TCP Response to Gov. Newsom’s 2026-27 Budget Proposal

Amid continued assaults from the federal government, the 2026-27 California state budget proposal released today by Gov. Gavin Newsom’s office largely maintains the financial commitments made in last year’s budget. While this is unsurprising, The Children’s Partnership continues to call for investments that fully support the health and well-being of all children and families in our state.

“We can and must do better for our children and families,” said Mayra E. Alvarez, president of The Children’s Partnership. “California has the 4th-largest economy in the world. We must lead by example and truly demonstrate where our values lie by crafting a balanced budget that works for everyone, not just those who already have the most. When a hostile federal administration is attacking immigrant families, children of color, and transgender youth, California needs to do all it can to support them. All children are our children, and our state budget should reflect that.”

With the Trump administration gutting critical programs that Californians rely on to be healthy, drastically diminishing federal funding to the state, our state budget leaders must establish new revenue streams. The Governor and Legislature have plenty of options to raise revenue – including increasing the percentage ultra-wealthy corporations contribute to our state and closing loopholes that allow them to avoid paying their fair share. Instead, our state leaders continue to balance the budget on the backs of children, families, and hard-working communities. 

Our immigrant families are hit especially hard in this budget. Despite repeated mention of the harsh federal impacts on immigrant families, today’s budget lacks intentional support for our immigrant communities, which are central to California’s social fabric and economy. Notably, this budget maintains last year’s rollback of the landmark Health4All but goes even further by refusing to cover additional categories of lawfully present immigrants who will lose federally funded Medicaid beginning in October. When parents lose coverage or face new costs, they delay care, skip preventive visits, and only seek help in emergencies – even for their children who may be covered. Policies that stabilize coverage for the family are also good for child health.

California’s Medicaid program, Medi-Cal, provides health coverage for more than 1 in 3 Californians, including nearly half of all children in our state. One in 5 children in California live in mixed-status families. Children should not be the shock absorbers of federal dysfunction or political compromise. 

Since today’s budget proposal largely maintains the investments of last year’s budget, TCP is gratified to see:

• Student well-being prioritized with a new commitment of $1 billion in ongoing funding for expanding the Community Schools Initiative to more schools with high numbers of low-income, foster youth, and English-language learners, and a sustained commitment to universal school meals.
• Continued investments in education, especially early childhood education (ECE), including Universal Transitional Kindergarten (TK), English Language Arts/English Language Development (ELA/ELD) frameworks, and literacy priorities.

However, there is much more that needs to be done in support of children’s health and well-being:

• Reinstate Health4All by 1) eliminating the Medi-Cal enrollment freeze, loss of dental, and new premiums for certain immigrant adults, and 2) providing full-scope Medi-Cal for the additional categories of lawfully present immigrants who will lose federally funded Medicaid eligibility beginning Oct. 1, 2026.
• Increase of $50 million in legal assistance and deportation defense to help maintain family unity and reduce childhood trauma.
• Present a clear path to sustaining historic Children and Youth Behavioral Health Initiative efforts, as most of the one-time funds have been or are being spent down, including youth peer support.
• Add back Community-Based Mobile Crisis services as a required Medi-Cal benefit, the elimination of which will lead to increased law enforcement responses to Black youth in crisis.
• Support for capacity-building for educators and ECE providers on civil rights protections, immigrant rights, and trauma-informed practices – all of which are vital for supporting children and families experiencing heightened stress.
• Fund emergency stabilization for ECE providers, who are experiencing enrollment declines, fear-driven withdrawals, and financial instability as a result of federal immigration enforcement activities, putting them at risk of closure.
• Invest in the cost-of-care phase-in, strengthening workforce agreements with child care providers, such as recent contract negotiations with Child Care Providers United (CCPU) that have secured stabilization pay, benefits, and a pathway toward a rate methodology that better reflects the cost of quality care.

By not meeting the moment with dedicated supports for immigrant communities, youth mental health, and child care providers, including new revenue streams, we undermine the health and well-being of our children and families – our future – and the stability of our entire state.

California has the resources to take care of ALL who call this state home. Who we decide to support with that funding is a reflection of our values as Californians.