Bill Text: CA AB111 | 2025-2026 | Regular Session | Amended


Bill Title: Budget Act of 2026.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Engrossed) 2026-06-29 - Read second time. Ordered to third reading. [AB111 Detail]

Download: California-2025-AB111-Amended.html

Amended  IN  Senate  June 26 ,  2026

CALIFORNIA LEGISLATURE— 2025 – 2026 REGULAR SESSION

Assembly Bill No. 111


Introduced by Assembly Member Gabriel

January 08 ,  2025


An act relating to the Budget Act of 2025. An act to amend the Budget Act of 2026 by amending Items 0250-001-0001, 0250-101-0001, 0250-101-0932, 0250-111-0001, 0250-301-0001, 0250-301-0660, 0250-490, 0509-101-0001, 0516-001-0001, 0521-490, 0530-001-0001, 0540-103-0001, 0540-491, 0552-001-0001, 0680-001-0001, 0690-001-0001, 0690-001-0022, 0690-101-0022, 0820-001-0001, 0840-001-0001, 0840-001-0970, 0890-001-0001, 0950-001-0001, 1111-001-0326, 1750-001-3153, 2240-001-0001, 2250-001-0001, 2255-001-0001, 2660-001-0042, 2660-301-3291, 2740-001-0044, 2740-003-0044, 3100-001-0001, 3125-301-0140, 3340-001-0318, 3360-001-3117, 3360-101-0001, 3360-494, 3540-003-0001, 3760-490, 3790-003-0001, 3855-490, 3860-490, 3900-101-0115, 3900-101-3122, 3900-490, 3900-492, 4100-001-0001, 4140-001-0001, 4140-001-0143, 4140-001-0890, 4140-001-3085, 4140-101-0001, 4140-101-0890, 4140-101-3085, 4140-490, 4260-001-0001, 4260-001-0890, 4260-101-0001, 4260-101-0890, 4260-101-3085, 4260-101-3397, 4260-115-3414, 4265-001-0001, 4265-001-3085, 4265-111-0001, 4265-111-3085, 4300-101-0001, 4440-011-0001, 4700-001-6093, 5180-001-0001, 5180-001-0890, 5180-101-0001, 5180-101-0890, 5180-111-0001, 5180-141-0001, 5180-141-0890, 5180-151-0001, 5180-493, 5225-001-0001, 5225-002-0001, 5225-008-0001, 5225-017-0001, 5227-122-0001, 6100-001-0001, 6100-009-0001, 6100-104-0890, 6100-110-0001, 6100-161-0890, 6100-172-0001, 6100-195-0890, 6100-196-0001, 6100-197-0890, 6100-295-0001, 6100-488, 6120-011-0001, 6120-211-0001, 6440-001-0001, 6440-005-0001, 6610-001-0001, 6870-101-0001, 6870-109-0001, 6870-488, 6980-101-0001, 7100-011-0890, 7100-021-0890, 7350-001-3078, 7350-001-3121, 7350-101-3078, 7502-001-0001, 8120-002-0001, 8260-001-0001, 8260-101-0001, 8570-001-0001, 8570-103-0001, 8570-490, 8660-101-0471, 8820-001-0001, 8955-101-0001, 8955-301-3313, 9210-110-0001, and 9286-101-0001 of, repealing Items 2660-103-0042, 4260-101-3414, 4300-490, 7120-101-3078, and 8660-002-0461 of, and adding Items 0511-002-0001, 0540-002-0001, 0650-102-0001, 0680-101-0001, 0690-104-0001, 0890-101-0001, 1111-012-0001, 1750-011-0001, 2240-107-0001, 2245-401, 2660-101-0001, 2740-004-0044, 3100-002-0001, 3600-102-0001, 3640-493, 3720-001-3228, 3790-009-0392, 3820-001-3228, 3900-001-3228, 3900-101-0001, 3900-101-3228, 3900-102-0115, 3900-491, 3940-491, 3970-001-3228, 3980-001-3228, 4260-001-3397, 4260-116-3397, 4700-490, 4700-491, 4700-492, 4700-493, 5180-493, 6051-001-0001, 6100-001-6093, 6100-101-6093, 6100-115-0001, 6100-142-0001, 6100-222-0001, 6100-499, 6120-218-0001, 7120-001-3228, 7120-103-0001, 7760-301-0660, 8570-105-0001, 8570-106-0001, 8955-102-0001, and 9210-103-0001 to, Section 2.00 of, amending Sections 5.27, 6.40, 12.32, 35.50, 35.55, 39.00, 99.00, and 99.50 of, repealing Sections 13.40 and 15.02 of, and adding Sections 4.12, 4.85, 12.33, and 24.20 to, that act, relating to the state budget, and making an appropriation therefor, to take effect immediately, budget bill.


LEGISLATIVE COUNSEL'S DIGEST


AB111, as amended, Gabriel . Budget Act of 2025. Budget Act of 2026.
The Budget Act of 2026 would make appropriations for the support of state government for the 2026–27 fiscal year.
This bill would amend the Budget Act of 2026 by amending, adding, and repealing items of appropriation and making other changes.
This bill would declare that it is to take effect immediately as a Budget Bill.

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025.

Vote: MAJORITY   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Item 0250-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0250-001-0001—For support of Judicial Branch ........................

866,020,000
884,396,000
Schedule:
(1)
0130-Supreme Court ........................
55,616,000
(2)
0135-Courts of Appeal ........................
297,042,000
(3)
0140-Judicial Council ........................

503,358,000
521,734,000
(4)
0155-Habeas Corpus Resource Center ........................
18,575,000
(5)
Reimbursements to 0140-Judicial Council ........................
−8,371,000
(6)
Reimbursements to 0135-Courts of Appeal ........................
−200,000
Provisions:
1.
Of the funds appropriated in this item, $5,800,000 is available for the defense and indemnity of the Judicial Council, the appellate courts, the trial courts, and the officers, judicial officers, and employees of these entities, including government claims, litigation-related matters, labor- and employment-related matters, and matters requiring specialized legal advice. The funds may be used for prelitigation and litigation fees, and costs from the Attorney General or other outside legal counsel, fees for legal advice in specialized areas of law, and any judgment, stipulated judgment, offer of judgment, or settlement. This amount is for use in connection with the following matters: (a) matters arising from the actions of appellate courts, appellate court judicial officers, appellate court employees, or court contractors, (b) matters arising from the actions of the Judicial Council, council members, council employees or agents, or Judicial Council contractors, and (c) matters arising from the actions of trial courts, trial court judicial officers, trial court employees, or court contractors. The Judicial Council, an appellate court, or trial court, or an officer, judicial officer, or employee of these entities, must be named as a defendant or alleged to be the responsible party, or be the responsible party pursuant to a contractual provision, memorandum of understanding, or intrabranch agreement. Any funds not used for this purpose shall revert to the General Fund. The amount allocated shall be available for encumbrance or expenditure until June 30, 2028.
2.
Notwithstanding any other law, upon approval and order of the Department of Finance, the amount appropriated in this item shall be reduced by the amount transferred in Item 0250-011-0001 to provide adequate resources to the Judicial Branch Workers’ Compensation Fund to pay workers’ compensation claims for judicial branch employees and justices, and administrative costs pursuant to Section 68114.10 of the Government Code.
3.
Of the funds appropriated in Schedule (2), $82,486,000 is available for the Court-Appointed Counsel Program and shall be used solely for that program. Any funds for the program not expended by June 30, 2027, shall revert to the General Fund.
4.
Of the amount appropriated in this item, up to $325,000 is available to reimburse the California State Auditor for the costs of audits incurred by the California State Auditor pursuant to subdivision (c) of Section 19210 of the Public Contract Code.
5.
Of the funds appropriated in Schedule (3), $1,500,000 shall be available for administrative costs related to the management and claiming of federal reimbursements for court-appointed dependency counsel. To the extent these administrative costs are able to be reimbursed, any excess funding shall revert to the General Fund.
6.
Of the amount appropriated in Schedule (3), $1,050,000 shall be retained by the Judicial Council for costs associated with implementing, supporting, and evaluating pretrial programs in courts, including, but not limited to:
(a)
Providing technical assistance to courts on practices and programs related to pretrial decisionmaking.
(b)
Providing judicial education.
(c)
Evaluating pretrial programs and practices through this program.
(d)
Providing administrative services on programs related to pretrial decisionmaking.
7.
Of the amount appropriated in Schedule (3), $866,000 shall be distributed by the Judicial Council to the Legal Services Trust Fund Commission of the State Bar of California for administrative costs related to allocating resources for legal services to implement the Community Assistance, Recovery, and Empowerment Act (Part 8 (commencing with Section 5970) of Division 5 of the Welfare and Institutions Code). The commission shall coordinate with the Judicial Council to ensure that the commission collects and reports the data necessary for the Judicial Council to comply with all Community Assistance, Recovery, and Empowerment Act reporting requirements.
(a)
The Legal Services Trust Fund Commission shall be responsible for collecting outcome data from each county’s public defender office, qualified legal services projects, and support centers. The State Bar of California shall annually provide to the Judicial Council a report that includes funding allocations, annual expenditures, and program outcomes by service area and service provider. Data shall be reported using the reporting framework developed by the Legal Services Trust Fund Commission in consultation with the Judicial Council to ensure that data reporting is consistent and comparable across Judicial Council and Legal Services Trust Fund Commission data. The Judicial Council shall include this report in the annual report pursuant to Section 5985 of the Welfare and Institutions Code.
8. Of the amount appropriated in Schedule (3), $150,000,000 shall be expended to address deferred maintenance projects that represent critical infrastructure deficiencies. The amount allocated shall be available for encumbrance or expenditure until June 30, 2029.
9. Of the amount appropriated in Schedule (3), $80,000,000 $98,376,000 shall be expended to address facility modifications to accommodate new superior court judgeships. The amount allocated shall be available for encumbrance or expenditure until June 30, 2029.

SEC. 2.

 Item 0250-101-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0250-101-0001—For local assistance, Judicial Branch ........................

195,838,000
179,338,000
Schedule:
(1)
0150010-Support for Operation of Trial Courts ........................

107,501,000
87,501,000
(2)
0150051-Child Support Commissioner Program (AB 1058) ........................
59,082,000
(3)
0150055-California Collaborative and Drug Court Projects ........................
5,748,000
(4)
0150075-Grants—​Other ........................
2,550,000
(5)
0150083-Equal Access Fund ........................

87,177,000
90,677,000
(6)
Reimbursements to 0150051-Child Support Commissioner Program (AB 1058) ........................
−59,082,000
(7)
Reimbursements to 0150055-California Collaborative and Drug Court Projects ........................
−4,588,000
(8)
Reimbursements to 0150075-Grants—​Other ........................
−2,550,000
Provisions:
1.
In order to improve equal access and the fair administration of justice, $59,392,000 of the funds appropriated in Schedule (5) are to be distributed by the Judicial Council through the Legal Services Trust Fund Commission to qualified legal services projects and support centers as defined in Sections 6213 to 6215, inclusive, of the Business and Professions Code, to be used for legal services in civil matters for indigent persons. The Judicial Council shall approve awards made by the commission if the council determines that the awards comply with statutory and other relevant guidelines. Up to 10 percent of the funds appropriated for purposes of this provision shall be for joint projects of courts and legal services programs to make legal assistance available to pro per litigants and not less than 90 percent of the funds appropriated for purposes of this provision shall be distributed consistent with Sections 6216 to 6223, inclusive, of the Business and Professions Code. Any funding not allocated for joint projects shall be redistributed consistent with Sections 6216 to 6223, inclusive, of the Business and Professions Code. The Judicial Council may establish additional reporting or quality control requirements consistent with Sections 6213 to 6223, inclusive, of the Business and Professions Code. Of the amount appropriated for purposes of this provision, not more than 2.5 percent shall be available, upon order of the Department of Finance, for administrative costs of the Judicial Council and the State Bar.
1.5.
Funds appropriated under Provision 1 shall not be used for legal services defending a person against removal from the United States consistent with the restrictions set forth in paragraph 3 of subdivision (b) of Section 13303 of the Welfare and Institutions Code.
2.
In order to improve equal access and the fair administration of justice, $10,250,000 shall be appropriated in Schedule (5) by the Judicial Council to the California Access to Justice Commission for grants to civil legal aid nonprofits, including qualified legal services projects and qualified support centers as defined in Sections 6213 to 6215, inclusive, of the Business and Professions Code, to be used to support the infrastructure and innovation needs of legal services in civil matters for indigent persons. Of this amount, not more than 3 percent shall be available for administrative costs of the California Access to Justice Commission associated with distributing and monitoring the grants.
3.
The California Access to Justice Commission shall make award determinations for grants described in Provision 2. In awarding these grants, preference shall be given to qualified legal aid agencies’ proposals that focus on services to rural or underserved immigrant communities regardless of citizenship status and proposals that are innovative or that involve partnership with community-based nonprofits. Any funding not allocated in a given fiscal year shall be reallocated pursuant to Provision 1.
4.
The grant process described in Provision 2 shall ensure that any qualified legal service project and qualified support center demonstrates a high need for infrastructure and innovation to ensure that funding is distributed equitably among qualified legal service projects and support centers. The qualified legal service project or support center shall demonstrate that funds received under this provision will not be used to supplant existing resources.
5.
The funds described in Provisions 1 and 2 are available for encumbrance or expenditure until June 30, 2028.
6.
The amount appropriated in Schedule (1) is available for reimbursement of court costs related to the following activities: (a) payment of service of process fees billed to the trial courts pursuant to Chapter 1009 of the Statutes of 2002, (b) payment of the court costs payable under Sections 4750 to 4755, inclusive, and Section 6005 of the Penal Code, and (c) payment of court costs of extraordinary homicide trials.
7.
Of the amount appropriated in Schedule (1), $48,950,000 $68,950,000 shall be allocated to the Judicial Council to fund local assistance to each superior court based on each county’s relative proportion of the state population that is 18 through 25 years of age. These resources may be used for the following:
(a)
Costs associated with judicial officer pretrial release decisions prior to or at arraignment.
(b)
Costs for technology to facilitate information exchange and process automation between courts and county departments.
(c)
Costs for implementation and improvement of court date reminder programs.
(d)
Costs associated with assessments of defendants’ ability to pay a financial condition in cases where the court determines that such a condition is necessary to ensure public safety and return to court.
(e)
Costs associated with providing services to and monitoring of individuals released pretrial. The pretrial services agencies shall implement evidence-based monitoring practices of defendants released prearraignment and pretrial with the least restrictive interventions and practices necessary to enhance public safety and ensure the defendants’ return to court. Electronic monitoring that is funded under this program may only be used in limited cases after other less restrictive interventions are deemed insufficient to enhance public safety and to ensure the defendants return to court.
(f)
Other programs and practices related to pretrial decisionmaking that address public safety, appearance in court, and the efficient and fair administration of justice.
(g) Costs associated with providing services to and monitoring individuals subject to felonies pursuant to Section 11395 of the Health and Safety Code or subdivision (b) of Section 666.1 of the Penal Code.
8.
Courts shall contract with any county department, including county probation departments, to provide pretrial services, except those departments or agencies that have primary responsibility for making arrests or prosecuting criminal offenses.
9.
The Superior Court of California, County of Santa Clara, may contract with the Office of Pretrial Services in that county. The Superior Court of California, County of San Francisco, may contract with the Sheriff’s Office and the existing not-for-profit entity that is performing pretrial services in the city and county for pretrial assessment and supervision services.
10.
The county department with which the court has contracted is not precluded from contracting with community-based organizations to provide complementary or supportive services in furtherance of the county department’s pretrial release services if all of the following conditions have been satisfied:
(a)
The contractor adheres to the same transparency, accountability, and outcome measure standards that apply to county probation departments.
(b)
The contractor has a proven record of providing culturally competent and responsive rehabilitative services.
(c)
The contract will not result in the displacement of county employees or a reduction in the provision of services by county probation department employees.
(d)
The contractor pays wages and benefits to its nonsupervisory employees that are commensurate with or greater than the wages and benefits paid to public employees in similar job classifications.
(e)
The contractor does not pay wages and benefits to its most highly compensated executive and managerial employees that are significantly higher than the rates that would be paid to public employees performing similar job duties.
(f)
The county has consulted with the court prior to entering into a contract for the provision of these services.
11.
Of the amount allocated in Provision 7, superior courts may retain up to 30 percent of the funding for costs associated with these programs and practices. The superior courts shall contract with a county department as described in Provision 8 and shall provide the county department with the remainder of the funds to be used for costs outlined in Provision 10, as appropriate.
12.
To receive the funding allocated in Provision 7, courts and county departments and their contractors shall collaborate with local justice system partners in reporting to the Judicial Council on pretrial programs and practices, including information on expenditure of funds, as required by the Judicial Council, for evaluation of the programs and practices.
12.5.
The Judicial Council may reallocate unspent funds from counties to other counties with demonstrated needs.
13.
The Judicial Council shall provide an annual report to the Legislature providing an evaluation of pretrial programs and practices, and shall include any changes made to the pretrial allocation.
14.
Of the funds appropriated in this item, $15,750,000 is available for legal services to implement the Community Assistance, Recovery, and Empowerment (CARE) Act (Part 8 (commencing with Section 5970) of Division 5 of the Welfare and Institutions Code), and shall be distributed by the Judicial Council through the Legal Services Trust Fund Commission of the State Bar of California as grants to qualified legal services projects, as defined in Sections 6213 to 6214.5, 6215, inclusive, of the Business and Professions Code, to provide legal counsel pursuant to subdivision (c) of Section 5976 of the Welfare and Institutions Code for representation in CARE Act proceedings, matters related to CARE agreements, and CARE plans by July 1, 2026. Funds shall be available for encumbrance or expenditure by qualified legal services projects and public defender offices until January 1, 2028. As a condition of receiving these funds, recipients are required to comply with Judicial Council or Legal Services Trust Fund Commission directions on the collection and reporting of data necessary for the Judicial Council to comply with all CARE Act reporting requirements specified in Item 0250-001-0001.
(a)
Notwithstanding the competitive nature of these grants, the Legal Services Trust Fund Commission shall use a formula to determine the amount of funding to provide representation in CARE Act proceedings, matters related to CARE agreements, and CARE plans in each county.
(b)
These grants are to serve the counties described in subdivisions (a) and (b) of Section 5970.5 of the Welfare and Institutions Code. The Legal Services Trust Fund Commission shall provide any funds not awarded to qualified legal services projects for representation in CARE Act proceedings, matters related to CARE agreements, and CARE plans in each county to that county’s public defender office, public defender services shared with another county, or organization providing public defender services to the county to provide those services.
(c) (1)
The Legal Services Trust Fund Commission of the State Bar shall seek proposals from provide funds to qualified legal services projects that received three-year awards pursuant to the Budget Act of 2025 (Chs. 4 and 5, Stats. 2025) to provide legal counsel pursuant to subdivision (c) of Section 5976 of the Welfare and Institutions Code for a three-year period. Code.
(2)
If Budget Act of 2025 funds are were provided to a county for public defender services pursuant to this item, services, an associated funding commitment shall also be was also provided for a three-year period. If a county receives funding for public defender services according to this item, the county’s proportional share of overall funding for legal counsel in the county pursuant to subdivision (c) of Section 5976 of the Welfare and Institutions Code, shall not be reduced by more than 50 percent at the next three-year funding cycle.
(3)
In fiscal year 2026–27, neither a qualified legal services project nor a county for public defender services shall have their proportional share of overall funding for legal counsel in the county, pursuant to subdivision (c) of Section 5976 of the Welfare and Institutions Code, be reduced by more than 25 percent compared to the 2025–26 fiscal year, unless the qualified legal services project does not apply.
15.
Of the funds appropriated in Schedule (5), up to $788,000 is available to provide legal training and technical assistance related to the implementation of the CARE Act. These funds shall be distributed by the Judicial Council through the Legal Services Trust Fund Commission of the State Bar of California by December 1, 2026, as grants to qualified support centers centers, as defined in Sections 6213 to 6215, inclusive, of the Business and Professions Code, or other entities that have expertise in providing legal training and technical assistance to legal aid providers or public defenders. The Legal Services Trust Fund Commission shall provide any funds not awarded for legal training and technical assistance related to the implementation of the CARE Act to qualified legal services projects and public defender offices to provide legal counsel pursuant to subdivision (c) of Section 5976 of the Welfare and Institutions Code for representation in CARE Act proceedings, matters related to CARE agreements, and CARE plans by December 1, 2026. Funds under this provision shall be available for encumbrance or expenditure by recipients until January 1, 2028.
16.
If any funds in Provision 15 remain after grants are awarded, upon order of the Department of Finance, up to $275,000 shall be transferred to Item 8140-001-0001 for the State Public Defender to provide legal training and technical assistance to legal aid providers or public defenders.
17. Of the funds appropriated in Schedule (1), $50,000,000 $10,000,000 is available for the continued implementation of Proposition 36 (2024), the Homelessness, Drug Addiction, and Theft Reduction Act. The allocation of this funding shall be determined in future legislation. Of this amount, at least $9,500,000 shall be distributed to the trial courts, with allocations determined by the Judicial Council, but with at least 50 percent of the funding allocated based on each trial court’s share of nontraffic misdemeanor and felony filings in the 2024–25 fiscal year.
17.1. The funding allocated in Provision 17 shall be used to address increased workload and expanding or establishing collaborative courts for the implementation of Proposition 36 (2024).
17.2. Courts shall collaborate with county departments and treatment providers to ensure maximum federal financial participation for eligible services.
17.3. The funding allocated in Provision 17 shall be available for both state operations and local assistance and shall be available for expenditure or encumbrance until June 30, 2029. Any unspent funds shall revert to the General Fund.
17.4. The Judicial Council, in collaboration with the State Department of Health Care Services, shall provide to the Legislature no later than March 1, 2027, an annual report of Proposition 36 implementation during the prior calendar year until all funds are spent. This report shall include the following, by county: specific allocations made to individual trial courts, a summary of how trial courts are using the funding, and the number of people served by trial court by criminal charge. For the number of people served by each trial court, key outcome and demographic data shall also be reported including, but not limited to, the following:
(a) The number of cases charged that included a violation of a treatment-mandated felony pursuant to Section 11935 of the Health and Safety Code.
(b) The number of cases described in subprovision (a) in which it is alleged that the defendant had previously been charged with a violation of a treatment-mandated felony pursuant to Section 11395 of the Health and Safety Code, and whether the defendant:
(1) Did not agree to participate in a treatment program and was convicted of a treatment-mandated felony pursuant to Section 11395 of the Health and Safety Code or another charge in the same indictment, complaint, or information.
(2) Agreed to participate in a treatment program, and: (i) successfully completed the treatment program and had the charge dismissed pursuant to paragraph (3) of subdivision (d) of Section 11395 of the Health and Safety Code, (ii) was participating in a treatment program at the time they allegedly committed a treatment-mandated felony pursuant to Section 11395 of the Health and Safety Code, or (iii) did not successfully complete a treatment program and sustained a conviction of a treatment-mandated felony pursuant to Section 11395 of the Health and Safety Code.
(c) The number of cases described in subprovision (a) in which the defendant elected treatment by pleading guilty or no contest to a violation agreeing to participate in, and complete, a detailed treatment program developed by a drug addiction expert and approved by the court, pursuant to subparagraph (A) of paragraph (1) of subdivision (d) of Section 11395 of the Health and Safety Code.
(d) The number of cases described in subprovision (a) in which the court ordered a drug addiction expert to conduct a substance abuse and mental health evaluation of the defendant pursuant to subparagraph (B) of paragraph (1) of subdivision (d) of Section 11395 of the Health and Safety Code.
(e) The number of cases described in subprovision (a) in which an expert submitted a report of the evaluation to the court and the parties.
(f) The number of cases described in subprovision (a) in which the court ordered that a case worker or other qualified individual determine whether the defendant was eligible to receive Medi-Cal, Medicare, or any other relevant benefits for any programs or evaluations, pursuant to subparagraph (C) of paragraph (1) of subdivision (d) of Section 11395 of the Health and Safety Code.
(g) The number of cases described in subprovision (a) in which the defendant entered into drug treatment but not mental health treatment.
(h) The number of cases described in subprovision (a) in which the defendant entered into mental health treatment but not drug treatment.
(i) The number of cases described in subprovision (a) in which the defendant entered into drug treatment and mental health treatment.
(j) The number of cases described in subprovision (a) in which the defendant was ordered to receive job training.
(k) The number of cases described in subprovision (a) in which the defendant successfully completed the treatment program and received the positive recommendation of the treatment program pursuant to paragraph (3) of subdivision (d) of Section 11395 of the Health and Safety Code.
(l) The number of cases described in subprovision (a) in which the defendant successfully completed the treatment program, received the positive recommendation of the treatment program, and the court subsequently dismissed the charge pursuant to paragraph (3) of subdivision (d) of Section 11395 of the Health and Safety Code.
(m) The number of cases described in subprovision (a) in which the defendant is currently undergoing treatment at the time data is submitted to the Judicial Council.
(n) The number of cases described in subprovision (a) in which the prosecuting attorney, the court, or the probation department moves for entry of judgment and sentencing and whether that motion was based on the defendant performing unsatisfactorily in the program, not benefiting from treatment, not being amenable to treatment, refusing treatment, or having been convicted of a crime.
(o) The number of cases described in subprovision (a) for which judgment was imposed and the defendant was sentenced because the court found true one or more of the circumstances described in subprovision (n).
(p) Demographic data as available including, at a minimum: race, gender, age, and housing status for reporting pursuant to subprovisions (a) to (o), inclusive.
17.5. Trial courts receiving an allocation described in Provision 17 shall provide all necessary court information described in Provision 17.4 to the Judicial Council by January 15, 2027.
18. Of the amount appropriated in Schedule 5, $750,000 is available for assisting legal aid staff eligible for Public Service Loan Forgiveness as of January 1, 2026, but are no longer eligible due to their work representing immigrants or marginalized communities. The remainder is available for program administration, and if funding remains, for other purposes specified in Section 68655 of the Government Code, and shall be available until June 30, 2030.
19. Of the amount appropriated in this item, $3,500,000 shall be available to public defenders to increase CARE Act petitions and referrals. These funds shall be distributed by the Judicial Council through the Legal Services Trust Fund Commission of the State Bar of California. Funds under this provision shall be available for encumbrance or expenditure until June 30, 2028.

