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Governor Newsom's Final Budget: A Mixed Bag for California's Children and Families

On July 2, 2026, End Child Poverty California (ECPCA) acknowledged the positive strides within the 2026-27 state budget signed by Governor Gavin Newsom, marking his final budget in office. This budget introduces various initiatives aimed at combating child poverty and securing more funds for essential services. However, advocates emphasize the need for further action to safeguard vulnerable populations as federal cuts loom.

Key Highlights of the Budget

ECPCA celebrated several important elements in the budget, including:

• - New Childcare Slots: The inclusion of 22,770 additional childcare slots addresses the critical need for early childhood education, which plays a pivotal role in supporting working families.
• - Preservation of In-Home Supportive Services: Funding for this essential service remains intact, which helps families provide necessary care to those with disabilities or the elderly.
• - Fair Share Contribution Program: This initiative calls on large, profitable businesses to contribute fairly to the state, ensuring that all corporations do their part in sustaining California’s economy and supporting social programs.
• - Ongoing Revenue Streams: The budget introduces $5 billion in new, continuous revenues that are aimed at buffering against upcoming federal cuts and supporting local anti-poverty programs.

Despite these advancements, there are stark concerns regarding ongoing actions in the budget.

Unaddressed Issues

ECPCA expressed disappointment that the budget features delay rather than a solution concerning healthcare cuts. Lawmakers face challenges in the coming years if they do not tackle these cuts proactively. Additionally, vital programs such as CFAP Plus, which are intended to provide state-funded food benefits to those affected by H.R. 1 CalFresh cuts, have not received the necessary investment for automation. This lack of action may leave countless families without crucial food resources.

Another area of concern is the failure to address cost-of-living increases for childcare providers. These increases are essential to ensure that providers can continue offering quality care and support to children and families.

The Call for Action

Shimica Gaskins, President and CEO of ECPCA, stated, "While we appreciate California's efforts to push back against federal budget cuts and ensure support for Medi-Cal, this is merely a starting point. We are calling on elected officials to build upon this budget, shaping policies that enhance food security and combat child poverty. There remains a critical window for action before the August deadline."

The current state budget reflects the demands of numerous advocacy groups, including ECPCA, pushing for California to defend its residents from Washington's detrimental policies.

The Stakes

With the potential for up to 3 million Californians to lose access to Medi-Cal coverage and critical food benefits due to federal cuts, ECPCA plans to continue its fight through both the imminent budget actions and future debates. The ramifications of H.R. 1, designed to subsidize wealthy corporations at the expense of working families, cannot be understated.

ECPCA emphasizes the urgency of continued advocacy, reminding legislators that California's families require a robust network of support to thrive, one that cannot afford to be compromised during turbulent political times. By coming together, California can ensure that all its residents—especially its children—receive the support and resources they deserve.

As California navigates significant budgetary hurdles, the stakes have never been higher. The Governor's budget opened doors, but solidifying those achievements will depend on ongoing commitment from lawmakers to secure a brighter future for the state’s children and families.