, 85% of federal lands revenues in the State School Fund go to K–12 and 15% go to community colleges, paid before any General Fund transfers. The state provides $19.331 million (2023–24) and $131.865 million (2025–26) for mandated K–12 program costs. The education department must send charter school attendance and revenue files by October 31 (P2) and March 1 (P1). The State Board of Education gets $572,000 and 3 positions to support LCFF. The Director of Finance may transfer up to $650 million into the Public School System Stabilization Account with 30‑day notice, no later than May 14, 2026; funds remain until the Legislature allocates them and are deemed applied in 2024–25.

Wildfire recovery funding and updates

The Director of Finance may add funds in 2025–26 for recovery in areas under January 2025 wildfire emergencies, within a $2.5 billion total set by prior law. This includes pass‑through funding to affected community colleges. The state must post updated Los Angeles wildfire spending reports by July 31, 2025; Oct 31, 2025; Jan 31, 2026; Apr 30, 2026; and July 31, 2026.

Checks on big transport borrowing

Before projects in 2025–26 push transportation note issuance over $300 million, the state commission must consult with finance and transportation agencies and explain effects on future federal funding. At least 60 days’ notice must go to key legislative chairs before such allocations.

Loans keep health payments flowing

The General Fund can lend up to $1 billion to the Health Care Deposit Fund to meet cash needs. Loans are paid back from revenues or reimbursements and can be repaid in parts if they last more than one year.

Major fund shifts for 2025-26 budget

Beginning July 1, 2025, $7.1 billion moves from the rainy‑day fund to the General Fund. The state can also borrow $1.5 billion (and more idle special‑fund cash if needed) to keep the budget balanced, and up to $150 million from the Unfair Competition Law Fund, with no interest at repayment. The law sets the 2025–26 appropriations limit at $166.892 billion and makes this act’s funds available for that year. Up to $50 million from the General Fund can front costs until federal or other reimbursements arrive, and specified school‑building sale and lease revenues and any leftover EDD Benefit Audit Fund money on June 30, 2026 can be shifted to the General Fund. Any lawsuit over the appropriations limit must start within 45 days after this law takes effect.

School funding levels set for 2025–26

Total Proposition 98 funding is $80.747 billion for 2025–26. School districts get $72.174 billion. Adult education and K–12 career tech get $847 million. Community colleges get $7.634 billion. Other education agencies get $92 million. No money goes to the school stabilization account.

State stops new loan assumption buys

The Student Aid Commission stops issuing new warrants to buy loan assumptions in the teacher, graduate, and nursing programs named in law. Past purchases and existing obligations continue. This removes a path some borrowers used to reduce their loan balances.

Community college funds delayed to 2026–27

About $377.4 million for community colleges is deferred to 2026–27. The money stays available to spend or encumber through June 30, 2028. The Chancellor’s Office can move money into this schedule from other deferred schedules, but it must defer apportionments in this schedule first.

CSU delays and enrollment penalty

The law delays $143.839 million one‑time from 2025–26 to 2026–27. It defers a $252.255 million base increase, paying $100.902 million ongoing in 2026–27, a one‑time $252.255 million back payment in 2027–28, and $151.353 million ongoing in 2028–29. CSU must reach 349,999 resident FTES in 2025–26 (an increase of 7,152). If CSU falls short, funding can be cut by $10,983 for each FTES below the target.

School facilities funds rolled back

On June 30, 2025, up to $177.5 million in earlier School Facilities appropriations return to their original funds. This reduces the money available for some school projects.

New rules when childcare slots are cut

If programs must drop families from subsidized care, they must follow a set order. First are families with the highest income under 85% of the State Median Income. Then, among ties, those who have been in care the longest, and then those with a child with exceptional needs. Families with children in or at risk of child protective services are the last to be dropped. These rules decide who loses care first when slots are scarce.

UC funding delayed and targeted

The law defers a $240.773 million UC base increase from 2025–26. It pays $96.309 million ongoing in 2026–27, a one‑time $240.773 million back payment in 2027–28, and $144.464 million ongoing in 2028–29. It also defers $129.692 million one‑time from 2025–26 to 2026–27, and $31 million in nonresident replacement funding to 2026–27, with a $31 million back payment in 2027–28. It secures $10.079 million a year for UC Law SF debt service (from a $34.915 million appropriation) and requires UC summer aid to add to, not replace, campus funds. Interest earnings can increase UCLA’s Powell Library seismic appropriation without a new appropriation.

2025–26 budget totals and reserve moves

The law sets General Fund revenues for 2025–26 at $244.822 billion. It records $3.118 billion (1.5% of revenues), capital gains above 8% at $0, and $1.559 billion in debt payments. The $1.559 billion transfer to the Budget Stabilization Account is suspended. Prior‑year true‑ups are updated (for 2024–25: $566 million capital gains and a $24 million true‑up; for 2023–24: capital gains $0 and a $635 million second true‑up reduction). The revenue estimate also includes planned withdrawals or transfer suspensions so the Special Fund for Economic Uncertainties ends 2025–26 at least at $0.

ARPA deadline and yearly reports

All state ARPA recovery fund obligations must be liquidated by December 31, 2026, unless the state changes the date to match federal rules. Each year by March 1, the Director of Finance must report unspent or unencumbered ARPA dollars by program to legislative leaders until all funds are used.

Flexibility to use and shift ARPA dollars

Beginning July 1, 2025, Finance can change items and move money to spend $27.017 billion in federal ARPA funds on time. Finance can take back unspent ARPA program funds and use them for disaster response. It can also move ARPA interest to the General Fund for admin costs and audits and spend that interest until December 31, 2026.

Keeping child support services funded

The Department of Finance can adjust child support spending when collections rise or fall and must tell lawmakers within 10 working days. If a county child support agency fails to meet standards, the state can add positions and shift funds to run or oversee it. The department may also move up to $500,000 in unspent funds each year into the Child Support Payment Trust Fund to cover unrecoverable overpayments. These steps help keep child support services running and payments flowing to families.

Mobile probation grants extended

$12.8 million from a 2022 item is reappropriated for Mobile Probation Service Center Grants. The money can be used through June 30, 2026. These grants support probation services in communities.

More legal help for low-income people

The law funds more legal help for people who cannot afford a lawyer. $35.392 million goes to legal aid projects, mostly under existing state distribution rules. $25.3 million supports services for people who represent themselves in court. New grants help public defense offices add social workers, housing and mental health help, training, and evaluations, with funds available through June 30, 2028. Grantees must report results, and these dollars must add to, not replace, current funding.

Child care quality and priority rules

Funds for Resource and Referral, the Child Care Initiative, Quality Improvement, and Planning must follow the approved federal child care plan to improve quality. Schedule (3) child care funds are reserved for former CalWORKs families who left cash aid and used up transitional help, and for families who got diversion and spent two years off cash aid, if still eligible. Local planning councils must meet state planning rules when feasible and data is available.

Early Head Start services get more funding

The state provides $1.99 million each year and $3.515 million each year, through 2028–29, to support Early Head Start–Child Care Partnerships. Funds support local services for infants and toddlers. Money cannot be used for indirect department costs. This helps local programs serve more very young children.

Keep Medi‑Cal fair hearings funded

Finance can move or approve extra funds to cover Medi‑Cal hearing costs when redeterminations raise demand. Transfers happen on request from the social services and health departments, and Finance must report amounts to the Legislature. This keeps fair hearings available when aid or service payments change.

Money to pay state victim claims

Up to $8 million is available to pay victims under Penal Code sections 4900 and 4904. Finance can add more to cover unpaid claims. This money goes directly to eligible claimants.

More funding and rules for school meals

The state adds $21.548 million for cost‑of‑living and $69.153 million for growth in school meal funding. Up to $9.296 million covers the state match. Schools must join the federal breakfast and lunch programs and follow USDA rules to get state payments. The state pays $1.0015 per eligible meal. Districts must file claims by September 30 each year.

More support for CalFresh, WIC, SUN Bucks

The state funds and smooths running of food help programs. Finance can move money to run SUN Bucks (Summer EBT). It can adjust spending when utility allowances change so CalFresh benefits stay accurate. The law adds $36 million for a CalFresh fruit and veggie pilot and $52 million for CalFood. If WIC rebate money comes in higher, Finance can add it to WIC. Up to $250,000 can support SNAP ABAWD time‑limit compliance services.

More support for foster families and claims

The law provides $18.146 million for enhanced planning, assessments, and supports for children in foster care. Finance can use prior‑year balances in 2025–26 to pay higher foster home insurance claims and costs. If approved claims exceed the budget, Finance can approve up to $4.2 million more and must notify lawmakers and send quarterly updates. This helps pay valid claims and expand services for foster families.

More support for seniors’ nutrition and counseling

The state provides $37.2 million for senior nutrition under the Older Californians Act, available until June 30, 2028. The Controller must send $4.892 million to the Department of Aging for HICAP in two payments. The Department of Aging can advance up to 25% of an area agency’s yearly allocation to keep services running. $186,000 funds Elder Justice Award administration until June 30, 2027.

Preschool family fees capped at 1%

The law funds a rule that limits State Preschool family fees to 1% of monthly income. It applies to families with adjusted monthly income at or above 75% of the state median. $14.041 million supports non‑local programs and $15.833 million supports local programs. This lowers out‑of‑pocket preschool costs for eligible families.

Steadier payments to child care providers

The state can loan up to $20 million for 90 days to keep child care payments flowing when reimbursements are late. It makes accounts‑payable funds available to pay actual, allowable program costs and lets Finance approve extra spending to clear owed bills. Up to $21.9 million starts paying providers based on enrollment, and up to $70 million helps alternative payment agencies run ongoing changes. Finance can also add funds to CalWORKs Stage 3 with 30 days’ notice so benefits continue when costs run high.

Summer grocery benefits for kids

The state provides $21.929 million to run Summer EBT (SUN Bucks) so eligible children get food help when school is out. After USDA approvals, Finance can add money with a 30‑day notice to lawmakers. Finance can also move funds to the account that runs SUN Bucks. This supports summer grocery benefits for eligible families.

Support for CalWORKs students and hearings

State funds support services and instruction for CalWORKs students, such as job placement, childcare, work study, and coursework. Colleges must submit plans based on work with county welfare offices. Finance can also shift money to cover CalWORKs hearing costs so appeals keep moving. These steps help low‑income families in school and protect their right to hearings.

More housing help for UC/CSU students

UC gets $49.701 million in ongoing funds for approved student housing projects. CSU gets $6.8 million for rapid rehousing and wraparound help for homeless and housing‑insecure students. Campuses must partner with community groups and report yearly on results.

Rental help for people leaving prison

The BSCC awards competitive grants to community groups to help people leaving state prison. Each item provides $18.5 million for rental assistance and $18.5 million for warm handoffs and reentry services, with priority for those on state parole. Up to 5% may cover admin costs, and funds are available until June 30, 2030.

Stronger tenant enforcement and housing redevelopment

The DOJ gets $3 million to expand tenant‑protection enforcement. Starting July 1, 2024, Finance may raise spending authority (up to $4.5 million in 2024–25) to keep redeveloping excess state properties as affordable housing for up to three years of operating costs.

Adult‑ed help tied to CalWORKs

If you are in CalWORKs, your local education agency can fund remedial adult education and job training. The LEA must meet an interagency agreement, fully claim its adult‑ed or ROC/P cap, and claim the maximum under that agreement. Funds must help welfare recipients and those leaving welfare and must not replace other funds. Special day class students get credit only for days that meet minimum‑day rules.

Equity programs expand at community colleges

Puente receives $13.326 million to support up to 115 colleges, with a $200,000 private match and maintenance of 1995–96 support; $5.331 million funds central services, $7.995 million goes to districts, and unspent funds after June 30 can be reallocated. The Umoja program gets at least $9.178 million for statewide capacity and district programming. A2MEND expansion gets $1.1 million for up to 50 colleges, and the Chancellor may favor colleges with required work plans. A one‑time $10 million funds LGBTQ+ student grants up to $900,000 per district, usable over five years. Up to $54.11 million is prioritized for foster youth services under Article 7.

Help for Dreamer community college students

The state provides $11,600,000 for Dreamer Resource Liaisons and related services at community colleges. Undocumented and DACA-eligible students get dedicated help with career pathways and economic mobility services.

More basic needs help for community college students

The state funds basic needs and housing help at community colleges. It provides $75,754,000 for student basic needs, including $32,466,000 for mental health and $43,288,000 for campus basic needs centers. Colleges must hire or name a basic needs coordinator. It also provides $20,562,000 to prevent student homelessness, including case managers, emergency housing steps, and rental help. Campuses receive funds based on demonstrated need.

More college outreach and preparation help

No less than $1.836 million supports the Middle College High School Program. SAPEP programs receive $22.5 million each year for academic preparation and partnerships. Inland Empire Cal‑SOAP projects get $2.4 million each year for college outreach and services in that region.

More CSU aid and student success

CSU gets $1 million for the Dymally Institute and $1 million to support students with disabilities by adding staff and reducing caseloads. $6 million funds summer aid for California‑resident students who qualify for state aid. $35 million ongoing supports the Graduation Initiative to close graduation gaps. $11.3 million funds Project Rebound for formerly incarcerated students, with a set funding formula and annual reporting. CSU also receives $8 million ongoing for the AANHPI Student Achievement Program.

More CTE help for CalWORKs students

Federal Perkins V funds move to community colleges to support career technical education. The state directs these funds to help CalWORKs welfare‑to‑work participants. This targets training and services to low‑income job seekers.

More food and mental health help for students

UC gets $15.8 million for meal donations, food pantries, basic‑needs centers, and hygiene supplies. CSU gets $15.8 million to expand student mental health services. CSU also gets $26.3 million for food, housing, and other basic‑needs help, with detailed reporting starting March 1, 2026.

More funds and rates for after-school

The state provides $248.689 million for After School and 21st Century Community Learning Centers. It keeps higher 2021–22 per‑student rates in 2025–26, including $94.866 million and $53.823 million set‑asides. Starting July 1, 2025, the 21st Century daily rate is $10.18 per pupil per day.

More help for schools needing support

At least $146.072 million funds grants for schools identified for extra support. One‑time federal carryovers add $70 million (Title I) and $5 million (Title IV). County offices get funds by formula to plan and run improvement work. Districts must align spending to local plans and cannot use these dollars to hire permanent staff. The State must submit an expenditure plan, and the State Board must approve local plans that supplement state‑funded priorities.

More MESA STEM support at colleges

Community colleges get $39.423 million to start or support MESA programs. Each college receives at least $280,000, and funds must add to, not replace, local dollars. If districts have unspent MESA funds by June 30, MESA can keep them at that site or move them to another site.

More nursing seats and student support

The state provides $8.475 million to support community college nursing programs. Another $4.903 million pays for preentry coursework, diagnostic help, new delivery models, and other services to cut attrition. These steps can expand training capacity and help more students finish.

More special education and mental health help

Schools get $69 million for student mental health services, paid out equally per pupil. $1.95 million supports special education dispute resolution work and $2.12 million funds local grants, with at least $1.4 million for Supporting Inclusive Practices. One‑time carryovers of $8.25 million, $6 million, and $3.75 million can be spent or encumbered through June 30, 2028. Another $206,000 matches funds to coordinate services for disabled pupils.

More state grants for students and teachers

The state increases funding for student aid and teacher grants. It provides $2,400,000 ongoing for Inland Empire Cal-SOAP projects, $7,500,000 for the California Dream Act Service Incentive Grant, and adds $50,000,000 to the Golden State Teacher Grant Program. The Director of Finance must notify budget leaders by February 1, 2026 about proposed Middle Class Scholarship funding for 2025–26.

More support for veteran students

Community colleges get $10.822 million to support Veteran Resource Centers. Funds go only to colleges that meet or are working toward minimum standards set by the Chancellor’s Office. Future allocations depend on the annual Budget Act.