SEC. 3.

 Item 0250-101-0932 of Section 2.00 of the Budget Act of 2026 is amended to read:
0250-101-0932—For local assistance, Judicial Branch, payable from the Trial Court Trust Fund ........................

3,585,579,000
3,569,271,000
Schedule:
(1)
0150010-Support for Operation of Trial Courts ........................

2,876,200,000
2,859,338,000
(2)
0150019-Compensation of Superior Court Judges ........................

468,075,000
468,276,000
(3)
0150028-Assigned Judges ........................
32,519,000
(4)
0150037-Court Interpreters ........................

155,120,000
155,473,000
(5)
0150067-Court Appointed Special Advocate (CASA) program ........................
22,713,000
(6)
0150071-Model Self-Help Program ........................
957,000
(7)
0150083-Equal Access Fund ........................
5,482,000
(8)
0150087-Family Law Information Centers ........................
345,000
(9)
0150091-Civil Case Coordination ........................
832,000
(10)
0150095-Expenses on Behalf of the Trial Courts ........................
23,337,000
(11)
Reimbursements to 0150010-Support for Operation of Trial Courts ........................
−1,000
Provisions:
1.
Of the funds appropriated in Schedule (1), $25,300,000 shall be available for support of services for self-represented litigants, and any unexpended funds shall revert to the General Fund.
2.
The funds appropriated in Schedule (2) shall be made available for costs of the workers’ compensation program for trial court judges.
3.
The amount appropriated in Schedule (3) shall be made available for all judicial assignments. Schedule (3) expenditures for necessary support staff shall not exceed the staffing level that is necessary to support the equivalent of three judicial officers sitting on assignments. Prior to utilizing funds appropriated in Schedule (3), trial courts shall maximize the use of judicial officers who may be available due to reductions in court services or court closures.
4.
Upon order of the Department of Finance, the amount available for expenditure in this item may be augmented by the amount of any additional resources available in the Trial Court Trust Fund, which is in addition to the amount appropriated in this item. Any augmentation shall be approved in joint determination with the Chairperson of the Joint Legislative Budget Committee and shall be authorized not sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the State Budget, and the chairperson of the joint committee, or not sooner than whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine. When a request to augment this item is submitted to the Director of Finance, a copy of that request shall be delivered to the chairpersons of the committees and appropriate subcommittees that consider the State Budget. Delivery of a copy of that request shall not be deemed to be notification in writing for purposes of this provision.
5.
Notwithstanding any other law, upon approval and order of the Department of Finance, the amount appropriated in this item shall be reduced by the amount transferred in Item 0250-115-0932 to provide adequate resources to the Judicial Branch Workers’ Compensation Fund to pay workers’ compensation claims for judicial branch employees and judges, and administrative costs pursuant to Section 68114.10 of the Government Code.
6.
In order to improve equal access and the fair administration of justice, the funds appropriated in Schedule (7) are available for distribution by the Judicial Council through the Legal Services Trust Fund Commission in support of the Equal Access Fund program to qualified legal services projects and support centers as defined in Sections 6213 to 6215, inclusive, of the Business and Professions Code, to be used for legal services in civil matters for indigent persons. The Judicial Council shall approve awards made by the commission if the council determines that the awards comply with statutory and other relevant guidelines. Upon approval by the Administrative Director of the Courts, the Controller shall transfer up to 5 percent of the funding appropriated in Schedule (7) to Item 0250-001-0932 for administrative expenses. Ten percent of the funds remaining after administrative costs shall be for joint projects of courts and legal services programs to make legal assistance available to pro per litigants and 90 percent of the funds remaining after administrative costs shall be distributed, consistent with Sections 6216 to 6223, inclusive, of the Business and Professions Code. The Judicial Council may establish additional reporting or quality control requirements, consistent with Sections 6213 to 6223, inclusive, of the Business and Professions Code.
7.
Funds available for expenditure in Schedule (7) may be augmented by order of the Department of Finance by the amount of any additional resources deposited for distribution to the Equal Access Fund program in accordance with Sections 68085.3 and 68085.4 of the Government Code. Any augmentation under this provision shall be authorized not sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the State Budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine.
7.5.
Funds appropriated under Schedule (7) shall not be used for legal services defending a person against removal from the United States consistent with the restrictions set forth in paragraph 3 of subdivision (b) of Section 13303 of the Welfare and Institutions Code.
8.
Sixteen (16.0) subordinate judicial officer positions are authorized to be converted to judgeships in the 2026–27 fiscal year in the manner and pursuant to the authority described in subparagraph (B) of paragraph (1) of subdivision (c) of Section 69615 of the Government Code, as described in the notice filed by the Judicial Council under subparagraph (B) of paragraph (3) of subdivision (c) of Section 69615 of the Government Code.
9.
Notwithstanding any other law, and upon approval of the Department of Finance, the amount available for expenditure in Schedule (1) may be increased by the amount of any additional resources collected for the recovery of costs for court-appointed dependency counsel services.
10.
Upon approval of the Administrative Director of the Courts, the Controller shall transfer up to $556,000 to Item 0250-001-0932 for administrative services provided to the trial courts in support of the court-appointed dependency counsel program.
11.
Of the amounts appropriated in Schedule (1), $325,000 shall be allocated by the Judicial Council in order to reimburse the California State Auditor for the costs of trial court audits incurred by the California State Auditor pursuant to Section 19210 of the Public Contract Code.
12.
Upon approval of the Administrative Director of the Courts, the Controller shall transfer up to $500,000 of the funding appropriated in Schedule (10) of this item to Schedule (1) of Item 0250-001-0932 for administrative services provided by the Judicial Council to implement and administer the civil representation pilot program.
13.
Upon approval of the Administrative Director of the Courts, the amount available for expenditure in Schedule (10) may be augmented by the amount of resources collected to support the implementation and administration of the civil representation pilot program.
14.
Of the amount appropriated in this item, up to $1,925,000 is available to reimburse the Controller for the costs of audits incurred by the Controller.
15.
Upon order of the Department of Finance, the amount available for expenditure in Schedules (1) and (4) may be augmented by an amount sufficient to fund trial court employee benefit increases in the 2026–27 fiscal year.
16.
Notwithstanding any other law, and upon approval of the Department of Finance, the amount available for expenditure in Schedule (10) may be increased by the amount of any additional resources collected to support programs pursuant to the Sargent Shriver Civil Counsel Act (Chapter 2.1 (commencing with Section 68650) of Title 8 of the Government Code).
17.
The funds appropriated in Schedule (4) shall be for payments to contractual court interpreters and certified and registered court interpreters employed by the courts for services provided during court proceedings and other services related to pending court proceedings, including services provided outside a courtroom, and for court interpreter coordinator positions. For the purposes of this provision, “court interpreter coordinators” may be full- or part-time court employees.
18.
The Judicial Council shall set statewide or regional rates and policies for payment of court interpreters, not to exceed the rate paid to certified interpreters in the federal court system.
19.
The Judicial Council shall adopt appropriate rules and procedures for the administration of these funds. The Judicial Council shall report to the Legislature and the Department of Finance annually regarding expenditure of the funds appropriated in Schedule (4). For the 2026–27 and 2027–28 fiscal years, the Judicial Council shall provide additional information to the Legislature and Department of Finance. Specifically, this additional information shall include, but not be limited to, interpreter utilization information, unmet need information, cost-containment measures, recruitment strategies, interpreter staffing and compensation costs, and contractor costs, as determined by the Judicial Council. The trial courts shall provide the additional information necessary to complete this report in a manner prescribed by the Judicial Council.
20.
Of the funds appropriated in Schedule (1), $7,000,000 shall be available for the Judicial Council to establish a methodology to allocate a share of resources to all courts to cover the costs associated with the increased transcript rates.
22.
Of the amount appropriated in Schedule (1), $30,000,000 shall be allocated by the Judicial Council in a manner that ensures all courts are allocated funds to be utilized to increase the number of official court reporters in family and civil law cases. This funding may be used for recruitment and retention purposes, filling existing vacancies, converting part-time positions to full-time positions, increasing salary schedules, and providing signing and retention bonuses to enable trial courts to compete with private employers in the labor market. This funding shall not supplant existing trial court expenditures on court reports in family law and civil law cases. Any unspent funds shall revert to the General Fund.
23.
Of the funds appropriated in Schedule (1), $32,884,000 is available for the implementation of the Community Assistance, Recovery, and Empowerment (CARE) Act.
24.

Funds appropriated under Schedule (7) shall not be used for legal services defending an immigrant against removal from the United States or another immigration remedy based on a documented felony conviction.

25. The Judicial Council shall provide a report to the relevant budget subcommittees of the Legislature in each house, the Joint Legislative Budget Committee, and the Legislative Analyst’s Office by January 10, 2028, assessing strategies to reduce and contain court interpreter costs. In addition to any other cost containment and reduction strategies identified by Judicial Council, the council shall assess potential strategies to increase recruitment and retention of civil servant court interpreters, including, but not limited to, creating a pool of remote civil service interpreters, targeted recruitment of court interpreters from public and private college and university language programs, and the creation of court interpreter training programs at the California Community Colleges, the California State University, and/or the University of California. This information can be submitted as part of the annual report on expenditures on court interpreter services required by Provision 26 of Item 0250-101-0932 of the Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
26. Of the amount appropriated in Schedule (1), $20,000,000 $1,519,000 shall be expended to accommodate new superior court judgeships, as authorized by Chapter 482, Statutes of 2023.
27. The Department of Finance may authorize transfer of expenditure authority for the funding referenced in Provision 26 between this item and any other item of appropriation to support facility modification projects to accommodate the new judgeships funded by this item. Any transfer shall authorized not sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider the State Budget, the chairpersons of the committees and appropriate subcommittees in each house of the Legislature that consider appropriations, and Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time after that notification the chairperson of the joint committee, or the chairperson’s designee, may determine.
28. Of the amount appropriated in Schedule (5), $16,000,000 shall be allocated to the California Court Appointed Special Advocate Association to provide funding to the local court-appointed special advocate (CASA) programs to expand capacity, recruitment, and training and to stabilize local budgets and staffing.
29. Of the amount appropriated in Schedule (5), $4,000,000 shall be allocated to the California Court Appointed Special Advocate Association to be used statewide for volunteer recruitment initiatives, shared resources and infrastructure, development of statewide training curriculum, collection of data on program implementation and outcomes to support the report to the Legislature, and other uses to expand court-appointed special advocate (CASA) services in the state.
30. Of the amount appropriated in Schedule (5), $20,000,000 shall be available for expenditure for an encumbrance period of two years, ending June 30, 2028.
31. The Judicial Council shall annually report to the Legislature on the court-appointed special advocate (CASA) program implementation and outcomes. The initial report shall be due on July 1, 2027, and shall describe funding allocations and program development.
32. Upon approval by the Administrative Director of the Judicial Council, the Controller shall transfer up to $100,000 appropriated in Schedule (5) to Item 0250-001-0001 for administrative costs of the Judicial Council for implementing development of the programs described in Provisions 28 and 29.

SEC. 4.

 Item 0250-111-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0250-111-0001—For transfer by the Controller to the Trial Court Trust Fund ........................

2,118,435,000
2,102,127,000
Provisions:
1.
Upon order of the Department of Finance, the amount available for transfer in this item may be increased by an amount sufficient to fund trial court employee benefit increases in the 2026–27 fiscal year.

SEC. 5.

 Item 0250-301-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0250-301-0001—For capital outlay, Judicial Branch ........................

