2026-27 California State Budget Information

Click here to watch or listen to budget hearings. 
Committee Information, Rules & Position Letter Deadlines can be found here

UPDATE TFC 2026 Budget Tracking document - Includes links to previous child care hearing recordings, agendas, and transcripts (see tab "Hearing Recording Links")
TFC Response to 2026-27 Proposed Budget 

2026-27 May Revision

• Click here to watch the press conference recording on YouTube
• DOF 2026-27 May Revision landing page
• Summary
• Health & Human Services details - Child Care Page 36-37
• Child Care Administrative and Support Cost Structure—A total of $65.1 million General Fund in 2026-27 to increase allowable in-contract administration costs for alternative payment program agencies by 1.5 percent of their total contract amount.
• Child Care Infrastructure—A one-time increase of $28 million federal funds for child care facilities affected by the 2023 and 2024 natural disasters. 
• Child Care Cost-of-Living Adjustment—A 30-percent reduction to the revised 2026-27 child care cost-of-living adjustment (COLA), resulting in a 2.01 percent COLA for DSS administered child care programs. This maintains $112 million General Fund for a COLA. 
• 2026 May Revise Child Care Spaces
• Assembly Democratic Leadership Statement
• Senate Democratic Leadership Statement 
• Legislative Republican Leadership Statement

Upcoming Budget Hearings (updated 05/15/26)

• May 19, 2026 (Tuesday)
• Senate Budget Subcommittee 3 on Health and Human Services @ 9:00 a.m. - 1021 O Street, Room 1200; Calendar
• MAY REVISE - All Departments; Open Issues
• Senate Budget Subcommittee 1 on Education @ 9:30 a.m. or upon adjournment of Session - 1021 O Street, Room 2100; Calendar
• MAY REVISE - All Departments; Open Issues
• May 20, 2026 (Wednesday)
• Senate Budget Subcommittee 3 on Health and Human Services @ 9:00 a.m. - 1021 O Street, Room 1200; Calendar
• MAY REVISE - All Departments; Open Issues
• Senate Budget Subcommittee 1 on Education @ 9:30 a.m. or upon adjournment of Session - 1021 O Street, Room 2100; Calendar
• MAY REVISE - All Departments; Open Issues

• May 21, 2026 (Thursday)
• Senate Budget Subcommittee 3 on Health and Human Services @ 1:30 p.m. - 1021 O Street, Room 1200; Calendar
• MAY REVISE - All Departments; Open Issues
• Senate Budget Subcommittee 1 on Education @ 1:30 p.m. or upon adjournment of Session - 1021 O Street, Room 2100; Calendar
• MAY REVISE - All Departments; Open Issues

2026 Budget (updated 05/15/26)

• Trailer Bills
• TBL - Child Care Infrastructure Disaster Recovery and Restoration
• TBL - AP Admin Moving from 17.5% to 19%, increases Migrant AP admin from 21% to 22.5%%
• TBL - CalWORKs Child Care
• May Revise
• Summary
• Health & Human Services details
• 2026 May Revise Child Care Spaces
• Click here to read TFC's budget response to child care budget issues ahead of the May Revise. On April 23, the Senate Budget Subcommittee No. 3 on Health and Human Services held a hearing to discuss child care issues in the 2026 budget. See our newsletter for an overview of the issues discussed. Click here for the April 23 hearing agenda.
• Assembly Democrats releases 2026 Budget Proposal (05/07/2026)
• Document "Road Map to a Responsible and Compassionate Budget"
• The only note on child care is: “Child care is a critical part of education, too, and a consistent Assembly funding priority.”
• Key areas of focus in the budget Road Map include:
• Protect Medi-Cal, IHSS, food aid, and other core safety net programs while avoiding broad budget cuts.
• Build larger rainy day reserves and avoid major new ongoing spending commitments.
• Push back on federal funding cuts and consider closing corporate tax loopholes.
• Expand housing and homelessness investments while continuing climate and wildfire funding.
• Maintain strong funding for schools, child care, and higher education.
• Senate Democrats release Foundation for the Future: 2026-27 State Budget Plan (4/16/2026)
• Overview of Senate Budget Plan
• Full Senate Budget Plan

• Would add 44,000 new child care slots in FY 2026-27, comprised of 12,000 new CCTR slots and 32,000 new CAPP slots. Costs are proposed to be offset by right-sizing state preschool costs to match current actual costs, then moving non-LEA California State Preschool Program under Prop 98 which would generate $200M in savings.

• Budget Bills
• SB/AB 107
• SB/AB 117 (related to Bay Area transit)
• 2/10/2025 Trailer Bills Introduced
• TBL - Child Care Cost of Living Adjustment
• TBL - Maximizing Child Care Subsidies: Defining Excessive Unexplained Absences
• TBL - TK-12 Omnibus Trailer Bill (includes language for CSPP COLA)
• 2/2/2026 Trailer Bills Introduced
  • TBL - Child Care Provider Family Fee Deductions
  • TBL - Child Care Alternative Methodology Survey
  • TBL - Licensed Family Daycare Homes Temporary Absences
• January 10 budget release information
• January 10 - Recording of the release of the 2025-26 Budget
• January 2026-27 Budget
• Governor's Budget Summary ("8 Pages")
• CA Health and Human Services budget summary
• Assembly 2026-27 Review
• Senate Summary of Governor's Proposed 2026-27 Budget
• 2026-27 Budget Implementation (child care programs pages 29-30)
• Administration's multiyear budget projection summary
• Links to departmental "budget galley" (budget details by department)
• Department of Social Services
• Child care investments included in the 2026 Budget (pages 78-79):
• Child Care Cost-of-Living Adjustment—An increase of $89.1 million ongoing General Fund for a cost-of-living adjustment for DSS administered child care programs.
• Child Care Infrastructure—An increase of $11.5 million one-time Proposition 64 funding for child care infrastructure, specifically targeted toward communities impacted by recent fires. 
• Links to budget change proposals
• Governor’s proposed budget bill, introduced in each house by its budget committee chair, as required by the State Constitution: AB 1563 (Gabriel) and SB 879 (Laird)
• Other budget resources

Other Updates & Resources

• Assembly Budget Subcmt. No. 7 Hearing: Impact of 2026 Federal Funding Withholding for Child Care Services (01/28/2026)
• Jason Sisney: Q&A: California's balanced budget requirement (01/07/2026)
• Jason Sisney: State deficit estimates often differ (01/05/2026)
• LAO State Budget 2025-26 Child Care Spending Plan (11/14/2025)
• LAO Report: 2026-27 Budget: California's Fiscal Outlook (11/19/2025)
• FY 2025-26 CA Child Care Funding Allocation Per Program
• CalBudget: Guide to the California State Budget Process
• For an overview on the budget process and its timeline, click here

Archived Budget Information:

2025-26 Budget Archive
2024-25 Budget Archive
2023-24 Budget Archive
2022-23 Budget Archive
2021-22 Budget Archive
2020-21 Budget Archive
2019-20 Budget Archive
2018-19 Budget Archive
2017-18 Budget Archive
2016-17 Budget Archive