More UC aid and student supports

UC gets $21.3 million to expand student mental health services. $3.7 million supports rapid rehousing for homeless and housing‑insecure students, with money given out by campus financial aid offices. $4 million funds summer‑term aid for California‑resident students who qualify for state aid. UC also gets $6 million ongoing for foster youth programs and $4 million ongoing for Underground Scholars on undergraduate campuses.

No personal liability under Plata orders

State employees are not personally liable for overspending linked to following the Plata Receiver’s directions or court orders. This protection applies even if spending exceeds appropriations. It shields employees who comply with those orders.

One-time support for two California colleges

California College of the Arts receives $20 million one time. The college must report to the Department of Finance by November 2026. California Indian Nations College receives $10 million one time. These funds support college operations and programs.

State employee pay and benefit adjustments

The state provides funds to implement raises and benefit increases for employees paid from the General Fund, special funds, and nongovernmental cost funds. The Director of Finance allocates the money by executive order. Unused balances are not available after July 31, 2026. The Judicial Council may be reimbursed for salary increases for child support commissioners and family law facilitators after 30 days’ notice. The Department of Human Resources must complete and share comprehensive salary surveys.

Student Success Completion Grants funded

The state provides $412,602,000 for the Student Success Completion Grant program. The money helps community college students finish certificates and degrees through grants or services.

Summer money for school staff

The state provides $90 million for the Classified School Employee Summer Assistance Program. Eligible classified school employees can receive summer support under existing rules.

Support for juvenile justice-impacted students

The Rising Scholars Network receives $35,000,000 to help juvenile justice-impacted students. Sixty percent supports ongoing model programs. At least 86.7% of that goes to up to 45 colleges on five-year grants, and 8.3% funds technical help. Programs must include Project Change components and use Dual Enrollment and Guided Pathways.

UC medical education grows, more aid

The law provides $12.9 million to expand UC medical education and start a program focused on Native American communities. One‑third of this money must go to need‑based financial aid for students in these programs. UC must report each year by March 1 through 2027 on enrollment, curriculum, graduation, residency placement, and practice locations.

Unemployment services and Youth Corps funding

The state provides $50,000,000 to implement an Unemployment Insurance program in Chapter 5.1. Funds are available until June 30, 2028, and up to 5% may cover agency admin costs. The California Volunteers Youth Corps receives $51,100,000 to support service and training. Each year by March 1, the Military Department must report Job ChalleNGe completion and job outcomes.

Property tax relief for homeowners

The state provides $410 million to repay local governments for the homeowners’ property tax exemption. It also provides $1,000 to repay locals for open‑space land assessments. Up to $3 million can be moved to the Senior and Disabled Citizens Property Tax Postponement Fund, if the Director of Finance approves it after reviewing spending and fund health. These steps help keep homeowner tax relief and payment postponement in place.

More farm cleanup and freeze aid

The state transfers $1,000,000 total to the Farm and Ranch Solid Waste Cleanup and Abatement Account ($266,000 from Used Oil, $400,000 from Tire Recycling, $334,000 from Integrated Waste). This money helps clean up waste, including tires, on farms and ranches. If a freeze causes damage, the Director of Finance can add funds to the Citrus Frost Inspection Program after a 30-day notice to budget leaders. This gives citrus growers inspection help after damaging freezes.

Extra pay for key health providers

The state funds supplemental payments and base rate bumps for physician, dental, family planning, and women’s health services. The health department sets payment rules. Payments needing federal approval can be made while approval is pending, but must be repaid if not approved. Each provider group can start once federal approvals arrive.

Quarterly pay for adult‑ed providers

The State Department of Education reimburses qualifying community‑based adult education providers every quarter. Providers that spend over $1,000,000 in a year must file an annual organizational audit. The request for applications uses core federal performance metrics and the California WIOA plan. The program also has $14 million in one‑time federal carryover to support services.

Backstop for small‑business loan guarantees

If loan defaults push guarantee exposure above five times deposits, the Director of Finance can lend from the General Fund to restore reserves. Total loans under this authority are capped at $20 million, with notice to lawmakers and repayment when no longer needed.

More small business help and grants

The state provides $23 million for the Small Business Development Technical Assistance Expansion Program. Another $3 million helps draw down federal funds for the Small Business Development Center Program.

Carbon capture reviews focus on heavy industry

The Air Resources Board must prioritize carbon capture technologies that cut emissions in hard‑to‑decarbonize sectors, like cement and steel, when it evaluates safety, efficacy, and viability.

Clean air programs and methane tracking

The law keeps major clean‑air programs funded. It reuses up to $100.2 million for methane monitoring, with funds available to commit until June 30, 2029. It sends money to local air districts for Carl Moyer grants that cut engine and vehicle pollution. It also lets the state move up to $85 million to the Motor Vehicle Account when needed to meet transportation cash and debt needs.

Exide cleanup money and loan

Money, including about $35 million, is available until June 30, 2029 to clean up lead near the Exide facility. The funds also support job training, legal cost recovery, and oversight. The state may also loan up to $40 million from the General Fund to the cleanup account through June 30, 2029. This keeps Exide-area cleanup and related work moving.

Faster cash reports and retiree health checks

The Controller must publish the monthly General Fund cash report within 10 days after each month and send it to key budget offices. The Controller also gets actuarial services to measure retiree health (OPEB) costs. The Controller and Department of Finance coordinate extra valuations for bargaining units and note differences from PERS methods. This improves fiscal reporting and planning.

Funding tools for the state military

The law makes $37 million available to pay bills in advance while waiting for federal reimbursements; the Military Department must track this and report each quarter. Up to $1.301 million funds the California Cybersecurity Integration Center, which must protect privacy, civil liberties, and business secrets while sharing threat information. The Director of Finance may approve a short‑term General Fund loan up to $30 million for Military Department cash flow, may waive interest, and must notify lawmakers within 15 days. The state provides $15 million for a Counterdrug Task Force targeting heroin, fentanyl, meth, cocaine, and similar drugs, with yearly reports starting October 1, 2025, until funds are spent. Money can also improve armories, and spending may increase if private donations come in, with a 30‑day review by the JLBC chair.

Juvenile justice grants and support

The state provides $10 million to the Office of Youth and Community Restoration for help, training, and grants to improve juvenile justice. It also provides $2 million to county probation departments. The Department of Finance must send an allocation plan by September 1. The Controller must distribute the money by October 1 each year.

More staff and benefits for courts

The state sets aside $7.42 million to fund bailiffs for reallocated and new judgeships; payments follow a Department of Finance schedule. Counties that qualify can be repaid for homicide trial costs; approved claims are shared by May 1, 2026, and unpaid claims roll to the next year. The Judicial Council allocates $30 million so all courts can add official court reporters in family and civil cases for hiring, full‑time conversions, raises, and bonuses; the funds cannot replace current spending, and any unspent money goes back to the General Fund. The Department of Finance can also send money to trial courts to cover higher retirement and health costs for court employees. The Controller may move funds between the two Judges’ Retirement Fund accounts when ordered by the Department of Finance.

Wildfire recovery funds for L.A. County

Up to $100 million is set aside for projects to help Los Angeles County recover from the January 2025 wildfires. The state will name the specific projects in a future budget law. The funding supports residents and local services in the affected areas.

9‑1‑1 upgrades with surcharge cap

The Department of Finance can add money midyear to keep Next Generation 9‑1‑1 on track. Any increase cannot raise the monthly 9‑1‑1 surcharge above the rate in place on January 1, 2025. DOF must give at least 30 days’ written notice to legislative chairs before approving an increase, unless a shorter time is set.

Backstop tobacco bonds and building costs

If tobacco settlement revenues fall short, the Department of Finance can authorize up to $200 million more to pay tobacco bond debt and operating costs and must notify lawmakers within 30 days. The Controller must also make two one‑time transfers totaling $958,000 to the Public Buildings Construction Fund expense account within 30 days after enactment.

Cash bridge and oversight for pensions

Finance can loan up to 50% of the appropriation to the PERS State Social Security Administrator Program to cover short‑term cash gaps, with repayment within 30 days of collections. STRS must provide IT project reports and briefings; its IT funds stay available through June 30, 2028, and can be liquidated through June 30, 2030.

Court security, interpreters, and new judges

The state provides $20 million to help counties pay higher court security costs from courthouses occupied on or after October 9, 2011. For 2025–26, requests are due by March 1, 2026, and the base amount is $100,000 per added security staff member; the Controller pays within 30 days after getting an allocation schedule. Sixteen subordinate judicial officer positions become judgeships in 2025–26. The Judicial Council sets interpreter pay policies that cannot be higher than the federal certified interpreter rate.

EDD systems upgrade funding

The law provides $62.117 million for EDD’s modernization work known as EDDNext. The money can be spent or encumbered until June 30, 2027. These upgrades support better service for claimants and employers.

Emergency communications cash bridge for OES

The Director of Finance can make a short‑term General Fund loan to the Office of Emergency Services up to 35% of this item’s spending to cover delayed receipts. The loan must be repaid by October 31, 2026, and interest can be waived. Approval must be filed with budget committee chairs at least 30 days before the loan takes effect, unless they allow less time.

Extra support for safe drinking water

The Director of Finance can add money to the Safe and Affordable Drinking Water Fund. Each quarter, the state can top up the transfer so it equals $32.5 million, using the 2023–24 level as the target. This supports safe drinking water projects.

Faster budget moves for disaster aid

Finance can add money to federal disaster and federal local assistance items to receive and transfer federal disaster funds without using Section 28.00. Finance must notify legislative budget chairs in writing within 10 days of approval. Other augmentations still follow Section 28.00.

Faster use of federal disaster and aid

The state treats federal program money as ready to spend or move into the right state fund. It creates a federal disaster item so FEMA and other disaster dollars can repay the General Fund for response costs. The Director of Finance can supply required state match or adjust budgets to win federal awards under the infrastructure, climate, and CHIPS laws, with 30‑day notice to lawmakers. If extra federal antiterror funds arrive, the Director can allocate them to state departments or local governments after notice.

Faster wildfire response with flexible funding

Finance may move CAL FIRE funds to pay emergency fire suppression, detection, and revegetation. CAL FIRE can begin July–September contracts before they are signed and can change pilot, mechanic, and parts contracts for sudden needs. Finance can approve extra spending after notice, adjust for higher outside reimbursements, and update base funding for contract counties. CAL FIRE may use certain funds for operations or capital and can contract for exclusive‑use aircraft without bids up to $65 million a year, with quarterly reporting.

Funding to rebuild child welfare system

The budget provides $121.649 million to build the CWS‑CARES child welfare system if the technology department approves the project to continue. Finance can add up to $36.641 million more after verified progress and a 30‑day notice to the budget committee chair. This funds a statewide child welfare technology upgrade with oversight and milestone checks.

Grants help police enforce alcohol laws

The Alcoholic Beverage Control agency can give grants to local law enforcement to strengthen alcohol law enforcement. It can advance funds and let local agencies keep equipment bought with the grant at the end of the grant period.

Keeping victim compensation payments funded

The Department of Finance can increase the transfer to backfill the Restitution Fund when revenues fall short. Any increase waits 30 days after written notice to the budget committee chair, unless they allow a shorter period. This keeps the California Victim Compensation Board running when the fund is low.

More time to use broadband funds

Broadband local assistance money stays available to commit or spend until June 30, 2028. This helps finish ongoing broadband projects.

Reuses $112.8 million for state repairs

The law reuses up to $50.8 million from 2023 and up to $62.001 million from 2024 for roof replacements and kitchen repairs statewide. Money stays available through June 30, 2027.

Shifts keep care programs running

The Department of Finance can move spending authority between certain education and social services budget items to keep services running. Total General Fund increases cannot be more than total decreases. This supports continuity of care when programs shift between departments.

State cash flow and FI$Cal fixes

Departments must collect money owed quickly, including advance payments when possible. The Director of Finance can let agencies spend interagency reimbursements not in the Budget Act, with 30‑day notice for transfers over $200,000. When FI$Cal issues delay collections, the Director can approve short‑term loans and may waive interest; loans are cashflow fixes, not budget revenue or spending. The Consumer Affairs Director can order interfund loans that must be repaid within 24 months with PMIA‑rate interest, report by April 1, 2026, and give 10‑day JLBC notice if loans exceed $200,000. Finance can adjust budget coding and schedules and correct FI$Cal or legacy‑system errors to keep the books accurate.

Veterans projects keep funding longer

Earlier Veterans Affairs capital funds stay available for their original projects through June 30, 2028. This keeps those project dollars usable and projects moving.

Funding for warm lines and ACEs support

The law sets aside $20 million for the CalHOPE peer‑run warm line through June 30, 2028. It adds $5 million for the Orange County Warm Line and $3 million for the Parents Anonymous Warm Line, also through June 30, 2028. It provides $20 million for the ACEs Aware Initiative and $2.708 million to train providers on trauma screenings.

Medi-Cal funds can shift and backfill

Finance can move spending authority between Medi‑Cal schedules and related items and order transfers to the Healthcare Treatment Fund when costs exceed its balance. Any excess transfers are returned at year‑end, and most changes include 10‑day legislative notice. Finance may also adjust amounts after federal approval under CalAIM to claim federal funds. A listed item may be transferred even if other laws would normally block it.

More aid for trafficking survivors and foster care

The law provides $17 million for grants that support services for victims of human trafficking. It also sets aside a one‑time $23 million for foster family agencies. Awards to agencies are automatic based on placement data and are available to spend through June 30, 2027.

More help to quit tobacco and vaping

Funds from two settlements can pay for local quit programs through June 30, 2027. Local groups may use money from the TGI Wellness and Equity Fund and the Electronic Cigarette Settlements Fund for tobacco and vaping cessation. The state also provides $7.28 million through June 30, 2027 for youth vaping awareness, research, training, and related projects.

More naloxone and overdose prevention grants

The state funds more overdose prevention work. It provides $12.506 million for harm‑reduction grants through June 30, 2028. It adds $540,000 and $960,000 for fentanyl test strips and naloxone access, and $885,000 for technical help, with dates through 2027–2028. The Department of Finance may add up to $15.25 million more for naloxone if the Opioid Settlements Fund has enough money. Up to $2.5 million is also available through June 30, 2028 for an opioid public awareness campaign.

Prison health care and treatment funding

The state funds the Integrated Substance Use Disorder Treatment Program with $132.298 million and $68.707 million. Any unused amounts return to the General Fund on June 30, 2026. The Receiver also processes and pays medical claims for medical parolees using Schedule (1) funds.

Protect TANF funds for families

State funds counted toward the TANF maintenance‑of‑effort cannot be spent in ways that would make them ineligible under federal rules. This protects federal TANF support and the programs that low‑income families rely on.

Repairs and lease payments for health facilities

The law provides $15.415 million for ligature risk repair projects at Atascadero, Metropolitan, Napa, and Patton State Hospitals. It also reimburses $605,000 in lease payments tied to DHCS use of the Richmond lab. The Controller must follow the State Public Works Board schedule for base rental transfers, including early transfers to meet debt deadlines from the Childhood Lead Poisoning Prevention Fund.

Adult Education Program expansion and data

The state provides $674,159,000 for the Adult Education Program. It includes a $15,022,000 cost-of-living increase. It also provides $5,000,000 to build a unified dataset with job, wage, and college transition outcomes, and to train staff on data collection and analytics.

Bigger California College Promise support

The law sets aside $91.207 million for the California College Promise and related work. At least $14.036 million pays $0.91 per unit to reimburse Promise Grants, and at least $14.190 million reimburses districts for 2% of fee waivers. It funds $5.3 million for outreach, including $2.5 million for non‑English speaking households. Up to $45.2 million supports direct contact with students (at least $50,000 per campus), and up to $5 million funds financial‑aid technology upkeep and training.

Funding to grow school leadership training

The state provides $12.935 million in ongoing federal funds for the 21st Century California School Leadership Academy. This includes $7.63 million from Title II and $5.305 million moved from Title IV to Title II. Another $200,000 supports program administration, with $25,000 for Marin County Office of Education and $175,000 for CCEE. Marin must act by August 31 and transfer funds by December 15 each year.