30,602,000
62,124,000
Schedule:
(1)
0000096-Nevada County: New Nevada City Courthouse ........................
1,491,000
(a)
Performance criteria ........................
1,491,000
(2)
0000099-Plumas County: New Quincy Courthouse ........................
2,276,000
(a)
Performance criteria ........................
2,276,000
(3)
0010364-Kings County: One New Shelled Courtroom for One New Judgeship ........................
7,618,000
(a)
Construction ........................
7,618,000
(4)
0010366-San Joaquin County: One New Shelled Courtroom for One New Judgeship ........................
6,420,000
(a)
Working drawings ........................
395,000
(b)
Construction ........................
6,025,000
(5)
0010367-Sutter County: One New Shelled Courtroom for One New Judgeship ........................
6,521,000
(a)
Construction ........................
6,521,000
(6)
0016278-Los Angeles County: Spring Street Courthouse—​Chatsworth Buildout ........................
6,276,000
(a)
Preliminary plans ........................
2,052,000
(b)
Working drawings ........................
4,224,000
(7)
0000089-Los Angeles County: New Santa Clarita Courthouse ........................
12,460,000
(a)
Performance criteria ........................
12,460,000
(8)
00014205-Lake County: Clearlake Courthouse Renovation ........................
2,712,000
(a)
Preliminary plans ........................
1,107,000
(b)
Working drawings ........................
1,605,000
(9)
00010916-San Joaquin County: New Tracy Courthouse ........................
3,503,000
(a)
Performance criteria ........................
3,503,000
(10)
00010918-Kern County: New East County Courthouse ........................
6,408,000
(a)
Study ........................
1,000
(b)
Acquisition ........................
4,764,000
(c)
Performance criteria ........................
1,643,000
(11)
0012589-Placer County: Tahoe Courthouse Renovation ........................
6,439,000
(a)
Study ........................
1,000
(b)
Acquisition ........................
5,356,000
(c)
Performance criteria ........................
1,082,000
Provisions:
1. The Department of Finance may authorize the augmentation of this item up to $165,000,000 for courthouse construction projects, pursuant to the Reassessment of Trial Court Capital-Outlay Projects adopted by the Judicial Council on November 14, 2019, as updated in the Judicial Branch Five-Year Infrastructure Plan for fiscal year 2026–27 adopted by the Judicial Council on July 18, 2025, and may be available for encumbrance or expenditure without regard to fiscal years. The scope, cost, and schedule for individual projects shall be determined in future legislation. Notwithstanding any other law, the Department of Finance may authorize the augmentation of the amounts appropriated for the appropriate phases of study, preliminary plans, working drawings, construction, acquisition, performance criteria, design-build, pre-construction, and progressive design-build.
2. The Department of Finance may authorize the augmentation of this item up to $5,000,000 for project management and planning needs to accelerate new courthouse construction, including, but not limited to, contracting with external project management entities for this purpose. The Department of Finance may authorize the transfer of this expenditure authority to any other item of appropriation for this purpose. Any transfer shall be authorized not sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider the State Budget, the chairpersons of the committees and appropriate subcommittees in each house of the Legislature that consider appropriations, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time after that notification the chairperson of the joint committee, or the chairperson’s designee, may determine.

SEC. 6.

 Item 0250-301-0660 of Section 2.00 of the Budget Act of 2026 is amended to read:
0250-301-0660—For capital outlay, Judicial Branch, payable from the Public Buildings Construction Fund ........................

320,265,000
1,698,511,000
Schedule:
(1)
0009732-San Luis Obispo County: New San Luis Obispo Courthouse ........................
320,265,000
(a)
Design-build ........................
320,265,000
(2)
0009728-Solano County: New Solano Hall of Justice (Fairfield) ........................
316,779,000
(a)
Design-build ........................
316,779,000
(3)
0000096-Nevada County: New Nevada City Courthouse ........................
195,583,000
(a)
Design-build ........................
195,583,000
(4)
0000099-Plumas County: New Quincy Courthouse ........................
69,598,000
(a)
Design-build ........................
69,598,000
(5)
0000089-Los Angeles County: New Santa Clarita Courthouse ........................
627,033,000
(a)
Design-build ........................
627,033,000
(6)
00014205-Lake County: Clearlake Courthouse Renovation ........................
21,845,000
(a)
Construction ........................
21,845,000
(7)
00010916-San Joaquin County: New Tracy Courthouse ........................
65,854,000
(a)
Design-build ........................
65,854,000
(8)
00010918-Kern County: New East County Courthouse ........................
64,014,000
(a)
Design-build ........................
64,014,000
(9)
0012589-Placer County: Tahoe Courthouse Renovation ........................
17,540,000
(a)
Design-build ........................
17,540,000
Provisions:
1.
The Judicial Branch is authorized to execute and deliver any and all leases, contracts, agreements, or other documents necessary or advisable to consummate the sale and issuance of bonds by the State Public Works Board in accordance with the State Building Construction Act of 1955 (Part 10b (commencing with Section 15800) of Division 3 of Title 2 of the Government Code) or otherwise to effectuate the financing of the scheduled project.
2.

The Department of Finance may authorize the augmentation of this item up to $3,000,000,000 for courthouse construction projects pursuant to the Reassessment of Trial Court Capital Outlay Projects adopted by the Judicial Council on November 14, 2019, as updated in the Judicial Branch Five-Year Infrastructure Plan for Fiscal Year 2026–27, adopted by the Judicial Council on July 18, 2025, and may be available for encumbrance or expenditure without regard to fiscal years. The scope, cost, and schedule by individual project shall be determined in future legislation. Notwithstanding any other law, the Department of Finance may authorize the augmentation of the amounts appropriated for the appropriate phases of construction, design-build, and progressive design-build.

SEC. 7.

 Item 0250-490 of Section 2.00 of the Budget Act of 2026 is amended to read:
0250-490—Reappropriation, Judicial Branch. The amounts specified in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure until June 30, 2027:
0001—​General Fund
(.5) Up to $81,837,000 in Item 0250-301-0001, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), as reappropriated in Item 0250-490, Budget Act of 2025 (Chs. 4 and, 5, Stats. 2025). Of that amount:
(1) Up to $34,177,000 in Project 0000089-Los Angeles County: New Santa Clarita Courthouse—Acquisition
(2) Up to $1,470,000 in Project 0000099- Plumas County: New Quincy Courthouse—Acquisition
(5) Up to $12,127,000 in Project 0009728- Solano County: New Solano Hall of Justice (Fairfield)—Acquisition
(6) Up to $11,194,000 in Project 0009729- Fresno County: New Fresno Courthouse— Acquisition
(7) Up to $22,869,000 in Project 0009732-San Luis Obispo County: New San Luis Obispo Courthouse—Acquisition
(.7) Up to $4,550,000 in Item 0250-301-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023). Of that amount:
(1) Up to $4,550,000 in Project 0000096-Nevada County: New Nevada City Courthouse—Acquisition
(1)
Up to $31,157,000 in Item 0250-301-0001, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025). Of that amount:
(2) Up to $5,159,000 in Project 0009728-Solano County: New Solano Hall of Justice (Fairfield)—​Performance criteria
(3) Up to $18,145,000 in Project 0009729-Fresno County: New Fresno Courthouse—​Performance criteria
(4) Up to $7,853,000 in Project 0009732-San Luis Obispo County: New San Luis Obispo Courthouse—Performance criteria
Provisions:
1. On or before January 10, 2027, the Judicial Council and the Department of Finance Council, in consultation with the Department of Finance, shall report on a roadmap to accelerate and streamline courthouse construction projects. The report shall be provided to the relevant budget subcommittees of the Legislature in each house, the Joint Legislative Budget Committee, and the Legislative Analyst’s Office. The report shall identify common barriers and potential solutions; opportunities to leverage contract or outside project management expertise; changes in pre-planning and acquisition approaches; changes in the timeline and management of funding phases; the potential use of progressive-design build; and any other approaches as determined by the Judicial Council or the Department of Finance to help accelerate capital outlay projects. The report shall also evaluate the project management capacity and needs of the Judicial Branch to support additional construction projects. The report shall include recommendations to the Legislature including, but not limited to, potential statutory changes and resource needs.

SEC. 8.

 Item 0509-101-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0509-101-0001—For local assistance, Governor’s Office of Business and Economic Development (GO-Biz) ........................

112,884,000
117,884,000
Schedule:
(1)
0220-GO-Biz ........................

104,384,000
103,884,000
(2) 0230-Office of the Small Business Advocate ........................
8,500,000
14,000,000
Provisions:
1.
Of the amount appropriated in this item, $100,000,000 shall be available to the City of Fresno to support the city’s Public Infrastructure Plan.
2.
Of the amount appropriated in this item, $1,384,000 shall be available to support international trade and to provide export promotion services. Upon the order of the Department of Finance, five percent of the amount appropriated in this provision shall be available to be transferred to Schedule (1) of Item 0509-001-0001 for costs to administer the program.
3. Of the amount appropriated in Provision 2, $500,000 shall be available to the Governor’s Office of Business and Economic Development’s International Affairs and Trade Unit (IAT) for matching with federal State Trade Expansion Program (STEP) grant funding to support the California Export Promotion Program (CAL EXPORT), which shall provide export promotion and supply chain resiliency programming for small businesses as California’s flagship trade program. If GO-Biz receives confirmation that the federal STEP program will not award grant funding to California for expenditure during the 2026–27 fiscal year, then after 30 days’ notice to the Joint Legislative Budget Committee reporting that confirmation, the additional amount of $884,000 shall be available to GO-Biz for this same purpose.
4. Of the amount appropriated in Schedule (2), $6,500,000 shall be used for the California Black Women’s Collective Empowerment Institute.
5. Of the amount appropriated in Schedule (1), $2,000,000 shall be used for the Black Freedom Fund California Community Policy Fellowship.
6. Of the amount appropriated in Schedule (1), $1,000,000 shall be used for the Black Freedom Fund Trust and Reconciliation.
7.3. Of the amount appropriated in Schedule (2), $2,000,000 shall be used for the Urban Business Resource Center to support infrastructure and facility modernization.
4. Of the amount appropriated in this item, $1,500,000 shall be available for the INDSTRY Workforce Development Initiative.
5. Of the amount appropriated in this item $1,000,000 shall be available for California Fringe.
6. Of the amount appropriated in this item $12,000,000 shall be available for the Performing Arts Equitable Payroll Fund.

SEC. 9.

 Item 0511-002-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
0511-002-0001—For support of Secretary of Government Operations ........................
11,000,000
Schedule:
(1) 0250-Office of the Secretary of Government Operations ........................ 11,000,000
Provisions:
1. Of the amount appropriated in Schedule (1), $6,500,000 shall be available to the California Black Women’s Collective Empowerment Institute.
2. Of the amount appropriated in Schedule (1), $2,000,000 shall be available to the Black Freedom Fund for the California Community Policy Fellowship.
3. Of the amount appropriated in Schedule (1), $1,000,000 shall be available to the Black Freedom Fund for Truth and Reconciliation.
4. Of the amount appropriated in Schedule (1), $1,500,000 shall be available for Hispanas Organized for Political Equality leadership initiatives. Hispanas Organized for Political Equality shall submit proposals to the Government Operations Agency for consideration.
5. Notwithstanding any other law, grants awarded or contracts entered into pursuant to this item, amendments to those contracts during their terms, or contracts for services reasonably related to those contracts, shall not be subject to competitive bidding or any other state contracting requirements, shall not require the review, consent, or approval of the Department of General Services or any other state department or agency, and are not subject to the requirements of the State Contracting Manual, the Public Contract Code, or the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code.

SEC. 10.

 Item 0516-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0516-001-0001—For support of Secretary of California Housing and Homelessness Agency ........................

4,431,000
4,616,000
Schedule:
(1)
0266-Administration of California Housing and Homelessness Agency ........................

5,717,000
5,902,000
(2)
Reimbursements to 0266-Administration of California Housing and Homelessness Agency ........................
−1,286,000

SEC. 11.

 Item 0521-490 of Section 2.00 of the Budget Act of 2026 is amended to read:
0521-490—Reappropriation, Secretary for Transportation Agency. The amounts specified in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure until June 30, 2035: Notwithstanding any other law, the period to liquidate encumbrances of the following citations is extended to June 30, 2032.
0001—General Fund
(1) Up to $300,000,000 of the amount specified in Schedule (1) identified in Provision (3) of Item 0521-131-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021).

SEC. 12.

 Item 0530-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0530-001-0001—For support of Secretary of California Health and Human Services ........................

33,821,000
60,321,000
Schedule:
(1)
0280-Secretary of California Health and Human Services ........................

13,292,000
39,792,000
(2)
0286-Office of Youth and Community Restoration ........................
18,951,000
(3)
0290-Office of Technology and Solutions Integration ........................
2,763,000
(4)
0296-Center for Data Insights and Innovation ........................
0
(5)
0297-Office of Surgeon General ........................
1,428,000
(6)
Reimbursements to 0280-Secretary of California Health and Human Services ........................
−2,613,000
(7)
Reimbursements to 0286-Office of Youth and Community Restoration ........................
0
(8)
Reimbursements to 0297-Office of the Surgeon General ........................
0
Provisions:
1.
Of the amount appropriated in Schedule (3), $2,763,000 shall be used for the Office of the Agency Information Officer and Office of Technology and Solutions Integration and Enterprise Capabilities. The California Health and Human Services Agency shall report to the Legislature at regular intervals and at least on an annual basis on the benefits to participants and beneficiaries of impacted government programs, and which specific programs in the agency improved.
2.
Of the funds appropriated in Schedule (2), $10,000,000 shall be available to the Office of Youth and Community Restoration for purposes including, but not limited to, providing technical assistance, disseminating best practices, and issuing grants to counties and probation departments for the purpose of transforming the juvenile justice system to improve outcomes for justice involved youth.
3.
Of the amount appropriated in Schedule (2), $2,000,000 shall be available to counties for county probation departments for the purposes specified in subdivision (g) of Section 2200 of the Welfare and Institutions Code. These funds shall be allocated to the counties by the Controller for county probation departments according to a schedule provided by the Department of Finance and developed in collaboration with the Office of Youth and Community Restoration and Chief Probation Officers of California. The Department of Finance shall provide the schedule to the Controller by September 1 of each year and the Controller shall allocate these funds no later than October 1 of each year, consistent with the schedule provided by the Department of Finance.
4.
Of the amount appropriated in Schedule (1), $730,000 shall be available to support the interagency agreement for administrative services provided to the State Council on Developmental Disabilities by the California Department of Social Services.
5. Of the amount appropriated in Schedule (1), $25,000,000 shall be available for the Child Mind Institute.
6. Of the amount appropriated in Schedule (1), $1,500,000 shall be available for the California Health and Human Services Agency to strengthen the Community Assistance, Recovery, and Empowerment (CARE) Act referral and petition pipeline. Funding may be used for, including, but not limited to, training and support for first responders, homeless outreach workers, and street medicine teams.

SEC. 13.

 Item 0540-002-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
0540-002-0001—For support of Secretary of the Natural Resources Agency ........................
10,000,000
Schedule:
(1) 0320-Administration of Natural Resources Agency ........................ 10,000,000
Provisions:
1. The funds appropriated in this item shall be available to support exploration, mapping, characterization, and development of geothermal resources.
2. Any data and information from the exploration, mapping, characterization, and development of geothermal resources, including exploratory wells and development and production techniques, shall be made publicly available.
3. For development of exploratory wells, the Natural Resources Agency shall secure at least $10,000,000 in matching funds from non-state sources.
4. The Director of Finance may transfer all or part of these funds to other state agencies including, but not limited to, the State Energy Resources Conservation and Development Commission and the Department of Conservation, to deploy these funds for the purposes specified in this item.

SEC. 14.

 Item 0540-103-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0540-103-0001—For local assistance, Secretary of the Natural Resources Agency ........................

10,000,000
29,820,000
Schedule:
(1) 0320-Administration of Natural Resources Agency ........................
10,000,000
29,820,000
Provisions:
1. Of the amount appropriated in this item, $10,000,000 shall be available for cultural, educational, and economic improvements.
2. Of the amount appropriated in this item, $5,650,000 shall be available to Camp Ramah.
3. Of the amount appropriated in this item, $5,000,000 shall be available for restoration projects and other efforts to restore habitat.
4. Of the amount appropriated in this item, $5,000,000 shall be available to Oakland Children’s Fairyland, of which $2,000,000 shall be available for operations and $3,000,000 shall be available for revitalization projects.
5. Of the amount appropriated in this item, $1,770,000 shall be available to Child and Family Services.
6. Of the amount appropriated in this item, $1,400,000 shall be available to Reclamation District 800 for the management and remediation of harmful algal blooms in Discovery Bay.
7. Of the amount appropriated in this item, $1,000,000 shall be available to the Women in California Politics Museum.

SEC. 15.

 Item 0540-491 of Section 2.00 of the Budget Act of 2026 is amended to read:
0540-491—Reappropriation, Secretary of the Natural Resources Agency. The balances of the appropriations provided in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance, or expenditure until June 30, 2028:
0001—​General Fund
(1)
The amount transferred in Provision 2 of Item 0540-101-0001 of the Budget Act of 2018 (Chs. 29 and 30, Stats. 2018) to the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy, as reappropriated by Item 0540-491, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(2)
The amount transferred in Provision 9 of Item 0540-101-0001 of the Budget Act of 2019 (Chs. 23 and 55, Stats. 2019) to the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy, as reappropriated by Item 0540-491, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(3) Item 0540-001-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(4) Item 0540-001-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).
(5) Item 0540-103-0001, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025), including administrative funding transferred to technical Item 0540-502-0001.
0183—Environmental Enhancement and Mitigation Program Fund
(1) Item 0540-101-0183, Budget Act of 2014 (Chs. 25 and 663, Stats. 2014), as reappropriated by Item 0540-490, Budget Act of 2017 (Chs. 14, 22, and 54, Stats. 2017), and Item 0540-490, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022).
(1.5) Item 0540-101-0183, Budget Act of 2019 (Chs. 23 and 55, Stats. 2019).
(2) Item 0540-101-0183, Budget Act of 2020 (Chs. 6 and 7, Stats. 2020), as reappropriated by Item 0540-492, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(2.5) Item 0540-101-0183, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021).
(3) Item 0540-101-0183, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022).
(4) Item 0540-101-0183, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
3228—Greenhouse Gas Reduction Fund
(1) Item 0540-101-3228, Budget Act of 2016 (Ch. 23, Stat. 2016), as reappropriated by Item 0540-490, Budget Act of 2020 (Chs. 6 and 7, Stats. 2020), as reappropriated by Item 0540-492, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(2) Item 0540-101-3228, Budget Act of 2019 (Chs. 23 and 55, Stats. 2019), as reappropriated by Item 0540-490, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021).

SEC. 16.

 Item 0552-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0552-001-0001—For support of Office of the Inspector General ........................

56,228,000
53,941,000
Schedule:
(1)
0330-Office of the Inspector General ........................

56,228,000
53,941,000

SEC. 17.

 Item 0650-102-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
0650-102-0001—For local assistance, Governor’s Office of Land Use and Climate Innovation ........................
3,000,000
Schedule:
(1) 0370-Strategic Growth Council ........................ 3,000,000
Provisions:
1. The funds appropriated in this item shall be available for the Central Coast Community Resilience Hub Accelerator.

