California Budget Updates

To support our field keeping up with budget related information, TFC will host updates and information on our Budget Page. If you have information you would like to have hosted, click here.

Use this Excel document to track changes to child care program funding throughout the budget process.

Last Week: A Deal is Made

Last Friday, Governor Newsom and legislative leaders announced a three-party agreement on the 2026–27 State Budget, reaching a final spending plan that delivers a balanced budget while prioritizing investments in education, health and human services, affordable housing, behavioral health, public safety, and fiscal reserves amid continued economic uncertainty. The agreement builds on the Legislature's June 15 constitutional budget deadline by finalizing budget bill amendments ("budget bill juniors") and the budget trailer bills that implement the state's spending plan and associated policy changes.

For the child care field, legislative leaders highlighted that the agreement secures funding for child care slots, continues Cost of Care Plus payments with a 2.01% increase, and preserves funding for core early learning and care programs. The budget bills (SB 111 / AB 111) released following the three-party agreement also include funding for the proposed expansion of 22,770 subsidized child care spaces (20,700 voucher-based and 2,070 center-based), which TFC will continue reviewing as the remaining trailer bill language is finalized.

What to Expect This Week

Today, the California Legislature is expected to vote on around 20 bills proposed to implement the final budget agreement, with additional budget legislation possible later this week or in the closing days of the legislative session in August 2026.

Key items to watch include:

• Release of additional budget bill amendments and trailer bill language.
• Legislative action on trailer bills implementing the three-party budget agreement.
• Governor Newsom's action on AB 109, the main budget bill, ahead of the July 1 start of the new fiscal year.
• Final legislative action on budget trailer bills and any remaining budget-related measures.

Budget Bills and Trailer Bills in Play

A number of budget bills and trailer bills went into print last week. Below are the budget and trailer bills relevant to the field. Check the TFC Budget Page for a complete list of printed trailer bills.

• SB 111 / AB 111 : Budget Bill Jr.: Budget Act of 2026
• SB 112 / AB 112: Budget Bill Jr. : Budget Acts of 2022, 2023, 2024, and 2025
• SB 126 / AB 126: Education omnibus trailer bill
• SB 150 / AB 150: Early care and education
• SB 152 / AB 152: Human services
• SB 163 / AB 163: Developmental services

Click here for the Senate's analysis of the budget bills.

Click here for the Assembly's floor report of the budget bills.

What's Included in the Early Care and Education Trailer Bill (SB 150 / AB 150)

• Continues the suspension of most child care COLAs for 2026–27, with a 2.009% COLA provided only for Resource & Referral programs and Local Child Care and Development Planning Councils.
• Maintains Cost of Care Plus payments, including monthly per-child 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 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 stage participation requirements.
• 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 redirect child care funds when contractors are not making sufficient progress in serving children with allocated funding.

Key Dates Ahead

• Now through June 30: Budget trailer bills move through budget committees and floor votes.
• By June 30: Governor Newsom is expected to sign the main budget bill (AB 109) and additional budget measures as the Legislature completes action on the budget package.
• July 1: Start of the 2026–27 fiscal year.

Upcoming Budget Hearings

• Monday, June 29, 2026
• Senate Budget Committee @ 9 a.m. - 1021 O Street, Room 1200; Calendar
• Click here to read the full package of budget bills being voted on
• Assembly Budget Committee @ 10 a.m. - 1021 O Street, Room 1100; Calendar
• 2026 Budget Package

TFC's Highlighted Bills

SB 902 (Grayson) Childcare: Electronic signatures

Authorizes the use of electronic signatures in child care programs, aligning child care processes with longstanding practices already used in county-administered programs and everyday life.

Status: Set for Hearing in the Assembly Education Committee

Next Hearing: July 1 @ 1:30 p.m. in the Assembly Education Committee

Click here to sign the SB 902 (Grayson) coalition support letter

• 30+ organizations signed on in support

Click here for a template support letter

• Click here for how to submit a position letter through the Advocacy Portal

Have questions about this bill or the support materials? Please email mckenzie@thrivingfamilies-ca.org

AB 2314 (Rogers) "The Child Care Stability and Modernization Act"

Maximizes use of existing child care funds to serve families, ensuring dollars are spent efficiently to reduce delays and reach families waiting to receive care.

Status: Set for Hearing in the Senate Human Services Committee

Next Hearing: June 29 @ 3:00 p.m. in the Senate Human Services Committee

Click here to sign the AB 2314 coalition support letter

Click here for a template support letter

• Click here for how to submit a position letter through the Advocacy Portal

\Have questions about this bill or the support materials? Please email mckenzie@thrivingfamilies-ca.org

SB 1110 (Becker) Reimaging Child Care to Better Serve Families & Providers

Stabilizes the foundation of subsidized child care to move California towards universal child care/single rate structure. 

