Overview

• Deal freezes enrollment for adults without legal status in Medi-Cal starting January and eliminates dental coverage for that group in July 2026 with a $30 monthly premium to take effect in July 2027.
• Lawmakers will draw $7 billion from the rainy-day fund and $6.5 billion from other cash reserves to balance the budget next year.
• Legislators secured $620 million in grants and loans for affordable housing construction, $500 million for homelessness services and $100 million to implement Proposition 36.
• The agreement doubles California’s film and television tax credit to $750 million to encourage production to remain in the state.
• Significant policy items, including cap-and-trade reauthorization and the Delta tunnel project, remain unresolved and depend on follow-up legislation.