K–12 Strong Workforce funding boost

The state provides $163.5 million for the Strong Workforce Program. $150 million funds a K–12 component with the Chancellor consulting with the State Department of Education. $12 million supports K–12 Workforce Pathway Coordinators and K–14 Technical Assistance Providers. $1.5 million covers consortia administrative costs.

New funding for UC campuses and centers

The state funds several UC efforts. It provides $33.3 million ongoing for UC Merced and UC Riverside campus expansion and UC Berkeley clean energy upgrades. It adds $2 million ongoing for the UC Riverside School of Medicine. It provides $1.5 million ongoing to support UC students with disabilities, based on campus counts, to hire staff and lower caseloads. It also gives $3 million ongoing to UCLA’s Bunche Center and $15 million one time to UC Berkeley’s Journalism Fellowship Program.

UC projects, research, and loan option

The law funds UC medical school projects at UC Merced and UC Riverside ($21 million). It provides $13 million each year for UC labor centers and programs, and $430,000 each year for the California Newspaper Projects at UC Riverside. It adds $1.3 million one time for school‑meals research at UC. Prior UC funds stay available through June 30, 2026. For 2025–26, the Director of Finance may provide UC a short‑term General Fund loan after required notices, if UC requests it.

More flexibility for small state projects

Agencies can use up to $3,000,000 from support funds for small facility projects, with a 30‑day notice to lawmakers for requests over $500,000. Money for project plans can be used until June 30, 2026; other capital funds can be used until June 30, 2028. The state may extend certain bond and water fund deadlines by up to three years, with limited, scheduled legislative notifications.

Partial vetoes do not stop budget

If the Governor vetoes, reduces, or deletes a line item, the rest of the approved budget still takes effect. Approved parts work as if the vetoed items were not there.

Sets aside $140 million for climate work

The law sets aside $140 million for climate resilience, natural resources, and environmental protection. The money cannot be spent until a future budget bill assigns it to specific uses.

State reserve fund gets topped up

The Controller transfers General Fund money to the Special Fund for Economic Uncertainties to match the 2025–26 Final Change Book level. The transfer is reduced by any excess revenues under constitutional limits.

More funding and time for housing

The state provides $120 million for the Multifamily Housing Program, available through June 30, 2030. Finance may move up to 5% for administration, also available through 2030. Prior housing funds are reappropriated, including up to $300 million from a 2022 item, with deadlines extended to dates such as August 20, 2027; August 18, 2028; August 14, 2032; and June 30, 2029. The Tahoe Conservancy can buy property worth $550,000 or less without Public Works Board approval.

Tighter pay benchmarks for UC leaders

The UC Regents must use a defined market reference zone when setting pay for Senior Management Group jobs. The zone must include state employees and comparable positions named in law. The Regents must also take steps to reduce UC’s cost structure.

Less money for some housing programs

On June 30, 2025, $37.507 million in unspent housing funds return to their original accounts. The amounts are $10.132 million, $4.375 million, $13 million, and $10 million from prior housing items. This reduces the money left for those state housing programs.

Cap on schoolsite fee administrator pay

Pay for the third-party administrator of the Behavioral Health Schoolsite Fee Schedule is capped at 15% of total yearly claims paid to providers. To find the cap, multiply total calendar‑year claims by 15%.

Higher licensing and public health fees

License fees for residential and outpatient programs can rise by up to 20% each fiscal year through 2026–27, aiming for a total 75% increase. The state also raises public health fees by emergency rule so revenue covers at least 95% of program costs. General Fund public health fees go up 20.3%. Special fund fees can also rise 20.3% only if the fund’s reserve is under 10% and 2024–25 revenues are below the appropriation. The law includes $262,000 to cover the gap between a 20% step and a full 75% increase in projected revenue.

Unused agriculture funds return June 2025

On June 30, 2025, unused balances in the listed Department of Food and Agriculture appropriations revert to their original funds. After that date, those appropriations are no longer available to use.

Climate and emergency project funds cut

On June 30, 2025, $9.8 million for Regional Climate Collaboratives, $10 million for ICARP planning grants, and $15 million for Extreme Heat grants revert to their funds. Unspent balances for certain emergency services projects also revert that day. The transfer from the cigarette surtax fund to the Habitat Conservation Fund is reduced by $5.114 million.

Plan for big federal funding cuts

If federal money for a program drops by more than 5% of this act’s amount, Finance must notify lawmakers within 30 days. The notice must show available funds, 2025–26 spending effects, service impacts, and a reduced‑spending plan. The plan runs up to 45 days for review, then becomes permanent.

Reports required for big IT overruns

Finance must report to the Joint Legislative Budget Committee when an IT project’s cost rises by $5,000,000 or 20% of budget, whichever is less. The report explains cost, scope, schedule, reasons, contracts, and recent oversight risks, plus fixes. It is due at least 30 days before any related new contract or amendment.

Tighter funding for hospitals and disability services

The state cannot issue any DSH general obligation debt this year (cap set at $0). Extra hospital caseload funds return to the General Fund unless Finance approves another use with 30 days’ notice. Finance may cut related items by up to $3,908,000, up to $1,642,000, and by $162,000 General Fund plus $1,294,000 reimbursements if named federal Medicaid rules are rescinded; any cuts must be reported within 10 days. For developmental services, specified balances, including up to $5,000,000 and up to $3,258,000 for a project, and other unspent amounts revert on June 30, 2025.

UC funds can drop if tuition rises

If UC raises systemwide tuition for 2025–26, the Director of Finance can cut UC’s state funding by the amount that Cal Grant and Middle Class Scholarship costs go up. The Director must wait at least 30 days after notifying the Joint Legislative Budget Committee chair before making a cut. This links any tuition hike to a matching UC funding reduction.

Limits on continuous fund commitments

Starting July 1, 2026, funds that are always available by statute cannot be encumbered unless the Legislature explicitly allows it. Exceptions include scheduled local sales and use tax and transactions and use tax disbursements, certain bond and university proprietary or fiduciary funds, and scheduled motor vehicle license fee disbursements.

New Medicare rules for CSU retirees

If a CSU retiree or a covered family member becomes eligible for Medicare Parts A and B during 2025–26, they cannot be in the basic CSU health plan that year. Retirees on Medicare can enroll in a Medicare supplement, unless federal rules forbid it. For 2025, the maximum monthly contributions are $1,060 (single), $2,039 (enrollee + one), and $2,551 (enrollee + two or more). On June 30, 2025, unspent prior‑year balances in a listed health item revert to the General Fund.

Retiree health caps and employer rates set

For 2025, the state pays up to $1,060 a month for single retiree health coverage, $2,039 with one dependent, and $2,551 with two or more dependents. Employers also pay 0.08% of gross health premiums into the contingency reserve, subject to change with 30 days’ notice to lawmakers. The state sets OPEB prefunding rates by bargaining unit (for example, 3.0% for many units, 4.0% for Unit 6, 4.5% for Unit 18, and 2.4% for exempt/excluded; certain Judicial Branch employees at 2.3%).

More worker rights enforcement, fund rules

The law gives $14 million to the Retaliation Complaint Investigation Unit, with intent to fund this amount ongoing. It provides $12 million to carry out the Garment Worker Protection Act. It funds the Workplace Outreach Project ($2.6 million, $5.85 million, and $4.55 million) through June 30, 2030, with up to 15% for administration. It also sets rules for the Unpaid Wage Fund: in a cash shortage, pay garment, farmworker, and car wash restitution first before any General Fund transfer; give an estimate by April 15, 2026; and move the unencumbered balance (less six months of costs) to the General Fund on June 30, 2026. These fund rules end June 30, 2026.

Tighter controls on state jobs and pay

The finance department must approve reclassifying jobs to or from positions with a $13,842 monthly max pay or higher and creating new positions not in the Governor’s Budget. Administratively created 2025–26 positions end on June 30, 2026 unless an exception applies. Pay increases need an appropriation or finance certification, with 30 days’ notice if 2026–27 funds are needed. MOU addenda can take effect after 30 days’ notice if they cost under $1,000,000 total per bargaining unit, fit within 2025–26 funds, and add no major items; bigger or costlier addenda need legislation. Signed addenda and fiscal summaries must be posted online.

Higher upfront RIGHT grants with reporting

RIGHT Grant 3.0 recipients can receive more than 25% of their award up front. Money not used as proposed must be returned by June 30, 2027. Grantees must file an expenditure report by December 1, 2027. The department reports to budget committees by April 1, 2028. These rules end April 1, 2028.

Flexible funding for DOJ operations

The Finance Director can add money to the DNA Identification Fund after a 30‑day notice to keep forensic services running. The Attorney General can raise several DOJ special funds by up to 10% to handle surprise workloads, with notice in 15 days. DOJ can buy or lease needed vehicles, but not military gear except for a narrow legal exception. DOJ must use Secondhand Dealer and Pawnbroker and Major League Raffle funds only for their stated purposes.

Focused funding for prison health care

The prison health Receiver can spend money in Schedules (1) and (4) to provide court‑ordered inmate medical care. Schedules (2), (3), and (5) can only pay for mental health and dental services. Finance may change Schedule (4) to match pharmaceutical abatement money and cash‑flow needs.

Energy safety funding up; clean funds revert

Finance can add up to $1 million each year and up to five positions to the Office of Energy Infrastructure Safety to review more undergrounding plans, with quick notice to lawmakers. The Controller transfers $24 million to the Natural Gas Subaccount for public‑interest research. On June 30, 2025, $18 million for clean energy reliability and $42.75 million for offshore wind incentives return to their original funds.

CSU cash loans and turnaround plans

For 2025–26, the Director of Finance can approve a short‑term General Fund loan to CSU to cover cash‑flow gaps from state payment deferrals, after a 30‑day notice to legislative budget leaders. CSU campuses with sustained enrollment declines must file turnaround plans by December 31, 2025, with strategies, timelines, costs, and five‑year projections. The Chancellor’s Office must submit a systemwide report by March 1, 2026.

More support for community colleges

The state backfills $8.065 million one time for community college property tax losses from January 2025 fires. It provides $7.5 million for technical help to low‑performing districts; Chancellor‑initiated help can be free, but districts that request help must pay $1 for every $2 received. The Chancellor can fund research and a statewide online clearinghouse, including programs for incarcerated and formerly incarcerated learners and California Conservation Corps members. Districts that opt into the Mandated Programs Block Grant get $36.46 per funded FTES, subject to proration from $39.159 million statewide.

School meal money: backup and proration rules

Each year by January 20, the education department must project school meal reimbursements. If projected claims exceed the budget, the Department of Finance must add money to cover them. If funding still falls short, reimbursements are paid on a prorated basis so every claimant gets a fair share of the available funds.

Student aid backstops and tuition offsets

Finance can cut the budget item by the extra Cal Grant and Middle Class Scholarship costs caused by a 2025–26 tuition hike, after 30 days’ notice. Finance can also add money to Cal Grants from the Economic Uncertainties fund with 30 days’ notice.

Workforce funds: more flex, some limits

EDD must send spending estimates on Oct 1, 2025 and Apr 20, 2026. If extra federal workforce funds arrive, the finance director may raise spending after 30 days’ notice; if funds fall, the director may cut it with the same notice. The director may also adjust federal trust fund transfers to match approved plans. The law extends time to spend prior workforce grants to June 30, 2028. The Employment Training Panel can spend more than 15% on administration for a listed fund.

New rules for climate fund spending

Departments cannot commit more than 75% of Greenhouse Gas Reduction Fund (GGRF) money before the fourth 2025–26 cap‑and‑trade auction. After that auction, DOF will set remaining spending and must tell the budget committee within 30 days if lower proceeds force changes. Agencies may adopt GGRF allocation guidelines without using the Administrative Procedure Act. Certain revenues are excluded from the GGRF annual proceeds calculation.

Targeted budget changes with safeguards

The state can add new local or federal funds to 2025–26 budgets if they are legal, purpose‑limited, and need no new state match; big changes require 30 days’ notice and this authority ends June 30, 2026. Within a budget line, transfers are capped (up to 20% for lines ≤ $2 million; up to $400,000 for $2–4 million; up to 10% for over $4 million), cannot fund capital projects, and larger moves need 30 days’ notice. Insurance fraud‑control funding may rise by up to 10% if extra assessment revenue is found by November 1, after notice. The state may also loan up to $872,000 to the Unflavored Tobacco List Fund from the Public Rights Law Enforcement Special Fund, with interest at the PMIA rate.

Budget contingency moves and spending guardrails

The law lets the Director of Finance shift funds to keep core bills paid. A $40 million General Fund contingency has strict limits, notice to lawmakers (30 days, or 10 for emergencies), and caps on growth (30% for items of $4 million or less, 20% for larger items), and forbids uses like capital outlay and prior‑year costs. There are also $15 million contingency pools for special funds and $15 million for nongovernmental cost funds under the same rules. The Director can make emergency loans to agencies (not repayable from future appropriations), approve small capital‑outlay transfers within a project, move health‑benefit authority between items, and add up to $1 million to meet new federal rules. Officials who cause spending beyond appropriations are personally liable unless the expense is for certified caseload or population growth in the social services, corrections, developmental services, state hospitals, health care services, or public health departments and lawmakers were notified 30 days in advance.

Keep transport funds on track

Transportation funds get more time to be obligated and spent through June 30, 2026. Starting June 30, 2025, any unallocated Corridor Mobility Improvement Account balances go back to their source funds. Spending is limited to stormwater and other water or air quality compliance, statewide plans, and court orders.

Rail funds: rules and flexibility

Some rail funds are treated as part of ongoing, continuously appropriated programs, with unused amounts reverting under existing rules. The High‑Speed Rail Authority may swap state bond money with federal funds and receive up to $10 million in reimbursements from Caltrans and up to $1 million for work requested by locals and rail providers, with required legislative notice. Property fund dollars can only be used for activities listed in state law.

State cash flow and interest rules

The state uses the lowest‑cost borrowing first to meet General Fund cash needs. If interest costs exceed what was budgeted, more funds are allowed after a 30‑day notice to budget committees. The same rules cover interest owed to the federal government, including highway and other funds. The law also allows short‑term General Fund loans to the State Treasurer (repay in six months) and to Human Resources (repay by September 30, 2026), with interest that can be waived. Up to $1.7 million can pay expenses from canceled bond or note sales, with notice to lawmakers.

Bonds and loans for CHP buildings

The state may issue bonds and use interim loans to design and build CHP facilities. This speeds projects but also increases state borrowing to pay for them.

Workers’ comp support for trial judges

Appropriated funds cover workers’ compensation program costs for trial court judges. This pays the program costs for that group.

Keeps Lifeline phone support funded

The Department of Finance can increase funds for the Lifeline phone program’s mailings and claims when the utilities commission asks. The Director must notify budget leaders in writing within 10 days of any increase. This helps low‑income households keep access to discounted phone service.

State workers’ pay stubs kept private

State agencies must deliver paychecks and direct deposit advices in ways that protect employees’ personal information. Human Resources advises agencies on how to do this.

Funds to pay military retirements

The state sets aside $480,000 to pay military retirements under state law. Eligible military retirees receive payments from this funding.

More DMV help for REAL ID demand

The Director of Finance may add money for DMV REAL ID work if DMV shows the need. DMV must explain how it will cut wait times or speed transactions. The Director must notify budget leaders in writing at least 30 days before it takes effect.

CalFresh outreach planning to reach eligible households

The law sets aside $200,000 to design a plan to reach people who qualify for CalFresh. The plan guides outreach and methods to help more eligible households get grocery benefits.

Funding for trauma and tech training

The state provides $2,708,000 for provider training on trauma screenings. The health department will develop the curriculum and may use contracts that are exempt from some procurement rules. $250,000 is also set aside through the 2025–26 fiscal year for psychiatric technician assistant 20/20 training, under the Bargaining Unit 18 MOU.