Status: Held on the Senate Appropriations Suspense File

Click here for a template support letter

• Click here for how to submit a position letter through the Advocacy Portal

Have questions about this bill or the support materials? Please email JTerry@ccrcca.org.

SB 1051 (Menjivar) Emergency Child Care Bridge: No Wrong Door

Permits Bridge Navigators to submit referrals to county welfare agencies to approve vouchers for an eligible foster child as another trusted partner and strengthen the original intent of the Bridge program.

Status: Passed the Assembly Appropriations Committee

Click here for a template support letter

• Click here for how to submit a position letter through the Advocacy Portal

Have questions about this bill or the support materials? Please email JTerry@ccrcca.org.

TFC's Featured Bill of the Week

AB 2314 (Rogers) "The Child Care Stability and Modernization Act"



Author: Assemblymember Chris Rogers

Assemblymember Chris Rogers proudly serves California’s 2nd Assembly District, which encompasses Eureka, Arcata, and Santa Rosa. Before joining the State Assembly, Chris made a significant impact as a Santa Rosa City Councilmember and Mayor, where he led efforts in wildfire recovery, housing affordability, and environmental sustainability. Known for his collaborative leadership style, Chris has been instrumental in securing resources to support small businesses and protect vulnerable communities during challenging times.

Important Dates, Deadlines,

Hearings, and Bills

Dates & Deadlines:

• July 2 - Last day for policy committees to meet and report bills. Summer Recess begins upon adjournment, provided Budget Bill has been passed.

This Week's Hearings for TFC-Tracked Bills:

• Monday, June 22, 2026
• Senate Appropriations Committee - 10 a.m. @ 1021 O Street Room 2200
• Click here to view the bills heard
• Senate Human Services Committee - 10 a.m. @ State Capitol, Room 113; Calendar
• Click here to view the bills heard
• AB 1746 (Davies) CalWORKs childcare request forms
• AB 1914 (Schiavo) General plan elements: childcare
• AB 2230 (Avila Farias) Child daycare facilities
• AB 2258 (Avila Farias) Early childhood education and childcare: alternative payment programs.
• AB 2314 (Rogers) "Child Care Modernization and Stability Act"
• Tuesday, June 30, 2026
• Assembly Health Committee - 1:30 p.m. @ 1021 O Street, Room 1100; Calendar
• Click here to view the bills heard
• Assembly Human Services Committee - 1:30 p.m. @ State Capitol, Room 437; Calendar
• Click here to view the bills heard
• SB 1200 (Menjivar) Family daycare homes
• Wednesday, July 1, 2026
• Assembly Appropriations Committee - 9 a.m. @ 1021 O Street, Room 1100; Calendar
• Click here to view the bills heard
• SB 557 (Hurtado) - Child abuse: family resource centers
• Senate Education Committee - 9 a.m. @ 1021 O Street, Room 2100; Calendar
• Click here to view the bills heard
• Senate Health Committee - 1:30 p.m. @ 1021 O Street, Room 1200; Calendar
• Click here to view the bills heard
• Assembly Education Committee - 1:30 p.m. @ 1021 O Street, Room 1100; Calendar
• Click here to view the bills heard
• SB 902 (Grayson) Childcare: electronic signatures

Legislative Resources:

• See the tentative 2026-27 Legislative Calendar here.
• Visit TFC's Legislation Page to find a comprehensive list of bills of interest.
• Visit TFC's Budget Page for full budget bill details, as well as budget hearing video archive links.
• Click here to view all the bills that the Assembly and Senate introduced this legislative year.
• Click here to view legislative committee information, rules, and position letter deadlines.

Did You Know?

Child Care Q&A's

NOTE: If you have a question you would like answered or researched, please email.

Question: Did legislation that requires agencies to collect family fees pass? Will agencies be provided with any implementation time? When should agencies expect instructions from the state?

Answer: The family fee collection proposal is included in the current version of the SB 150 / AB 150 early care and education trailer bill. The updated language would require contractors to begin collecting family fees on January 1, 2027, rather than the previously proposed implementation date of July 1, 2026.

TFC raised concerns with policymakers that most contractors are not currently collecting family fees and would need adequate time to hire and train staff, update policies and procedures, modify software systems, and communicate changes to families. We appreciate that the updated implementation date reflects many of those concerns and provides agencies with additional time to prepare.