SEC. 18.

 Item 0680-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0680-001-0001—For support of Governor’s Office of Service and Community Engagement ........................

104,451,000
114,451,000
Schedule:
(1)
0372-California Volunteers ........................

107,679,000
117,679,000
(2)
Reimbursements to 0372-California Volunteers ........................
−3,228,000
Provisions:
1.
The California Volunteers’ database shall be subject to all state privacy and use policies, as required by the Department of Technology.
2.
Of the amount appropriated in Schedule (1), $68,100,000 shall be available for the California Volunteers Youth Corps.
(a)
It is the intent of the Administration that the Youth Corps program, including its fellowship program, prioritize the recruitment of, and outreach to, students described in Chapter 513 of the Statutes of 2019 (AB 540), and immigrant youth with federal work authorization, including Deferred Action for Childhood Arrivals (DACA) beneficiaries, and this section is therefore enacted pursuant to subdivision (d) of Section 1621 of Title 8 of the United States Code. For purposes of implementing this initiative, no entity or person shall seek information that is unnecessary to determine eligibility, including immigration or citizenship status.
(b)
Of the amount allocated in this provision, $2,000,000 shall be available for California’s tribal communities to apply through a competitive process.
(c)
Of the amount remaining after the allocation described in subprovision (b), a share proportional to funding provided in Provision 1 of Item 0650-163-8506, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021) shall be provided to the 13 largest cities in California. Funding shall be proportional to each city’s population as a percent of the total population of the 13 largest cities, as estimated by the Department of Finance.
(d)
Of the amount remaining after the allocation described in subprovision (b), a share proportional to funding provided in Provision 2 of Item 0650-163-8506, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021) shall be distributed, via a competitive grant process, to all cities and counties that are not funded pursuant to subprovision (c), without regard to total population size.
3.
Of the funds available in Schedule (1), $9,383,000 shall be available for support or local assistance and shall be used for the purpose of implementing the California Climate Action Service Corps program to create service opportunities to take on climate action such as urban greening, food waste recovery, and wildfire prevention.
4.
Of the amount appropriated in Schedule (1), $14,689,000 $18,268,000 shall be available for the California College Corps.
5. Of the amount appropriated in Schedule (1), $5,000,000 shall be available for the California Men’s Service Challenge.
6. Of the amount appropriated in Schedule (1), $5,000,000 shall be available for the Reading Corps and Math Corps.

SEC. 19.

 Item 0680-101-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
0680-101-0001—For local assistance, Governor’s Office of Service and Community Engagement ........................
15,000,000
Schedule:
(1) 0372-California Volunteers ........................ 15,000,000
Provisions:
1. Of the amount appropriated in this item $5,000,000 shall be available for the California Student Success Coach Grant Program.
2. Of the amount appropriated in this item $10,000,000 shall be available for City Year.

SEC. 20.

 Item 0690-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0690-001-0001—For support of Office of Emergency Services ........................

287,425,000
288,175,000
Schedule:
(1)
0380-Emergency Management Services ........................

181,704,000
182,454,000
(2)
0385-Special Programs and Grant Management ........................
115,823,000
(3)
0390-Alfred E. Alquist Seismic Safety Commission ........................
351,000
(4)
0395-Public Safety Communications ........................
325,000
(5)
9900100-Administration ........................
61,200,000
(6)
9900200-Administration—​Distributed ........................
−61,200,000
(7)
Reimbursements to 0380-Emergency Management Services ........................
−5,515,000
(8)
Reimbursements to 0385-Special Programs and Grant Management ........................
−5,263,000
Provisions:
1.
Funds appropriated in this item may be reduced by the Director of Finance, after giving notice to the Chairperson of the Joint Legislative Budget Committee, by the amount of federal funds made available for the purposes of this item in excess of the federal funds scheduled in Item 0690-001-0890.
2.
Of the amount appropriated in Schedule (2), $6,700,000 shall be for the Office of Emergency Services to reimburse local law enforcement agencies to offset the cost to local law enforcement agencies of reimbursing qualified health care professionals, hospitals, or other emergency medical facilities for medical evidentiary examinations for all sexual assault victims in accordance with Section 13823.95 of the Penal Code.
3.
The Department of Finance may augment the amount appropriated in Schedule (7) for the receipt of reimbursements provided to the Office of Emergency Services for participation in Emergency Management Assistance Compact activities in support of other states or territories. Within 10 days of approval, the Department of Finance shall provide written notification of any such augmentation to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and the appropriate subcommittees of each house of the Legislature that consider the State Budget, and the chairperson of the Joint Legislative Budget Committee.
4. Of the amount appropriated in Schedule (1), $750,000 shall be available for the Office of Emergency Services to conduct misinformation and disinformation tracking and contingency planning for the November 3, 2026, General Election.

SEC. 21.

 Item 0690-001-0022 of Section 2.00 of the Budget Act of 2026 is amended to read:
0690-001-0022—For support of Office of Emergency Services, payable from the State Emergency Telephone Number Account ........................

51,375,000
54,375,000
Schedule:
(1)
0395-Public Safety Communications ........................

51,375,000
54,375,000
Provisions:
1. Funds appropriated in this item shall not be used for the Next Generation 911 system until the enactment of future legislation that authorizes the use of these funds.
1. The amount appropriated in this item is available to stabilize and bolster the state 911 system, including support for the legacy 911 system, call handling equipment upgrades and maintenance, 911 support services, automatic location identification (ALI) databases, regional Next Generation 911 network providers, and the statewide bridge contract dated April 28, 2026.
2. This funding shall not be used to establish a permanent Next Generation 911 system until an independent technical evaluation is completed and reviewed by the Legislature, pursuant to Section 53121.1 of the Government Code.
3. Of the amount appropriated in this item, up to $2,000,000 shall be provided to the Rand Corporation for an independent technical evaluation of, and recommendations for, the Next Generation 911 system project, pursuant to Section 53121.1 of the Government Code. The Office of Emergency Services shall fully execute a contract with the contractor consistent with Section 53121.1 no later than August 15, 2026.
4. The Office of Emergency Services shall enter into a contract or agreement with the California Department of Technology or another qualified vendor for Next Generation 911 project oversight and independent verification and validation services. The selected vendor may not have a business or financial interest in the state Next Generation 911 project or system. Up to $8,400,000 of the amount provided in this item may be used for these services.
5. The Office of Emergency Services shall provide quarterly fiscal and project progress reports to the Legislature on the development and implementation of the Next Generation 911 system in California, pursuant to Section 53121.2 of the Government Code.
6. The Office of Emergency Services shall not take actions that would prevent the state from transitioning to a regional network in the future. Additionally, the office shall take steps to minimize cost to the state of a potential future transition to a regional network, except in cases where so doing would prevent the installation of technology needed to bolster and stabilize the statewide transitional network.
7. Any funding in this item unencumbered by June 30, 2027, shall revert to the fund balance from which the appropriation was made.
8. Of the funds appropriated in this item, up to $1,000,000 shall be authorized for expenditure for the California State Auditor to conduct an audit of the state’s effort to develop and implement the Next Generation 911 system.

SEC. 22.

 Item 0690-101-0022 of Section 2.00 of the Budget Act of 2026 is amended to read:
0690-101-0022—For local assistance, Office of Emergency Services, payable from the State Emergency Telephone Number Account ........................
272,000,000
Schedule:
(1)
0395-Public Safety Communications ........................
272,000,000
Provisions:
1. The funds appropriated in this item are for the reimbursement of local agencies, service suppliers, and communication equipment companies for costs incurred pursuant to Sections 41137, 41137.1, 41138, and 41140 of the Revenue and Taxation Code.
2. Funds appropriated in this item shall not be used for the Next Generation 911 system until the enactment of future legislation that authorizes the use of these funds for this purpose.
1. The amount appropriated in this item is available to stabilize and bolster the state 911 system, including support for the legacy 911 system, call handling equipment upgrades and maintenance, 911 support services, automatic location identification (ALI) databases, regional Next Generation 911 network providers, and the statewide bridge contract dated April 28, 2026.
2. This funding shall not be used to establish a permanent Next Generation 911 system until an independent technical evaluation is completed and submitted to the Legislature, and the review period has passed, pursuant to Section 53121.1 of the Government Code. Funds may be used for this purpose no sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider the State Budget, the chairpersons of the committees and appropriate subcommittees in each house of the Legislature that consider appropriations, the Legislative Analyst’s Office, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time after that notification the chairperson of the joint committee, or the chairperson’s designee, may determine. The notification shall include an expenditure plan approved by the Department of Finance for the use of these funds.
3. The Office of Emergency Services shall provide quarterly fiscal and project progress reports to the Legislature on the development and implementation of the Next Generation 911 system in California, pursuant to Section 53121.2 of the Government Code.
4. The Office of Emergency Services shall not take actions that would prevent the state from transitioning to a regional network in the future. Additionally, the office shall take steps to minimize cost to the state of a potential future transition to a regional network, except in cases where so doing would prevent the installation of technology needed to bolster and stabilize the statewide transitional network.
5. Any funding in this item unencumbered by June 30, 2027, shall revert to the fund balance from which the appropriation was made.

SEC. 23.

 Item 0690-104-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
0690-104-0001—For local assistance, Office of Emergency Services ........................
6,100,000
Schedule:
(1) 0385-Special Programs and Grant Management ........................ 6,100,000
Provisions:
1. Of the amount appropriated in this item, $3,000,000 shall be available to expand access to technology-driven solutions that support standardized sexual assault and domestic violence forensic examinations across California.
2. Of the amount appropriated in this item, $800,000 shall be available for the Stinson Fire District for a fire station project.
3. Of the amount appropriated in this item, $1,200,000 shall be available to the City of San Marcos for fire equipment.
4. Of the amount appropriated in this item, $1,100,000 shall be available to the County of Los Angeles for sheriff department vehicles.

SEC. 24.

 Item 0820-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0820-001-0001—For support of Department of Justice ........................

470,163,000
474,363,000
Schedule:
(1)
9900100-Administration ........................

211,043,000
211,080,000
(2)
9900200-Administration—​Distributed ........................

−211,043,000
−211,080,000
(3)
0435-Division of Legal Services ........................

243,803,000
248,003,000
(4)
0440-Law Enforcement ........................
136,758,000
(5)
0445-California Justice Information Services ........................
118,040,000
(6)
Reimbursements to 0435-Division of Legal Services ........................
−1,767,000
(7)
Reimbursements to 0440-Law Enforcement ........................
−19,570,000
(8)
Reimbursements to 0445-California Justice Information Services ........................
−7,101,000
Provisions:
1.
Of the amount appropriated in Schedule (4), $6,666,000 shall be used to support a statewide enforcement program to combat the manufacturing, distribution, and trafficking of fentanyl throughout and into the state by organized criminal enterprises, including organized cartels. The Department of Justice may coordinate with the State Department of Health Care Services and the Military Department to support the statewide enforcement program.
2.
Of the amount appropriated in Schedule (4), $500,000 shall be available to support investigations and prosecutions of organized retail crime, including those referred by other law enforcement or prosecutorial agencies. Any unspent funds shall revert to the General Fund and may not be redirected to any other purposes.
3.
Of the amount appropriated in Schedule (4), $7,206,000 shall be used to support statewide enforcement to combat violent career criminals, gangs, and organized crime groups, with priority for disrupting the production, supply, and distribution of illicit fentanyl, opioid, and narcotic operations by multijurisdictional and transnational trafficking organizations, and in seizing illegal, smuggled, and trafficked firearms, ammunition, and component parts used in furtherance of those operations.
4.
Notwithstanding any other law, the Department of Justice may purchase or lease vehicles that, in the judgment of the Attorney General or the Attorney General’s designee, are necessary to the performance of the investigatory and enforcement responsibilities of the Department of Justice, from the funds appropriated for that purpose in this item. This exemption does not apply to vehicles that are classified as military equipment pursuant to subdivision (c) of Section 7070 of the Government Code, except for paragraph 5 of subdivision (c) of Section 7070 of the Government Code.
5.
Of the amount appropriated in Schedule (5), $812,000 is allocated for the implementation of Chapter 811 of the Statutes of 2024. The expenditure of these funds is contingent upon the Department of Justice submitting the Stage 1 Business Analysis to the Department of Technology as part of the Project Approval Lifecycle process of the Department of Technology.
6.
Of the amount appropriated in Schedule (5), $1,096,000 shall be used to establish a new connection between the California Law Enforcement Telecommunications System (CLETS) and the new Department of Motor Vehicles Digital eXperience Platform (DXP). The Department of Justice, in consultation with the Department of Motor Vehicles, shall report to the Department of Finance and the Joint Legislative Budget Committee by January 10, 2026, if it does not appear that this new connection will be developed, tested, and fully functional by June 30, 2026. This report shall include, but is not limited to, all of the following: a status update on progress towards completion of the new connection, a mitigation strategy or work-around to ensure minimal impact on law enforcement or criminal justice agency activities requiring information typically obtained through CLETS, and the identification of any additional resources or statutory changes needed to ensure CLETS functionality and access. The Department of Motor Vehicles shall fully cooperate with the Department of Justice in the preparation of this report.
7.
Of the amount appropriated in Schedule (3), $11,722,000 $25,922,000 is available to address legal workload related to various actions taken at the federal level or administrative action authorized under state law to mitigate impacts of federal actions taken by the federal government. The Department of Justice shall report to the Department of Finance and the Joint Legislative Budget Committee annually on the use of all funds provided for these purposes by the Department of Justice in the prior fiscal year on or before August 1 of each year. The report shall include, but is not limited to, both of the following: (1) whether the state is using any of the appropriated funds to contract with outside counsel, if any; and (2) each instance in which the Department of Justice is taking administrative action authorized under state law to mitigate the impacts of actions taken by the federal government. This reporting may be consolidated with the reporting required by Chapter 3 of the Statutes of 2025, First Extraordinary Session. The Department of Justice shall also post details of litigation against the federal government paid for by these funds on the website originally created and maintained pursuant to Chapter 3 of the Statutes of 2025, First Extraordinary Session. These details shall include, but are not limited to, descriptive narratives and supporting documents as needed. Such details shall be posted as soon as feasible each time a court filing is made using these funds, and no less frequently than monthly.
8. Of the amount appropriated in Schedule (3), $3,915,000 shall be used for workload associated with Chapter 551 of the Statutes of 2021. Any unspent funds shall revert to the General Fund and may not be redirected to any other purposes.
9. Of the amount appropriated in Schedule (3), $2,200,000 shall be available to complete existing investigations and prosecutions of organized retail crime and shall be available for encumbrance or expenditure until June 30, 2028. Any unspent funds shall revert to the General Fund and may not be redirected to any other purposes.
10. No later than January 10, 2027, the department shall provide a framework for determining how firearm and ammunition workload should be funded. This framework shall include, but is not limited to, the following information: identification of all existing and forthcoming known anticipated firearm or ammunition workload or costs by program area, clear explanations for department recommendations on how, and from what fund source, each program area should be funded moving forward, the calculation of appropriate fees by fund source and how such calculations were reached, and department recommendations for how frequently the fees should be adjusted and the process by which they should be adjusted. This framework shall also include any recommendations for statutory changes to improve operational or process efficiencies, or in the number of firearm and ammunition special funds, or their specified allowable uses, the department deems necessary. In preparing this framework, the department shall evaluate its entire workload, known anticipated future costs, operational efficiencies, and existing federal and state statute and case law. This framework shall be provided to the appropriate budget, appropriations, and policy committees or subcommittees in each house.

SEC. 25.

 Item 0840-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0840-001-0001—For support of the Controller ........................

169,171,000
168,871,000
Schedule:
(1)
0500-State Controller’s Office ........................