Funds to give diapers and wipes

The state provides $7.4 million to Social Services. Eleven named groups get funds to give diapers and wipes to low‑income families with infants or toddlers.

Keeping adoptions and licensing services running

If a county stops doing adoptions, Finance can create state positions and move money so the state takes over. Finance can also move funds so counties can run adoptions and facility evaluations under Social Services. These moves keep adoption and licensing services available to families.

Monthly checks on CalWORKs child care

Social Services must review CalWORKs Stage 2 and Stage 3 caseloads and spending every month. It must adjust contractor reimbursement limits and allocations so money follows need. This helps funding keep up with families who use child care in these stages.

More Medi‑Cal help from recoveries

Money recovered from past Medi‑Cal payments is appropriated and must be spent quickly on medical care. Nonfederal sanction dollars collected in 2024–25 fund grants for nonprofit legal aid serving Medi‑Cal managed care enrollees in Los Angeles County and other impacted counties. Funds for these grants are available until June 30, 2026. The health department sets the eligibility and distribution rules.

New care equipment for veterans’ home

The state sets aside $892,000 to replace equipment and furnishings used for resident care at the Veterans’ Home of California. The money can only buy items tied to care.

One-time boost for youth behavioral health

The law provides a one‑time $10 million reimbursement pool for the Children and Youth Behavioral Health Initiative. This helps pay eligible costs for services to children and youth. It is a single‑year funding boost.

Per-meal pay for childcare providers

Childcare centers and homes are paid $0.2212 for each eligible meal they serve. Multiply $0.2212 by the number of meals you serve to estimate your total reimbursement.

Temporary boost for Medicare counseling

The state adds $1,830,000 temporarily to HICAP. This funds counseling and advocacy for Medicare enrollees. The amount is exempt from a state funding ratio rule.

Keep property tax postponement running

The state provides $2,792,000 to administer the Property Tax Postponement Program. The program’s fund keeps a continuous appropriation to pay counties for property taxes and direct program costs. The fund cannot be used for staff or operations beyond this appropriation.

Backstop keeps workers’ comp checks going

If funds for the Subsequent Injuries or Uninsured Employers workers’ comp programs run short, the state can use a revolving fund to keep paying benefits and repay it later. The finance director can also approve extra spending to pay unplanned volunteer disaster workers’ comp claims, with written notice to budget leaders before it takes effect.

Childcare and work-study at community colleges

The budget sets $11,504,000 for student childcare at community colleges. Districts may ask the Chancellor to repurpose these funds. At least $6,135,000 pays for direct work-study wage reimbursement, and $769,000 funds campus job development and placement services.

College childcare money for select districts

Community college districts that levied childcare override taxes in 1977–78 receive funds. The split follows each district’s 1979–80 childcare obligations, adjusted for cost of living. Money must support community college childcare and development programs.

Credit for prior learning expands

The state provides $5 million each year to support credit for prior learning at community colleges. If you have work or learning experience, colleges can use these funds to award credit. This can help you finish sooner and lower your costs.

Extra $400,000 for aid grants

The Student Aid Commission receives $400,000 from the College Access Tax Credit Fund for local financial aid grants. This adds to statewide aid, but the law does not set a per‑student amount.

Extra help for students and families

The law adds $4.5 million one time for after‑school programs (21st Century Community Learning Centers). It adds $667,000 one time for homeless student services under McKinney‑Vento. It also provides $500,000 for statewide student‑council outreach, and local agencies cannot charge indirect costs on that money.

Funds moved to keep care services

Up to $6,000,000 can be moved between certain education and social services budgets to keep care continuous. The Department of Finance must approve transfers. Overall General Fund increases cannot exceed total decreases. This helps students and families keep services when budgets shift.

Grants to upskill local public health workers

The law funds a $400,000 program to help local health department staff build skills. Up to $160,000 can run the program. Eligible employees (employed at least one year) can get stipends up to $600 per week for up to 12 weeks and education cost help. A report is due by July 1, 2026.

Legal help on CSU campuses

The state provides $7 million for contracts to offer legal services on California State University campuses. Contractors must meet Chapter 5.6 rules. The Department of Social Services must report how funds are used to the Legislature.

Loan help for public-interest attorneys

The state provides $216,000 from the Public Interest Attorney Loan Repayment Account to the Student Aid Commission. The money supports loan repayment help for public interest attorneys.

More outreach help in rural areas

The law provides $4,360,000 for a Rural Strategic Engagement Program. $3,000,000 funds grants to community groups for outreach and walk‑in clinics. $2,000,000 pays vendors for drafting, translation, design, printing, and social media. Evaluators must consult community groups, and lawmakers intend $4,611,000 next year.

More support for preschool and early learning

Funds are split to support both part‑day and full‑day State Preschool for non‑school providers. Finance can make a short‑term loan up to $20 million to cover preschool cashflow delays, to be repaid within 90 days. $312,000 funds a tool to strengthen teacher‑child interactions. $650,000 in one‑time federal carryover supports Early Head Start–Child Care Partnerships.

Pay boosts for state active-duty military

The state sets aside $1.805 million to provide required pay increases for state active duty Military Department employees. Another $1.99 million from the Federal Trust Fund is available if the federal budget raises active duty pay. The Director of Finance can further augment funding after at least 30 days’ notice to fiscal leaders and must include the fiscal assumptions used. Spending follows Military and Veterans Code Sections 320 and 321.

Remedial education for CalWORKs participants

The state sets aside $1,161,000 for remedial education for people in CalWORKs welfare-to-work activities. The money funds training and education to support employment.

Small boosts for American Indian education

Funding rises by $16,000 for the American Indian Early Childhood Education Program within its $720,000 budget. Funding also rises by $120,000 for California American Indian Education Centers within their $5.33 million budget.

State support for IHSS bargaining

The state provides $3.3 million for staff and operations to support statewide collective bargaining for In-Home Supportive Services providers. This funds state bargaining support. It does not directly change pay rates or IHSS benefits.

Student council funds and reports

The law keeps $500,000 for the California Association of Student Councils available one time through June 30, 2028. The group must send annual reports by July 1 in 2026, 2027, and 2028. Reports list events, student counts, locations, and demographics. This keeps student events funded and adds oversight.

Textbook help for incarcerated students

By September 1 each year, up to $3 million goes to community college districts to provide textbooks or digital course content to students who are incarcerated or detained. Districts are encouraged to use open educational resources. Contracts for this purpose are not subject to certain competitive bidding rules.

Training for foster and kin caregivers

Community colleges receive funds to provide training for foster and kinship caregivers. Colleges must give priority to required trainings under state rules. This expands access to caregiver education.

Cap on heritage school fees

The education department must keep heritage school registration fees at or below the actual cost of registering the schools. This limits how much small schools or parents pay to register.

Farm fees can fund research and admin

Specified agriculture fees can now pay for dairy research, named farm activities, and related administrative costs. This broadens how existing fee money supports farm programs.

Faster pay for childcare contractors

Social Services may use a vendor to send direct deposits and advance payments to childcare contractors. With Finance approval, funding can be increased to keep the service running until the state’s EFT system is fully integrated. These contracts are exempt from some state procurement rules.

More time to spend farm funds

Earlier agriculture appropriations are reappropriated for the same purposes. Money can be encumbered or spent through June 30, 2026 or June 30, 2027 (as specified), and liquidated through June 30, 2029 for certain items. Capital project balances also stay available to finish listed projects.

State match for small business exports

Finance may add up to $650,000 to meet the state match for a federal State Trade Expansion award. Budget leaders get at least 30 days’ notice, unless the committee chair shortens it.

Truck vouchers from Hino settlement

$3 million flows through the truck and bus voucher program when Hino Consent Decree funds are available. The money supports medium‑ and heavy‑duty vehicle purchases, with focus on disadvantaged communities and small businesses.

2025–26 freeze on some state fees

Fees that use the annual adjustment under Health and Safety Code §100450 do not increase in the 2025–26 fiscal year. Fees listed in subdivisions (f), (g), (m), and (s) of Business and Professions Code §1300 can still change.

Air board funding shifts and deadlines

The Air Resources Board can use penalty and fine revenue in listed budget schedules. $2,283,000 becomes spendable only after peer‑review results for E11–E15 fuels are submitted to the Environmental Policy Council. The state uses Volkswagen penalty funds to run the Consent Decree program. The Controller transfers $8,000,000 to the Certification and Compliance Fund when ordered. Lease‑revenue bond rent is paid on a schedule that can move transfers earlier, and three small rental transfers ($265,000, $81,000, and $61,000) must occur within 30 days of enactment. Air Quality Improvement Fund money can be encumbered through June 30, 2028 and liquidated through June 30, 2030.

Backup funds for FI$Cal moves

The Department of Finance can add money to cover unexpected costs when departments move onto the FI$Cal system, after a 30‑day notice to budget leaders. The Director of Finance can also add up to $3 million for unplanned FI$Cal customer service and equipment, but not more than the written cost estimate. That approval must be reported in writing within 30 days.

Cash tools to keep DGS services running

The law gives the Department of General Services (DGS) more ways to avoid service delays. DGS can make short‑term loans from the Service Revolving Fund to special funds and use a General Fund loan of up to $20 million for the GS Mart program when reimbursements lag. DGS can add or move spending authority for requested services, with notice to Finance, and cannot raise rates without approval. Some DGS funds stay available to spend through June 30, 2027. DGS can also receive and spend disaster‑response transfers, and the State Architect can get extra funds after a 30‑day notice if resources fall short.

Coastal projects get multi-year funds and loans

The State Coastal Conservancy gets multi‑year funding, including $29.41 million in federal funds through June 30, 2027, $600,000 from the Coastal Access Account through 2027, and $1.143 million for water projects through 2028. A separate schedule totals $22.725 million (minus $12 million in reimbursements) and is available through June 30, 2028. Schedule (2) money can pay for local help or capital projects. The Conservancy can borrow up to $2,000,000 short term, with repayment due by October 31 of the next fiscal year. The Coastal Commission can also get a short‑term loan up to 20% of reimbursements, due by September 30 of the next fiscal year. An $18,000 Sea Otter Fund item covers related administration.

Conservation Corps: disaster work and repairs

The California Conservation Corps gets $2,725,000 for disaster and emergency response. It also gets $1,098,000 for the Greater Valley Conservation Corps, spendable through June 30, 2027. Finance may loan up to 25% of anticipated reimbursements, capped at $7.3 million, to the Corps’ Reimbursement Account, with repayment due within one year. The law provides $5,000,000 for forest health projects and $3,500,000 to repair the Los Pinos Center, both spendable through June 30, 2028. Funds are also available for grants to certified local community conservation corps under Public Resources Code section 80136.

Donations boost immigrant integration programs

The Department of Finance may add private donations to the Governor’s Immigrant Integration Fund. Spending needs written approval and notice to key budget leaders at least 30 days before it takes effect, unless the JLBC chair allows less time. This lets the state expand immigrant integration work when donations arrive.

Faster contracting for finance work

Finance can hire private firms and advisers for certain projects without normal procurement reviews. These contracts do not need Department of General Services approval or to follow public contracting rules. This speeds legal, audit, and implementation support.

Faster payback for disaster responders

With approval from the Director of Finance, the state can reimburse state and local agencies for out‑of‑state disaster response and recovery costs. These allocations follow Section 28.00 rules, but can occur sooner than 30 days after the Legislature is notified.

FI$Cal funds available through 2027

Funds for the state’s FI$Cal system can be encumbered or spent until June 30, 2027. Unspent prior‑year money is added to support FI$Cal through that date.

Fish and wildlife grants and preparedness

The budget funds $1,573,000 in grants to control marine invasive species and $149,000 for native species projects. It provides $42,461,000 for oil spill planning, training, and response and $5,064,000 for CEQA‑related wildlife and habitat work. It adds $1,690,000 for the nesting bird habitat program. The state transfers $296,000 to the Salton Sea Restoration Fund, available through June 30, 2027. It also provides $20,000,000 in grants for hunting, fishing, and public use; the department can use some funds to run these programs as allowed by federal law.

Flexibility for state property budgets

Finance can adjust loans and appropriations for surplus state property management when workloads change, after 30‑day notice to lawmakers. If there is no enacted budget, certain statutes are treated as in effect and spending is charged to other accounts until it can be moved. The Department of General Services also gets augmentation rules used by DSA, including up to a 10% increase. These steps keep core property operations running.

Flexible funding moves across agencies

With Finance approval, up to $6,000,000 can shift between certain State Education and Social Services budget schedules. Total increases cannot exceed total decreases during the year. Allocations moved under this authority are exempt from several procurement rules and from Department of General Services review.

Funding changes for arts and heritage

The Arts Council funds two staff to expand outreach and manage grants in underrepresented communities. The law gives $1 million to the Actors’ Gang Prison Project, and it cannot also get Arts in Corrections funds while receiving this money. The Controller may move up to $400,000 for Arts Council administration when Finance orders it. The Historic State Capitol Commission can keep and spend donations and concession revenue not planned in the budget, and carry balances forward.

Funding for state facility IT system

Up to $14,784,000 is set aside for a Facility Management System project. The Department of Technology must approve the project. Spending must match the approved plan.

Funding moves for tax and ethics agencies

The Director of Finance can add Asset Forfeiture Fund money to the Franchise Tax Board’s Motor Vehicle Account, with a spending plan and a 30‑day notice to lawmakers. On January 1, 2025, the Controller transfers listed funds to agencies that enforce the Political Reform Act to support their work.

Funding to run the CARE Act

The law provides $32,884,000 to carry out the Community Assistance, Recovery, and Empowerment (CARE) Act. This money supports programs and activities required by that Act.

Funds if redistricting commission meets

If the Citizens Redistricting Commission must convene in 2025–26 to defend a map, respond to law, fill vacancies, or handle other litigation, it can request more funds. The Director of Finance must notify budget chairs in writing at least 30 days before any augmentation takes effect, or a shorter period if determined.

Help tribes with child placement checks

The state provides $87,000 to eligible federally recognized tribes or tribal agencies. The money buys Live Scan machines and repays fingerprinting fees and upkeep. Tribes must be approved by the Department of Justice to get criminal history reports. This helps background checks for placing Indian children in tribally approved homes.

Justice reimbursements and forensic fund loan

Finance may loan up to $872,000 to the DNA Identification Fund, with interest at the state investment rate. The Controller must send $35,000 in extra lease‑revenue rental within 30 days and make base rental transfers on the state board’s schedule. Money from the Dealers’ Record of Sale account reimburses local law enforcement under the 1998 law. State Penalty Fund dollars support witness relocation (unspent funds return to the penalty fund). The act also directs $428,000 to reimburse DOJ legal services and allows related augmentations after 30‑day legislative notice.

More CHP tools and emergency staffing

Up to 15% of a listed schedule can reimburse CHP for Freeway Service Patrol, with Finance approval. Up to $849,000 supports the statewide cybersecurity center. The law provides $20 million for CHP replacement vehicles and $8 million for replacement aircraft, both available until June 30, 2028. Up to $3 million supports the CHP Computer Crimes Investigation Unit for child sexual abuse material and human trafficking, with coordination requirements. Funding for tactical alerts is added, and CHP must report each year by December 31 on use and spending.

More flexibility for prison health and welfare

Finance may approve up to a 5% increase in Inmate Welfare Fund spending. The Plata court Receiver directs how a prison health item is administered. CDCR may skip competitive bids for health services when only one qualified bid is expected. The budget counts $5 million and $6 million General Fund offsets tied to expected CalAIM reimbursements, and Finance can adjust to match actual amounts. Finance can also add funds to cover county charges when ordered.

More flexible funding for state legal help

The Attorney General can increase the Legal Services Revolving Fund by up to 15% when client agencies have commitments but no spending authority, with notice in 15 days. The Attorney General may also add funds when client agencies need legal help and money is available, with 15‑day notice. DOJ must submit its 2025–26 hours projection by April 15, 2026. Finance then transfers non‑General Fund money to the legal fund no sooner than 30 days after notice. Any extra authority goes back to the General Fund on June 30, 2026.

