CaliforniaSB 1192025-2026 Regular SessionSenateWALLET

Budget Act of 2025.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

22 provisions identified: 16 benefits, 0 costs, 6 mixed.

More childcare and travel help for CalWORKs

Beginning July 1, 2026, CalWORKs participants who need it get paid childcare for kids age 12 or under, or older with disability proof. First‑stage childcare is full time and authorized for at least 24 months. Former recipients can get needed childcare for up to 24 months after their last aid month; counties must warn at month 18 that stage‑two ends at month 24. Counties must advance all transportation payments before you are required to participate, including mileage and some vehicle costs. Counties may continue case management and supportive services for up to the first 12 months after you get a job if their plan allows and services aren’t available elsewhere. These rules end January 1, 2027.

New foster care tiers and immediate help

The law sets new foster care payments by tier. Monthly Care and Supervision rates are: Tier 1 $1,788; Tier 2 $3,490; Tier 3 (ages 0–5) $6,296; Tier 3+ (ages 6+) $6,296. A $2,500 entry rate applies for up to 60 days until the IP‑CANS assessment is entered; foster family agencies can also get a $1,610 administrative supplement when they meet rules. Immediate Needs Funding pays per child each month: Tier 2 $1,000; Tier 3 (ages 0–5) $1,500; Tier 3+ (ages 6+) $4,100, on a schedule that includes July 1, 2027. IP‑CANS decides the child’s tier; agencies must complete it within 60 days of entry (30 days for Indian children) and update at least every six months. Placing agencies must use Immediate Needs funds per each child’s case plan, train caregivers, and may form consortia; the state sets standards and certifies providers. Rates start July 1, 2027 or later when automation and funding are ready; cost‑of‑living increases begin July 1, 2028.

Fairer CalWORKs assessments and tools

CalWORKs assessments must cover your work history, skills, needed supports, local job market, and any limits. If you and the assessor disagree, the county must use an impartial third‑party assessment that is binding. This version ends on July 1, 2026, or later if automation is needed. From July 1, 2026 to January 1, 2027, software license contracts for the OCAT or an alternate tool can skip some state procurement steps to speed updates. Two older code sections are repealed as part of this update.

Medi-Cal wraparound for foster youth

The state sets a Medi‑Cal payment method for high‑fidelity wraparound mental health care for members under 21. Eligible foster youth in the Immediate Needs Program can receive wraparound consistent with Medi‑Cal rules; local mental health plans coordinate care. Use needs federal approval and medical‑necessity standards. Immediate Needs funds may pay the nonfederal share to draw federal matching money; counties can add other allowed funds.

More CalWORKs education and services count

Beginning July 1, 2026, more activities can count for CalWORKs. College, degree programs, and vocational training all count. Services that remove barriers also count, like mental health care, substance use treatment, home visiting, domestic violence help, money skills, housing help, and legal help. This expansion ends January 1, 2027.

More prevention help to keep families together

Counties or tribes that opt in may provide prevention services to children who are candidates for foster care, pregnant or parenting foster youth, and their parents or kin caregivers. Services last up to 12 months and may be extended in 12‑month steps with caseworker documentation, using active‑efforts rules for Indian children. Starting January 1, 2027, county prevention plans must also explain how mandated reporters will get information on family support resources. Title IV‑E agencies must assess candidacy, build a prevention plan, notify tribes, do in‑person safety checks, report data, and run evaluations.

Simpler CalWORKs assessments and plan timelines

Starting July 1, 2026, counties give a combined appraisal and orientation unless you had an appraisal in the last 12 months. After orientation, an assessment is available to match you to activities, and you can choose to include the online OCAT. Counties use a statewide appraisal tool with required staff training, and OCAT is built into the state SAWS system to cut duplicate data. If your appraisal or plan is not done in 45 days, the county must set an appointment, and your plan must be finished within 90 days; if there’s been no contact or plan change in six months, the county must mail your current plan and how to adjust it. You get one 30‑day window to request a different training or class after you start, and counties may assign activities back‑to‑back or at the same time. Many rules apply when automation is ready, and most end January 1, 2027.

Stronger family teams, court plans, and respite

The law sets who must be on the child and family team, including the caregiver and agency staff. A licensed mental health professional is required on the team for certain treatment placements. Agencies must tell the child, parent or guardian, and caregiver about team meetings and attach a short summary to court reports. Social studies for juvenile hearings must include recent team action plans. Counties can offer voluntary services without first proving abuse or neglect. Respite care can last up to 72 hours, and up to 14 days in a month to preserve a placement. Respite is not for routine childcare.

Housing help to reunify families

When funded, the state awards money to counties and tribes to house families whose homelessness blocks reunification or risks foster care. Help can include assessment, housing navigation, rental aid, stabilization, and long‑term supportive housing. Grantees must work with the local homeless continuum of care and use a cross‑agency liaison.

Housing supplement for young adults in care

If you are a nonminor dependent in a supervised independent living placement, you get a monthly housing supplement when funded and automated. It equals half of your county’s FY2023 two‑bedroom fair market rent minus 30% of your applicable foster rate, but not less than zero. Payments are prorated by days in placement and overpayments of the supplement are not collected. It begins July 1, 2025, or later when CalSAWS is ready; the state recalculates each year and informs CalSAWS by November 1.

Stronger child welfare response and court info

Counties must run a 24‑hour child welfare response. They respond in person immediately for emergencies and within 10 days for other reports, and may skip in‑person only after a documented risk evaluation. Nonminor dependents who report endangerment by a licensed or approved caregiver get a risk evaluation. Courts must receive child and family team action plans completed on or after January 1, 2026 if not already filed.