234,133,000
233,833,000
(2)
Reimbursements to 0500-State Controller’s Office ........................
−64,962,000
Provisions:
1.
The Controller may, with the concurrence of the Director of Finance and the Chairperson of the Joint Legislative Budget Committee, bill affected state departments for activities required by Section 20030 of the State Administrative Manual, relating to the administration of federal pass-through funds.
A billing shall not be sent to affected departments sooner than 30 days after the chairperson of the joint committee has been notified by the director that the director concurs with the amounts specified in the billings.
2.
Of the moneys appropriated to the Controller in this act, the Controller shall not expend more than $500,000 to conduct posteligibility fraud audits of the Supplemental Security Income/State Supplementary Payment Program.
3.
The Commission on State Mandates shall provide, in applicable parameters and guidelines, as follows:
(a)
If a local agency or school district contracts with an independent contractor for the preparation and submission of reimbursement claims, the costs reimbursable by the state for that purpose shall not exceed the lesser of (1) 10 percent of the amount of the claims prepared and submitted by the independent contractor or (2) the actual costs that would necessarily have been incurred for that purpose if performed by employees of the local agency or school district.
(b)
The maximum amount of reimbursement provided in subprovision (a) may be exceeded only if the local agency or school district establishes, by appropriate documentation, that the preparation and submission of these claims could not have been accomplished without incurring the additional costs claimed by the local agency or school district.
4.
It is the intent of the Legislature that audits conducted by the Controller, or under the direction of the Controller, shall be fiscal audits that focus on claims and disbursements, as provided for in Section 12410 of the Government Code. Any report, audit, analysis, or evaluation issued by the Controller for the current fiscal year shall cite the specific statutory or constitutional provision authorizing the preparation and release of the report, audit, analysis, or evaluation.
5.
The Controller shall publish and provide the Controller’s monthly report, the Statement of General Fund Cash Receipts and Disbursements, within 10 days after the close of each month to the Joint Legislative Budget Committee, the fiscal committees of each house of the Legislature, the Department of Finance, the Treasurer, and the Legislative Analyst’s Office.
6.
The Controller shall provide to the Department of Finance, the Chairperson of the Joint Legislative Budget Committee, and the chairpersons of the fiscal committees of each house of the Legislature a report that provides the following details by mandate: the level of claims requested, the amount reduced by the initial desk audit, the amount paid, the amount recouped, and the results of a final audit and subsequent funding adjustments. The report is due on June 30 of the current fiscal year, and will cover the fourth quarter of the past fiscal year and the first three quarters of the current fiscal year.
7.
The Controller shall obtain actuarial valuation services to comply with governmental accounting and reporting standards for other postemployment benefits (OPEB). In addition to all other items required under the accounting and reporting standards, the report shall include an identification and explanation of any significant differences in actuarial assumptions or methodology from any relevant similar types of assumptions or methodology used by the Public Employees’ Retirement System to estimate state pension obligations. To avoid duplication of effort and promote efficiency and cost-effectiveness, the Controller and the Department of Finance shall coordinate in obtaining additional actuarial valuation services related to OPEB plan liabilities and assets attributable to each of the state’s collective bargaining units or other state entities or groups. This provision does not obligate the state to change the practice of funding health and dental benefits for annuitants currently required under state law.
8.
The funds appropriated to the Controller in this act shall not be expended on additional actuarial valuations, beyond the annual actuarial valuations, for other postemployment benefits, prior to obtaining concurrence in writing from the Department of Finance. The additional actuarial valuations shall only be performed to the extent resources exist, or if funds are provided by the requesting agency.
9.
The Controller shall provide the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the fiscal committees in each house of the Legislature a report on the California State Payroll System Project specifying the dollars expended on the program in the previous fiscal year and over the life of the program and any known savings that have occurred in the prior fiscal year by October 1 of each year.
10.
The Controller shall provide yearend financial data as specified by the Department of Finance, for the immediately preceding fiscal year, in electronic format that is printable via application, including, but not limited to, Adobe PDF, Microsoft Excel, or Microsoft Word, by October 31 of each year and periodically as requested by the Department of Finance. This information is necessary for the Department of Finance to determine the proper beginning balance of the current fiscal year for budgetary purposes.
11.
In the event new postage rates are adopted by the United States Postal Service, but not in time for inclusion in the May Revision prior to enactment of this Budget Act, and the Controller notifies the Department of Finance with its estimates of the increased postage costs within 15 calendar days of the adoption of new rates, the Director of Finance may authorize expenditures in excess of the amount appropriated to the Controller in this item by an amount necessary to fund the postage increase. This authorization shall occur not less than 15 days after the Department of Finance notifies the Chairperson of the Joint Legislative Budget Committee.
12.
Of the amount appropriated in this item, $428,000 shall be used to reimburse the Department of Justice for legal services. In addition to the amount above, upon order of the Director of Finance, any non-General Fund Budget Act item for support of the Controller may be augmented to reimburse the Department of Justice for legal services. An augmentation shall not be made sooner than 30 days after the Joint Legislative Budget Committee has been notified in writing.
13.
The Controller shall provide the Department of Finance and the Legislative Analyst’s Office a report on FI$Cal implementation by the State Controller’s Office verifying the progress or completion of predetermined FI$Cal milestones outlined in SPR7, 8, and 9, including future milestones necessary to complete the transition to FI$Cal as the Book of Record, the dollars expended on the program in the previous quarter and over the life of the program, and any known savings that have occurred in the prior fiscal year, to be submitted on a quarterly basis commencing September 1 of each year, until completion of the implementation to FI$Cal. The Department of Finance may augment this item if necessary to address unforeseen implementation issues relating to the transition of the state to the Book of Record. Any augmentation shall be authorized not sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the state budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine.
14.
The Controller, in consultation with the Department of Finance, the Department of Human Resources, and the Department of Technology, shall provide the Legislature and the Legislative Analyst’s Office with briefings on the progress of the California State Payroll System Project, including newly executed contracts, and their purpose, and cost, on a quarterly basis.
16. Of the amount appropriated in this item, up to $7,082,000 shall be allocated upon order of the Director of Finance for consulting services to support the legacy Accounting and Reporting Management System decommissioning, The Department of Finance may adjust the amount allocated upon confirmation of the executed decommissioning contract.
17. Of the amount appropriated in this item, up to $8,693,000 is provided for Department/Agency Readiness Team (DART) resources. The Controller, in consultation with the Department of Human Resources, shall work with payroll processing departments through its DART program to complete the organizational change management activities associated with the California State Payroll System (CSPS) information technology project. The Controller, in consultation with the Department of Finance, shall identify amounts to be allocated to each department for the 2026–27 fiscal year. Prior to any allocations to departments, the Controller shall define specific criteria that departments must meet to receive this funding and outline the specific project activities that require DART team involvement. The Controller shall require departments to submit requests for their respective allocations including an agreement to use the funding to only support CSPS project-related activities. The Controller shall provide updates on DART funding allocations to the Legislature and the Legislative Analyst’s Office through existing bimonthly briefings on the progress of the project and report final annual allocation amounts to the Department of Finance.
18. Of the amount appropriated in this item, up to $453,000 shall be used to implement an automated workspace that will be used to input and publish the Annual Comprehensive Financial Report.
19. The Department of Finance may augment this item if necessary to address unforeseen implementation issues relating to the California State Payroll System project. Any augmentation shall be authorized not sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the state budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine.
20. The Department of Finance may augment this item if necessary to improve the timelines, accuracy, and information display of the Annual Comprehensive Financial Report. Any augmentation shall be authorized not sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the state budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine.

SEC. 26.

 Item 0840-001-0970 of Section 2.00 of the Budget Act of 2026 is amended to read:
0840-001-0970—For support of the Controller, payable from the Unclaimed Property Fund ........................

59,838,000
61,347,000
Schedule:
(1)
0500-State Controller’s Office ........................

59,838,000
61,347,000
Provisions:
1.
The funding provided in this item shall cover all Unclaimed Property Program support operations costs (personal services and operating expenses and equipment). Continuous appropriations from the Unclaimed Property Fund are allowed for costs related to enforcement of the unclaimed property law, and other program costs authorized under subdivision (b) of Section 1564 and Section 1325 of the Code of Civil Procedure. These continuous appropriations shall not be used to cover spending authorized under this item.
2. (a)
Pursuant to Section 1531 of the Code of Civil Procedure, the Controller may publish notice of unclaimed property in any manner that the Controller determines reasonable.
(b)
No funds appropriated in this act may be expended by the Controller to provide general information to the public, other than holders, as defined in subdivision (g) of Section 1501 of the Code of Civil Procedure, of unclaimed property, concerning the Unclaimed Property Program or possible existence of unclaimed property held by the Controller, except for informational announcements to the news media, through the exchange of information on the internet, or no more than $3,000,000 per year to inform the public about this program. This annual cap may be increased up to $5,000,000, upon the order of the Department of Finance, if the Controller demonstrates that additional funds are needed. This restriction does not apply to sending individual notices to property owners, as required by the Code of Civil Procedure.

SEC. 27.

 Item 0890-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0890-001-0001—For support of Secretary of State ........................

92,083,000
92,333,000
Schedule:
(1)
0700-Filings and Registrations ........................
3,998,000
(2)
0705-Elections ........................

53,231,000
53,481,000
(3)
0710-Archives ........................
16,265,000
(3.5)
0711-Special Items of Expense ........................
17,292,000
(4)
0715-Department of Justice Legal Services ........................
1,352,000
(5)
9900100-Administration ........................
73,564,000
(6)
9900200-Administration—​Distributed ........................
−73,564,000
(7) Reimbursements to 0700-Filings and Registration −5,000
(8) Reimbursements to 0705-Elections −36,000
(9) Reimbursements to 0710-Archives −14,000
Provisions:
1.
The Secretary of State shall not expend any special handling fees authorized by Chapter 999 of the Statutes of 1999 that are collected in excess of the cost of administering those special handling fees unless specifically authorized by the Legislature.
2.
Of the funds appropriated in this item, $17,292,000 is available for the following election-related activities:
(a)
Parallel Monitoring.
(b)
Printing and Mailing of Voter Information Guides.
(c)
Printing and Mailing of Voter Registration Cards.
(d)
Election Night Reporting.
(e)
Office of State Publishing Warehouse Lease.
Any unexpended funds pursuant to this provision shall revert to the General Fund. Upon order of the Department of Finance, the amount available in Schedule (3.5) may be augmented by the amount necessary to cover costs associated with parallel monitoring, printing and mailing of Voter Information Guides and Voter Registration Cards, and election night reporting. Any augmentation shall be authorized not sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the State Budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the Chairperson of the Joint Legislative Budget Committee, or the Chairperson’s designee, may determine.
3.
Of the amount appropriated in this item, $2,000,000 shall be used to establish and operate the Office of Elections Cybersecurity. Activities performed by the Office of Elections Cybersecurity are intended to be specific to elections and shall be designed so as to minimize overlap and in coordination with statewide cybersecurity efforts performed by the California Cybersecurity Integration Center.
4.
Of the amount appropriated in this item, $150,000 shall be used for support of the State Government Oral History Program consistent with Section 12233 of the Government Code, and $75,000 shall be used for the costs of a digital preservation subscription service. Expenditure of this funding requires the collaboration between the Secretary of State and the California State Library on projects and activities related to the State Government Oral History Program.
5.
Upon order of the Department of Finance, the amount available in Schedule (4) may be augmented by the amount necessary to cover costs associated with legal services provided by the Department of Justice. Any augmentation shall be authorized not sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the State Budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the Chairperson of the Joint Legislative Budget Committee, or the Chairperson’s designee, may determine.
6. Of the funds appropriated in Schedule (2), $5,000,000 shall be available for the Secretary of State to complete voter outreach and education education, including with respect to the benefits of submitting ballots prior to election day, prior to the November 3, 2026, statewide general election.
7. Of the funds appropriated in Schedule (2), $250,000 shall be available for the Secretary of State to support, strengthen, and protect the administration of the November 3, 2026, statewide general election.

SEC. 28.

 Item 0890-101-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
0890-101-0001—For local assistance, Secretary of State ........................
34,000,000
Schedule:
(1) 0705-Elections ........................ 34,000,000
Provisions:
1. Of the amount appropriated in this item, $29,000,000 shall be available to counties to increase the number of available staff to tabulate votes, make equipment purchases or technology upgrades, or acquire space to accommodate additional staff or equipment purchases to expedite the vote counting process and strengthen and protect election integrity. These funds shall be allocated to the counties by the Controller according to a schedule provided by the Department of Finance. Counties shall prioritize expenses that will expedite the vote counting process for the November 3, 2026, statewide general election.
2. Of the amount appropriated in this item, $5,000,000 shall be available to counties to provide voter outreach and education before the November 3, 2026, statewide general election, including with respect to the benefits of submitting ballots before election day. These funds shall be allocated to the counties by the Controller according to a schedule provided by the Department of Finance.
3. Notwithstanding any other law, the Department of Finance may authorize the transfer of resources between Provisions 1 and 2 to effectively administer the efforts identified in these provisions. Any authorization shall be provided not sooner than 7 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider the State Budget, the chairpersons of the committees and appropriate subcommittees in each house of the Legislature that consider appropriations, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time after that notification the chairperson of the joint committee, or the chairperson’s designee, may determine.

SEC. 29.

 Item 0950-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
0950-001-0001—For support of Treasurer ........................

15,236,000
16,236,000
Schedule:
(1)
0740-State Treasurer’s Office ........................

42,244,000
43,244,000
(2)
Reimbursements to 0740-State Treasurer’s Office ........................
−27,008,000
Provisions:
1.
The Director of Finance may authorize a loan from the General Fund, in an amount not to exceed the level of reimbursements appropriated in Schedule (2) to the Treasurer, provided that:
(a)
The loan is to meet cash needs resulting from a delay in receipt of reimbursements.
(b)
The loan is short term, and is repaid within six months.
(c)
Interest charges may be waived pursuant to subdivision (e) of Section 16314 of the Government Code.
(d)
The Director of Finance shall not approve the loan unless the approval is made in writing and filed with the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the committees in each house of the Legislature that consider appropriations not later than 30 days before the effective date of the approval, or not later than whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine.
(e)
At the end of the six-month term of the loan, the Treasurer shall notify the Chairperson of the Joint Legislative Budget Committee whether the Treasurer has repaid the loan pursuant to subprovision (b).
2.
Notwithstanding any other law, upon certification by the Treasurer, the Department of Finance may authorize expenditures of up to $8,000,000 in excess of the amount appropriated in this item for the payment of expenses incurred on general obligation bond, lease-revenue bond, and revenue anticipation note sales that have been canceled. Prior to expenditure from the General Fund, the Treasurer shall determine if any bond funds are authorized and available for the payment of expenses, and then shall apply those funds to such payment. The Department of Finance shall provide notification in writing to the chairpersons of the fiscal committees of each house of the Legislature and the Chairperson of the Joint Legislative Budget Committee no more than 30 days after that authorization.
3.
Upon order of the Director of Finance, a revenue transfer of $250,000 is hereby authorized in Item 0950-011-0467, from the State Notes Expense Account reserve to the General Fund due to a lack of previous activity and no anticipated need for the foreseeable future. This special fund will remain active and will be available to receive future appropriations in subsequent budgets to the extent they are determined necessary to carry out the purposes for which the fund was established.
4. Of the amount appropriated in this item $1,000,000 shall be available on a one-time basis for the Blue Ribbon Commission on the Development of a California Department of Youth Sports.

SEC. 30.

 Item 1111-001-0326 of Section 2.00 of the Budget Act of 2026 is amended to read:
1111-001-0326—For support of State Athletic Commission, payable from the Athletic Commission Fund ........................
2,142,000
Schedule:
(1)

1110010-State Athletic Com­mission—​Support

2,142,000
(1) 1110010-State Athletic Commission—​Support ........................ 2,142,000
Provisions:
1.
The amount appropriated in this item may include revenues derived from the assessment of fines and penalties imposed as specified in Section 13332.18 of the Government Code.
2.
Provided that sufficient funds are available and upon request by the Department of Consumer Affairs, the Department of Finance may augment this item by up to $300,000 not sooner than 30 days after notification in writing is provided to the chairpersons of the fiscal committees in each house of the Legislature and the Chairperson of the Joint Legislative Budget Committee. This augmentation shall only be provided for additional funding needed for Athletic Inspectors at sporting events or for Athletic Inspector training, or for Attorney General expenses.
3. The State Athletic Commission may consider a study to evaluate its revenues, expenditures, current fees, and potentially identify new fees to address the Athletic Commission Fund structural deficit ahead of the 2028 Sunset Review process.
4. On or before February 1, 2027, and on or before February 1, 2028, the State Athletic Commission shall provide to the Joint Legislative Budget Committee a fund condition statement of the Athletic Commission Fund.

SEC. 31.

 Item 1111-012-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
1111-012-0001—For transfer, upon order of the Department of Finance, by the Controller to the Athletic Commission Fund ........................
1,700,000

SEC. 32.

 Item 1750-001-3153 of Section 2.00 of the Budget Act of 2026 is amended to read:
1750-001-3153—For support of California Horse Racing Board, payable from the Horse Racing Fund ........................
16,013,000
Schedule:
(1)
1610-California Horse Racing Board ........................
16,013,000
Provisions:
1.
Pursuant to Section 19616.51 of the Business and Professions Code, all racing associations and fairs including all breeds of racing shall remit a license fee to the California Horse Racing Board to be deposited in the Horse Racing Fund. For the 2026–27 fiscal year, each racing association and fair shall pay a proportionate share of $17,157,000 $13,157,000 including any current year adjustments, in the form of a license fee in accordance with a formula developed by the board.

SEC. 33.

 Item 1750-011-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
1750-011-0001—For transfer, upon order of the Department of Finance, by the Controller to the Horse Racing Fund ........................
4,000,000
Provisions:
1. This transfer is for the purpose of providing partial fee relief to the horse racing associations licensed by the California Horse Racing Board.

SEC. 34.

 Item 2240-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
2240-001-0001—For support of Department of Housing and Community Development ........................

48,557,000
47,263,000
Schedule:
(1)
1660-Codes and Standards Program ........................
2,640,000
(2)
1665-Financial Assistance Program ........................

15,070,000
15,267,000
(3)
1670-Housing Policy Development Program ........................

30,847,000
29,356,000
Provisions:
1. Of the amount appropriated in Schedule (2), $500,000 shall be available to Orange County United Way for a one-time regional pilot program for building more online awareness of affordable housing opportunities.

SEC. 35.

 Item 2240-107-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
2240-107-0001—For support of Department of Housing and Community Development ........................
4,360,000
Schedule:
(1) 1665-Financial Assistance Program ........................ 4,360,000
Provisions:
1. Of the amount appropriated in this item, $3,860,000 shall be provided to the Alliance for Community Empowerment.
2. Of the amount appropriated in this item, $500,000 shall be provided to the Napa County Housing Authority.

SEC. 36.

 Item 2245-401 is added to Section 2.00 of the Budget Act of 2026, to read:
2245-401—Of the amount appropriated for the implementation of the Disaster Rebuilding Assistance Program, any expenditures pursuant to paragraph (4) of subdivision (b) of Section 51349.4 of the Health and Safety Code that exceed the threshold set forth in subparagraph (B) of that paragraph are authorized only upon the occurrence of both of the following
1. Approval of an expenditure plan by the Department of Finance.
2. Any expenditures shall be authorized not sooner than 30 days after notification in writing of the Department of Finance’s approval of an expenditure plan to the chairpersons of the committees in each house of the Legislature that consider the state budget, the chairpersons of the committees and appropriate subcommittees in each house of the Legislature that consider appropriations, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time after that notification the chairperson of the joint committee, or the chairperson’s designee, may determine.

SEC. 37.

 Item 2250-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
2250-001-0001—For support of Housing Development and Finance Committee ........................

3,836,000
5,327,000
Schedule:
(1)
1720-Housing Development and Finance Committee ........................

3,836,000
5,327,000

SEC. 38.

 Item 2255-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
2255-001-0001—For support of California Interagency Council on Homelessness ........................

12,116,000
11,434,000
Schedule:
(1)
1740-California Interagency Council on Homelessness ........................

12,116,000
11,434,000

SEC. 39.

 Item 2660-001-0042 of Section 2.00 of the Budget Act of 2026 is amended to read:
2660-001-0042—For support of Department of Transportation, payable from the State Highway Account, State Transportation Fund ........................

3,489,236,000
3,496,402,000
Schedule:
(1)
1830019-Aeronautics ........................
193,000
(2)
1835010-Capital Outlay Support ........................
884,765,000
(3)
1835020-Local Assistance ........................
67,113,000
(4)
1835029-Program Development ........................
39,545,000
(5)
1835038-Legal ........................
151,560,000
(6)
1835047-Operations ........................