More funding for recycling programs

The law boosts local recycling and cleanup work. It provides $11,353,000 for tire projects through June 30, 2027, plus $5,000,000 for tire recycling, $8,000,000 for e‑waste, and $2,000,000 for used oil programs. It also allows two targeted loans: up to $698,000 for plastic pollution work and up to $1,628,000 for textile stewardship, both at the state investment rate and repayable (the textile loan by June 30, 2032). The Office of Environmental Health Hazard Assessment can get a short‑term General Fund loan of up to 20% of its reimbursements to cover cash delays, repaid by September 30 of the next fiscal year.

More funding to care for oiled wildlife

The state funds the Oiled Wildlife Care Network. It provides $7,084,000 from the cigarette and tobacco surtax fund, $3,250,000 from the oil spill prevention fund, and $5,000,000 from the road maintenance account. The money supports rescue, rehabilitation, and spill response.

More grants for trails, parks, and boating

The law funds outdoor recreation. It provides $30 million for off‑highway vehicle grants through June 30, 2028, and $34 million for recreational and OHV trail grants through June 30, 2027. Of $12 million for boating and waterways, $2.5 million goes to local boating safety and law enforcement, with 15% discretionary and 85% by set priorities. Parks can borrow up to 35% of reimbursements to cover delays, with repayment due by September 30, 2026, and interest may be waived after notice to lawmakers. Parks can also contract with cooperative associations for fee collection and other services. Up to 3.7% of project funds may cover administration where allowed.

More rehab and reentry programs in prisons

The law funds more prison rehabilitation and reentry help. It gives $4,000,000 to run the Hope and Redemption Team Program. It creates RIGHT Grant 3.0 with $20,000,000 for trauma‑informed, restorative programs in prisons. At least 85% of funds go to experienced 501(c)(3) providers; no more than 12% go to new programs, and up to 3% covers state admin. The Department must post the grant notice by October 1, 2025, set 60‑day application windows, and pay eligible grantees on a set timeline.

More support for administrative hearings

Finance can add up to $11.45 million for Office of Administrative Hearings workload in 2025–26 if needed. The law sets aside $4.9 million to replace OAH’s case system, usable after state tech approval and through June 30, 2028. It also provides $9.221 million for OAH and Department of Justice costs tied to Chapter 409 (2021). By January 1, 2026, POST must report case counts and DOJ costs for decertification cases.

More time and money for recycling

The law keeps key recycling funds usable longer. Money in the Circular Economy, Covered Battery, Battery‑Embedded Fee, and Textile Stewardship funds is available to spend until June 30, 2027. Local assistance from the Integrated Waste account can be paid through June 30, 2030. The Used Oil Recycling Fund can exceed the usual $3 million cap in 2025–26. Up to $950,000 for CalHeatScore stays available until June 30, 2026. A $40 million loan is repaid to the Beverage Container Recycling Fund by June 30, 2027, and earlier beverage fund balances can be spent until June 30, 2026. Small leftover appropriations are reauthorized through June 30, 2027. Finance can also let CalRecycle spend above certain amounts through June 30, 2027.

More time to finish alcohol appeals work

Funds for the Alcoholic Beverage Control Appeals Board stay available to pay old contracts and bills until June 30, 2030. Finance may extend the deadline if needed to finish projects.

New sexual assault prevention in prisons

The law creates a sexual assault response and prevention effort in state prisons. It sets aside $3,000,000 for a working group and an ambassador program. $2,750,000 goes to the Sister Warriors Freedom Coalition for staffing, survivor care, and whistleblower protections through December 31, 2028. Another $250,000 covers working group costs, which must include leaders, officers, community groups led by formerly incarcerated people, ambassadors, and survivors.

No replacing federal help with state funds

Agencies cannot use these state appropriations to replace federal personnel, equipment, or other federal help. State funds must add to, not substitute for, federal support.

Oil cleanup planning and decommissioning

The State Lands Commission gets $12.5 million for the Rincon Decommissioning Project, available until June 30, 2028. Another $321,000 funds grants so local groups can write or update oil spill plans and take part in drills and training.

On-time payments for state leases

The Controller must move base‑rental funds on the schedule set by the State Public Works Board so lease‑revenue bonds are paid on time. This applies to items tied to public health licensing, toxic substances, infant botulism treatment, and developmental services, and allows earlier transfers if needed. The law also orders one‑time transfers to the Public Buildings Construction Fund: $1,000, $2,000, another $2,000, $5,000, and $106,000 within 30 days after enactment. These lease items may be adjusted under Section 4.30, with reports to the Joint Legislative Budget Committee.

On-time rent and debt for state buildings

The law makes sure rent and debt on state buildings are paid on time. The Controller moves base‑rental funds on schedules that can transfer money earlier to meet payments. It also orders transfers of $3,273,000, $276,000, and $11,000 within 30 days of enactment. Lease‑rental items can be adjusted under Section 4.30, with reports to lawmakers. These rules also apply to the Harbors and Watercraft Revolving Fund.

One-time $3 million for California Museum

The law gives a $3 million grant to the California Museum. This is a direct one‑time award to support the museum’s work.

Payments to eligible Indian tribes

The law provides $96.5 million to eligible Indian tribes under Government Code section 12012.90. The money is for one‑time distribution to tribes identified as eligible.

PERS budget deadlines and reports

The PERS Board must send its proposed 2026–27 budget by April 30, 2026. Proposed 2025–26 budget changes must arrive at least 10 business days before committee review and wait 30 days before approval. PERS must also send a final report by November 30, 2025 with 2024–25 spending and workload data.

Police training funds and reimbursements

The state reimburses eligible local law enforcement and justice agencies from the State Asset Forfeiture Account as allowed by law. With Finance approval, money can move between POST items to meet local training needs when agencies show a need and excess funds. The budget provides $1,556,000 for the Museum of Tolerance’s “Tools of Tolerance” training for POST‑participating agencies. Another $444,000 helps cities and counties reimburse staff who attend that training, with priority for sworn officers and state officers paid only if funds remain.

Programs can spend collected penalties and fees

Finance can raise spending limits for certain social services items to use civil penalties and other collected revenue, and reduce the original General Fund appropriation by the same amount. This covers penalty receipts for certification and child health and safety funds, plus revenue under the Home Care Services Consumer Protection Act. An existing budget rule (Provision 1 of Items 5180‑001‑0270 and 5180‑001‑0279) now also applies here.

Quicker contracting for TGI projects

Contracts tied to the TGI reappropriation do not need normal state contracting rules or Department of General Services review. This speeds work funded by those specific reappropriations.

Repairs at CAL FIRE facilities

The law provides $2.25 million for deferred maintenance and special repairs at CAL FIRE to support more hand crews. The funds are available until June 30, 2030.

Rules for animal and fair funds

Money in the Prevention of Animal Homelessness and Cruelty Fund must be spent only on the purposes set in law. Finance can adjust the transfer to the Fair and Exposition Fund to match the legal formula when needed.

Shifts in coastal and climate funds

Any Once‑Through Cooling fees above $5,873,000 each year now move to the Coastal Trust Fund. $5,873,000 stays available for the Marine Protected Area Mitigation Program through June 30, 2027. The law also reuses prior balances, including $10,000,000 returned from the Extreme Heat program, for the Governor’s Office of Land Use and Climate Innovation through June 30, 2027.

Short-term loan for SF Bay work

Finance may lend up to $1.5 million from the General Fund to the San Francisco Bay Conservation and Development Commission to smooth cash flow. Loans must be repaid under terms set by Finance. Interest can be waived under Government Code 16314(e).

Sierra and Tahoe conservation funding

$400,000 moves to General Services to manage Tahoe Conservancy projects. The Conservancy pays $31,328 to Placer County and $0 to El Dorado County, with half used for soil erosion control in the Lake Tahoe region. The law allows short‑term General Fund loans up to $1 million to the Sierra Nevada Conservancy Fund, repayable by October 31 of the next fiscal year; interest can be waived. It also provides $372,000 for Sierra Nevada watershed grants, spendable until June 30, 2028.

Special rules for Governor’s residence funds

Money for the Governor’s residence support and special contingent expenses is exempt from Government Code Sections 925.6, 12410, and 13320.

State finance systems and contracts flexibility

Finance can borrow from the General Fund to meet its 2025–26 cashflow, up to the estimated unpaid reimbursements for the final quarter. Finance can extend its web contract for the Governor’s Budget Presentation System each year through June 30. The law lets Finance hire help to redesign processes, spending up to $20 million by December 31, 2026, with reports and a 30‑day notice. FI$Cal funding can be increased to cover software license cost hikes and other reported workload after a 30‑day notice.

Statewide fight against fentanyl and gangs

The Department of Justice gets $6,666,000 for statewide fentanyl enforcement. It also gets $7,206,000 to target violent career criminals, gangs, and organized crime. The work focuses on fentanyl, opioids, and seizing smuggled firearms. DOJ may coordinate with health services and the Military Department.

Support for Delta research and policy

Up to $4 million supports Delta Stewardship Council research contracts. The money can be spent until June 30, 2027 and liquidated by June 30, 2030. Funds from the Environmental License Plate Fund may also support the Council’s policies, science work, and public engagement under the Delta Reform Act.

Support for tribes in child welfare

The law sets aside $4,145,000 to fund legal counsel for tribes in juvenile court cases. It also sets aside $4,777,000 to recruit and approve homes for placing Indian children. The money is used only after new laws set goals, timelines, and data rules. The department will seek federal approval to claim Title IV‑E funds.

Targeted agency rent and reimbursements

The Department of Cannabis Control sends $568,000 to reimburse Public Health for lease‑revenue bond rent at the Richmond lab, with transfers on the state works board schedule. The law also provides $500,000 from the Firefighters’ Memorial Fund to reimburse the Franchise Tax Board and Controller for their Memorial Fund duties.

Toxic cleanup oversight and funding tools

DTSC must report each year, within 180 days after the fiscal year ends, on actions paid for by the Site Remediation Account. The department must recover state oversight costs at military sites from the federal government and can take legal action. If DTSC gets a federal Revolving Fund Grant, it can make loans and grants under federal rules. The Controller will move site‑specific settlement deposits to DTSC’s account, up to the amount for that site, to pay oversight costs.

Transportation fee revenues protected

The law bars any cut to Motor Vehicle License Fee and related transportation fund revenues due to a tax board budget increase. The tax board must provide any required reports to Finance and the Legislature.

Upgrades to justice data and systems

The law provides $2,428,000 for a DOJ IT project, but DOJ must file the Stage 1 Business Analysis before spending it. It also gives $3,132,000 to connect law enforcement systems with DMV’s digital platform. If the connection is not fully working by June 30, 2026, DOJ must report by January 10, 2026 with status and fixes.

Wildlife and habitat funding and loans

The law invests in conservation. It provides $1,000,000 for nesting bird incentives and $5,826,000 for biodiversity work, available through June 30, 2029. It allocates $1,119,000 for efforts like the Lower American River, Pacific Flyway habitat, fish passage, and Sierra Nevada and Cascade planning. It transfers $21,011,000 into the Habitat Conservation Fund. It also allows short‑term loans up to $600,000 for the Wildlife Conservation Board and up to $450,000 for the Sierra Nevada Conservancy to manage cash needs.

Added funds for insurance oversight

Finance can add money to the Department of Insurance for higher legal costs after a 10‑day notice. The department can also increase consulting funds to review property and casualty rate filings after a 30‑day notice.

Digital ID pilot privacy and reporting rules

The Digital ID pilot must protect your privacy. You must consent to each service that gets your data. Authentication data is collected only as needed, deleted after verification, and protected with security controls like encryption. Police need a subpoena or warrant to access data. The Department of Technology must include required state contract clauses with vendors, may use only de‑identified data for pilot research, and reports every six months starting January 1, 2026.

Faster contracting for anti-hate helpline

For 2025–26, $2,383,000 for the California vs. Hate Resource Line is exempt from certain state contracting rules and approvals. The exemption applies only in the 2025–26 fiscal year.

Funds for cannabis tags and hearings

Up to $4,100,000 can pay hearing costs for the cannabis regulator. Finance can add funds for plant and package tags and for litigation and hearings, limited to the Cannabis Control Fund and after at least 30 days’ written notice to budget leaders.

More help against hate and bias

The state sets aside $76 million for the Nonprofit Security Grant Program, available through June 30, 2028. The Civil Rights Department gets $883,000 to continue the Community Reconciliation Unit through June 30, 2026. It also gets $1,442,000 to speed investigations and increase successful conciliations through June 30, 2026.

More money to fight retail theft

The Department of Justice gets $361,000 to investigate and prosecute organized retail crime. Any unspent funds go back to the General Fund and cannot be used for other purposes.

More reports; privacy budget tracks inflation

The financial regulator must file an annual report each January 10 on staffing, exams, outcomes, and needs. By March 1, 2026 and each year after, the commissioner reports revenues, spending, and months in reserve for listed programs; the digital assets report starts January 1, 2027. The privacy agency’s budget is adjusted each year by the California CPI, with an expenditure plan showing the calculation.

More support for disability access work

The Department of Finance can increase funding for the California Commission on Disability Access using 2024–25 fee revenues set aside for that purpose. Any increase requires Finance approval.

Privacy rules for cyber threat sharing

The state’s cybersecurity center must share information in ways that protect privacy and civil liberties. Officials must also safeguard business secrets while still detecting and stopping cyberattacks.

Stronger enforcement for licensing boards

Licensing boards can use fine and penalty revenue in their budgets. Each healing arts board can also get up to $200,000 for Attorney General costs and up to $40,000 for hearing costs. Larger amounts require a 30‑day notice to budget committees. The Consumer Affairs Director must report by April 1, 2026 on spending and needs.

Stronger privacy for volunteer data

The California Volunteers database must follow state privacy and use policies set by the Department of Technology.

Tighter privacy in digital ID pilot

The Digital Identity Pilot cannot work with agencies that hold minors’ data, school records, medical records, or immigration status. The pilot also cannot collect precise geolocation data. It may use other location data only to stop fraud. These limits protect residents’ privacy.

Broadband buildout progress reports, twice yearly

Starting September 1, 2025, the Department of Technology reports every six months on middle‑mile broadband. Reports list miles leased, built, or bought by county, federal and General Fund money used, contract details, and the status of last‑mile connections. This reporting ends December 31, 2026.

CHP crash data upgrade and projects

Finance may add up to $9.873 million to start the California Crash Data System Modernization after all technology approvals. Previously approved CHP capital project funds stay available to spend or encumber through June 30, 2028.

DMV registration system upgrade funding

Finance can allocate up to $53.107 million to finish the DMV vehicle registration phase of its digital platform. Spending requires enough money in the Motor Vehicle Account and approval by the Department of Technology.

Energy reliability and clean power buying

The Department of Water Resources can move appropriations into its Revolving Fund to meet operations. It gets $75 million to buy energy and capacity for grid reliability, spendable until June 30, 2028 and liquidated by June 30, 2031. Contracts for this program are exempt from competitive bidding and some state contracting rules. The department also gets $22 million to set up a central function to buy diverse clean energy, spendable until June 30, 2029 and liquidated by June 30, 2031.

Exposition Park can receive and spend more

Exposition Park’s budget may include revenue from certain fines and penalties. With Finance approval and at least 30 days’ written notice to budget leaders, the park’s budget can be increased for operations like security and parking at major events.

Faster contracting for CHP projects

For certain California Highway Patrol projects, the state can use one contract for design, one for construction management, and one for environmental services. This streamlines steps to deliver those projects.

Flexible funds for transportation projects

Agencies can move money between listed transportation items with approval from the Department of Finance. The state can provide up to $60 million as the nonfederal match to unlock federal grants. Appropriations can grow after the August federal redistribution with a 30‑day notice. The department can combine federal authority and prior‑year balances to process Active Transportation claims. Local planning grants can be allocated until June 30, 2027, and paid out through June 30, 2031.

