California Senate approves $351.7 billion budget package, preserves key Medi‑Cal benefits and expands childcare

The California State Senate approved the 2026–27 budget package on June 30, adopting a spending plan the budget chair described as balanced, protective of core programs, and responsive to the Legislature’s priorities. Senator Laird, the budget leader, told colleagues the package totals approximately $351.7 billion in total spending, including about $251.5 billion from the general fund, and asked for an aye vote.

The measure includes multiple headline allocations and timing changes: about 22,770 new childcare slots were funded; $900 million was allocated to the Homeless Housing Assistance and Prevention program (HAP); $700 million was set aside for affordable housing programs; and the budget preserves Medi‑Cal coverage for specified immigrant populations and delays proposed cuts — including dental benefit reductions — until July 1, 2027. The bill also maintains investments in TK‑12 education, community colleges, and support for judgeships, courthouses and other public services.

Senator Laird summarized the package as a multiyear framework with record reserves and spending choices the Senate said would reduce the long‑term structural deficit by roughly half. “This budget reflects the foundation for the future budget framework put forth by the Senate Democrats earlier this year,” Laird said during his floor remarks. He highlighted the childcare, housing and Medi‑Cal provisions as key priorities.

Opponents on the floor raised concerns about some allocations and policy choices. Senator Choi cautioned that the natural‑resources and energy portions of the budget expand new programs while not prioritizing affordable energy or water reliability. Other senators pressed for further movement on transportation funding and projects linked to the upcoming Olympics.

The Senate recorded the concurrence with assembly amendments and took final roll calls on the package. The clerk reported the final tally as Ayes 28, Noes 9 on SB 111 as amended; the presiding officer announced the measure passes and directed necessary transmittals.

What happens next: with Senate concurrence complete, the budget bill and associated trailer bills will be transmitted to the governor for signature or veto consideration, and leadership said the Legislature will return in August for additional budget work as needed.

Votes and procedural note: The budget package was taken up alongside multiple trailer bills on the floor; several trailer bills implementing technical, programmatic, or timing changes to the budget were acted on the same day (see “Votes at a glance” summary for a list of those items). The Senate recessed and adjourned with reconvening set for Thursday, July 2, 2026, at 9:00 a.m.