267,837,000
275,003,000
(7)
1835056-Maintenance ........................
1,425,337,000
(8)
1840019-State and Federal Mass Transit ........................
2,342,000
(9)
1840028-Intercity Rail Passenger Program ........................
1,418,000
(10)
1845013-Statewide Planning ........................
83,892,000
(11)
1870-Office of Inspector General ........................
17,890,000
(12)
9900100-Administration ........................
466,115,000
(13)
1850010-Equipment Service Program ........................
446,326,000
(14)
Reimbursements to 1835010-Capital Outlay Support ........................
−257,907,000
(15)
Reimbursements to 1835020-Local Assistance ........................
−1,526,000
(16)
Reimbursements to 1835029-Program Development ........................
−860,000
(17)
Reimbursements to 1835038-Legal ........................
−3,617,000
(18)
Reimbursements to 1835047-Operations ........................
−7,633,000
(19)
Reimbursements to 1835056-Maintenance ........................
−50,405,000
(20)
Reimbursements to 1845013-Statewide Planning ........................
−5,542,000
(21)
Reimbursements to 9900100-Administration ........................
−35,521,000
(22)
Reimbursements to 1850010-Equipment Service Program ........................
−2,086,000
Provisions:
1.
Notwithstanding any other law, funds appropriated in this item from the State Highway Account may be reduced and replaced by an equivalent amount of federal funds determined by the Department of Transportation to be available and necessary to comply with Section 8.50 and the most effective management of state transportation resources. Not more than 30 days after replacing the state funds with federal funds, the Director of Finance shall notify in writing the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee of this action.
2.
Notwithstanding any other law, funds appropriated in this item may be supplemented with federal funding appropriation authority and with prior fiscal year State Highway Account appropriation balances at a level determined by the Department of Transportation as required to process claims utilizing federal advance construction through the plan of financial adjustment process pursuant to Sections 11251 and 16365 of the Government Code.
3.
Notwithstanding any other law, funds appropriated in Program 9900100-Administration may be reduced and replaced by an equivalent amount of reimbursements determined by the Department of Transportation to be available and necessary to comply with Section 28.50 and the most effective management of state transportation resources. The reimbursements may also be reduced and replaced by an equivalent amount of funds from the State Highway Account. Not more than 30 days after replacing the State Highway Account funds with reimbursements and vice versa, the Director of Finance shall notify in writing the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee of this action.
4.
Of the funds appropriated in Program 1835056-Maintenance, at least $234,000,000 is for major maintenance contracts for the preservation of highway pavement, and shall not be used to supplant any other funding that would have been used for major pavement maintenance.
5.
Notwithstanding any other law, of the funds appropriated in Program 1835038-Legal, $75,556,000 is for the payment of tort lawsuit costs, claims, and awards and may be augmented by up to $20,000,000. Any funds for that purpose that are not needed as of April 1 in any given year, may revert to the originating fund source. The Department of Finance shall authorize the transfers not sooner than 30 days after notification of the necessity therefor in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee.
6.
The Department of Finance may augment the amount appropriated in Program 1835047-Operations, by up to $2,000,000 for the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.) consultant contracts if the number of access requests and grievances exceeds the Department of Transportation’s projections. The Department of Finance shall authorize the augmentation not sooner than 30 days after notification of the necessity therefor in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee.
7.
Of the funds appropriated in Program 1845013-Statewide Planning, the Department of Transportation shall exempt project initiation document development and oversight services reimbursed from local government agencies from full cost recovery as outlined in its Indirect Cost Recovery Plan.
8.
The Department of Transportation shall streamline the cooperative work agreement process related to project initiation document development and oversight to reduce costs to local agencies.
9.
The Department of Finance may augment the amount appropriated in Schedule (16) by up to $900,000 for additional reimbursements from the High-Speed Rail Authority for the review and approval of environmental and engineering documents regarding circumstances in which the high-speed train system interfaces with the state highway system, as well as specific highway realignment projects related to the high-speed train system.
10.
The Department of Transportation shall exempt the High-Speed Rail Authority from full cost recovery as outlined in its Indirect Cost Recovery Plan. The Department of Transportation shall charge the High-Speed Rail Authority for functional overhead.
11.
The Department of Transportation shall provide data related to its 2027–28 fiscal year Capital Outlay Support budget request on or before May 1, 2027.
12.
Of the funds appropriated in Program 1835010-Capital Outlay Support, $463,195,000 is for overhead and corporate resources in support of the Capital Outlay Support Program. This amount may be adjusted pursuant to the provisions of Section 3.60 or provisions of Items 9800-001-0001, 9800-001-0494, or 9800-001-0988 with the concurrence of the Department of Finance. The Department of Transportation shall provide quarterly reports, to the Department of Finance, of actual expenditures for overhead and corporate resources beginning October 1, 2015. In addition, the Department of Transportation, in conjunction with the Department of Finance, shall review the overhead and corporate components of the Capital Outlay Support Program. Results associated with this review shall be included in the 2026–27 fiscal year annual May Revision Finance Letter.
13.
Of the funds appropriated in Program 1835010-Capital Outlay Support, the Department of Transportation shall exempt Local SB 45 STIP Projects deprogrammed from the 2016 STIP from the full cost recovery as outlined in its Indirect Cost Recovery Plan if local agencies continue those projects with other funds. The Department of Transportation shall not charge for administrative overhead for the portion of the project’s funding that was originally planned to come from the STIP before the project was deprogrammed.
14.
Notwithstanding any other law, if the California Transportation Commission reprograms projects removed from the 2016 STIP, the Director of Finance may increase the expenditure authority for additional staffing for Program 1835010-Capital Outlay Support to support the reprogrammed projects not sooner than 30 days after notification in writing is made to the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the committees in each house of the Legislature that consider appropriations and the State Budget. The notification shall include a list of the reprogrammed projects and the additional staffing required for each project.
15.
Notwithstanding any other law, funds may be transferred intraschedule between Schedule (8) 1840019-State and Federal Mass Transit and Schedule (9) 1840028-Intercity Passenger Rail Program. Any transfer requires the prior approval of the Department of Finance.
16.
For Program 1835010-Capital Outlay Support, appropriations include funding and expenditure authority for full-time equivalent staff at an average annual labor rate of $287,000, totaling $338,331,000 for project direct external consultant and professional services related to project delivery.
17.
For Program 1835010-Capital Outlay Support, appropriations include funding and expenditure authority for state positions and personal services cash overtime totaling $1,977,642,000 in the program in the 2026–27 fiscal year.
18.
Any funding from this item used to replace and modernize the Department of Transportation’s fleet shall prioritize spending on zero-emission vehicles whenever feasible, and when not feasible, prioritize vehicles with the lowest emissions.
19.
The Department of Finance may augment the amount appropriated in Schedule (13) to align the department’s budget with actual vehicle insurance costs per the State Motor Vehicle Insurance Account Assessment Memo issued by the Department of General Services.
20.
Of the funds appropriated in Schedule (13) of this item, $218,061,000 shall be available for encumbrance or expenditure until June 30, 2029, and liquidation until June 30, 2031.
21. Of the funds appropriated in Program 1835056-Maintenance, $25,000,000 is for the Clean California Program and shall be available for encumbrance and liquidation until June 30, 2028.

SEC. 40.

 Item 2660-101-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
2660-101-0001—For local assistance, Department of Transportation ........................
2,000,000
Schedule:
(1) 1835020-Local Assistance ........................ 2,000,000
Provisions:
1. The amount appropriated in this item shall be available to the City of Ventura for infrastructure improvements to Main Street consistent with parklet design.

SEC. 41.

 Item 2660-103-0042 of Section 2.00 of the Budget Act of 2026 is repealed.

2660-103-0042—For local assistance, Department of Transportation, payable from the State Highway Account, State Transportation Fund

15,000,000
Schedule:
(1)1835020-Local Assistance15,000,000
Provisions:
1.Funds appropriated in this item shall be available for allocation by the California Transportation Commission until June 30, 2028, and available for encumbrance and liquidation until June 30, 2032.
2.Funds appropriated in this item shall be available for the Trade Corridor Enhancement Program for trade corridors connecting to ports.
3.Notwithstanding any other law, funds appropriated in this item may be transferred to Item 2660-302-0042. These transfers shall require the prior approval of the Department of Finance.

SEC. 42.

 Item 2660-301-3291 of Section 2.00 of the Budget Act of 2026 is amended to read:
2660-301-3291—For capital outlay, Department of Transportation, payable from the Trade Corridor Enhancement Account, State Transportation Fund ........................
269,974,000
Schedule:
(1)
1835019-Capital Outlay Projects ........................
237,502,000
(2)
1840028-Intercity Rail Passenger Program ........................
32,472,000
Provisions:
1.
Funds appropriated in this item shall be available for allocation by the California Transportation Commission until June 30, 2029, and available for encumbrance and liquidation until June 30, 2032.
2.
Notwithstanding any other law, funds appropriated in this item may be transferred intraschedule or to Item 2660-101-3291. These transfers require the prior approval of the Department of Finance.
3.
Funds appropriated in this item shall be used in the same manner as Proposition 1B bond funds consistent with the Trade Corridors Improvement Fund program as authorized by Section 2192 of the Streets and Highways Code.
4.
Notwithstanding any other law, funds appropriated in Item 2660-001-3291 may be transferred to this item. These transfers shall require the prior approval of the Department of Finance.
5. Of the amount appropriated in this item, $15,000,000 shall be for road improvements on freight corridors connecting the Ports of Los Angeles and Long Beach between the Interstate 105, 110, and 710 freeways.

SEC. 43.

 Item 2740-001-0044 of Section 2.00 of the Budget Act of 2026 is amended to read:
2740-001-0044—For support of Department of Motor Vehicles, payable from the Motor Vehicle Account, State Transportation Fund ........................
1,390,045,000
Schedule:
(1)
2130-Vehicle/Vessel Identification and Compliance ........................
737,763,000
(2)
2135-Driver Licensing and Personal Identification ........................
418,630,000
(3)
2140-Driver Safety ........................
177,766,000
(4)
2145-Occupational Licensing and Investigative Services ........................
76,859,000
(5)
9900100-Administration ........................
139,889,000
(6)
9900200-Administration—​Distributed ........................
−139,889,000
(7)
Reimbursements to 2130-Vehicle/Vessel Identification and Compliance ........................
−17,623,000
(8)
Reimbursements to 2135-Driver Licensing and Personal Identification ........................
−2,445,000
(9)
Reimbursements to 2140-Driver Safety ........................
−640,000
(10)
Reimbursements to 2145-Occupational Licensing and Investigative Services ........................
−265,000
Provisions:
1. If additional resources are needed to meet REAL ID workload demands beyond the level provided for in this appropriation, the Director of Finance may augment the amount appropriated in this item by submitting a request by the Director of Motor Vehicles for additional resources. The request shall justify the additional resources requested and demonstrate how and by what amount of time the level of resources requested will reduce or prevent wait times or will increase the amount of REAL ID transactions that can be processed statewide. The request shall also provide an update on the status of the resources provided pursuant to this appropriation and their impact on statewide field office wait times or REAL ID transactions. The requested augmentation is intended to reduce or prevent long wait times or increase REAL ID transactions at impacted field offices and shall be limited to that purpose, including, but not limited to, additional field office staff, business process redesign, and expanded service hours. The request shall also provide an updated forecast of the Motor Vehicle Account fund condition that reflects the impact of this request. The Director of Finance shall not approve any augmentation unless the approval is made in writing and filed with the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the committees in each house of the Legislature that consider appropriations not later than 30 days prior to the effective date of the approval, or prior to whatever lesser date of approval, or prior to whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine.
2. Of the amount appropriated in this item, $4,127,000 shall be available for encumberance or expenditure until June 30, 2030, to fund the San Clemente Field Office lease.

SEC. 44.

 Item 2740-003-0044 of Section 2.00 of the Budget Act of 2026 is amended to read:
2740-003-0044—For support of Department of Motor Vehicles, payable from the Motor Vehicle Account, State Transportation Fund ........................
9,777,000
Schedule:
(1)
2130-Vehicle/Vessel Identification and Compliance ........................
5,206,000
(2)
2135-Driver Licensing and Personal Identification ........................
2,868,000
(3)
2140-Driver Safety ........................
1,175,000
(4)
2145-Occupational Licensing and Personal Identification Investigative Services ........................
528,000
(5)
9900100-Administration ........................
909,000
(6)
9900200-Administration—​Distributed ........................
−909,000
Provisions:
1.
The amount appropriated in this item shall be available for encumbrance or expenditure until June 30, 2030.

SEC. 45.

 Item 2740-004-0044 is added to Section 2.00 of the Budget Act of 2026, to read:
2740-004-0044—For support of Department of Motor Vehicles, payable from the Motor Vehicle Account, State Transportation Fund ........................
55,980,000
Schedule:
(1) 2135-Driver Licensing and Personal Identification ........................ 55,980,000
(2) 9900100-Administration ........................ 5,261,000
(3) 9900200-Administration—Distributed ........................ −5,261,000
Provisions:
1. The amount appropriated in this item shall be available for encumbrance or expenditure until June 30, 2028, and liquidation until June 30, 2030.
2. Of the funds appropriated in this item, the Department of Motor Vehicles may use resources to design and develop the State-to-State Verification Service. Expenditure authority under this provision includes information technology planning and project costs to build an information technology solution to meet federal REAL ID compliance requirements. The system shall not be activated for the purpose of transmitting or sharing data unless specifically authorized by statute prior to July 3, 2026.

SEC. 46.

 Item 3100-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
3100-001-0001—For support of Exposition Park ........................

121,903,000
116,903,000
Schedule:
(1)
2300-California Science Center ........................
35,569,000
(2)
2305-Exposition Park Management ........................
78,491,000
(3)
2310-California African American Museum ........................

8,975,000
3,975,000
(4)
9900100-Administration ........................
981,000
(5)
9900200-Administration—​Distributed ........................
−981,000
(6)
Reimbursements to 2300-California Science Center ........................
−957,000
(7)
Reimbursements to 2310-California African American Museum ........................
−175,000
Provisions:
1.
Of the amount appropriated in Schedule (2), $76,000,000 is available for a deferred maintenance project or projects for utility replacement and site improvements. Notwithstanding paragraph (2) of subdivision (a) of Section 10198.1 of the Public Contract Code, the Department of General Services, in undertaking any project or projects pursuant to this authorization on behalf of Exposition Park, may utilize progressive design-build. Notwithstanding the requirements of Section 13332.19 of the Government Code, any project undertaken pursuant to this provision shall not be subject to the approval or oversight of the State Public Works Board.
2. Of the amount appropriated in Schedule (3), $5,000,000 is a one-time augmentation for priority operational needs of the California African American Museum.

SEC. 47.

 Item 3100-002-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
3100-002-0001—For support of Exposition Park ........................
5,000,000
Schedule:
(1) 2310-California African American Museum ........................ 5,000,000
Provisions:
1. The funds appropriated in this item are a one-time augmentation for priority operational needs of the California African American Museum.

SEC. 48.

 Item 3125-301-0140 of Section 2.00 of the Budget Act of 2026 is amended to read:
3125-301-0140—For capital outlay, California Tahoe Conservancy, payable from the Environmental License Plate Fund ........................
0
Schedule:
(1)
0001388-Opportunity Acquisitions ........................
4,500,000
(a)
Acquisition ........................
4,500,000
(1.5) 0015175-Upper Truckee Marsh South Project ........................ 500,000
(a) Study ........................ 500,000
(2)
Reimbursements to 0001388-Opportunity Acquisitions ........................
−4,500,000
(a)
Acquisition ........................
−4,500,000
(3) Reimbursements to 0015175-Upper Truckee Marsh South Project ........................ −500,000
(a) Study ........................ −500,000

SEC. 49.

 Item 3340-001-0318 of Section 2.00 of the Budget Act of 2026 is amended to read:
3340-001-0318—For support of California Conservation Corps, payable from the Collins-Dugan California Conservation Corps Reimbursement Account ........................
64,407,000
Schedule:
(1)
2360-Training and Work Program ........................
64,407,000
Provisions:
1.
Notwithstanding Section 14316 of the Public Resources Code, the Director of Finance may make a loan from the General Fund to the Collins-Dugan California Conservation Corps Reimbursement Account in the amount of 25 percent of the reimbursements anticipated in the Collins-Dugan California Conservation Corps Reimbursement Account, not to exceed an aggregate total of $7,300,000, to meet cashflow needs from delays in collecting reimbursements. Any loan made by the director pursuant to this provision shall only be made if the California Conservation Corps has a valid contract or certification signed by the client agency that demonstrates that sufficient funds will be available to repay the loan. All moneys so transferred shall be repaid to the General Fund as soon as possible, but not later than one year from the date of the loan.
2.
Notwithstanding Section 28.50, the Director of Finance may augment this item to reflect increases in reimbursements to the Collins-Dugan California Conservation Corps Reimbursement Account received from another officer, department, division, bureau, or other agency of the state that has requested services from the California Conservation Corps. Any augmentation that is deemed to be necessary on a permanent basis for future budget acts shall be submitted for review as a part of the regular budget process.
3.
Notwithstanding Section 28.00, the Director of Finance may augment this item to reflect increases in reimbursements to the Collins-Dugan California Conservation Corps Reimbursement Account received from a local government, the federal government, or nonprofit organizations requesting emergency services from the California Conservation Corps after it has notified the Legislature through a letter to the Joint Legislative Budget Committee. Any augmentation that is deemed to be necessary on a permanent basis shall be submitted for review as a part of the regular budget process.
4.
Of the amount appropriated in this item, $5,000,000 shall be for deferred maintenance and shall be available for encumbrance or expenditure until June 30, 2029.
5.
Of the amount appropriated in this item, $8,700,000 shall be for vehicle replacement and shall be available for encumbrance or expenditure until June 30, 2031.
6. Of the amount appropriated in this item, up to $5,000,000 is from the Department of Forestry and Fire Protection for forest health projects and shall be available for encumbrance or expenditure until June 30, 2029.

SEC. 50.

 Item 3360-001-3117 of Section 2.00 of the Budget Act of 2026 is amended to read:
3360-001-3117—For support of State Energy Resources Conservation and Development Commission, payable from the Alternative and Renewable Fuel and Vehicle Technology Fund ........................

15,684,000
16,647,000
Schedule:
(1)
2390010-Transportation Technology and Fuels ........................

15,684,000
16,647,000
Provisions:
1.
Funds appropriated in this item shall be available for encumbrance or expenditure until June 30, 2030.
2.
Notwithstanding Section 16304.1 of the Government Code, funds appropriated in this item shall be available for liquidation until June 30, 2034.

SEC. 51.

 Item 3360-101-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
3360-101-0001—For local assistance, State Energy Resources Conservation and Development Commission ........................
2,000,000
Schedule:
(1) 2385010-Building and Appliances ........................ 2,000,000
Provisions:
1. $2,000,000 shall be appropriated from the General Fund to fund matching incentive funding for heat pumps to support the use and development of high-road jobs in the heating ventilation and air conditioning, decarbonization, and electrification sectors, as long as the program meets the following requirements:
(a) Administration by existing nonprofits or bona fide labor organizations with a demonstrated track record of successfully administering heat pump rebate programs.
(b) Utilization of a high-road contractor network that participates in a joint labor-management apprenticeship program approved by the Division of Apprenticeship Standards and provides high-quality wages and portable benefits, including health care, training, and retirement.
(c) Zero-percent administrative cost structure, with 100 percent of program funds passed directly to California consumers in the form of rebates.
(d) A transparent invoicing model to ensure accountability and public trust.
(e) A requirement that program administrators commit to providing 100 percent matching funds.
(f) Limit funds to Californians making less than 400 percent of the Federal Poverty Level.
This funding shall be available for encumbrance or expenditure until June 30, 2031.
1. The amount specified in this item is hereby appropriated from the General Fund as follows:
(a) $2,000,000 to the State Energy Resources Conservation and Development Commission for the purpose of promoting decarbonization by incentivizing the growth of high-road residential heat pump contractors and supporting the hiring of skilled technicians in California who install heat pump heating, ventilation, air conditioning units.
(1) Up to $1,500,000 to SMART Sheet Metal Workers’ Local Union No. 104.
(2) Up to $500,000 to SMART Sheet Metal Workers’ Local Union No. 105.
(b) The amounts in subprovision (a) shall support a matching rebate program for residential heat pump heating, ventilation, air conditioning installations. Each entity named in subprovision (a) shall disburse all funds to qualifying purchasers of residential heat pump heating, ventilation, air conditioning installation, without deductions for administrative expenses, and shall provide quarterly invoices to the commission. Invoices shall include supporting documentation and proof of payment for actual expenditures to substantiate the request and validate that expenses are for authorized purposes of funding.
(c) The program shall be prioritized for rebates to residential purchasers whose annual household income does not exceed 400 percent of the current federal poverty limit. After the first six months of funding implementation, the program shall be opened to all residential customers regardless of household income if the funds are not claimed for income qualified households.
(d) Each entity described in in subprovision (a) shall provide the commission a program report with each invoice and a final report with the final invoice. The commission shall determine the format and requirements of the reports, which will include, but is not limited to, grant funding and match share disbursed, number and location of heat pump heating, ventilation, air conditioning installations, annual income level of household served, itemized project cost data, and energy data.
(e) Notwithstanding any other law, allocations pursuant to this item are exempt from the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, from Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Contracting Manual, and are not subject to the approval of the Department of General Services, including the requirements of Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of the Title 2 of the Government Code.
(f) Notwithstanding any other law, allocations pursuant to this item may be provided as an advance lump sum payment.