Funds for Delta air and water

Federal funds in this budget item can support the Air Resources Board’s Delta stewardship work. Money may be used for air and water quality programs tied to the Delta.

Help to harden homes against wildfires

The state provides $12.5 million for a community home‑hardening program. It supports home‑hardening certification and county wildfire coordinators.

Keeping state payroll and books on track

The law funds upgrades to state payroll and accounting. It provides $372,000 in 2025–26 for CSPS administration. It authorizes up to $5.566 million for FI$Cal migration and up to $2.44 million for GAAP help, and sets additional FI$Cal and GAAP funds from the Central Service Cost Recovery Fund ($3.558 million and $1.56 million). It gives up to $8.692 million and up to $5.558 million for department readiness (DART) with criteria, signed agreements, and reporting. The Controller must provide yearend financial data electronically by October 31 each year.

More CHP support for anti-gang work

Up to $7 million from the State Highway Account and up to $7 million from the Motor Vehicle Account can boost CHP help for local anti‑gang efforts. This strengthens coordinated enforcement with police and sheriffs.

More funding and oversight for emergencies

The law funds Internet Crimes Against Children Task Forces with $7 million, with no more than $250,000 for admin costs, available until June 30, 2028. It reimburses costs that support emergency phone services like 911. If admin money for the nonprofit security program is not needed, Finance can move it to local grants. The Controller must move lease rental payments on the State Public Works Board schedule and transfer $91,000 within 30 days to cover building rental costs. OES must file a detailed prepositioning report each year by February 1. Unspent OES capital outlay funds stay available until June 30, 2028.

More money for floods and levees

The law gives $1 million for flood emergency response. DWR can use it only for emergencies that meet set engineering criteria and for up to seven days per event, and must notify lawmakers within 30 days. It makes $8.7 million available for Delta levee flood control projects until June 30, 2027. It provides $12 million for flood risk work: $8 million for systemwide flood risk reduction and $4 million for Cache Creek channels and levees, available until June 30, 2028.

More time and donations for OES

OES can use listed funds until June 30, 2027. Agencies can also use fire‑fleet purchase funds until June 30, 2027. Finance may add private donations to the Disaster Resistant Communities Fund after a detailed plan and at least 30 days’ notice to budget leaders. OES has until June 30, 2027 to finish listed projects and pay vendors.

Move state funds for disasters and recovery

Federal disaster funds can be moved into the General Fund to pay or repay authorized disaster response and recovery costs. The transfers do not depend on the federal application’s fiscal year. This keeps reimbursements flowing cleanly into state accounts.

Protect broadband funds, pay CEQA

The law sets aside $2.55 million for environmental review work tied to broadband. The money can be encumbered until June 30, 2028 and liquidated until June 30, 2030. It also blocks certain fund transfers between federal broadband accounts and middle‑mile accounts unless written notice is given to budget chairs at least 30 days in advance.

Safer drinking water at prisons

The law funds clean drinking water projects at state prisons and a state health care facility. It provides $11.49 million to build new wells at Ironwood State Prison. It gives $982,000 for design drawings at the California Health Care Facility in Stockton. It also funds planning for Valley State Prison and design work at Chuckawalla, with Chuckawalla funds usable until June 30, 2026.

State claims, transfers, and loan authority

The law tightens state fiscal operations. Local claims for certain costs must be filed within six months after the month the costs occur, and the Controller charges them to the year received or paid. The Controller must transfer base‑rental funds per schedule and also transfer $59,000 within 30 days for additional rental. Small, unspent school appropriations under $50,000 can be reverted faster. Finance may raise the Law Library and State Architect appropriations with required 30‑day notices. Up to $2,000,000 can be loaned from the General Fund to manage surplus property sales, repaid within 60 days of escrow close. The law also provides $2,500,000 to carry out SB 1203.

Stronger election security and voter info

The law gives $2 million to start and run an Office of Elections Cybersecurity. The office focuses on elections and coordinates with the statewide cybersecurity center. It also sets aside $17.292 million for election work like monitoring, voter guides, registration cards, and election night reporting. Any unspent money returns to the General Fund, and Finance can add more after a 30‑day notice to lawmakers.

Administrative moves to keep social services running

The Controller can move funds into the CalFresh Employment & Training workers’ comp fund when Social Services requests it. If counties do not do facility evaluations, Finance can create positions and shift funds so the state completes inspections. Up to $4 million supports a county‑optional block grant to reimburse certain child abuse investigation report costs, with audit rules.

Authority to spend federal preschool grant

If the state wins the federal Preschool Development Grant, Finance can add spending authority after giving a 30‑day notice to budget leaders. This lets the state accept and use the federal funds to expand preschool planning and resources.

Cap on SSI/SSP fraud audit spending

The Controller can spend no more than $500,000 from this act on SSI/SSP posteligibility fraud audits. This limits audit spending from this budget.

Child welfare tech funds and tribal support

Finance can move Child Welfare Services project funds to pay for staff, contracts, and interagency work to build the system. The law also sets aside $100,000 to reimburse tribes for costs to help design the new child welfare system. Social Services will set the reimbursement rules in writing.

Counties keep 50% of CCS fees

Counties keep 50% of the California Children’s Services enrollment and assessment fees they collect. The state’s matching payment for each county is lowered by the same dollar amount.

Developmental services funding and faster contracts

The law lets the state lend up to $30,000,000 to Developmental Services to cover cashflow and keep payments moving. Contracts to carry out Welfare and Institutions Code section 4519.10 can skip normal state procurement rules through June 30, 2026. DDS must give the Legislature an Autism Services Branch report by April 1, 2026. Finance can also move up to $5,000,000 between Early Intervention and Early Start budget lines to match real spending.

Faster Medi-Cal contracting and upgrades

DHCS can use contracts that are exempt from some state procurement rules for certain efforts. Finance may move savings into the fiscal intermediary budget to upgrade the Medi‑Cal claims system. DHCS can implement a listed provision by provider bulletin without formal regulations.

Faster use of federal aging funds

Finance can move money between two Aging federal fund items after at least 30 days’ notice to budget leaders. Finance can also add spending authority for new federal awards, reallocations, supplemental funds, and unspent prior‑year federal grants. Finance must tell the Joint Legislative Budget Committee within 10 working days after approval.

Faster youth behavioral health services funding

The law provides $13.7 million for the Children and Youth Behavioral Health Initiative. Contracts for this work are exempt from several normal state contracting reviews and approvals. This speeds getting services started with the funds.

Funding for firearm violence research

The University of California receives $3 million for the Firearm Violence Research Center. The Legislature intends UC and UC Davis will not charge administrative fees on this money.

Health IT upgrades and clinic billing guides

DHCS must send yearly status reports on the Medi‑Cal modernization project, including new contracts and costs. The state funds an online accreditation and certification application system, with $2.196 million available through June 30, 2027 once tech approvals are in place. Up to $1.99 million funds a new lead surveillance database after approvals and legislative notice. The state also provides $350,000 to develop a reimbursement policy manual for Federally Qualified Health Centers.

Money to update benefit forms

Up to $2 million pays for updates to public benefit forms, notices, and reports. Social Services uses this money to keep materials accurate under federal and state rules. This helps avoid errors when people apply for or keep benefits.

More flexibility for senior health programs

Finance can raise State HICAP Fund spending authority up to available proceeds after a 30‑day notice. The California Seniors Special Fund can carry over and be used in later years. Alzheimer’s Centers must spend their funds on direct client services like screening, disease management, and caregiver support.

Nursing home ombudsman funding and boost

The Department of Aging must divide local ombudsman funds based on each area’s share of licensed skilled nursing beds. If the penalties account has more than $6 million at year‑end, Finance may add up to $4 million to Item 4170‑102‑0942 after required notices. Agencies must publish the projected applicable balance after the Governor’s budget.

Ongoing funding for disease tracking

The law gives $1 million each year to run the California Vectorborne Disease Surveillance Gateway. This supports early detection and response to mosquito‑ and tick‑borne diseases that affect the public.

Quicker contracts and oversight at state hospitals

State hospitals can speed contracts tied to the Incompetent to Stand Trial waitlist by skipping certain state reviews. The department must report each hospital’s spending in the Governor’s Budget and May Revision and explain any over‑spending. It must also report on recruiting and keeping hospital police officers. Finance may raise spending for the hospital electronic health record project after a 30‑day notice. Conditional release services must be delivered by integrated, contracted programs.

Recovered county funds backstop Medi‑Cal

Recovered advances first repay counties when allowable costs were higher than advances. Any extra goes to the General Fund. If Medi‑Cal has a projected shortfall, the recovered money may pay the state’s share for medical care and county administration after notifying the budget committee chair.

Refill emergency food bank reserve

When social services reports a need, Finance can approve extra spending to replenish the State Emergency Food Bank Reserve. This helps keep emergency food available for low‑income households.

Regenerative medicine research funding

The state provides $5 million from licensing revenues to the California Institute for Regenerative Medicine. The funds support the institute’s research activities.

Reused funds for LGBTQ+ and health programs

Remaining balances from listed prior budget items are reappropriated to public health. The money can be used through June 30, 2027 for the cited purposes, including transfers to the TGI Wellness and Equity Fund and support for LGBTQ+ foster youth and reproductive health activities.

State match if 75% federal grant arrives

If the federal government awards a grant that pays 75% of costs to help nursing home residents move into community settings, DHCS can count spending in this item as the required state match. This unlocks federal funding to support those transitions when awarded.

Stronger checks on costly Medi-Cal changes

DHCS must get Finance approval before proposing or putting into effect any rule or directive that raises Medi‑Cal costs. Change orders over $250,000 for key fiscal intermediary contracts need Finance approval after a 30‑day notice to lawmakers.

TGI Wellness Fund money extended

Up to $441,000 remains available for the TGI Wellness and Equity Fund through June 30, 2028. The Department of Public Health can use it for the program’s stated purposes during this time.

Youth tobacco prevention and quitting research

The state provides $3 million through June 30, 2028 for youth tobacco prevention, including toolkits, mailings, and rural grants. It also awards two $1 million grants: one to study nicotine‑replacement therapies for youth and young adults, and one to build culturally tailored quitting programs.

Real Estate operations and research funding

The Department of Real Estate can use fine and penalty revenues in its appropriation. The law also provides $200,000 for real estate education and research at UC, state colleges, and community colleges, or a state‑contracted research project.

Add climate impacts to UCLA forecast

The law gives $75,000 on an ongoing basis to UCLA Anderson. The funds add regional climate‑impact economics into the Anderson Forecast model.

Boost to labor enforcement and IT systems

The Department of Industrial Relations can use up to $9,500,000 for a system integrator on the Public Works Strategic Enforcement Project, after required approvals. It must also report every two years on the Labor Enforcement Task Force’s results, with $7,200,000 in funding and 66 positions identified.

College planning help for students online

Riverside County Office of Education receives $29.184 million. $23.684 million funds student-facing planning and matriculation services. $5.5 million funds statewide online educational resources under the State Librarian. The office must report spending and who used the services.

Community college buildings and timelines funded

The state gives $13,836,000 from a 2016 bond to build the College of Alameda Aviation Complex replacement. It provides $54,703,000 from the 2024 bond for planning and design at listed campuses. It reappropriates $1,046,000 for community college apportionments. It extends the deadline to spend certain encumbered capital funds to June 30, 2026.

Community colleges: reports on student support

Community colleges must report more on student services. Umoja Statewide reports by July 30 each year on capacity building and fund allocations. By July 15 each year, the Chancellor’s Office reports homeless‑services spending, students served, and outcomes. By January 1, 2025, and every three years, it reports on mental health spending, students served by group, wait times, referrals, and best practices.

Extra funds for pilot trainee exam

The finance department can add up to $400,000 to cover unanticipated costs to run the Pilot Trainee Training Program selection exam. The money only covers unexpected exam administration costs.

Faster clinical training at State Hospitals

The State Department of State Hospitals can make clinical training agreements with schools and hospitals without normal state procurement reviews. These agreements are exempt from several approval steps. This speeds up placements for trainees and clinicians.

Faster school finance aid and oversight

The Controller sends key education funds straight to the state’s administrative agent within 60 days and skips extra grant reviews. The agent must report each year by October 1 on spending and help provided. District oversight gets new support: $4.695 million to a county office for FCMAT, plus $500,000 (with approval), $374,000, and $600,000 for FCMAT needs. Counties can be reimbursed up to 25% for oversight costs ($115,000 total) and fully for extraordinary audits (up to $871,000), with approvals. Training funds include $150,000 for FCMAT learning, and CSIS gets $8.575 million with an annual plan due November 1. Districts with an approved prior application can get ADA money early for CalWORKs participants.

Help registering heritage schools

The state provides $196,000 from the Behavioral Health Services Fund and $42,000 from the Heritage Enrichment Resource Fund to the education department. The money pays to process heritage school registrations and provide technical help under state law.

Humboldt State shifts to polytechnic

The law provides $25 million to help Humboldt State University become a polytechnic. The funds cover costs tied to the transition.

Independent colleges join state transfer system

The law provides $650,000 to help independent colleges connect to the ASSIST transfer and student‑records platform. The money pays technical and integration costs so students can see more complete transfer information.

Limits on state personal services contracts

The state may use funds for personal services contracts only under strict rules. The contractor must file full financial disclosure with the Fair Political Practices Commission. The work cannot replace a represented civil service employee. Pay and health benefits may be no more than 10% above the comparable civil service rate.

More fellowships and college access programs

The Center for California Studies receives $7,001,000 with set amounts for Assembly, Senate, Executive, and Judicial Fellows, Sacramento Semester, LegiSchool, Faculty Research Fellows, operations, and an education policy fellowship. The CSU Student Success Network gets $1,100,000. The Cal-Bridge Initiative receives $5,000,000 one time for fellowships, undergraduate research, postdoc pay, early Ph.D. scholarships, faculty development, and administration. The federal GEAR UP program receives $3,500,000. Pre-1991 Specialized Secondary Programs linked to CSU receive $1,500,000.

More flexibility to move workforce funds

The labor secretary can move up to $500,000 to help run WIOA and must report transfers within 30 days. With approvals and a 30‑day notice, the secretary can also move workforce board funds into EDD’s consolidated work program to improve WIOA implementation.

More funds for foster youth education

The law adds a $745,000 cost‑of‑living increase to the Educational Services for Foster Youth program. This helps the program cover higher costs to serve foster youth.

More funds to pay garment claims

The Department of Industrial Relations can, with Finance approval, increase the appropriation to pay valid claims from the Garment Manufacturers Special Account, up to the account’s balance.

More help for school infrastructure

The law provides $854,000 in 2025–26 and $1,108,000 each year from 2026–27 through 2029–30 to support priority districts with school infrastructure grants. Funds can be used or encumbered through June 30, 2030.

More library internet and building funds

Public libraries get $4,079,000 to improve access to a high‑speed network. The state also reuses $9,000,000 for Building Forward grants, up to $4,500,000 per top‑ranked project, with a dollar‑for‑dollar local match, usable through June 30, 2028. Each January 15 when funded, the State Library must report on Lunch at the Library sites, meals, enrichment, and impact.

More support for migrant education

At least $6.5 million and up to $8 million go to the Migrant Mini‑Corps Program. One‑time federal carryovers of $7.731 million and $6.998 million also support migrant education. These funds help migrant students statewide.

More support for school mental health

The law provides $1.5 million for Project AWARE. Of that, $1.1 million supports Project Cal‑Well and $400,000 is one‑time federal carryover.

More UC seats for Californians

UC must aim to replace 902 nonresident undergrads each year at Berkeley, UCLA, and San Diego with California residents. In 2025–26, UC also targets a net gain of 2,947 resident full‑time students to reach 209,535. If UC falls short, state funding is reduced by a set amount per missing student. If UC exceeds targets, the extra can count toward 2026–27.

