Assembly Democrats Vote to Pass a Budget that Invests in Affordable Housing, Protects Health Care Access, Defends the Safety Ne

Today, the California State Assembly voted to deliver the 2026-27 state budget, advancing a balanced spending plan that includes hundreds of millions of dollars for affordable housing, along with strong protections defending health coverage and essential benefits like food assistance from Trump's cuts. The budget now heads to Governor Newsom for his signature.

SACRAMENTO - On Monday, the Assembly voted to pass California's 2026-27 state budget, approving the balanced spending plan that protects health care and the safety net from Trump's full-court attack, while investing real dollars in housing affordability and schools and maintaining strong reserves to help California weather economic uncertainty coming from Washington.

The budget now heads to Governor Gavin Newsom for his signature.

What California's Leaders Say About the Balanced Budget

"Working families deserve a budget that has their back - and that's exactly what California is delivering. We're protecting health care, preserving food programs, investing in housing at record levels and building reserves to fight back no matter what Trump and Republicans throw at us. While Washington's agenda drives up prices and guts critical programs, California is focused on what matters: Real solutions that put affordability first."

- Speaker of the Assembly Robert Rivas

"California is delivering a budget rooted in compassion, fiscal responsibility, and opportunity for all. While the Trump Administration and Congressional Republicans continue to make life harder for working families, our state budget prioritizes health care, housing, and critical programs that working families and our most vulnerable communities rely on. I'm grateful to Governor Newsom, Speaker Rivas, Pro Tem Limón, and our Assembly Budget Sub Committee Chairs for working collaboratively to craft a budget that reflects our values and uplifts California families."

- Jesse Gabriel, Chair of the Assembly Budget Committee

Historic Affordable Housing Wins, Saving More for Rainy Days

Last week, Speaker Rivas and California leaders announced two major agreements that form key pillars of the broader budget package:

• The historic Veterans and Affordable Housing Bond Act of 2026 to help fund housing construction, preserve affordable housing, and expand homeownership opportunities, including assistance for veterans, middle- and lower-income households, affordable rental housing, and interim and supportive housing for people experiencing homelessness.
• The Save for California's Future Act, a constitutional amendment that strengthens the state's Rainy Day Fund and modernizes California's fiscal safeguards to better prepare for future economic uncertainty. The Save for California's Future Act will also help protect schools and businesses by reducing unemployment insurance trust fund liabilities and potential costs for employers.

Delivering on Affordability, Health Care, Housing and More

Among its key priorities, the balanced budget agreement:

• Fights to protect Medi-Cal, dental care and health access for immigrant communities.
• Supports community hospitals facing fiscal challenges from Trump's cuts
• Includes $300 million to backfill health care premiums due to Trump eliminating federal subsidies.
• Funds in-home care and services for seniors and people with disabilities
• Invests tens of millions of dollars for immigrant legal services.
• $900 million to prevent street homelessness and support unhoused residents.
• Hundreds of millions of dollars invested in low-income housing and multi-family homes.
• $108 million in funding for food and $16.5 million for diaper banks.
• Creates 25,000 new child care opportunities, with a focus on children under age three.
• Record funding for students and per-pupil spending, along with a significant cost-of-living investment for school districts.
• Fully funds the UC and CSU systems.
• $100 million in tax breaks for new businesses in California.
• Maintains a balanced budget - not just for the coming fiscal year, but the following year, as well.
• Continues investments in public safety and efforts to improve community safety across California, including treatment and funding for crime victims.
• Maintains California's leadership on climate resilience, clean energy, and wildfire preparedness, including fully funding CalFire.
• Makes new investments to safeguard and speed up elections - increasing staffing, expanding voter outreach and education, and combating mis- and disinformation.
• The agreement also reflects California's continued commitment to responsible fiscal management, preserving the state's ability to respond to future economic conditions while protecting the essential programs Californians rely upon.