SEC. 52.

 Item 3360-494 of Section 2.00 of the Budget Act of 2026 is amended to read:
3360-494—Reappropriation, State Energy Resources Conservation and Development Commission. The balances of the appropriations provided in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance, expenditure, or liquidation as specified:
0001—General Fund
(1) Item 3360-002-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), as reappropriated by Item 3360-491, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), shall be available for encumbrance or expenditure until June 30, 2029.
(2) Item 3360-108-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), shall be available for encumbrance or expenditure until June 30, 2027, and for liquidation until June 30, 2030.
(3) Item 3360-002-0001, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), as reappropriated by Item 3360-491, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025), shall be available for encumbrance or expenditure until June 30, 2029.
(4) Item 3360-002-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023), as reappropriated by Item 3360-491, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025), shall be available for encumbrance or expenditure until June 30, 2031.
3211—Electric Program Investment Charge Fund
(1) Item 3360-101-3211, Budget Act of 2015 (Chs. 10 and 11, Stats. 2015), as reappropriated by Item 3360-491, Budget Act of 2020 (Chs. 6 and 7, Stats. 2020), Item 3360-492, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), Item 3360-492, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), Item 3360-492, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023), and Item 360-492, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), shall be available for liquidation until June 30, 2027.
(2) Item 3360-101-3211, Budget Act of 2020 (Chs. 6 and 7, Stats. 2020), as reappropriated by Item 3360-492, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), Item 3360-492, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), Item 3360-492, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023), and Item 3360-491, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), shall be available for encumbrance or expenditure until June 30, 2027, and liquidation until June 30, 2031.
(3) Item 3360-101-3211, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), as reappropriated by Item 3360-492, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), Item 3360-492, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023), and Item 3360-491, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), shall be available for encumbrance or expenditure until June 30, 2027, and liquidation until June 30, 2031.
(4) Item 3360-101-3211, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), as reappropriated by Item 3360-491, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), shall be available for encumbrance or expenditure until June 30, 2027, and shall be available for liquidation until June 30, 2031.
(5) Item 3360-101-3211, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023), as reappropriated by Item 3360-491, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), shall be available for encumbrance or expenditure until June 30, 2027, and shall be available for liquidation until June 30, 2031.
(6) Item 3360-101-3211, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), shall be available for encumbrance or expenditure until June 30, 2027, and liquidation until June 30, 2031.
3228—Greenhouse Gas Reduction Fund
(1) Up to $1,500,000 of technical item 3360-594-3228 from Provision 3 of Item 3360-101-3228, Budget Act of 2017 (Chs. 14, 22, and 54, Stats. 2017) used for administrative costs for the Food Production Investment Program, shall be available for encumbrance or expenditure until June 30, 2031.
(2) Item 3360-001-3228, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), as reappropriated by Item 3360-491, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025), shall be available for encumbrance or expenditure until June 30, 2031.
(3) Item 3360-001-3228, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023), shall be available for encumbrance or expenditure until June 30, 2031.

SEC. 53.

 Item 3540-003-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
3540-003-0001—For support of Department of Forestry and Fire Protection ........................

5,000,000
2,500,000
Schedule:
(1) 2461-Office of the State Fire Marshal2465-Fire Protection ........................
5,000,000
2,500,000
Provisions:
1. Of the amount appropriated in this item, $500,000 shall be available for implementation of, and is contingent upon enactment of, Assembly Bill 1964 of the 2025–26 Regular Session. If Assembly Bill 1964 of the 2025–26 Regular Session is not enacted, these funds shall revert to the General Fund.
2. Of the amount appropriated in this item, $2,000,000 shall be available for expansion of the Ready for Wildfire education campaign for home hardening.

SEC. 54.

 Item 3600-102-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
3600-102-0001—For local assistance, Department of Fish and Wildlife ........................
8,000,000
Schedule:
(1) 2590-Biodiversity Conservation Program ........................ 8,000,000
Provisions:
1. Of the amount appropriated in this item, $2,000,000 is to support the recovery of the Mojave Desert tortoise.
2. Of the amount appropriated in this item, $6,000,000 is for Delta-based decontamination control sites to prevent the spread of invasive golden mussels.

SEC. 55.

 Item 3640-493 is added to Section 2.00 of the Budget Act of 2026, to read:
3640-493—Reappropriation, Wildlife Conservation Board. The balances of the appropriations provided in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure until June 30, 2027.
0001—General Fund
(1) Up to $10,000,000 in Provision 4 of Item 3640-101-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), for conservation projects at Point Reyes National Seashore.

SEC. 56.

 Item 3720-001-3228 is added to Section 2.00 of the Budget Act of 2026, to read:
3720-001-3228—For support of California Coastal Commission, payable from the Greenhouse Gas Reduction Fund ........................
690,000
Schedule:
(1) 2730-Coastal Management Program ........................ 690,000
Provisions:
1. The funds appropriated in this item shall not be subject to the provisions of subdivision (b) of Section 15.14.

SEC. 57.

 Item 3760-490 of Section 2.00 of the Budget Act of 2026 is amended to read:
3760-490—Reappropriation, State Coastal Conservancy. The balances of the appropriations provided in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure until June 30, 2029:
0001—​General Fund
(1)
Item 3760-101-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021)
(2) Item 3760-101-0001, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025)
6051—​The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Fund of 2006
(1)
Item 3760-101-6051, Budget Act of 2016 (Ch. 23, Stats. 2016) as reappropriated by Item 3760-492, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021)
(2)
Item 3760-101-6051, Budget Act of 2018 (Chs. 29 and 30, Stats. 2018) as reappropriated by Item 3760-492, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021)
(3)
Item 3760-101-6051, Budget Act of 2020 (Chs. 6 and 7, Stats. 2020) as reappropriated by Control Section 20.00, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022)
6088—​California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access For All Fund
(1)
Item 3760-101-6088, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023)

SEC. 58.

 Item 3790-003-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
3790-003-0001—For support of Department of Parks and Recreation ........................
19,209,000
Schedule:
(1) 2840-Support of the Department of Parks and Recreation ........................ 19,209,000
Provisions:
1. The amount appropriated in this item shall be available for encumbrance or expenditure until June 30, 2029.
2. Notwithstanding any other law, the Department of Parks and Recreation may negotiate new concession agreements, including terms and conditions consistent with paragraph (3) of subdivision (a) of Section 5080.18 of the Public Resources Code, with private parties that have existing concession agreements or an agreement entered into under subparagraph (B) of that paragraph at either Will Rogers State Beach or Dockweiler State Beach as of September 17, 2026.

SEC. 59.

 Item 3790-009-0392 is added to Section 2.00 of the Budget Act of 2026, to read:
3790-009-0392—For support of Department of Parks and Recreation, payable from the State Parks and Recreation Fund ........................
17,500,000
Schedule:
(1) 2840-Support of the Department of Parks and Recreation ........................ 17,500,000

SEC. 60.

 Item 3820-001-3228 is added to Section 2.00 of the Budget Act of 2026, to read:
3820-001-3228—For support of San Francisco Bay Conservation and Development Commission, payable from the Greenhouse Gas Reduction Fund ........................
2,086,000
Schedule:
(1) 2980-Bay Conservation and Development ........................ 2,086,000
Provisions:
1. The funds appropriated in this item shall not be subject to the provisions of subdivision (b) of Section 15.14.

SEC. 61.

 Item 3855-490 of Section 2.00 of the Budget Act of 2026 is amended to read:
3855-490—Reappropriation, Sierra Nevada Conservancy. The amounts specified in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance, expenditure, or liquidation as specified below:
0001—General Fund
(1) Up to 5 percent of the amount described in Provision 1 of Item 3855-101-0001, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), shall be available for encumbrance, expenditure, or liquidation until June 30, 2028.
(2) Up to 5 percent of the amount described in Provision 2 of Item 3855-102-0001, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), shall be available for encumbrance, expenditure, or liquidation until June 30, 2028.
6088—California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access For All Fund
(1) The unencumbered balance of Item 3855-102-6088, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), shall be available for encumbrance or expenditure until June 30, 2027. 2028. The funds appropriated in this item shall be available for grants to the 40 Acre Conservation League for purposes consistent with paragraph (9) of subdivision (b) of Section 80110 or subdivision (c) of Section 80135 of the Public Resources Code and Sierra Nevada Conservancy grant guidelines. Any projects funded, in whole or in part, from this appropriation that provide public access and outdoor recreation shall be completed such that all development or recreational facilities are made available at low or no cost to maximize the general public benefit. Any revenue generated by activities conducted on property acquired, in whole or in part, with this funding shall be reinvested into the operations and maintenance of the property, natural landscape restoration or resilience of the property, or both.

SEC. 62.

 Item 3860-490 of Section 2.00 of the Budget Act of 2026 is amended to read:
3860-490—Reappropriation, Department of Water Resources. The amounts specified in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure until June 30, 2028.
0001—​General Fund
(1)
Up to $805,000 in Schedule (1) of Item 3860-101-0001, Budget Act of 2020 (Chs. 6 and 7, Stats. 2020), as reappropriated by Item 3860-490, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023), as reappropriated by Item 3860-490, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024)
(2)
Up to $7,015,000 in Schedule (2) of Item 3860-001-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), as amended by Chapter 44 of the Statutes of 2022, as reappropriated by Item 3860-490, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024)
(3)
Up to $77,998,000 in Schedule (3) of Item 3860-001-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), as reappropriated by Item 3860-490, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024)
(4)
Up to $3,725,000 in Schedule (1)(a), (b), and (c) of Item 3860-101-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), as reappropriated by Provision 3 in Item 3860-490, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024)
(5)
Up to $9,501,000 in Schedule (2) of Item 3860-101-0001, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022)
(6)
Up to $4,000,000 in subparagraph (A) of paragraph (4) of subdivision (a) of Section 35 of Chapter 574 of Statutes of 2022, as reappropriated by Item 3860-490, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024)
(7)
Up to $1,025,000 in Schedule (1) of Item 3860-001-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023)
(8)
Up to $1,998,000 in Schedule (2) of Item 3860-001-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023)
(9)
Up to $1,800,000 in Schedule (1) of Item 3860-101-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023)
(10)
Up to $8,144,000 in Schedule (2) of Item 3860-101-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023)
(11)
Up to $24,722,000 in Schedule (3) of Item 3860-101-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023)
(12) Up to $630,126 in provision (e)(1)(L) of Section 19.56 , Budget Act of 2022 (Chs. 43,45, and 249, Stats, 2022)

SEC. 63.

 Item 3900-001-3228 is added to Section 2.00 of the Budget Act of 2026, to read:
3900-001-3228—For support of State Air Resources Board, payable from the Greenhouse Gas Reduction Fund ........................
51,179,000
Schedule:
(1) 3500-Mobile Source ........................ 263,000
(2) 3510-Climate Change ........................ 37,497,000
(3) 3530-Community Air Protection ........................ 13,419,000
Provisions:
1. The funds appropriated in this item shall not be subject to the provisions of Section 15.14.

SEC. 64.

 Item 3900-101-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
3900-101-0001—For local assistance, State Air Resources Board ........................
150,000,000
Schedule:
(1) 3530-Community Air Protection ........................ 150,000,000
Provisions:
1. The funds appropriated in Schedule (1) shall be used as follows:
(a) $92,500,000 shall be available for financial incentives to reduce mobile and stationary sources of criteria air pollutants or toxic air contaminants consistent with community emissions reduction programs developed pursuant to Section 44391.2 of the Health and Safety Code.
(b) Notwithstanding any other law, $50,000,000 shall be available to support local air districts’ implementation of Chapter 136 of the Statutes of 2017.
(c) $7,500,000 shall be used for technical assistance grants to community-based organizations pursuant to subdivision (d) of Section 44391.2 of the Health and Safety Code. These grants may be used to support community participation, including activities that enable meeting attendance, consistent with State Air Resources Board grant guidelines and agreements, in the implementation of subdivision (d) of Section 44391.2 and Section 42705.5 of the Health and Safety Code.
2. Not more than 5 percent of the amounts appropriated in this item may be used for administrative costs of the State Air Resources Board. The funds appropriated in this item shall be available for encumbrance or expenditure until June 30, 2028, and shall be available for liquidation until June 30, 2030. Funds used for the State Air Resources Board’s administrative costs shall be available for encumbrance or expenditure until June 30, 2030.

SEC. 65.

 Item 3900-101-0115 of Section 2.00 of the Budget Act of 2026 is amended to read:
3900-101-0115—For local assistance, State Air Resources Board, payable from the Air Pollution Control Fund ........................

130,733,000
266,233,000
Schedule:
(1)
3500-Mobile Source ........................
130,733,000
(2) 3510-Climate Change ........................ 135,500,000
Provisions:
1.
Notwithstanding any other law, the funds appropriated in this item shall be available for allocation to local air pollution control districts for implementation of the Carl Moyer Memorial Air Quality Standards Attainment Program.
2. The funds appropriated in Schedule (2) shall be available only for zero-emission truck and bus incentives administered through the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project.
3. The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) does not apply to any guidelines or other standards adopted or used by the State Air Resources Board in administering funds appropriated in Schedule (2).
4. Not more than 5 percent of the amount appropriated in Schedule (1) may be used for administrative costs of the State Air Resources Board. The funds appropriated in Schedule (1) shall be available for encumbrance or expenditure until June 30, 2029, and shall be available for liquidation until June 30, 2031. The funds used for administrative costs related to Schedule (1) shall be available for encumbrance or expenditure until June 30, 2031.
5. Not more than 5 percent of the amount appropriated in Schedule (2) may be used for administrative costs of the State Air Resources Board. The funds appropriated in Schedule (2) shall be available for encumbrance or expenditure until June 30, 2029, and shall be available for liquidation until June 30, 2031. The funds used for administrative costs related to Schedule (2) shall be available for encumbrance or expenditure until June 30, 2031.

SEC. 66.

 Item 3900-101-3122 of Section 2.00 of the Budget Act of 2026 is amended to read:
3900-101-3122—For local assistance, State Air Resources Board, payable from the Enhanced Fleet Modernization Subaccount, High Polluter Repair or Removal Account ........................

2,800,000
19,800,000
Schedule:
(1)

3500-Mobile Source

2,800,000
(1) 3510-Climate Change ........................ 19,800,000
Provisions:
1. (a) $19,800,000 shall be available for the Clean Cars 4 All Program pursuant to Section 44124.5 of the Health and Safety Code, and exclusively for districts participating in the Clean Cars 4 All Program. Of this amount, funding shall be prioritized for districts that have insufficient funds to meet processed demand.
(b) Not more than 5 percent of the amount appropriated in this item may be used for the State Air Resources Board’s administrative costs. The funds in this item shall be available for encumbrance or expenditure until June 30, 2028, and shall be available for liquidation until June 30, 2030. Funds used for the State Air Resources Board’s administrative costs shall be available for encumbrance or expenditure until June 30, 2030.

SEC. 67.

 Item 3900-101-3228 is added to Section 2.00 of the Budget Act of 2026, to read:
3900-101-3228—For local assistance, State Air Resources Board, payable from the Greenhouse Gas Reduction Fund ........................
115,000,000
Schedule:
(1) 3510-Climate Change ........................ 115,000,000
Provisions:
1. The funds appropriated in Schedule (1) shall be used for light-duty zero-emission vehicle incentives.
2. Not more than 5 percent of the amount appropriated in this item may be used for administrative costs of the State Air Resources Board. The funds appropriated in this item shall be available for encumbrance or expenditure until June 30, 2029. Funds used for the State Air Resources Board’s administrative costs shall be available for encumbrance or expenditure until June 30, 2031.
3. The funds appropriated in this item are not subject to Section 15.14.

SEC. 68.

 Item 3900-102-0115 is added to Section 2.00 of the Budget Act of 2026, to read:
3900-102-0115—For local assistance, State Air Resources Board, payable from the Air Pollution Control Fund ........................
20,500,000
Schedule:
(1) 3510-Climate Change ........................ 20,500,000
Provisions:
1. The funds appropriated in Schedule (1) shall be used for light-duty zero-emission vehicle incentives.
2. Not more than 5 percent of the amount appropriated in this item may be used for administrative costs of the State Air Resources Board. The funds appropriated in this item shall be available for encumbrance or expenditure until June 30, 2029. Funds used for the State Air Resources Board’s administrative costs shall be available for encumbrance or expenditure until June 30, 2031.

SEC. 69.

 Item 3900-490 of Section 2.00 of the Budget Act of 2026 is amended to read:
3900-490—Reappropriation, State Air Resources Board. Notwithstanding any other law, the period to liquidate encumbrances of the following citations is extended to June 30, 2028:
0001—General Fund
(1) Up to $21,716,000 of Provision 2 of Item 3900-101-0001, of the Budget Act of 2021 (Ch. 21, 69, and 240, Stats. 2021), for the Zero-Emission Drayage Truck and Infrastructure Pilot Project.
0044—Motor Vehicle Account, State Transportation Fund
(1) Up to $550,000 of Item 3900-001-0044 of the Budget Act of 2019 (Chs. 23 and 55, Stats. 2019), as reappropriated by Item 3900-492 of the Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023) for Emission Testing and Test Method Development for Commercial Harbor Craft and Ocean-Going Vessels.
(2) Up to $104,000 of Item 3900-001-0044 of the Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023) for contracts related to the Commercial Harbor Craft regulations.
3119—​Air Quality Improvement Fund
(1)
Up to $14,340,000 of Item 3900-101-3119, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023), for the Clean Off-Road Equipment Voucher Incentive Project.
3228—​Greenhouse Gas Reduction Fund
(0.5)
Up to $72,340,000 of Item 3900-101-3228, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021) for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project.
(1) Up to $27,000,000 of Provision 1.5 in Item 3900-001-3228, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022) as reappropriated by Item 3900-490, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).

SEC. 70.

 Item 3900-491 is added to Section 2.00 of the Budget Act of 2026, to read:
3900-491—Reappropriation, State Air Resources Board. The amounts specified in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure until June 30, 2027:
3228—Greenhouse Gas Reduction Fund
(1) Up to $15,714,000 in Provision 1 of Item 3900-102-3228, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) for the Advanced Technology Demonstration and Pilot Project.