Pay lease‑revenue bonds for campuses

The Controller makes scheduled base‑rental payments on lease‑revenue bonds for UC Law SF and selected community colleges. The state also moves small additional amounts ($20,000 and $61,000) to cover related expenses, and can advance payments to meet debt requirements.

Preschool quality and family literacy funds

Up to $5 million supports family literacy grants in State Preschool. The state funds local preschool quality rating and improvement work. It also provides $763,000 for a tool to strengthen teacher–child interactions.

State pays K‑12 settlement costs

The law provides $520,000 to pay the state’s share of the Loffman v. California Department of Education settlement. The Superintendent allocates the funds to cover the settlement costs.

Stronger fiscal oversight for community colleges

The law tightens fiscal oversight. The Chancellor must annually list statewide or regional projects and contracts. The state reimburses FCMAT for oversight work, subject to Finance approval, and the Board of Governors may request unsolicited FCMAT reviews when fraud or illegal fiscal practices threaten a district. Districts that accept CalWORKs funds must follow state rules. Each July 15, the Department of Education and the Chancellor send allocation schedules, and Finance may order transfers for local agencies.

Stronger labor enforcement and restitution

The state can use Employment Training Fund and Uninsured Employers Benefits Trust Fund dollars to fight underground work and enforce labor laws. The labor agency can raise funding to pay valid claims from the Garment Manufacturers Special Account with Finance approval and required notices. It can also raise funding to pay valid Car Wash Worker Restitution Fund claims with Finance approval. This helps pay workers what they are owed and improves enforcement.

Student aid operations and backup funding

The Student Aid Commission receives $230,000 for an IT and cybersecurity review and to fill key staff gaps. The Department of Finance can add money to Cal Grant awards from a reserve fund, with 30 days’ notice to legislative budget chairs.

Teacher credentialing staff, data, and reports

The law funds the teacher credentialing commission for outreach, career pathways, data, early childhood licensing, and to backfill fee shortfalls. The Commission must report processing times twice a year (Oct 1 and Mar 1) with minimum, maximum, and average days and volumes. The Commission and the State Department of Education must share data using a non‑personally identifiable educator ID to find misassignments.

Teacher oversight, IT, and claim payments

The state provides $308,000 to reimburse counties for teacher misassignment monitoring. The Attorney General must send twice‑yearly reports on teacher discipline cases, including timelines and costs. The Commission on Teacher Credentialing gets $890,000 and 5 IT positions, with $880,000 ongoing starting in 2026–27. The state also provides $300,000 to pay teacher dismissal claims under Education Code 44944.

UC animal disease labs funding

State funding for UC‑run poultry and livestock disease labs adjusts each year to match UC‑negotiated pay and benefit changes. This helps keep the labs staffed and running.

UC research and transportation studies funding

The law funds targeted research. It gives $12,062,000 to the Pacific Earthquake Engineering Research Center, $1,000,000 from the State Highway Account and $980,000 from the Public Transportation Account to institutes of transportation studies, and $425,000 to the California Cancer Research Fund.

UI system upgrades and interest payment

Up to $31.059 million for EDDNext releases only after a Finance‑approved plan, a 30‑day budget‑committee notice, and Technology approval. EDD must send quarterly reports with approvals, vendors, and equipment. The law also sets aside money to pay interest on an Unemployment Fund loan; EDD must estimate by September 1, 2025, and any extra funds return to the General Fund on October 15, 2025.

Workers’ comp for disaster volunteers

The state provides $2.187 million to pay approved workers’ compensation claims for volunteer disaster service workers. It also covers related administrative costs. This helps eligible volunteers get paid for approved claims.

On-time lease payments from program funds

The Controller follows the State Public Works Board schedule to transfer base rental for lease‑revenue bonds. The schedule can call for earlier transfers so payments are made on time. This applies to leases funded from the Clinical Laboratory Improvement, Pesticide Regulation, Air Pollution Control, Food Safety, Genetic Disease Testing, and Cigarette and Tobacco Products Surtax accounts.

One-time transfers for state building rent

Within 30 days of enactment, the Controller must move several one‑time amounts to the Public Buildings Construction Fund to cover additional rent. Examples include $13,000 (Childhood Lead Prevention), $7,000 (Clinical Laboratory), $24,000 (Genetic Disease Testing), several $1,000 transfers, and a $0 line for one surtax account. Two larger transfers of $4.22 million and $1.51 million also fund additional rental costs for public facilities.

State payroll accounting and job counts

DOF adjusts state agency budgets, including the California State University, to reflect a new payroll accounting method and related benefit and health care costs. DOF must also publish total job counts for each department at the Governor’s Budget, the May Revision, and in the Final Change Book, showing filled, estimated, and proposed positions.

PUC funds: longer use, protected purpose

Public Utilities Commission federal trust fund appropriations remain available to encumber or spend through June 30, 2027. Money in the Public Advocate’s Office account may only support that office’s work and cannot be redirected by the PUC.

Funds independent utility project peer review

Up to $100,000 supports the independent peer review group under the Public Utilities Code. This funds oversight of complex utility projects.

Keeps state payment system supported

Up to $885,000 pays for maintenance and support of the Apportionment Payment System in 2025–26. The Controller bills listed funds monthly and cannot charge more than actual costs.

Pay more Teleconnect Fund claims

Finance may increase payments to cover Teleconnect Fund claims after a 30‑day notice to lawmakers. This helps carriers and organizations get paid for discounted internet and phone service used by schools, libraries, and small businesses.

State fund transfers and debt payments

The Controller moves CHP and DMV lease‑revenue bond payments on the Public Works Board schedule and can transfer earlier to meet debt needs. A $21,000 transfer to the Public Buildings Construction Fund is due within 30 days of enactment. Any DMV payment adjustments must be reported to budget leaders. Accounting rules clarify how recoveries are credited between major funds. Human Resources spending can be moved across items with 30 days’ notice, but total General Fund increases cannot exceed total decreases. Any unspent amounts in the listed CHP appropriations revert on June 30, 2025.

Limits on prison adult education funding

Only the stated appropriation can fund the Adults in Correctional Facilities Program. Reimbursement for 2024–25 services is limited to 2023–24 amounts, adjusted by the required percentage. LEAs that cut services in 2024–25 can see funding reduced or eliminated. Any leftover funds may be reallocated to new programs. Growth goes first to small programs, up to 20 added units each.

Horse racing license fee set by pool

For 2025–26, racing associations and fairs must together pay $20,606,000 in license fees to the Horse Racing Fund. The board will set a formula to split the total across associations and fairs.

Rail project contractors paid after work

For contracts funded by the listed rail item, the High‑Speed Rail Authority pays only after deliverables meet the contract standard. This ties payment to completed work.

State funds won’t lower air permit fees

Money sent to help local air districts cannot be used to cut permit fees. If your business holds an air district permit, this funding does not reduce what you pay.

Cap fees for mandate claim contractors

Reimbursable contractor costs to prepare mandate reimbursement claims are capped. The cap is the lower of 10% of claim amounts or the cost if employees did the work. Contractors can exceed the cap only with documentation showing the extra cost was necessary.

Cover rising horseracing oversight costs

Finance can increase the Horse Racing Board’s budget to pay higher costs under the Horseracing Integrity and Safety Authority agreement when those costs rise at the start of the calendar year.

Delta Conservancy funds limited to statute

Money for the Sacramento‑San Joaquin Delta Conservancy must be used only for the purposes in Public Resources Code section 80110(b)(4).

Excess court benefit funds revert 2026

If money for court employee retirement and health cost increases exceeds actual needs, the extra returns to the General Fund on June 30, 2026.

Less legal aid for some immigrants

Schedule (7) funds cannot pay for removal defense or other immigration remedies for immigrants with a documented felony conviction. This limits access to those legal services for that group.

Mandate relief clock paused without funds

When counties seek a finding of significant financial distress, the commission’s decision deadlines pause until it gets funding. This can delay county relief decisions.

Pro‑rata cuts if money runs short

If the money in Schedule (2) cannot cover all payments, the State Controller must reduce each payment by the same share. Total payments cannot exceed the amount in Schedule (2).

Stronger controls on fund transfers

Agencies can spend special funds only up to their approved amounts. Any augmentation requires written notice, with details on how the amount was set and sources, and a 30‑day wait unless shortened. Transfers above an item’s amount also wait 30 days after notice unless shortened.

Veterans Affairs activities paused, funds revert

From July 1, 2025 through June 30, 2026, Veterans Affairs does not have to follow Chapter 615 of 2006 due to no funding. On June 30, 2025, unused balances for certain Veterans Affairs capital projects return to their original funds. This may slow or reduce some activities and projects.

Insurers pay full cost of parity checks

The Department of Insurance must recoup all costs for mental health parity exams and enforcement from health insurers. It does this through assessments or examination fees. Insurers may pass these costs into premiums.

Community renewable funds revert 2025

On June 30, 2025, up to $33 million for community renewable generation and storage returns to the original funds. Less money is available for those programs after that date.

Some disaster aid funds revert in 2025

On June 30, 2025, $86.354 million returns to original funds. This includes $13 million for a home hardening program, $23.704 million for law enforcement mutual aid, and $49.65 million for grants to community groups helping eligible survivors. Less money is left for these disaster and recovery efforts.

Limit spending on anatomical gifts

The public health department can only spend to run the Anatomical Gift program up to the actual fees collected from tissue banks. If fee revenue is low, program spending is limited.

Reduce overlap in CSEC program funding

The state will reduce CSEC program funding when the same activities are required by a federal law. This avoids paying twice for the same work and may lower state‑funded services.

Arts grants require matching funds

Of $20.3 million for Arts Council local assistance, at least $10 million in grants must be matched by grantees. Groups need to raise or provide matching money to receive those awards.

Cap on school meal reimbursements

The state limits extra reimbursement for reduced‑price and paid school meals. A school cannot get more than the difference between the combined free‑meal rate and the actual combined rate for reduced‑price or paid meals.

Monthly cap on CSU state payments

From July through April, each monthly CSU payment cannot be more than one‑twelfth of the item’s appropriation, minus expected transfers under Provision 3. Transfers under Provision 3 do not count as payments for this cap.

State stops some school test summaries

The State Department of Education cannot spend funds to prepare a statewide summary of pupil test performance. It also cannot compile information on private schools with five or fewer pupils.

Stricter rules on K‑12 network funds

The program must exclude service subcontracts over $25,000 from the base used to charge or calculate indirect costs. It cannot spend E‑rate or California Teleconnect subsidies from certain grants until Finance approves and 30 days after notifying the Joint Legislative Budget Committee.

Utilities must fund merger reviews

When a public utility asks to merge, it must repay the Public Utilities Commission’s necessary costs to review the deal. This shifts review costs from the commission to the merging company.

Cap on Treasurer market data buys

The Treasurer can buy proprietary market, credit, and risk data, but any single contract is capped at $300,000. This rule ends July 1, 2026, or sooner if the state updates its subscription buying system.

Adjust disability insurance spending 2025–26

The Finance Director can increase or decrease State Disability Insurance spending in 2025–26 due to workload, new rules, federal actions, or court orders. Any change must be reported to the Legislature.

Help for disability services and disability insurance

The law continues $500,000 for the Braille Institute in Los Angeles. EDD must send Disability Insurance spending estimates on Oct 1, 2025 and Apr 1, 2026. If estimates differ from the budget, Finance reports and adjusts the appropriation. That can increase or decrease Disability Insurance funding.

SNAP money for theft refunds and compliance

The state can raise spending to repay stolen food or cash benefits when costs rise. The Department of Finance can also add up to $250,000 for work to meet federal SNAP time‑limit rules for able‑bodied adults without dependents. This helps replace stolen benefits, while also funding compliance steps that may affect some adults’ access.

Property tax relief and wildfire backfills

The Director of Finance can raise or lower homeowners’ property tax relief payments after a 30‑day notice to budget leaders, unless the JLBC chair allows less time. The department can also add money to local government financing under the 2024 law’s rules. Counties may file claims by December 1, 2027, if backfill payments were too small, and must identify and return any overpayments by the same date. The law also reimburses 2024–25 wildfire property tax losses: $390,000 total for Butte and Tehama and $17,000 for Orange County, after approved countywide claims. These funds are available until June 30, 2028.

Audit of state scientists unit

Up to $650,000 funds an audit of Bargaining Unit 10 work. The Department of Finance may adjust the amount to cover the final contract. Any unused money returns to the General Fund. The Director of Finance must notify the Joint Legislative Budget Committee within 30 days of any adjustment.

Community college contract and funding rules

Contractors paid with certain community college funds must file financial disclosures, cannot displace represented staff, and cannot be paid more than 10% above the comparable civil service rate. If Puente funding rises above 2022–23, increases follow each group’s share; if it falls, Puente and the Chancellor’s Office decide the split. Middle College High School student workload generally is not eligible for community college apportionment, except for special part‑time students under the listed code sections.

How Cal Grant offers are set

For 2025–26, the Student Aid Commission may set a score cutoff that creates 16,000 initial Competitive Cal Grant A and B offers. This does not change the total number of awards. The Commission cannot make policy changes that cost over $5,000,000 a year in certain aid programs without approval from the Director of Finance and 30 days’ notice to budget leaders.

Billing rules and postage cost coverage

The Controller can bill departments for federal pass‑through fund administration with Finance and JLBC chair concurrence and a 30‑day wait. If USPS raises rates after the May Revision, Finance can approve extra Controller spending to cover the increase after a 15‑day notice.

Cap and waiver for eco‑education funds

Spending from the Environmental Education Account is capped at the money the account receives. The Director of Finance can allow up to $5 million more if the account has the funds, after at least 30 days’ written notice to budget leaders.

Faster action and oversight for Developmental Services

The Department of Developmental Services can adopt emergency rules to bring in more federal funding. Finance can order transfers between central DDS and regional center items, with written notice to legislative budget leaders within 10 working days. DDS must quickly share investigation findings: notify legislative committees within 10 working days and forward findings to the proper agency within 3 working days.

Faster public health contracts, more reporting

The Office of AIDS can sign contracts and grants without Department of General Services approval or Public Contract Code rules. The State Department of Public Health must report all federal funds to the Department of Finance on October 15 and March 15. Finance may add spending based on a federal penalties account, but only after at least 30 days’ legislative notice (unless allowed sooner).

Finance can adjust lease-bond payments

The Director of Finance can adjust budget items and transfers to cover 2025–26 rental payments on lease‑purchase and lease‑revenue bonds. Adjustments can use funds set aside for this purpose or other legally available funds. The Director must report each change to the Joint Legislative Budget Committee within 30 days.

Focused notices for victim claims

The Victim Compensation Board stops routine broad notices to local agencies and schools. For each meeting, it must notify claimants on the agenda and anyone who asked for notice. This narrows outreach but keeps direct notice to affected people.

Law and justice funding tweaks

Funds pay for contracts that support local law enforcement training programs. Federal reimbursements the State Public Defender receives for capital cases now go back to the General Fund, not the office. The budget also pays $2.527 million for California Law Revision Commission reimbursements from two listed items.

Limits and backup funds for courts

Trial courts may fund support staff for no more than three judge‑equivalent assignments and must use available judges first. Finance can add money from the Trial Court Trust Fund with the JLBC chair’s agreement and at least 30 days’ notice, unless the chair shortens it.

Limits on fair fund spending

Money moved to the Fair and Exposition Fund can only be used for purposes allowed by law. This narrows what recipients can spend the money on but protects correct use.

Mixed rules for climate and coastal funds

The law lets $750,000 for the Coastal Commission and $2,131,000 for the San Francisco Bay Commission avoid a listed Greenhouse Gas Reduction Fund rule. At the same time, certain Air Resources Board greenhouse gas funds must follow Section 15.14 rules. Money in the Air Pollution Control Fund’s Cost of Implementation Account stays available until June 30, 2027. Finance can also raise an energy licensing fund by the actual fees it collects in 2024–25 and 2025–26.