Tracking and boosting CalFresh participation

By July 1, 2026, the state measures how many eligible Californians are not getting CalFresh, by race, language, age, and location. The state publishes the participation rate every year. By July 1, 2027, it creates a strategic outreach plan and names an executive lead to carry it out.

Stronger steps before CalWORKs sanctions

Counties must give a notice at least 30 days before a sanction takes effect. They must set an appointment within 20 days to decide good cause or a compliance plan, allow one reschedule, allow phone decisions, and include child care, transportation, and legal aid details in the notice. From July 1, 2026 to January 1, 2027, the county must verify you had child care available and gave you child care request and reimbursement rules before sanctioning. Sanctions do not apply in the first 90 days. If sanctioned, the noncomplying person is removed from the assistance unit, lowering the grant. Sanctions end if the person plans to fix the issue or the county verifies required hours.

Faster state rules to run reforms

The Social Services and Health Care Services departments can use all‑county letters, plan letters, and bulletins to implement these changes until January 1, 2030. Formal regulations must follow by that date. Any change that affects Medi‑Cal or county behavioral health needs federal approval and must not put federal funding at risk.

$30 diaper help per young child

If you are in a CalWORKs welfare‑to‑work plan, you get $30 each month for every child under 36 months. The payment is monthly and equals $30 times the number of eligible children.

Housing supports for APS older adults

When funded, the state gives grants to counties and tribes to help APS‑eligible older and dependent adults with housing. Grants may cover assessment, housing navigation, rental assistance, stabilization, and relocation. State‑funded grantees do not have to match funds.

Faster rollout of foster care supports

The Department must issue IP‑CANS rules by January 1, 2025 and put them into operation by July 1, 2025. It can use all‑county letters that act like rules until formal regulations are adopted by January 1, 2030. The Department may step in to manage Immediate Needs Funding and contracts if a placing agency falls short or agrees to it. These contracts can skip normal state procurement reviews to speed services.

Easier funding for disability housing help

Starting July 1, 2025, grantees who provide housing or general assistance during disability benefit applications do not have to seek federal interim assistance reimbursement. This change applies to programs under Section 18999.

Short job search period in 2026

Starting July 1, 2026, after your appraisal the county assigns up to four weeks of job search. You and the county can agree to shorten it. The county can skip it if it would not help you, such as due to a disability. This rule ends January 1, 2027 and does not apply to some exempt groups.

Standardized reporter training goes online

The state posts a standardized mandated‑reporter training on a public website. Employers must strongly encourage mandated reporters to finish the training within three months or by March 1, 2030, whichever is later. A state advisory committee guides changes to mandated reporting and aims to reduce disparities. The Department may charge a fee for completion certificates, but not for trainings the law requires to be free. The Department can also use faster contracting to build and host the training.

Budget rules and $100K for child welfare

If this law raises local costs for 2011 Realignment programs, it applies only if the state funds the increase. Other state‑mandated costs are reimbursed under standard rules. No money from Section 15200 can fund this act. Federal penalties for failing work participation rates on or after October 1, 2025 are excluded from the county penalty‑sharing rule. The law also gives $100,000 from the Federal Trust Fund to the state social services department for child welfare.

Mandated reporter training and workplace duties

The state creates one standardized mandated‑reporter training curriculum by July 1, 2027. Businesses with mandated reporters must provide training and may use the state’s online course. Human resources employees and adults who directly supervise minors at work are mandated reporters of suspected sexual abuse.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 115 • No: 30

Senate vote 7/17/2025

Item 76 — Senate SFLOOR

Yes: 28 • No: 9

House vote 7/7/2025

Item 60 — Assembly AFLOOR

Yes: 59 • No: 11

Senate vote 3/20/2025

Item 53 — Senate SFLOOR

Yes: 28 • No: 10

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 79, Statutes of 2025.

    7/29/2025Senate
  2. Approved by the Governor.

    7/29/2025legislature
  3. Enrolled and presented to the Governor at 10 a.m.

    7/17/2025legislature
  4. Assembly amendments concurred in. (Ayes 28. Noes 9. Page 2124.) Ordered to engrossing and enrolling.

    7/17/2025Senate
  5. In Senate. Concurrence in Assembly amendments pending.

    7/8/2025Senate
  6. Read third time. Passed. (Ayes 59. Noes 11. Page 2452.) Ordered to the Senate.

    7/7/2025House
  7. Ordered to third reading.

    7/3/2025House
  8. (Ayes 50. Noes 18. Page 2418.)

    7/3/2025House
  9. Withdrawn from committee pursuant to Assembly Rule 96.

    7/3/2025House
  10. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

    6/27/2025House
  11. Referred to Com. on BUDGET.

    3/24/2025House
  12. In Assembly. Read first time. Held at Desk.

    3/20/2025House
  13. Read third time. Passed. (Ayes 28. Noes 10. Page 436.) Ordered to the Assembly.

    3/20/2025Senate
  14. Read second time. Ordered to third reading.

    3/18/2025Senate
  15. Ordered to second reading.

    3/17/2025Senate
  16. Withdrawn from committee. (Ayes 27. Noes 10. Page 384.)

    3/17/2025Senate
  17. Referred to Com. on B. & F. R.

    2/5/2025Senate
  18. From printer. May be acted upon on or after February 23.

    1/24/2025Senate
  19. Introduced. Read first time. To Com. on RLS. for assignment. To print.

    1/23/2025Senate

Bill Text

  • Chaptered

    7/29/2025

  • Enrolled

    7/17/2025

  • Amended Assembly

    6/27/2025

  • Introduced

    1/23/2025

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