California State Budget, Legislature & The Capitol

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.

On Friday, the Governor signed the following budget and trailer bills we have been tracking:

• AB 102 - Budget Act of 2025 (Budget Jr.) Purpose: Supplements and modifies SB 101 by making specific line‐item changes—adding appropriations, repealing certain items, and imposing provisions for how funds are to be used.
• AB 118 - Human Services
• SB 101 - Budget Act of 2025 - Purpose: The core state budget bill—an appropriation measure that allocates funding ($321.1 billion) to the government for the 2025–26 fiscal year, spanning major programs and services.
• SB 120 - Early Childhood Education and Child Care

Included in the Governor's press release on the signage of the budget package was noted, "The Governor’s signature on the state budget is contingent on the enactment of either AB 131 or SB 131 on Monday, June 30th."

How does the 2025 Budget Bill Act (SB 101) and AB 102 work together?

• SB 101 sets the broad boundaries of the budget—authorizing total spending across departments.
• AB 102 functions as a follow‑up or “trailer or Jr.” that refines the budget:
• Amending or repealing SB 101’s line‑items,
• Adding new appropriations,
• Attaching conditions or provisos (e.g., funding reserved for specific programs or bypassing procurement norms).

Timing: SB 101 and AB 102 were chaptered on the same day—June 27, 2025—while SB 101 was chaptered as Chapter 4, AB 102 as Chapter 5, reflecting their joint role in the final 2025–26 budget package.

For child care, here are two areas to highlight:

Rate Refore & System Expansion

AB 102 extends the "Cost of Care Plus" rate structure into the 2025‐26 year

Directs the Department of Social Services to adopt a Single Rate Structure for reimbursements based on cost-of-care, moving away from the Regional Market Rate survey —a system change beyond SB 101’s scope.

COLA on Child Care

COLA for Voucher-Based and Contracted Providers

• A COLA is applied only to the base rate, not to all layers of the new Cost of Care Plus system.
• Applies to:
• General Child Care (CCTR)
• Alternative Payment Program (APP)
• Family Child Care Home Education Networks
• State Preschool
• Based on the statutory K–12 COLA.

"Cost of Care Plus" Structure Continues

• Instead of a traditional COLA on the entire reimbursement, California continues with this hybrid system:
• Base Rate (eligible for COLA)
• Add-Ons (for age, geography, quality)—not COLA-adjusted in 2025–26

Funding Source:

• ~$70 million General Fund
• ~$19.3 million Proposition 98 (for State Preschool)

Upcoming Budget Hearings

• Senate Budget and Fiscal Committee - Monday, June 30, 2025 @ 12:00 p.m. - 1021 O Street, Room 1200
• AB 131 (Gabriel) Budget Act of 2025
• AB 139 (Committee on Budget) State Bargaining Unit 9 and 12
• AB 140 (Committee on Budget) State Bargaining Unit 6
• AB 144 (Gabriel) Budget Act of 2025
• AB 145 (Gabriel) Budget Act of 2025
• Agenda
• Senate Floor Session - Monday, June 30, 2025 @ 2:00 p.m. - Senate Chamber, State Capitol
• Budget Act of 2025
• Assembly Floor Session - Monday, June 30, 2025 @ 2:30 p.m. - Assembly Chamber, State Capitol
• Budget Act of 2025

TFC's Featured Bill of the Week

SB 778 (Limon) Migrant childcare and development programs.



Author: Senator Monique Limon

Senator Monique Limón was elected to the Senate in November 2020 and represents the 21st Senate district which includes Santa Barbara County and parts of Ventura and San Luis Obispo Counties. She currently serves as the Chair of the Senate Natural Resources and Water Committee as well as the Chair of the Senate Democratic Caucus, and Vice Chair of the bipartisan Legislative Women’s Caucus. Before the State Senate, Monique served as the Assemblymember for the region.

Born and raised in the 21st district, Moniqu e has worked continuously to serve her community as an educator, leader, and an advocate for causes advancing the quality of life in her community. For Monique, education has always been a priority. A UC Berkeley graduate with a Master's degree from Columbia University, she spent fourteen years working in higher education at UC Santa Barbara and Santa Barbara City College. Monique worked with countless local students at Santa Barbara City College and UCSB as an advisor and mentor to help them achieve their professional and academic goals through higher education. 