More flexibility for Conservation Corps projects

Finance can raise the Collins‑Dugan appropriation when reimbursements increase, with permanent state‑agency increases handled in the regular budget and other reimbursements noticed to JLBC. Greenhouse Gas Reduction Fund money in listed items is not subject to a specific limit in Section 15.14(b). Auberry demolition funds are available until June 30, 2027. Some balances are reappropriated through June 30, 2026, and up to $365,000 reverts on June 30, 2025.

Paying local mandates with audits

The state pays $91.643 million to local governments for approved state‑mandated costs through 2023–24. The Controller can reduce payments to recover costs that audits find are not allowed, and any recoveries can be used to pay other mandate claims without changing the General Fund balance. The law also pays $2.385 million for Administrative License Suspension mandates (including $454,000 for costs through 2022–23) and $75,000 for Pesticide Use Report mandates. The Commission on State Mandates must send a yearly workload and backlog report by September 15.

Prison mental health plans and fines

Corrections must report by March 1, 2026 on alternatives to incarceration for older, disabled, or seriously ill people. Fines ordered by the federal court in Coleman v. Newsom for staffing vacancies are paid from the General Fund and deposited into a special mental health fund; quarterly reports go to legislative budget leaders. Corrections must also report by January 10, 2026 on cutting excess inpatient mental health beds while meeting court orders.

Recycling programs get loans and transfers

CalRecycle can borrow short term for cashflow, with repayment and interest. The Department of Finance can approve small spending increases for CalRecycle items through June 30, 2027, with 10‑day notice to the Legislature. The law loans up to $10.833 million to the Circular Economy Fund (repay by June 30, 2029), up to $2.43 million to Pharmaceutical and Sharps Stewardship, and up to $1.629 million to Textile Stewardship (repay by June 30, 2032). It transfers $5 million to the Solid Waste Disposal Site Cleanup Trust Fund. It also authorizes loans up to $3.033 million for covered battery recycling and up to $3.352 million for the battery‑embedded fee account. All loans earn interest at the state PMIA rate and can be called back early if the source fund needs the money.

Stronger rules for emergency spending

Federal money must go into the Federal Trust Fund, and reimbursements must go back to the account that paid the cost. When asking for emergency funds, agencies must tell lawmakers expected federal or other funding and why state money is still needed. Finance can add money to certain conservation funds to address dangers to life, health, water, wildlife, or natural resources after required notice.

Tighter rules on Conservancy land buys

The Santa Monica Mountains Conservancy cannot use state funds to buy property that carries interest, late fees, or penalties unless it certifies three things. The purchase must be a high‑priority project, have acceptable terms, and not bind the state to future appropriations. The conservancy must report to the Legislature at least twice a year on such purchases and any interest or penalties encumbered.

Unspent annuitant health funds revert

On June 30, 2025, unspent health and dental appropriations for annuitants return to their source fund or the General Fund. This protects fund balances but reduces carryover for those items.

Unclaimed property funding and outreach cap

The state provides $56,009,000 to run the Unclaimed Property Program. The Controller must limit general public outreach funded by this act to news media, internet posts, or up to $1,000,000 a year. Required individual owner notices still go out.

Broadband funds: more time, new limit

Broadband program commitments under the California Advanced Services Fund can be liquidated through June 30, 2030. But spending only happens if CASF has enough revenue. This gives more time to finish projects while tying spending to available money.

Court building funds and legal aid rules

The Department of Finance, after consulting the Judicial Council, moves any extra unrestricted Court Facilities Trust Fund money back to the General Fund by April 1. If court construction revenues are too low, the Department can increase transfers into the court construction fund to support repairs. Equal Access Fund dollars are split: up to 5% for administration, then 10% for joint court/legal services projects and 90% per law and guidelines. The Controller sends lease‑revenue bond payments on the schedule set by the State Public Works Board or Finance so debt is paid on time.

Fire projects: deadlines extended, funds revert

Some capital outlay funds stay available through June 30, 2026. The law also gives more time to liquidate listed encumbrances, some through June 30, 2028. On June 30, 2025, named unspent balances return to their original funds, reducing money left for those projects.

Local safety aid tied to standards

Cities and counties must apply to the state board and adopt its selection and training standards to get aid. The board sets each jurisdiction’s amount and can stop payments if standards are not met. The law also keeps funding in place to run the Adult Reentry Grant Program through June 30 of 2026, 2027, 2028, and 2029.

Tahoe enforcement funds and spending window

Money in the Tahoe Harbors and Watercraft Fund must enforce Tahoe Regional Planning Agency motorized watercraft rules. Tahoe Conservancy funds are limited to uses listed in Public Resources Code section 80110(b)(2). The local assistance funds can be encumbered or spent until June 30, 2028.

Tighter rules and time for elections

Federal HAVA money must be used only as the approved plan allows and within each activity’s cap. Any main contract to build a new voter database must follow notice rules and is valid only if later budgets fund it. The state reuses up to $2.742 million and up to $7.448 million for voting‑system replacements through June 30, 2026.

Transportation funds: timing and limits updated

Unspent federal transportation funds in listed items stay available through June 30, 2027. The law bars using certain money for specialty buildings like maintenance facilities, labs, and traffic centers. Up to $6 million for Fi$Cal onboarding stays available through June 30, 2028. Some prior funds are reappropriated to finish old commitments or to collect federal reimbursements through June 30, 2026. Certain federal spending now counts as State Highway Account spending for code references.

Community mental health funds targeted

Schedule (3) funds must support community services, including direct services and related administration. These funds are not available to pay for treatment services for people on court visit from state hospitals.

Faster Summer EBT and flexible food funds

Social Services can use contracts and grants to run Summer EBT without some state approval steps, speeding setup and operations. The Department of Finance may raise or lower the Emergency Food Fund when Social Services asks, and must notify lawmakers within 10 working days. These changes help start and manage food benefits faster, but funding can also be reduced under this authority.

Hospital billing changes and county reimbursements

State hospitals can count reimbursements from bed‑day billings for Murphy conservatees. The department may reimburse counties for treatment and legal costs for patients in the five state hospitals. For the 2025–26 fiscal year, the Controller transfers state hospital patient collections into the General Fund.

Medi‑Cal admin changes and budget controls

Change orders over $250,000 on the Medi‑Cal fiscal intermediary need Finance approval after 30 days’ notice. Finance may move savings into the fiscal intermediary budget to improve the claims system and shift spending authority with required notice. Finance can increase funds to pay costs from adverse court rulings after a 30‑day notice. DHCS seeks better federal repayment terms to ease the General Fund. Legal aid grant contracts are exempt from some procurement rules and reviews, which speeds those awards.

Paying federal ACA reporting penalties

The state can use this budget item to pay Affordable Care Act employer‑reporting penalties or similar government penalties when owed. Finance identifies amounts and the Controller pays them. Finance may shift other appropriations and require agencies, including CSU, to repay their share. Finance must report any adjustments to lawmakers within 30 days.

Public health can use federal funds faster

Public Health must report all federal funds to Finance by October 15 and March 15. Those reports set federal trust fund spending authority. If more money is needed above a set threshold, lawmakers must be notified and approval cannot occur sooner than 30 days. Finance can transfer federal emergency preparedness authority after a 30‑day notice (or less if shortened) and can increase an item to capture FEMA wildfire or emergency reimbursements with 10‑day notice.

State adjusts retiree health and dental funding

Finance can change the state’s Health and Dental Benefits for Annuitants appropriation to match 2026 premium rates approved by PERS and Human Resources. Finance must report any change to budget leaders within 30 days.

Stronger budget checks on social services

DSS cannot encumber funds for rules that raise program costs unless Finance approves funding availability. For cost increases over $500,000 a year, Finance must wait at least 30 days after notifying lawmakers (for both General Fund and non‑GF), unless allowed sooner. DSS may use no more than 20% of certain licensing fees for overhead and indirect costs.

K–12 internet cap and audits

Spending for the K–12 High‑Speed Network is capped at $10.44 million, with $7.463 million from E‑rate and the California Teleconnect Fund. Of the total, $2.977 million is set aside for ongoing operations. The network must file a detailed yearly audit by December 15 with key state offices.

More career-tech funds, with local match

The law provides $15.36 million to improve K–12 to community college career pathways. The Superintendent must submit a spending plan 30 days before use and report outcomes each October 1. Districts getting agricultural CTE grants must pay at least 50% of certain costs unless the Superintendent waives it. Existing partnership academies can get one-time grants, but new academies need Finance approval and a 30‑day notice to the budget committee.

One-time charter funds and test oversight

The law provides $11.606 million one time to support the public charter schools program. ELPAC funding continues only if approved in a future annual budget, and some Title I test contract costs need Department of Finance review. Twice a year, state budget and education staff meet with testing vendors to review costs and look for savings.

Pension rates set for state jobs

For 2025–26, the state sets employer pension contribution rates by job group. Examples: Highway Patrol 70.61%, Peace Officer/Firefighter 51.01%, Miscellaneous First/Second Tier 31.42%, State Industrial 21.42%, State Safety 22.85%, Judges’ Retirement System II 22.62%. The Director of Finance can adjust budget amounts to hit these rates and may use surplus funds in the retirement fund. The Director must notify the Controller and legislative budget committees within 30 days of any adjustments.

Reading funds must teach decoding

State funds in this act cannot pay for reading programs or materials that teach students to rely on contextual clues instead of fluent decoding. An exception allows these methods when teaching students who are deaf or hearing impaired under the cited federal rules.

State special schools: funds and withholds

At least $1.8 million must fix deferred maintenance and critical infrastructure at state special schools. With Finance approval, the education department can request transfers to Diagnostic Centers and direct the Controller to move funds for maintenance. Each year by September 15, superintendents report pupil counts and estimated payments due from each district. The Controller withholds those payments from the State School Fund and transfers them to this item, with year‑end adjustments allowed.

Tighter controls on testing funds, advisories

State testing contracts must be sent to the finance department for review before execution. Federal dollars for testing must be spent before state General Fund money. Districts must use certain funds to offset state‑mandated assessment costs and reduce mandate claims by the same amount. County office oversight funds also count as offsetting revenue against mandate claims. The education department cannot create or share reading, writing, or math advisories with these funds unless the State Board of Education approves.

Workforce board spending adjusts; $1.5M reverts

The Workforce Board must send spending estimates by October 1, 2025 and April 1, 2026. Finance can raise or lower Schedule (1) after 30 days’ notice, based on available WIOA discretionary funds and the plan. As of June 30, 2025, $1,500,000 from a 2021 appropriation reverts to its original fund.

Protect audit staff; centralize BOE purchases

The Board of Equalization cannot cut or shift money or staff away from audits and collections without Finance approval and a 30‑day notice to JLBC. Audit and collection staff cannot be moved without approval. All BOE purchases and leases must go through the Department of General Services, which has final say.

Align gambling control funds with needs

DOF can order transfers between California Gambling Control Commission budget items to match projected spending. The order must be filed with key budget chairs at least 30 days before it takes effect, unless a shorter time is allowed.

EDD reserve moved to General Fund

The Controller transfers the unencumbered balance in the Employment Development Department Contingent Fund to the General Fund as of June 30, 2026, as determined by the Director of Finance. This moves leftover contingent money into the state’s main account.

Finance can adjust internal transfers

DOF may change amounts moved under the listed transfer item to reflect statewide budget adjustments allowed by this act.

Inmate construction money back to General Fund

DOF may move past transfers from the General Fund to the Inmate Construction Revolving Account back to the General Fund. This restores money to the state’s main fund.

Procurement flexibility and one-year carryover

Spending under Items 0160‑001‑0001 and 0160‑001‑9740 is exempt from certain procurement and allocation rules and follows the Governor’s Budget. Money left unencumbered on June 30, 2026, is reappropriated and available to encumber until June 30, 2027. Payments from sales of services or property not listed in the schedule are credited to Item 0160‑001‑0001.

Rules for court-ordered payments and offsets

The state pays certain court‑ordered attorney fees from the affected agency’s operating funds, with DOF approval. Payments are final for one action and count in the year paid. Federal writs can only be charged to funds tied to the case; if none fit, they are charged to the General Fund’s unappropriated surplus. The Controller must reduce General Fund payments to the Trial Court Trust Fund by reimbursements received from county offices of education, recorded as a total expenditure reduction.

State building funds and DGS rules

The Department of Finance (DOF) can increase non‑General Fund budgets to repay the Department of General Services (DGS) for engineering work and EV charging at state sites when DGS provides costs. DOF can adjust support budgets so departments pay DGS’s statewide surcharge, and can remove set‑asides meant to reimburse DGS for contracted fiscal services. For small capital projects managed by an agency, bid‑based completion costs count as an encumbrance. DOF may move money in the Architecture Revolving Fund back to the original fund after at least 30 days’ notice to budget chairs. If bonds are not sold after interim financing is used, the department must use its support appropriation to repay those costs.

State trims vacant-job budgets, posts rates

The state reduces some budget items to capture savings from vacant jobs and efficiencies. The Director of Finance cannot remove vacant position authority until the 2026 budget. Each year by January 10, the state posts vacancy rates by department, with monthly data and yearly averages, on the eBudget site.

Stricter reviews for state IT and AI

Statewide software licenses of $1,000,000 or more need a business proposal and DOF approval. DOF must notify budget chairs at least 30 days before approval unless shortened. State agencies under the Governor cannot start new generative AI projects unless approved in the Budget Act or another law. Projects already operating or in development by July 1, 2025, and emergency projects are allowed. DOF can adjust appropriations to reflect 2024 or 2025 technology service rate changes and must report within 30 days.

Stronger rules to prevent overspending

State officers cannot spend or create debt beyond what the Budget Act allows. Any debt in violation is void and not payable. These limits do not apply to continuous appropriations or federally mandated spending. DOF also may not use the “estimated net final payment” method to book most revenues, except for certain voter‑approved tax measures.

Tighter controls on federal funds and recovery

Agencies must tell the Controller which Federal Trust Fund account they charge. DOF can lower a state appropriation when federal funds pay for the same purpose, with at least 30 days’ notice to budget chairs. Agencies must send final federal audit or deferral letters to the Joint Legislative Budget Committee within 30 days. If an agency fails to recover allowable statewide indirect costs from the federal government, DOF can cut that agency’s state operations appropriation by up to 1% after notice.

Tool to stay under budget limit

If a federal capital outlay appropriation counts as a qualified capital outlay project, DOF may replace it with eligible General Fund noncapital spending. This is allowed only as needed to keep the state under the 2025–26 appropriations limit.

Wildfire recovery funds: notice and deadline

DOF must wait at least three days after notifying the Joint Legislative Budget Committee chair before making wildfire recovery augmentations, unless an earlier date is approved. All augmentations under this authority must be made by June 30, 2026.

Tribal gaming: reports and transfers

The Gambling Control Commission must report how it picks eligible recipient tribes and proposed payments when asking to add money. The Director of Finance can increase transfers of excess revenues into the Tribal Nation Grant Fund and may augment that fund up to related transfers in 2025–26. When moving money from the Special Distribution Fund to the Revenue Sharing Trust Fund, only the minimum needed may be transferred; the rest stays put.

Finance controls school fund accounting

The Department of Finance now makes the final call on budgeting and accounting for money going into and out of the Education Protection Account. This sets one office in charge of how those funds are recorded.

More oversight of school funds and grants

Agencies that get lottery money must report by May 15 each year how much they received, how they spent it, and their admin costs. The State Department of Education files for K–12, and adult ed reports use adult education ADA where it applies. The department must ensure LEA contracts and grants follow LEA fiscal rules. If an LEA creates a separate entity, its rules must match or be approved, and audits may be charged to the contract or grant.

Sponsors & Cosponsors

Sponsor

Scott Wiener
Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 163 • No: 56

House vote • 6/13/2025

Item 6 — Assembly AFLOOR

Yes: 57 • No: 19