Overview

• Lawmakers tapped $7 billion from the rainy-day fund and $6.5 billion from other cash reserves to balance the $321 billion spending plan.
• The agreement freezes new Medi-Cal enrollment for undocumented adults in January 2026, ends full dental coverage in July 2026 and introduces a $30 monthly premium in July 2027.
• It boosts Hollywood with $750 million in California Film and Television Tax Credits and dedicates $100 million to implement Prop 36, the voter-approved anti-crime initiative.
• Public transit agencies and the University of California and California State University systems avoid cuts, though universities must defer some funding through zero-interest loans.
• Governor Newsom’s final approval is contingent on swift enactment of legislation to streamline housing construction and infrastructure development.