CALIFORNIA NEWSWIRE (SACRAMENTO, Calif.) — Gov. Gavin Newsom, Senate President pro Tempore Monique Limón, and Assembly Speaker Robert Rivas today announced a three-party agreement on California’s 2026-27 state budget, delivering a balanced spending plan with zero deficit that protects Californians while maintaining the state’s long-term fiscal stability amid continued economic uncertainty and President Trump’s politically motivated attacks on the state, including the withholding of state funding.
“A balanced budget isn’t an end in itself—it’s how we deliver for Californians. This budget demonstrates responsible choices that protect our fiscal strength while continuing to invest in what matters most. In California, we support working families, create more opportunity, and build safer, healthier communities. That’s how we keep California the engine of America’s economy and a place where everyone has the opportunity to succeed.,” said Governor Newsom.
The budget agreement reflects the Governor and Legislature’s longstanding commitment to balanced budgets that protect Californians while preparing the state for future economic uncertainty.
Governor Newsom’s administration has prioritized building reserves, reducing long-term liabilities, and making historic investments in education, public safety, housing, healthcare, climate resilience, infrastructure, and economic opportunity.
Earlier this week, Governor Newsom and legislative leaders announced two major agreements that form key pillars of the broader budget package:
The historic Veterans and Affordable Housing Bond Act of 2026 to help fund housing construction, preserve affordable housing, and expand homeownership opportunities, including assistance for veterans, middle- and lower-income households, affordable rental housing, and interim and supportive housing for people experiencing homelessness.
The Save for California’s Future Act, a constitutional amendment that strengthens the state’s Rainy Day Fund and modernizes California’s fiscal safeguards to better prepare for future economic uncertainty. The Save for California’s Future Act will also help protect schools and businesses by reducing unemployment insurance trust fund liabilities and potential costs for employers.
“In January, California was faced with a difficult fiscal outlook that prompted the legislature to take a hard look at the financial future of the Golden State. Thankfully, despite continued funding cuts from the federal administration, California was able to mitigate the impacts to programs that millions rely on,” said Senate President pro Tempore Monique Limón.
Over the past seven years, California has transformed its fiscal outlook by paying down debt, building historic reserves, maintaining the state’s credit rating, and making record investments in the people and infrastructure that power one of the world’s largest economies. This budget continues this disciplined approach — protecting essential services today while positioning California for long-term success.
Limón added, “Today’s budget agreement reflects our commitment to protect core programs and address our short and long-term financial future by building up our rainy day fund and making responsible budgeting choices. I am also proud that the Senate was able to secure critical funding for child care slots, safeguard access to care, and take significant steps towards ensuring large corporations pay their fair share. Thank you to the Governor and Speaker of the Assembly for their partnership to deliver a strong foundation for our future.”
The 2026-27 budget agreement continues this disciplined approach — making strategic investments while preserving California’s fiscal strength for years to come. A fact sheet is available here (PDF): https://www.gov.ca.gov/wp-content/uploads/2026/06/California-2026-27-Final-Budget-Fact-Sheet.pdf
* * *
This version of news first appeared on and is © CaliforniaNewswire.com — content based on news announcement issued by the office of Gov. Newsom.
