2026-27 California State Budget Information
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Committee Information, Rules & Position Letter Deadlines can be found here
UPDATED TFC 2026 Budget Tracking document - Includes links to previous child care hearing recordings, agendas, and transcripts (see tab "Hearing Recording Links")
Upcoming Budget Hearings (updated 09/02/26)
2026 Budget Updates (updated 08/30/26)
- NEW Summary of changes for August child care trailer bill AB 190/SB 190:
- FCCH temporary-absence reporting is reduced. AB 150 created the monthly 20% limit, substitute-adult requirements, parent notification, and reporting requirements. AB/SB 190 removes the requirement to report the temporary absence to the department, while retaining the substitute-adult and parent-notification requirements.
- Health and safety training requirements are substantially rolled back from AB 150. AB 150 would have required all child care staff, FCCH licensees, and substitute adults to complete the 15-hour training, plus annual continuing education. AB/SB 190 instead limits the requirement to at least one director or teacher at each center and each FCCH licensee who provides care, with the broader AB 150 requirement scheduled to return October 1, 2027.
- The reimbursement/rate language is significantly revised. AB/SB 190 extends the quarterly reporting requirement on the Alternative Methodology through July 1, 2028 and specifically requires the July 2027 report to lay out what would be needed to incorporate Cost of Care Plus into existing reimbursement rates, including technology changes, statutory/regulatory changes, contractor responsibilities, and implementation timelines.
- AB/SB 190 adds more detail around the future single-rate structure. It specifies age-based rate groupings, establishes legislative intent for per-child enhanced inclusion rates, and identifies the cost factors the future methodology should consider, including salaries/wages, geography, care setting, regulatory requirements, nontraditional hours, child age, and inclusion supports.
- CSPP:
- CSPP attendance is expanded further. AB 150 added medical and educational appointments and absences during an expulsion/suspension appeal. AB/SB 190 goes a step further by allowing excused absences for expulsion or suspension itself, not just the appeal period.
- CSPP eligibility implementation gets stronger interim authority. AB/SB 190 allows CDE to implement, interpret, and clarify the new eligibility, ongoing-income-eligibility, and enrollment provisions through management bulletins before formal regulations are adopted, with those instructions having the same force and effect as regulations in the interim. It also adds a final enrollment priority requiring eligible children to be enrolled in income-ranking order.
- The five CSPP staff-training days are expanded. AB 150 established the increase to five days. AB/SB 190 adds flexibility around what the days can be used for, allows full or partial training days, counts qualifying training days toward days of operation, and establishes payment rules for FCCH providers using training days.
- CSPP funding for children with exceptional needs is subject to recovery. AB 150 maintained the existing 5% enrollment requirement for children with exceptional needs. AB 190 adds that, beginning in 2027–28, any funding associated with the 5% set-aside that is not earned during the fiscal year may not be retained by the agency and is subject to recovery by CDE. Agencies that do not meet the enrollment requirement may also be placed on a conditional contract unless they receive an approved waiver.
- NEW Summary of changes for August education omnibus trailer bill AB 133/SB 133:
- Changes the $50 million Universal Preschool Planning Grant structure. AB 126 allowed existing LEA grantees or new LEA consortia lead agencies to apply for renewal/new grants. AB/SB 133 instead establishes a designated lead agency within each county, with the county office of education receiving first priority, and creates additional pathways for school districts, charter schools, local planning councils, and R&R agencies to participate if the higher-priority entity does not apply.
- Strengthens the role of R&Rs, LPCs, and the mixed-delivery system in universal preschool planning. AB/SB 133 requires greater coordination among county offices of education, R&Rs, LPCs, tribes, CSPP, Head Start, and other early learning providers, including a countywide working group representing these sectors.
- Adds a new requirement for LEAs receiving universal preschool planning funds to develop a plan for full-day learning opportunities before kindergarten. If an LEA does not already have the required plan, AB/SB 133 requires it to develop one through a public process, including consideration of partnerships with CSPP, Head Start, and other community-based early learning and care programs.
- Adds a full-day TK planning requirement. Rather than simply requiring LEAs to offer full-day TK, AB/SB 133 allows an LEA that is not yet able to do so at every kindergarten schoolsite to develop a plan, for public consideration by June 30, 2028, describing how it will provide full-day TK at those sites.
- Extends the timelines for spending universal preschool planning funds. AB/SB 133 extends the expenditure/reversion timelines for the grants and creates separate timelines for the different grant allocations, giving counties and grantees additional time to implement the planning and coordination work.
- Expands the use of returned Prekindergarten Planning and Implementation Grant funds. AB/SB 133 allows returned or collected funds from certain portions of the grant program to be redirected to the $100 million competitive teacher workforce/professional development grants serving CSPP and TK.
- Makes the universal preschool planning process more explicitly focused on inclusion and workforce development. AB/SB 133 adds activities around increasing inclusion of children with exceptional needs, connecting providers to workforce pathways, supporting multilingual and inclusive preschool options, and strengthening professional development and recruitment.
- NEW New trailer bills: 2026 end-of-session budget package published August 28, 2026
- What's Included in the final budget agreement for child care:
- Continues the suspension of most child care COLAs for 2026–27 (4th consecutive year of COLA suspension), with a 2.009% COLA provided only for Resource & Referral programs and Local Child Care and Development Planning Councils.
- Maintains monthly, per-child Cost of Care Plus payments and provides a 2.009% COLA to Cost of Care Plus payments for providers serving children in specified subsidized child care programs.
- Implements family fee changes effective January 1, 2027, requiring contractors to reimburse providers without deducting family fees and to collect those fees separately.
- Strengthens eligibility stability by clarifying that families enrolled in California State Preschool Program are not required to report income or other changes during their 24-month eligibility period.
- Updates CalWORKs child care eligibility to align with participation in CalWORKs activities and clarifies that each CalWORKs recipient can only participate in one stage at a time.
- Expands fraud prevention and program integrity provisions, including allowing contractors to terminate eligibility when substantiated fraud invalidates a family's certification.
- Updates provider licensing requirements, temporary absences, substitute adults, medication administration, emergency plans, and training requirements.
- Expands CDSS authority to identify funds that would go unspent and transfer identified child care funds between like program contractors (i.e. between alternative payment program contractors, or between direct-service contractors)
- 06/26/2026 Budget agreement is reached between the Legislature and the Governor
- 06/26/2026 Budget bills (updated)
- SB 111: Budget Bill Jr.: Budget Act of 2026 (includes amendments to AB 109 on the Governor’s desk)
- AB 112: Budget Bill Jr. : Budget Acts of 2022, 2023, 2024, and 2025
- SB 110: Budget Act of 2026 (lists other budget bills)
- AB 126: Education omnibus trailer bill
- SB 135: Higher education budget trailer bill
- AB 150: Early care and education
- AB 152: Human services
- SB 163: Developmental services
- SB 164: Health
- SB 165: Skilled nursing facilities: reimbursement rates (urgency)
- SB 166: Public resources trailer bill
- SB 168: Public resources
- SB 169: Transportation budget trailer bill
- SB 170: Governor’s Reorganization Plan No. 1 of 2025: codification
- SB 171: Labor
- SB 172: State government
- SB 174: Courts
- SB 177: Medi-Cal: Fair Share from Big Corporations options bill
- AB 179: Housing
- SB 180: Taxation trailer bill
- AB 181: Education governance policy bill
Other Updates & Resources
Archived Budget Information:
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