Monique’s roots go deep in the 21st district. Her extended network of family and friends include a range of small business owners, educators, and active leaders in the community. Monique and her family live in Santa Barbara County. 

How to Support a Bill

As bills move through California’s legislative process, they are presented to and heard by several committees who may recommend amendments and vote on whether or not the bill should continue through the legislative process.

As legislators decide how to vote, they consider public opinion as expressed through position letters. To support a bill, you can submit your letter through the California Legislature Position Letter Portal.

If you have any questions, contact TFC staff!

Important Dates, Deadlines,

Hearings, and Bills

Dates & Deadlines:

• July 1, 2025: New state fiscal year begins.
• July 4, 2025: Fourth of July holiday.
• July 18, 2025: Last day for policy committees to hear and report bills. Summer recess begins upon adjournment.

Upcoming Bill Hearings:

• Senate Human Services Committee - Monday, June 30, 2025 @ 3:00 p.m. - 1021 O Street, Room 2200
• AB 563 (Jackson) - Childcare: Early Childhood Policy Council
• Assembly Human Services Committee - Tuesday, July 1, 2025 @ 1:30 p.m. - State Capitol, Room 437
• SB 778 (Limón) - Migrant childcare and development programs.
• SB 792 (Arreguín) - Childcare: state median income threshold.
• Assembly Agriculture Committee - Wednesday, July 2, 2025 @ 1:30 p.m. - State Capitol, Room 126
• SB 18 (Rubio) - Food Desert Elimination Grant Program.
• Assembly Education Committee - Wednesday, July 2, 2025 @ 1:30 p.m. - 1021 O Street, Room 1100
• SB 411 (Pérez) - Stop Child Hunger Act of 2025.
• SB 48 (Gonzalez) - Immigration enforcement: schoolsites: prohibitions on access and sharing information.
• SB 98 (Pérez) - Elementary, secondary, and postsecondary education: immigration enforcement: notification.

For updated bill hearings and when letters are due, please visit TFC's State Legislation Page.

Bills to Watch:

The following bills of interest have been introduced. You can follow these bills and more on TFC's State Legislation page on our website. Please note that TFC does not formally support nor oppose any bill listed unless explicitly stated.

• AJR 3 (Schiavo) Public social services: Social Security, Medicare, and Medicaid.
• AJR 12 (Ahrens) Head Start program.
• AJR 13 (Bains) Cuts to safety net programs.
• SJR 3 (Arreguin) Supplemental Nutrition Assistance Program (SNAP)
• SCR 72 (Wahab) Childcare Awareness Month.



Legislative Resources:

• See the full 2025-26 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: Will child care providers see a rate increase in the 2025 Budget?

Answer: Child care providers will receive a 5.29% COLA applied only to the base rate, not to all layers of the new Cost of Care Plus system.

Base Rate (eligible for COLA)

Add-Ons (for age, geography, quality)—not COLA-adjusted in 2025–26

Federal Update

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

Federal Government Update

Republicans aren’t panicking about their fraying domestic policy bill. But they aren’t exactly sure about how it’s all going to come together, either.

Senate Republicans emerged from a closed-door lunch meeting Thursday putting on a brave face about the megabill’s progress. Yet this time last week, members were expecting revised text of the sprawling bill Monday with votes starting a couple of days later. In other words, they thought they’d be close to done by now.

Instead, Majority Leader Thune (R-SD) refrained from giving his members a specific timeline during a closed-door lunch Thursday, according to three attendees granted anonymity to describe the private meeting. Senators are preparing to stay in town and vote through the weekend, but internal policy disputes and procedural roadblocks thrown up by the chamber’s parliamentarian are keeping firmer plans in flux.

A July 4 deadline being pushed by the White House hangs over Capitol Hill as the only real forcing mechanism, and some Republicans said they were glad to have it even if many others harbor doubts about whether that target can be met.

“I don’t think it gets easier to pass going longer,” said Sen. Cramer (R-ND). “The more time we take, the more people find things they want to change.” More: Megabill threatens to languish as challenges pile up - POLITICO

We need national, state, and local partners to educate the Senate on the contents of the text and its impact on people and state budgets. Increasing the pressure on the GOP caucus divisions and slowing down this process is key to preserving funding for our priorities. 

