SACRAMENTO, Calif., July 2, 2026 /PRNewswire/ — End Child Poverty California (ECPCA) commends key elements in the 2026–27 state budget signed by Gov. Gavin Newsom — his last in office. The budget employs new revenue sources and makes use of a brighter-than-expected budget outlook to mitigate the harm from cruel federal cuts included in reconciliation bill H.R. 1. But much work remains. California must show up even stronger to protect children and families from sustained attacks on safety net programs, workers, and immigrant communities that are harming California children and families.
We are encouraged by many aspects of the final budget agreement. The agreement adds 22,770 new childcare slots, preserves In-Home Supportive Services funding, and offers a path forward for a Fair Share Contribution program to hold profitable, large-scale employers accountable to workers and taxpayers. The budget also adopts $5 billion in new ongoing revenues; these revenue streams will help California fight back against federal attacks on the programs that keep families afloat.
However, we are deeply disappointed that the budget only delays significant planned healthcare cuts, leaving difficult choices for lawmakers in the coming budget years. Further, the failure of the budget to invest in CFAP Plus automation efforts to provide state-funded food benefits to people who were targeted under H.R. 1 CalFresh cuts will leave hundreds of thousands without food for the foreseeable future. Unfortunately, the agreement also lacks promised cost-of-living increases for childcare providers that reflect the true cost of care.
“We’re grateful California is fighting back against federal cuts through innovative funding and crucial protections for Medi-Cal. However, this budget by no means closes the books on our fight to protect California from this administration’s attacks on children, families, seniors, immigrants, and vulnerable communities. There is much more work to be done,” said Shimica Gaskins, President and CEO of End Child Poverty California powered by GRACE. “We call on elected leaders to build on this budget m to shape policies that combat child poverty and food insecurity, and preserve dignity for all Californians. There is still time for California’s leaders to act by August and protect Californians from the relentless and cruel policies coming from the White House and Congress.”
This budget heeds tireless calls from hundreds of organizations across the state, including from our partners and other anti-poverty advocates, for California to protect its people and stand up to Washington’s partisan attacks. Up to 3 million Californians could lose Medi-Cal coverage and food benefits because of the federal cuts from H.R. 1 to pay for massive tax cuts for wealthy corporations and billionaires. We will continue fighting through August budget action, as well as the next budget cycle, to ensure that children and families across California have the food and healthcare they need to thrive.
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