Updated · Office of Governor Gavin Newsom · Jun 26
California Leaders Unveil $351.7 Billion Budget, Locking In 0 Deficit for 2 Years
Updated
Updated · Office of Governor Gavin Newsom · Jun 26
California Leaders Unveil $351.7 Billion Budget, Locking In 0 Deficit for 2 Years
3 articles · Updated · Office of Governor Gavin Newsom · Jun 26
Summary
$351.7 billion is the size of California’s 2026-27 budget deal, which Newsom and legislative leaders said balances the state’s books with no deficit this year or next.
More than $6 billion in anticipated revenue will be parked in a holding account, while the plan preserves reserves and avoids major cuts despite economic uncertainty and federal funding pressure.
The agreement keeps funding for healthcare, free school meals, summer school, universal preschool, child care, disability support, housing streamlining, disaster rebuilding and election security.
It also limits some large corporate tax breaks, adds billions for schools and colleges, and pairs with earlier budget pillars including a rainy-day fund amendment and a 2026 housing bond.