Senator Dave Cortese Praised Today’s Adoption of the State’s 2026-27 Budget

Senator Dave Cortese Praised Today’s Adoption of the State’s 2026-27 Budget, Delivering Historic Investments in Education, Health Care, Housing, Transportation and Working Families While Maintaining Structural Balance

SACRAMENTO, CA — California State Senator Dave Cortese (D-San José) praised today’s adoption of California's 2026-27 State Budget, describing it as a fiscally responsible blueprint that protects Californians from unprecedented federal uncertainty while continuing investments in the state's future.

Despite the looming fiscal impacts of H.R. 1—including billions in anticipated cost shifts to California's health care system, counties, and social safety net programs—the Legislature and Governor successfully enacted a balanced budget that eliminates projected deficits over the next two fiscal years without abandoning California's core commitments.

"At a time when Washington is shifting costs onto states and creating tremendous uncertainty for working families, California demonstrated that responsible budgeting and bold leadership can coexist," said Senator Dave Cortese. "We closed our budget with no projected deficit over the next two fiscal years while continuing to invest in the people and services that define California's future. This budget protects our most vulnerable residents, strengthens our economy, and positions California to weather whatever challenges may come next."

The budget includes several landmark investments and policy initiatives across nearly every sector of state government, including:

Investing in California's Students

The Education Budget (AB 126) strengthens California's commitment to public education through record Proposition 98 funding, enhanced support for special education, expanded dual enrollment opportunities, increased literacy investments, community schools, teacher workforce development, career pathways, and continued implementation of Universal Transitional Kindergarten. It also provides additional support for students experiencing homelessness and school districts recovering from recent natural disasters.

"Education remains California's greatest investment. This budget ensures our students have the resources they need from preschool through career while continuing to strengthen our public schools and prepare the next generation of leaders," said Senator Cortese. 

  • $128 billion Proposition 98 funding guarantee for 2026-27.
  • $9.2 billion Public School System Stabilization Account reserve.
  • $2.4 billion ongoing for Special Education.
  • $5 billion Student Support & Professional Development Block Grant.
  • $500 million Kitchen Infrastructure & Training Grants.
  • $757.3 million Learning Recovery Block Grant.
  • $408 million Student Teacher Stipend Program.

Expanding Early Childhood Education

The Early Care and Education Budget (AB 150) expands access to preschool and child care, simplifies enrollment for families, strengthens provider reimbursement, increases professional development opportunities for educators, supports child care facilities recovering from disasters, and continues investments that make quality child care more accessible and affordable for working parents.

  • 2.01% Cost-of-Living Adjustment for subsidized child care providers.
  • $11.8 million for child care facilities impacted by 2025 disasters.
  • $28 million in federal disaster relief for child care facilities affected in 2023-24.

Protecting California's Social Safety Net

The Human Services Budget (AB 152) strengthens support for California families by increasing CalWORKs grants, expanding services for foster youth and adoptive families, extending anti-hate initiatives, protecting CalFresh access, improving In-Home Supportive Services, and providing counties with fiscal relief as California prepares for new federal mandates under H.R. 1.

"Even as Washington shifts more responsibility to the states, California is refusing to turn its back on children, seniors, people with disabilities, and working families," proclaimed Senator Cortese. 

  • 1.8% increase to CalWORKs Maximum Aid Payments. 

  • Fiscal relief for counties by capping county CalFresh administrative cost increases resulting from H.R. 1 through 2028-29.

Safeguarding Health Care

The Health Budget (AB 164) prepares California's health care system for the implementation of H.R. 1 by investing in Medi-Cal outreach, enrollment assistance, accountability measures, and public transparency while expanding access to women's health services, reproductive health care, and hospital affordability protections.

"This budget recognizes the enormous challenges H.R. 1 creates for California. Rather than waiting for a crisis, we're preparing now to protect patients, providers, and our health care safety net."

Investing in Transportation

The Transportation Budget (AB 169) continues investments in safer highways, freight mobility, modern DMV technology, roadway improvements, artificial intelligence applications to improve traffic safety, and critical transportation infrastructure that supports California's economy while maintaining strong oversight of public investments.

"As Chair of the Senate Transportation Committee, I'm pleased this budget continues investing in the infrastructure Californians depend on every day while embracing innovation that improves safety and mobility."

  • $270 million Trade Corridor Enhancement Program (including $15 million for freight improvements serving the Ports of Los Angeles and Long Beach).

  • $56 million DMV State-to-State Verification System modernization. 

  • $7.2 million for Caltrans Generative AI roadway safety initiatives.

Supporting Workers

The Labor Budget (AB 171) expands workforce development programs, strengthens worker protections, funds apprenticeship and job training initiatives, invests in ports workforce development, supports hospitality careers, and provides sustained funding for workplace rights enforcement.

  • $30 million annually for three years ($90 million total) for the California Workplace Outreach Project.
  • $10.8 million SEED workforce program.
  • $9 million ongoing Workers' Rights Enforcement Grants.
  • $5 million Ports Workforce Training Program.
  • $5 million Hospitality Training Academy.

Addressing the Housing Crisis

The Housing Budget (AB 179) strengthens California's housing production infrastructure by improving administration of affordable housing programs, supporting regional housing initiatives, enhancing homelessness coordination, and laying the groundwork for the recently enacted Veterans and Affordable Housing Bond Act of 2026, which will place an $11.25 billion housing bond before California voters this November.

"Housing affordability remains one of California's defining challenges. This budget continues moving us toward increasing housing production while making strategic investments that complement our broader housing agenda."

  • $11.25 billion Veterans and Affordable Housing Bond Act of 2026

Reducing Ballot Clutter

The Ballot Measures Budget (AB 182) continues efforts to streamline California's ballot process, improve election administration, and reduce voter confusion by implementing reforms designed to make statewide elections more efficient, understandable, and accessible.

"This year's budget demonstrates that California can remain fiscally disciplined without sacrificing our values. We balanced the budget, eliminated projected deficits, protected essential services, and continued making strategic investments that will strengthen our economy and improve quality of life for millions of Californians.

While federal uncertainty remains, California is sending a clear message: we will continue to invest in opportunity, protect our communities, and lead with fiscal responsibility."

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

Contact:

Mario B. Lopez, Communications Director

Office of Senator Dave Cortese | District 15

Phone: 408-545-8205 | Email: Mario.lopez@sen.ca.gov 

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