• Tell the Senate: Prioritize Women and Families, Not Tax Breaks for Billionaires (NWLC)
• Tracking Senate Action on Tax and Budget Reconciliation Plan | Center on Budget and Policy Priorities
• 2025 Senate Recess Power Building Toolkit (Child Care for Every Family Network)
• The Budget Reconciliation Bill Harms Families and Early Educators - NWLC 

As a reminder, this reconciliation bill includes the largest Medicaid and SNAP cuts ever, resulting in significant coverage losses. In addition to decimating state budgets, to name just a few aspects of this dangerous plan. 

• NEW: Analysis of Tax Provisions in the Senate Reconciliation Bill: National and State Level Estimates – ITEP
• Senate Bill Expands Medicaid Work Requirements to Include Some Parents, Would Take Away Coverage From Millions: State and Congressional District Estimates | CBPP
• 8 Ways the Senate Budget Bill Is More Extreme Than the House-Passed Big, ‘Beautiful’ Bill - Center for American Progress
• CTAN Budget Reconciliation Briefs: Highlighting the Harm to Children in Immigrant Families - Children Thrive Action Network
• Roundup: State Budgets Increasingly Strained as House, Senate Republican Plans Would Impose Major Costs | Center on Budget and Policy Priorities (state-by-state data)

Also, Congress is conducting two separate budget processes. They are concurrently working on annual appropriations for FY26, which determines discretionary yearly spending (e.g., CCDBG, Head Start), and a reconciliation bill to enact President Trump’s agenda, which affects mandatory spending (e.g., Medicaid, SSBG, TANF, and SNAP).

Escalating Attacks on Head Start & Early Head Start

Your advocacy is working, and we must remain vigilant.

Timeline: Attacks on Head Start are Part of a Sustained Strategy: A Timeline of the Trump Administration's Efforts to Eliminate the Program - NWLC

Now is the time to ensure that no further damage is done to this critical lifeline for nearly 800k children, their families, and communities. We must ensure that members of Congress demand that HHS deliver timely payments without additional burdens on grantees AND demand that the Trump Administration reinstate fired employees and reopen ACF regional offices.

⇒ Urge your members of Congress to fight for and prioritize funding for Head Start and demand that the Trump Administration reinstate fired employees and reopen ACF regional offices.

These attacks are also not a surprise - we’ve long known that there has been a decades-long campaign against Head Start, culminating in Project 2025, which the President has been implementing piece by piece. We cannot treat this fight as just another partisan battle but as the real threat to the existence of Head Start that it is. 

More:

• 5 Things To Know About Head Start - Center for American Progress (including map & district data)
• Head Start Fact Sheets - NHSA
• Washington State Association of Head Start and Early Childhood Assistance and Education Program et al., Robert F. Kennedy et al. | American Civil Liberties Union

Executive Actions

• Tracking the Harm of DOGE Cuts | CLASP
• Executive Action Watch | Center on Budget and Policy Priorities
• EducationCounsel - Executive Actions Chart.docx - Google Docs

Take Action

• Tell the Senate: Prioritize Women and Families, Not Tax Breaks for Billionaires (NWLC)
• Tell Congress: Save Head Start for Families (NWLC)
• 2025 Senate Recess Power Building Toolkit (Child Care for Every Family Network)
• Find in-person and online events here: CHN/partner events joint calendar
• All polling, reports, and research on child care from approximately the last two years collected in one place (Child Care for Every Family Network)
• Messaging Guide for Child Care (c3 version) (c4 version) (Child Care for Every Family Network)
• Toolkit: Protecting Immigrant Families - Children Thrive Action Network
• Protect Medicaid 2025 Toolkit (Caring Across Generations)
• Meals and Snacks - CACFP Federal Advocacy Toolkit 2025
• CHN budget and tax toolkit for local groups (Spring 2025) (Coalition on Human Needs)
• To help local and state advocates raise their voices to protect and strengthen key nutrition, housing, early childhood, and other assistance, we’ve created this toolkit with resources to use for requesting a District (or DC) meeting with members of Congress, organizing site visits for policymakers, conversations with members of Congress and/or their staff (which you can use at a local town hall), emails to Congressional staff, getting letters published in local newspapers, and more. See our state data resource library along with our general poverty and budget libraries for additional resources.
• CHN/partner events joint calendar

Most Viewed Bills of the Week:

1.H.R.1 [119th] One Big Beautiful Bill Act

2.H.R.10127 [118th] Restoring Trade Fairness Act

3.S.394 [119th] GENIUS Act of 2025

4.H.Res.353 [119th] Impeaching Donald John Trump, President of the United States, for high crimes and misdemeanors.

