Overview

• A poison pill clause voids the $321 billion spending plan if SB 131 on housing, infrastructure reforms is not enacted by June 30.
• New enrollments of undocumented adults in Medi-Cal will halt in 2026 and a $30 monthly premium will take effect in July 2027 for existing recipients.
• The budget cuts $78 million from mental health hotlines, eliminates low-income dental service funding and delays fertility coverage mandates until 2026.
• To cover the $12 billion deficit lawmakers tapped $7 billion from the rainy-day fund, $6.5 billion from other reserves, borrowed from special accounts and deferred payments.
• Cap-and-trade proceeds will direct $1 billion annually to firefighting, $80 million will fund a voter-approved crime initiative and $10 million is set aside for immigration legal services, with no new funding for homelessness.