California Assembly approves 2026–27 budget package and multiple trailer bills after heated floor debate
June 29, 2026 | California State Assembly, House, Legislative, California
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Assemblymember Gabriel, the Assembly budget chair, guided the chamber through approval of the 2026–27 budget framework and a series of related trailer bills on the floor June 30, advancing housing, health and transportation measures after extended debate.
The Assembly approved the central budget vehicle and amendments including SB 111 and multiple trailer bills that the budget chair said implement a three‑party agreement. "This budget is both compassionate and fiscally responsible," Assemblymember Gabriel told colleagues, citing investments in housing, childcare and food banks and measures intended to backfill federal health cuts.
Why it matters: The package includes funding that supporters said is intended to shield Californians from federal policy changes and to keep key programs operating. Opponents argued the bills heighten long‑term fiscal risk and, in some cases, shift burdens to vulnerable Californians.
Housing reorganization and homelessness spending: Assemblymember Gabriel presented SB 170 as a housing trailer that would carry forward a governor's plan to reorganize housing governance by dissolving the Business, Consumer Services and Housing Agency and creating a stand‑alone California Housing and Homelessness Agency and a separate Business and Consumer Services Agency. "This bill codifies the governor’s housing reorganization plan," Gabriel said on the floor when presenting the measure. Assemblymember Tangipa urged a no vote, arguing the change "creates more bureaucracy" without measurable results. Assemblymember Quirk Silva defended the measure and highlighted what she described as a $900 million HAP investment tied to accountability provisions.
Healthcare and Medi‑Cal debate: SB 164, the health trailer bill implementing parts of the budget deal and responding to federal HR1 changes, produced some of the sharpest exchanges. Gabriel said the bill delays several Medi‑Cal asset and premium changes and funds outreach and county transition costs. Opponents, including Assemblymember Tangipa and Assemblymember Jeff Gonzalez, argued the package imposes tougher eligibility and financial burdens on seniors and people with disabilities. Supporters, including Assemblymember Addis and Assemblymember Bonta, said the bill protects the safety net and delays the worst effects of federal cuts while adding coverage protections such as expanded menopause care and support to public hospitals.
Film tax credit concern: Debate on SB 180 — the revenue trailer bill — spotlighted an apparent, unintended interaction between a recent budget action (AB 122) and last year’s film and television tax credit (AB 1138). Several members from entertainment regions warned that business tax caps in AB 122 effectively reduce the practical value of earned film tax credits and could harm jobs and production in California. Assemblymember Quirk Silva said the change "kneecap[s]" a program the state intended to make competitive; members asked leadership and the governor to pursue a technical fix.
Votes at a glance (selected floor tallies from the transcript):
- SB 170 (housing trailer): passed — 42 ayes, 9 noes.
- SB 171 (labor trailer): passed — 45 ayes, 12 noes.
- SB 172 (general government trailer): passed — 48 ayes, 10 noes.
- SB 174 (courts trailer): passed — 65 ayes, 0 noes.
- SB 177 (Medi‑Cal options study): passed — 48 ayes, 15 noes.
- SB 180 (revenue trailer, includes film tax credit items): passed — 68 ayes, 0 noes.
- SB 111 (budget implementing measure): passed — 49 ayes, 16 noes.
- SB 164 (health trailer): passed — 54 ayes, 12 noes.
What members said: Assemblymember Tangipa, a frequent floor opponent during the session, argued repeatedly that the bills expand state spending, create more fees or shift costs onto families and vulnerable Californians. Assemblymember Gabriel and other majority members framed the package as necessary to respond to federal changes and to make major investments in housing, childcare, public safety and wildfire prevention.
Next steps: The bills that passed on the Assembly floor were transmitted where required (to the Senate or to the Governor) or placed for concurrence or transmittal as recorded. Members scheduled further floor sessions and committee meetings while the Assembly adjourned until July 2.
Votes and outcomes reported here reflect the roll calls and tallies read into the Assembly record during the June 30 session.
The Assembly approved the central budget vehicle and amendments including SB 111 and multiple trailer bills that the budget chair said implement a three‑party agreement. "This budget is both compassionate and fiscally responsible," Assemblymember Gabriel told colleagues, citing investments in housing, childcare and food banks and measures intended to backfill federal health cuts.
Why it matters: The package includes funding that supporters said is intended to shield Californians from federal policy changes and to keep key programs operating. Opponents argued the bills heighten long‑term fiscal risk and, in some cases, shift burdens to vulnerable Californians.
Housing reorganization and homelessness spending: Assemblymember Gabriel presented SB 170 as a housing trailer that would carry forward a governor's plan to reorganize housing governance by dissolving the Business, Consumer Services and Housing Agency and creating a stand‑alone California Housing and Homelessness Agency and a separate Business and Consumer Services Agency. "This bill codifies the governor’s housing reorganization plan," Gabriel said on the floor when presenting the measure. Assemblymember Tangipa urged a no vote, arguing the change "creates more bureaucracy" without measurable results. Assemblymember Quirk Silva defended the measure and highlighted what she described as a $900 million HAP investment tied to accountability provisions.
Healthcare and Medi‑Cal debate: SB 164, the health trailer bill implementing parts of the budget deal and responding to federal HR1 changes, produced some of the sharpest exchanges. Gabriel said the bill delays several Medi‑Cal asset and premium changes and funds outreach and county transition costs. Opponents, including Assemblymember Tangipa and Assemblymember Jeff Gonzalez, argued the package imposes tougher eligibility and financial burdens on seniors and people with disabilities. Supporters, including Assemblymember Addis and Assemblymember Bonta, said the bill protects the safety net and delays the worst effects of federal cuts while adding coverage protections such as expanded menopause care and support to public hospitals.
Film tax credit concern: Debate on SB 180 — the revenue trailer bill — spotlighted an apparent, unintended interaction between a recent budget action (AB 122) and last year’s film and television tax credit (AB 1138). Several members from entertainment regions warned that business tax caps in AB 122 effectively reduce the practical value of earned film tax credits and could harm jobs and production in California. Assemblymember Quirk Silva said the change "kneecap[s]" a program the state intended to make competitive; members asked leadership and the governor to pursue a technical fix.
Votes at a glance (selected floor tallies from the transcript):
- SB 170 (housing trailer): passed — 42 ayes, 9 noes.
- SB 171 (labor trailer): passed — 45 ayes, 12 noes.
- SB 172 (general government trailer): passed — 48 ayes, 10 noes.
- SB 174 (courts trailer): passed — 65 ayes, 0 noes.
- SB 177 (Medi‑Cal options study): passed — 48 ayes, 15 noes.
- SB 180 (revenue trailer, includes film tax credit items): passed — 68 ayes, 0 noes.
- SB 111 (budget implementing measure): passed — 49 ayes, 16 noes.
- SB 164 (health trailer): passed — 54 ayes, 12 noes.
What members said: Assemblymember Tangipa, a frequent floor opponent during the session, argued repeatedly that the bills expand state spending, create more fees or shift costs onto families and vulnerable Californians. Assemblymember Gabriel and other majority members framed the package as necessary to respond to federal changes and to make major investments in housing, childcare, public safety and wildfire prevention.
Next steps: The bills that passed on the Assembly floor were transmitted where required (to the Senate or to the Governor) or placed for concurrence or transmittal as recorded. Members scheduled further floor sessions and committee meetings while the Assembly adjourned until July 2.
Votes and outcomes reported here reflect the roll calls and tallies read into the Assembly record during the June 30 session.
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