5.S.1582 [119th] GENIUS Act

6.H.R.2548 [119th] Sanctioning Russia Act of 2025

7.S.1046 [119th] No Tax On Overtime Act of 2025

8.S.129 [119th] No Tax on Tips Act

9.H.R.22 [119th] SAVE Act

10.H.R.8046 [118th] Rosatom Sanctions Enforcement Act

R&R Network and Thriving Families CA Foundation 2025 Hybrid Joint Conference

Registration Now Open For Both In-Person & Virtual

Register Today For the Virtual Portion of the Conference!

Register Online HERE.

For the IN-PERSON option, an email was sent to your agency's ED/CEO, AP Contact and R&R Contact last week on June 11th from TFC and Network staff with more information on how to register. Once again, there will be a cap on in-person attendance. We want to give all of our member agencies a chance to send staff in-person, so each agency will get a set number of in-person registrations. If you are needing the registration link again, please let us know.

Exhibitor and Sponsor Information- Now Available!

There are a variety of ways to sponsor The Hybrid Conference or show your support. Whether you are interested in one of our many sponsorship opportunities, purchasing ad space in the Conference program or hosting an exhibit booth to showcase new products or launch promotions, there will be ample opportunity for your company to be recognized as a contributor to the early learning and child care field and for you to build visibility and connect with senior management and key decision makers.

See the Exhibitor and Sponsor Packet Here.

2025 Conference

Save the Date and join your peers for an amazing 2025 Joint Conference! The California Child Care Resource & Referral Network and Thriving Families CA Foundation, are excited to announce that we will once again offer a joint conference in 2025 that has both an in-person and virtual option this Fall!

We are working with the Conference Committee to offer thoughtful, user-friendly options with keynote presentations, workshops, networking opportunities, and connection time with vendors. For the in-person conference, we will once again be at the Double Tree Hotel in Sacramento. For those who prefer the conveniences that come with virtual attendance, we’ll have an option that is similar to the last five years. Regardless of the option that works best for your agency, we look forward to connecting, supporting and partnering with you!

Registration information, along with a preliminary conference program, will be released soon! At that time, online registration will be open, and attendees will be able to select from the in-person conference or the virtual conference. Those that register for the in-person option will also receive access to the virtual conference. The in-person option will be limited to 450. When registration opens, all agencies will have an opportunity to register a limited number of people by a specific deadline. If spaces remain after the deadline they will be made available to interested agencies.  



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

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!

For All Locations Agenda Will Run From 10:00am-2:00pm. Planned topics include:

• Best Practices Session 
• Lunch 
• Budget and Legislative Discussion and Updates 2025-26 Budget Outcomes – Unfinished business and what’s next
• Peer-to-Peer Networking Session 

CDSS & CDE Information & Updates

RELEASED June 27, 2025: Child Care Bulletin (CCB) 25-17 REVISED STATE MEDIAN INCOME (SMI) CEILINGS AND INCOME RANKING TABLE FOR FISCAL YEAR (FY) 2025-26

The California Department of Social Services (CDSS) Child Care and Development Division (CCDD) has recently published the following document: 

CCB 25-17 REVISED STATE MEDIAN INCOME (SMI)CEILINGS AND INCOME RANKING TABLE FOR FISCAL YEAR (FY) 2025-26.

The purpose of this Child Care Bulletin (CCB) is to notify counties and child care and development contractors of the revised Schedule of Income Ceilings and Income Ranking Table to be used to determine a family’s income eligibility for state-subsidized child care and development programs for Fiscal Year (FY) 2025-26.

