Overview

• Governor Gavin Newsom approved the $321 billion spending plan on June 27 to close a $12 billion shortfall without raising taxes.
• A poison pill clause voids the budget unless the Legislature enacts SB 131 on infrastructure reforms and AB 130 on housing development by the June 30 deadline.
• New Medi-Cal enrollments for undocumented adults will halt in 2026 and a $30 monthly premium will apply to existing immigrant enrollees from July 2027.
• The deal relies on reserve draws, special-fund borrowing and delayed payments to balance the books while preserving funding for in-home care services and Planned Parenthood.
• Lawmakers tapped $1 billion a year from cap-and-trade for firefighting, declined a high-speed rail commitment and boosted annual film tax credits to $750 million through 2030.