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2w ago

California Legislature Passes $321 Billion Budget Contingent on Housing and Infrastructure Reforms

By tapping savings, special-fund loans and deferred payments to bridge a $12 billion gap, the plan expires if housing and infrastructure reforms fail by June 30

FILE - A view of the California State Capitol in Sacramento, Calif., Aug. 5, 2024. (AP Photo/Juliana Yamada, File)
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California Governor Gavin Newsom speaks during a news conference at Gemperle Orchard on April 16, 2025 in Ceres, California. Governor Gavin Newsom and California Attorney General Rob Bonta have filed a lawsuit in federal court challenging the Trump administration's use of emergency powers to enact sweeping tariffs that hurt states, consumers, and businesses.
The California State Capitol. (File photo)

Overview

  • California will halt Medi-Cal enrollment for undocumented adults in 2026 and levy a $30 monthly premium for remaining immigrant enrollees starting in 2027.
  • The budget’s enactment hinges on passage of two reform bills, SB 131 and AB 130, designed to streamline environmental reviews for housing and infrastructure projects.
  • Lawmakers closed the shortfall by tapping state savings, borrowing from special funds and delaying payments while preserving services such as in-home care and Planned Parenthood.
  • The annual film tax credit will expand from $330 million to $750 million to attract more Hollywood production.
  • Republican lawmakers decried the secretive negotiations and warned that without structural changes future deficits could swell beyond $20 billion.