If you have any questions or need additional guidance regarding the information in this letter, contact your assigned Child Care and Development Division (CCDD) PQI Branch Child Development Consultant.

RELEASED June 19, 2025: CCB 25-16: Revised Family Fee Schedule For Fiscal Year (FY) 2025-26

The California Department of Social Services (CDSS) Child Care and Development Division (CCDD) has recently published the following document: CCB 25-16 Family Fees Schedule For Fiscal Year (FY) 2025-26.

The purpose of this Child Care Bulletin (CCB) is to provide guidance to counties and child care and development contractors regarding the revised family fee schedule for Fiscal Year (FY) 2025-26.

For fiscal-related questions, please email the Child Development Fiscal Services inbox at ChildDevelopmentFiscal@dss.ca.gov.

RELEASED June 9, 2025: CCB 25-15 CalWORKs 24 Months Eligibility

The California Department of Social Services (CDSS) Child Care and Development Division (CCDD) has recently published the following document: Child Care Bulletin (CCB): 25-15 CalWORKs 24 Months Eligibility

The purpose of this Child Care Bulletin (CCB) is to provide guidance to counties and child care and development contractors related to the provision of 24-month eligibility pursuant to Assembly Bill (AB) 1808 (Chapter 356, Statutes 2024).

Contractors may distribute publication (PUB) 516 to families for informational purposes.

If you are a Stage One Administrator and have any questions regarding the information in this letter, please contact your Stage One Policy Analyst.

If you are a Stage Two or Three Administrator and have any questions regarding the information in this letter, please contact your Program and Quality Improvement Consultant.

Release of Management Bulletins 25-05 and 25-06

Attention: Executive Directors and Program Directors of all California State Preschool Programs

The California Department of Education (CDE), Early Education Division (EED), has released two Management Bulletins (MBs). MB 25-05: Revised State Median Income Ceilings and Income Ranking Table for Fiscal Year (FY) 2025–26, provides California State Preschool Program (CSPP) contractors with the revised Schedule of Income Ceilings and the updated Income Ranking Table. MB 26-06: Assessment and Reporting of Family Fees for FY 2025–26, notifies CSPP contractors of the FY 2025–26 Family Fee Schedule, effective July 1, 2025, and provides guidance on calculating family fees.

MB 25-05 can be accessed on the CDE MB 25-05 web page at https://www.cde.ca.gov/sp/cd/ci/mb2505.asp. MB 25-06 can be accessed on the CDE MB 25-06 web page at https://www.cde.ca.gov/sp/cd/ci/mb2506.asp.

Sincerely,

Early Education Division

California Department of Education

RELEASED June 6, 2025: CCB 25-14:

Emergency Child Care Bridge Program for Foster Children (Bridge Program)

The California Department of Social Services (CDSS) Child Care and Development Division (CCDD) has recently published the following document on its Internet website: Child Care Bulletin (CCB) 25-14: Emergency Child Care Bridge Program for Foster Children (Bridge Program)

This Child Care Bulletin (CCB) provides information to counties interested in opting into the Emergency Child Care Bridge Program for Foster Children (Bridge Program) funding.

If you have any questions or need additional guidance regarding the information in this bulletin, please contact the County Child Care Program Operations Section at: ChildCareBridge@dss.ca.gov

CCBs RELEASED May 16, 2025:

CCB 25-12 (May 16, 2025)

Fiscal Year 2025-2026 California Work Opportunity And Responsibility To Kids Initial Contract Allocations

CCB 25-11 (May 16, 2025)

Fiscal Year 2025-26 Child Care And Development Support Initial Contract Award Allocations

CCB 25-10 (May 16, 2025)

Fiscal Year 2025-26 Direct Service Child Care And Development Initial Contract Award Allocations

CCB 25-09 (May 16, 2025)

Fiscal Year 2025-26 Voucher-Based Child Care And Development Initial Contract Award Allocations

Social Media Spotlight

Follow TFC on social media!

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

On Our Reading List

Information & Updates

Happening This Week, June 30- July 4, 2025:

Tuesday, July 1st:

• TFC Foundation Weekly Member Connections Meeting @ 1:00 pm. Email to register.

Wednesday, July 2nd:

• TFC Foundation Public Policy Meeting @ 2:00pm.

Thriving Families California 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.