Senator Dave Cortese’s Statement on the Legislature's Two-House Budget Agreement

SACRAMENTO, CA — California State Senator Dave Cortese (D-San Jose) issued the following statement on the California Senate and Assembly's two-house budget agreement:

“I am encouraged that the Senate and Assembly have reached a responsible budget agreement that addresses the state’s structural deficit while protecting investments in education, healthcare, public safety and economic opportunity amid financial uncertainty.” 

“The agreement balances a budget funding various programs and services while also securing billions in reserves to help prepare California for future economic uncertainty and federal funding reductions.”

“Our budget framework reflects a shared commitment to ensuring that budget solutions do not come at the expense of working families, seniors, children, low-income Californians, and communities of color. Fiscal responsibility and equity can go hand in hand.”

"The Legislature's proposal also prioritizes investments that help offset the impacts of federal disinvestment resulting from H.R. 1, protecting healthcare access, safety-net programs, and services that millions of Californians rely upon.”

The following are some budget highlights: 

  • The Legislature’s Version of the budget includes $355.9 billion in total expenditures in 2026-27, including $253 billion from the General Fund, and contains total reserves of $36.5 billion,
  • Establishes the Fair Share from Big Corporation program to combat the harm to health programs caused by H.R. 1 and to reduce the taxpayer subsidies for big corporations with employees enrolled in taxpayer-funded Medi-Cal instead of company-provided health plans,
  • $900 million for the Homeless Housing, Assistance, and Prevention (HHAP) program,
  • $700 million for affordable housing programs, including the Multifamily Housing Program, and the Low Income Housing Tax Credit program,
  • Maintains core funding for In-Home Supportive Services by rejecting all of the Governor’s proposed cuts,
  • Maintains full scope Medi-Cal for asylees and others that are no longer eligible for federal funding through the 2026-2027 budget year,
  • $100 million to support local food banks, $70 million more than the May Revision,
  • $429 million to support increased county workload for Medi-Cal and CalFresh due to H.R. 1 requirements
  • $175 million for Immigration Legal Aid programs, $80 million more than provided in the May Revision to build broader reach throughout the state, including rural areas,
  • $46.5 million for Public Safety Rehabilitation Programs,
  • $375 million to fund Proposition 36 activities,
  • $50 million for the Victims of Crime Act (VOCA) program,
  • $110 million to lower premiums for low-income Covered California enrollees, for a total of $300 million,
  • $40 million for reproductive health care and $26 million for gender-affirming care,
  • $16.5 million for diaper banks, and
  • Anticipates a November 2026 housing bond to build more affordable homes faster and improve housing opportunity.

“While final negotiations with the Governor will be the last step, I remain committed to supporting a balanced budget that strengthens California's fiscal future, improves affordability, and expands opportunity for all Californians."

To review the entire budget agreement, click here.

Senator Dave Cortese represents Senate District 15, which encompasses San Jose and much of Santa Clara County in the heart of Silicon Valley. Visit Senator Cortese’s website: https://sd15.senate.ca.gov

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