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California Legislature Passes Budget, Talks with Gov. Gavin Newsom to Continue

Lawmakers approved a budget that delays Medi-Cal cuts, adds 22,770 child care slots and sets aside $900 million for homelessness.

  • On Monday, California legislators advanced a $355.9 billion budget plan to meet the state's constitutional deadline while largely avoiding or delaying deep social service cuts Governor Gavin Newsom proposed last month.
  • Lawmakers are constitutionally required to pass a balanced budget by June 15 each year to receive their pay, a deadline the budget process follows after the Legislative Analyst's Office projected a $16.9 billion deficit.
  • Disagreeing with Newsom's austerity approach, the legislature earmarked $900 million for homelessness, rejected proposed childcare slot reductions, and added $2.7 billion more for TK-12 schools than the governor proposed.
  • With the new fiscal year beginning July 1, negotiations will continue over the next two weeks as legislators and the governor seek to resolve differences on healthcare and education funding.
  • Assembly and Senate members also voted to withhold $55 million from the California Department of Motor Vehicles over concerns about potential deportations, while supporting three new tax measures to bolster revenue.
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Senate committee passes $355.9B California budget

(The Center Square) – The Senate Budget Committee on Monday afternoon approved the latest version of California’s 2026-27 budget, which green lights $355.9 billion in spending.

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Cal Matters broke the news in Sacramento, United States on Monday, June 15, 2026.
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