TFC also continues to advocate for implementation resources and clear guidance from the California Department of Social Services (CDSS), as collecting family fees will create new administrative responsibilities for contractors. We anticipate CDSS will provide implementation instructions closer to the January 1, 2027 effective date.

Click here for our in-depth Q&A on the family fees collection proposal.

Reach out to TFC if you have additional questions.

Federal Update

Updates on CCDF and Federal Proposed Rule Posted to TFC's Webpage

Click here to be directed to our website page that will be continually updated with the latest news.

TFC, in partnership with Head Start California, has collected information and resources on recently proposed federal rules. Here are the latest updates that can be found our page:

• Proposed Rule - Nonprofit Grant Rules: OMB has proposed significant changes to the federal grant rules that govern nonprofits and other grant recipients. Go to our Federal website page for:
• A summary of the changes
• Resources with detailed explanations
• Actions you can take
• Proposed Rule - Head Start Workforce Requirements: HHS has proposed rescinding portions of the 2024 Head Start workforce rule, including requirements related to staff wages and benefits.
• Next steps after public comment closed on June 11
• Actions you can take

Click here to read the most recent weekly federal update from the National Women's Law Center.

Federal Government Update

US Congress Update

This week, Rep. Bonamici (D-OR), Ranking Member Scott (D-VA), Rep. Jacobs (D-CA), and Sen. Murray (D-WA) announced that they introduced a Congressional Review Act (CRA) resolution to repeal a final rule from the Department of Health and Human Services that would make child care more expensive and less accessible.

The administration’s “Restoring Flexibility in the Child Care and Development Fund (CCDF)” final rule repeals a 2024 rule that protected families from excessive costs, provided greater financial stability for child care programs, and increased child care options for families. The final rule repealing these provisions is set to take effect on July 13, 2026. More: Bonamici, Scott, Jacobs, Murray Introduce Legislation to Overturn Harmful Child Care Rule | Congresswoman Suzanne Bonamici 

Last week, Senate Democratic Leader Schumer (D-NY) and Senators Murray (D-WA) and Warren (D-MA) announced the next pillar of Senate Democrats’ affordability agenda: a new Senate Democratic vision to make child care more affordable, more available, and higher quality for families across the country. 

In addition the vision, there is an accompanying report, press conference, floor remarks, and coverage by 19th news: Americans agree that childcare is expensive. Democrats are running on it. 

Administration Update

Last week, the administration did the thing children’s advocates have spent more than a year warning against. Through four new interagency agreements, the Department of Education announced it would move the Office of Special Education and Rehabilitative Services (OSERS) — the office that administers the Individuals with Disabilities Education Act (IDEA) for more than 8 million students — to the Department of Health and Human Services (HHS), while shipping civil rights enforcement off to the Department of Justice.

The administration calls these “partnerships.” In reality, they are the latest and largest step in a campaign to dismantle the Department of Education without ever asking Congress, which is the only body with the power to abolish it.

With this move, more than 8 million students with disabilities now face a fragmented federal system in which special education, civil rights enforcement, and other educational programs are scattered across multiple agencies with overlapping authority and limited expertise. More: Misdiagnosed: The Administration Handed Special Education to an Agency That Knows Nothing About Schools 

Fraud Narrative

Resources:

• NEW: Why the Alleged Fraud Narrative is Detrimental to Child Care Programs, Educators, and Families | NAEYC 
• NEW: Child Care Fraud Is a False Narrative | Home Grown Child Care 
• TPs on CCDF Accountability Measures & Fraud Claims (NWLC)
• Spring 2026 Message Guidance for Attacks on Child Care (CCEFN)
• Program Integrity and Accountability in the Child Care and Development Fund Program | CLASP 
• Attacks on Somali Communities and Fraud Claims Fact Sheet (CLASP, NILC, ACT)

Most Viewed Bills of the Week:

1.H.R.4818 [118th] Treat and Reduce Obesity Act of 2023

2.H.R.6509 [119th] SAFE Drugs Act of 2025

3.H.R.3633 [119th] Digital Asset Market Clarity Act

4.S.2296 [119th] National Defense Authorization Act for Fiscal Year 2026

5.H.R.1 [119th] An act to provide for reconciliation pursuant to title II of H. Con. Res. 14.

6.H.R.9237 [119th] Take Care of America's Veterans Act

7.H.R.8800 [119th] National Defense Authorization Act for Fiscal Year 2027

8.H.R.6644[119th] 21st Century ROAD to Housing Act

9.S.596 [117th] Treat and Reduce Obesity Act of 2021

10.H.R.5316 [119th] Drug Shortage Compounding Patient Access Act of 2025

Thriving Families CA Foundation member agencies, with the support of Thriving Families CA Foundation, are putting together a series of Regional Meetings that will be coming to a region near you!

This series will be delivered in a format that is very participatory. We encourage all participating to come with questions, as well as samples for each of the topics that will be discussed. 

We hope you can join us!

Learn More and Register Here.

R&R Network and Thriving Families CA Foundation 2026 Joint Annual Conference

2026 Conference

Save the Date and join your peers for an amazing 2026 Joint Conference!

After thoughtful consideration and reflection on participant and committee feedback, we will be moving to a 100% in-person format for 2026, rather than offering a hybrid option as in previous years. In-person gatherings continue to provide the highest levels of engagement, connection, and overall satisfaction—and we want to ensure the best possible experience for all attendees.


Over the past year, we also observed limited participation in the virtual offering. As a result, we’re focusing our efforts on delivering a dynamic, fully in-person event that maximizes learning, collaboration, and meaningful relationship-building.


To accommodate this shift, we are increasing overall in-person conference capacity.


We appreciate your understanding and partnership as we work to create an engaging and inclusive conference experience for all.


More details, including registration timelines, will be shared soon—we look forward to seeing you in person!

Visit the Conference Webpage for more information as it becomes available.

CDSS & CDE Information & Updates

RELEASED June 24, 2026: Child Care Bulletin (CCB) 26-15: NEW REIMBURSEMENT BASED ON ENROLLMENT POLICY

The California Department of Social Services (CDSS) Child Care and Development Division (CCDD) has recently published the following document: Child Care Bulletin (CCB) 26-15: NEW REIMBURSEMENT BASED ON ENROLLMENT POLICY

The purpose of this Child Care Bulletin is to inform child care and development contractors of the new policy, beginning July 1, 2026, for reimbursement based on enrollment introduced in Senate Bill (SB) 120 (Statutes of 2025) and codified through Welfare Institution Code (WIC) 10280.

If you are a contractor and have any questions regarding the information in this CCB, contact your assigned Program Quality and Improvement Consultant. The list of assigned consultants can be found on the Child Care and Development Contacts webpage.

ANNOUNCING PIN 26-05-CCP - STATEWIDE LEAD TESTING DATA MAP AND REMINDER OF FUNDING OPPORTUNITIES

Primary Audience:

ALL CHILD CARE FACILITY LICENSEES

Summary:

PIN 26-05-CCP announces the launch of an interactive map displaying lead testing results of water in licensed Child Care Centers. This interactive map will be viewable to the public and include guidance on interpreting the data. This PIN also provides a reminder of available funding opportunities for testing and remediation.

This PIN is an informational resource offered to assist licensed child care facilities and providers in ensuring the health and safety of children in care.

An electronic copy of PIN 26-05-CCP - Statewide Lead Testing Data Map and Reminder of Funding Opportunities is available for viewing/downloading by clicking on the following link:

PIN 26-05-CCP - Statewide Lead Testing Data Map and Reminder of Funding Opportunities

Voices from the Field: Family/Early Identification and Intervention Partners Survey

The Voices from the Field: Family/Early Identification and Intervention Partners Survey is ready to be completed by families and providers to provide meaningful feedback about the California Department of Developmental Services (DDS), Early Start program.

The Early Start program is California’s early intervention program for infants and toddlers with developmental delays or at risk for developmental disabilities and their families. This anonymous survey is being conducted by the Improving State Systems Committee of the California Interagency Coordinating Council on Early Intervention (ICC), which provides advice and assistance to DDS. The committee decided to create a survey to request input from families/caregivers and providers about accessing services to ensure the development of children from birth to age 3, including those experiencing lasting disruptions from the COVID pandemic.

The survey is available in English and Spanish:

English Family/Early Identification & Intervention Partners Survey

Spanish Family/Early Identification & Intervention Partners Survey

Social Media Spotlight

Follow TFC on social media!

We would love for you to tag us in your posts and use the hashtag #TFC2025

Information & Updates

Happening This Week, June 29 - July 3, 2026: 


Tuesday, June 30th:

• TFC Weekly Member Connections Meeting @ 1:00 p.m. Email to register.
  

Wednesday, July 1st:

• TFC Public Policy Meeting @ 2:00pm
  

Thriving Families CA Foundation is committed to supporting our field with a coordinated calendar. Click here to see our current calendar of events. If you have an event to add, email us and it will be added.

The Weekly Good

An uplifting way to start the week, for those of us who need a break from the chaos that is our lives.

During this time where we are all stressed, it would be great to celebrate the positive. Each week we will celebrate everyday heroes, inspiring movements and great things happening in our field.