SEC. 71.

 Item 3900-492 of Section 2.00 of the Budget Act of 2026 is amended to read:
3900-492—Reappropriation, State Air Resources Board. The balances of the appropriations provided in the following citations are reappropriated for the purposes provided for in this appropriation and shall be available for encumbrance or expenditure as specified below:
0001—​General Fund
(0.5) Up to $9,907,000 of technical item 3900-593-0001 from Provision 3 of Item 3900-101-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021) used for administrative costs for various programs, shall be available for encumbrance or expenditure until June 30, 2028.
(1)
The funding in Provision 5 of Item 3900-101-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023) used for administrative costs for various programs shall be available for encumbrance or expenditure until June 30, 2030.
(1.1)
Up to $1,000,000 of technical item 3900-594-0001 from Provision 5 of Item 3900-101-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023) used for administrative costs for various programs, shall be available for encumbrance or expenditure until June 30, 2028.
0115—​Air Pollution Control Fund
(0.5) Up to $5,674,000 of technical item 3900-591-0115 from Provision 1(a) of Item 3900-101 -0115, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021) used for administrative costs for the Carl Moyer Memorial Air Quality Standards Attainment Program, shall be available for encumbrance or expenditure until June 30, 2028.
(0.6) Up to $5,844,000 of technical item 3900-592-0115 from Provision 1(a) of Item 3900-101-0115, Budget Act of 2021 (Chs. 21. 69, and 240, Stats. 2021), used for administrative costs for the Carl Moyer Memorial Air Quality Standards Attainment Program, shall be available for encumbrance or expenditure until June 30, 2028.
(1)
Technical Item 3900-591-0115 used for administrative costs pursuant to Item 3900-101-0115, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023), related to the Carl Moyer program shall be available for encumbrance or expenditure until June 30, 2028.
(2)
Technical Item 3900-592-0115 used for administrative costs pursuant to Item 3900-101-0115, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), related to the Carl Moyer program shall be available for encumbrance or expenditure until June 30, 2029.
3228—Greenhouse Gas Reduction Fund
(0.5)
Up to $4,950,000 in technical item 3900-594-3228 from Provision 4 of Item 3900-102-3228, Budget Act of 2021 (Chs. 21. 69, and 240, Stats. 2021) used for administrative costs for various programs shall be available for encumbrance or expenditure until June 30, 2028.
(0.6) Up to $19,448,000 in subprovision (b) of Provision 1 of Item 3900-101-3228 of the Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), as reappropriated by Item 3900-490 of the Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), and as reappropriated by Item 3900-494 of the Budget Act of 2025 (Chs. 4 and 5, Stats. 2025), for the Advanced Technology Demonstration and Pilot Projects shall be available for encumbrance or expenditure until June 30, 2028.
(0.7) Up to $9,969,000 in subprovision (a) of Provision 1 of Item 3900-101-3228 of the Budget Act of 2022 (Chs. 43, 45, and 249, Stats. of 2022), as reappropriated by Item 3900-494 of the Budget Act of 2025 (Chs. 4 and 5, Stats. 2025), for the Advanced Technology Demonstration and Pilot Projects shall be available for encumbrance or expenditure until June 30, 2028.
(1) The funding in Provision 5 of Item 3900-101-3228, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023) used for administrative costs for various programs shall be available for encumbrance or expenditure until June 30, 2028.
(2) The funding in Provision 3 of Item 3900-101-3228, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) used for administrative costs for various programs shall be available for encumbrance or expenditure until June 30, 2029.
(3) The funding in Provision 2 of Item 3900-102-3228, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) used for administrative costs for emerging opportunities within zero-emission vehicle and related program areas shall be available for encumbrance or expenditure until June 30, 2030.
(3.1) Up to $15,714,000 in Provision 1 of Item 3900-102-3228 of the Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) for the Advanced Technology Demonstration and Pilot Projects shall be available for encumbrance or expenditure until June 30, 2028.
6054—California Ports Infrastructure, Security, and Air Quality Improvement Account, Highway Safety, Traffic Reduction, Air Quality, and Port Security Fund of 2006
(1) Up to $10,795,000 in Item 3900-101-6054, Budget Act of 2018 (Chs. 29 and 30, Stats. 2018), as reappropriated by Item 3900-493, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), Item 3900-492, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), and shall be available for encumbrance or expenditure until June 30, 2028, for previously authorized Proposition l B programs and projects related to the Goods Movement Emission Reduction Program.
(2) Up to $8,746,000 in Item 3900-101-6054, Budget Act of 2019 (Chs. 23 and 55, Stats. 2019), as reappropriated by Item 3900-494, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), as reappropriated by Item 3900-490, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025), and shall be available for encumbrance or expenditure until June 30, 2028, for previously authorized Proposition l B programs and projects related to the Goods Movement Emission Reduction Program.

SEC. 72.

 Item 3940-491 is added to Section 2.00 of the Budget Act of 2026, to read:
3940-491—Reappropriation, State Water Resources Control Board. The balances of the appropriations provided in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure until June 30, 2027.
0001—General Fund
(1) Provisions 2 and 3 of Item 3940-102-0001, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025).

SEC. 73.

 Item 3970-001-3228 is added to Section 2.00 of the Budget Act of 2026, to read:
3970-001-3228—For support of Department of Resources Recycling and Recovery, payable from the Greenhouse Gas Reduction Fund ........................
685,000
Schedule:
(1) 3700-Waste Reduction and Management ........................ 685,000

SEC. 74.

 Item 3980-001-3228 is added to Section 2.00 of the Budget Act of 2026, to read:
3980-001-3228—For support of Office of Environmental Health Hazard Assessment, payable from the Greenhouse Gas Reduction Fund ........................
1,563,000
Schedule:
(1) 3730-Health Risk Assessment ........................ 1,563,000
Provisions:
1. The funds appropriated in this item shall not be subject to the provisions of subdivision (b) of Section 15.14.

SEC. 75.

 Item 4100-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
4100-001-0001—For support of State Council on Developmental Disabilities ........................

0
2,400,000
Schedule:
(1)
3810-Regional Offices and Regional Advisory Committees ........................

6,843,000
9,243,000
(2)
Reimbursements to 3810-Regional Offices and Regional Advisory Committees ........................
−6,843,000
(3) 3800-State Council Planning and Administration ........................ 730,000
(4) Reimbursements to 3800-State Council Planning and Administration ........................ −730,000
Provisions:
1. Of the amount appropriated in Schedule (1), $2,400,000 shall be available to the State Council on Developmental Disabilities for the Special Education Parent Action Network.

SEC. 76.

 Item 4140-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
4140-001-0001—For support of Department of Health Care Access and Information ........................

57,763,000
64,113,000
Schedule:
(1)
3831-Health Care Quality and Affordability ........................
49,252,000
(2)
3835-Health Care Workforce ........................

3,160,000
4,790,000
(2.5) 3846-Distressed Hospital Loan Program ........................ 3,600,000
(3)

3845-Cal-Mortgage Loan Insurance

10,000,000
(3) 3854-Health Care Access Stability ........................ 8,000,000
(4)
3860-Administration ........................

5,351,000
8,471,000
(5)
Reimbursements to 3831-Health Care Quality and Affordability ........................
−10,000,000
Provisions:
1.
The Department of Finance may authorize the transfer of expenditure authority between this item and Item 4140-101-0001 to effectively administer the healthcare workforce programs funded in these items.
2.
Of the funds appropriated in Schedule (2), $100,000 is available to conduct evaluations for the Abortion Practical Support Fund, pursuant to Chapter 566 of the Statutes of 2022.
3.
Until June 30, 2031, notwithstanding any other law, information and documents obtained for the purpose of generating reports required under Section 127501.6 of the Health and Safety Code shall not be required to be disclosed pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) or any similar local law requiring the disclosure of public records until the publication of those baseline and annual reports required by Section 127501.6 of the Health and Safety Code.
4.
For purposes of implementing Chapter 2.6 (commencing with Section 127500) of Part 2 of Division 107 of the Health and Safety Code, including hiring staff and consultants, through the procurement authority and processes of the Department of Health Care Access and Information, facilitating and conducting meetings, conducting research and analysis, and developing the required reports, the Office of Health Care Affordability may enter into exclusive or nonexclusive contracts on a bid or negotiated basis. Until June 30, 2031, contracts entered into or amended pursuant to Chapter 2.6 (commencing with Section 127500) of Part 2 of Division 107 of the Health and Safety Code are exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and are exempt from the review or approval of any division of the Department of General Services.
5. (a)
Until June 30, 2031, any necessary rules and regulations for the purpose of implementing Chapter 2.6 (commencing with Section 127500) of Part 2 of Division 107 of the Health and Safety Code may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of emergency regulations pursuant to this provision shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare.
(b)
Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, including subdivisions (e) and (h) of Section 11346.1, an emergency regulation adopted pursuant to this provision shall be repealed by operation of law unless the adoption, amendment, or repeal of the regulation is promulgated by the office pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code within five years of the initial adoption of the emergency regulation.
(c)
Any rule or regulation adopted pursuant to this provision shall be discussed by the Office of Health Care Affordability board during at least one board meeting before the office adopts the rule or regulation.
6. (a) Of the funds appropriated in Schedule (1), $12,500,000 is available in the 2026–27 fiscal year on a one-time basis to implement the Diaper Access Initiative. In addition to contracting to procure low-cost diapers for a direct-to-consumer purchasing portal, the Department of Health Care Access and Information shall also contract to procure low-cost wipes for purchase through the portal.
(b) Until June 30, 2028, contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services. This exemption shall last until June 30, 2028.
7. Of the amount appropriated in Schedule (3), $10,000,000 is available to establish a health care access stability unit to evaluate hospitals’ strategic importance to their communities, assist in planning for maintaining critical services in the event of a hospital’s financial distress, and provide technical assistance to currently distressed hospitals in returning to fiscal sustainability.
7. (a) Of the amount appropriated in this item, $8,000,000 in Schedule (3) and $2,000,000 in Schedule (4) are available to establish a health care access stability unit to evaluate hospitals’ strategic importance to their communities, assist in planning for maintaining critical services in the event of a hospital’s financial distress, and provide technical assistance to currently distressed hospitals in returning to fiscal sustainability. These funds shall be available for encumbrance or expenditure until June 30, 2030.
(b) The Department of Health Care Access and Information may execute grants and contracts, including exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts and grants entered into or amended pursuant to implementing Provision 7 shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10110) of Division 2 of the Public Contract Code (excepting Chapter 3 (commencing with Section 12100)), and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services. This exemption does not apply to procurements overseen by the Department of Technology.
8. Of the amount appropriated in Schedule (2), $1,000,000 is available to support the implementation of a study of midwifery education and training in California, pursuant to Section 128300 of the Health and Safety Code.
8. (a) Of the amount appropriated in Schedule (2), $750,000 is available for encumbrance or expenditure until June 30, 2029, to support the implementation of a study of midwifery education and training in California by October 1, 2028, pursuant to Section 128300 of the Health and Safety Code.
(b) The Department of Health Care Access and Information may execute grants and contracts, including exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts and grants entered into or amended pursuant to implementing the midwifery study shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10110) of Division 2 of the Public Contract Code (excepting Chapter 3 (commencing with Section 12100)), and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services. This exemption does not apply to procurements overseen by the Department of Technology.
9. Of the amount appropriated in this item, $80,000 from Schedule (2) and $20,000 from Schedule (4) is available to support the Physician Access Workforce Program. These funds shall be available for encumbrance or expenditure until June 30, 2029.
10. Of the amount appropriated in Schedule (2), $1,000,000 is available to support the Uncompensated Care Program and Abortion Practical Support Program. These funds shall be available for encumbrance or expenditure until June 30, 2029.
11. (a) Of the amount appropriated in this item, $800,000 from Schedule (2) and $200,000 from Schedule (4) is available to support nonprofit organizations to maintain and develop capacity to provide gender affirming care services. These funds shall be available for encumbrance or expenditure until June 30, 2029.
(b) The department is authorized to use a third-party administrator through a grant or contract to support the administration of the grant program.
(c) Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5. of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services. This exemption shall last until June 30, 2029.
(d) Contracts, grants, and related information created or obtained pursuant to this provision shall not be made public and are exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). The Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest: in order to protect confidential and personal medical information, the safety of medical providers, and access to gender affirming care services, it is necessary that grants, contracts, and related information created or obtained pursuant to this provision are exempt from disclosure.
(e) In implementing this provision, the Department of Health Care Access and Information shall be exempt from the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. This exemption shall last until June 30, 2029.
12. Of the amount appropriated in this item, $3,600,000 from Schedule (2.5) and $900,000 from Schedule (4) is available for the Department to administer grants to hospitals in significant financial distress.

SEC. 77.

 Item 4140-001-0143 of Section 2.00 of the Budget Act of 2026 is amended to read:
4140-001-0143—For support of Department of Health Care Access and Information, payable from the California Health Data and Planning Fund ........................
48,797,000
Schedule:
(1)
3831-Health Care Quality and Affordability ........................
1,578,000
(2)
3835-Health Care Workforce ........................
6,458,000
(3)
3855-Health Care Information and Quality Analysis ........................
20,071,000
(3.5)
3856-Data Exchange Framework ........................
10,189,000
(4)
3860-Administration ........................
11,477,000
(5)
Reimbursements to 3835-Health Care Workforce ........................
−782,000
(6)
Reimbursements to 3855-Health Care Information and Quality Analysis ........................
−194,000
Provisions:
1.
The Department of Finance may authorize an increase in Schedule (3) of this item to support legal services costs associated with Chapter 603 of the Statutes of 2017.
2.
Of the funds appropriated in this item, $597,000 is available to support health care data reporting related to new federal regulations promulgated by the Centers for Medicare and Medicaid Services. These funds shall only be available to the extent the relevant federal regulations remain operative.
3. Until June 30, 2029, establishment of the fee for each fiscal year described in subdivisions (c), (d), (e), and (f) of Section 127280 of the Health and Safety Code shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The Department of Health Care Access and Information shall release program notices that detail the fee amounts to health facilities and hospitals each fiscal year.

SEC. 78.

 Item 4140-001-0890 of Section 2.00 of the Budget Act of 2026 is amended to read:
4140-001-0890—For support of Department of Health Care Access and Information, payable from the Federal Trust Fund ........................

13,043,000
20,411,000
Schedule:
(1)
3835-Health Care Workforce ........................
1,647,000
(2)
3861-Rural Health Transformation ........................

11,396,000
18,764,000
Provisions:
1. Until June 30, 2028, the Department of Health Care Access and Information may execute grants and contracts, including exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts and grants entered into or amended pursuant to the federal Rural Health Transformation Program shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code (excepting Chapter 3 (commencing with Section 12100)), and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services. This exemption does not apply to procurements overseen by the Department of Technology.
2. The Department of Healthcare Health Care Access and Information may contract with a third-party nonprofit organization to implement the requirements of the federal Rural Health Transformation Program.

SEC. 79.

 Item 4140-001-3085 of Section 2.00 of the Budget Act of 2026 is amended to read:
4140-001-3085—For support of Department of Health Care Access and Information, payable from the Behavioral Health Services Fund ........................

6,134,000
18,124,000
Schedule:
(1)
3835-Health Care Workforce ........................

5,802,000
17,373,000
(2)
3860-Administration ........................

332,000
751,000
Provisions:
1. The Department of Health Care Access and Information may execute grants and contracts, including exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts and grants entered into or amended shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code (excepting Chapter 3 (commencing with Section 12100)), and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services. This exemption does not apply to procurements typically overseen by the Department of Technology.
2. The funds appropriated in this item shall be available for encumbrance or expenditure until June 30, 2029.

SEC. 80.

 Item 4140-101-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
4140-101-0001—For local assistance, Department of Health Care Access and Information ........................

84,133,000
208,033,000
Schedule:
(1)
3831-Health Care Quality and Affordability ........................

40,000,000
15,500,000
(2)
3835-Health Care Workforce ........................

44,133,000
107,033,000
(3) 3846-Distressed Hospital Loan Program ........................ 85,500,000
Provisions:
1.
The Department of Finance may authorize the transfer of expenditure authority between this item and Item 4140-001-0001 to effectively administer the programs funded in these items.
2. (a)
Of the amount appropriated in Schedule (2), up to $18,667,000 is available to fund grant awards for existing primary care residency slots, up to $3,333,000 is available to fund new primary care residency slots at existing residency programs, and up to $5,667,000 is available to fund primary care residency slots for existing teaching health centers under the Song-Brown Health Care Workforce Training Act (Article 1 (commencing with Section 128200) of Chapter 4 of Part 3 of Division 107 of the Health and Safety Code). Of the funds appropriated in this item, up to $3,333,000 is available to fund newly accredited primary care residency programs and, as of June 30, 2028, unspent amounts may be redirected to fund new residency slots at existing programs if newly accredited primary care residency programs have not been established. Of the funds appropriated in this item, up to $333,000 is available for the State Loan Repayment Program.
(b)
The funds described in Provision 2 are available for encumbrance or expenditure until June 30, 2030. 2031.
3.
Of the funds appropriated in this item, $2,800,000 shall be available to support the California Medicine Scholars Program.
4. Upon approval of the Department of Finance, the amount available for expenditure in this item may be augmented by up to $190,000,000 to support additional rounds of support for financially distressed hospitals, pursuant to the Distressed Hospital Loan Program established by Chapter 4 (commencing with Section 129380) of Part 6 of Division 107 of the Health and Safety Code.
4. (a) Of the amount appropriated in Schedule (3), $85,500,000 is available for the Department of Health Care Access and Information to provide grants to hospitals in significant financial distress.
(1) Upon approval of the Department of Finance, the amount available in this Item to provide grants to hospitals in significant financial distress may be augmented by up to $50,000,000.
(b) Hospitals applying for grant funds shall meet specified criteria as determined by the Department of Health Care Access and Information, in consultation with the Department of Finance, including, but not limited to, the following:
(1) Have submitted a plan to the Department of Health Care Access and Information with projections detailing the uses of the proposed grant and strategies proposed by the hospital’s governing body to regain financial viability and continue to operate. Before issuing a grant under this Provision, the Department of Health Care Access and Information shall review the plan submitted by an eligible hospital and make a determination that the plan is viable and the grant supports the viability of the plan. The Department of Health Care Access and Information shall not issue a grant if the Department of Health Care Access and Information is unable to make this determination.
(2) Have demonstrated best efforts to exhaust other financial options, including, but not limited to, resolving outstanding revenue timing issues or requesting forgiveness or deferral of other short- and long-term debt.
(3) More than 60 percent of the hospital’s payer mix is composed of government payors and uninsured patients.
(4) Be a not-for-profit hospital or public hospital. “Not-for-profit hospital” means the same as a general acute care hospital described in paragraph (1) of subdivision (d) of Section 15432 of the Government Code that is organized as a not-for-profit entity. “Public hospital” means a hospital that is licensed to a county, a city, a city and county, the University of California, a local health care district, a local health authority, or a municipal hospital established pursuant to Article 7 (commencing with Section 37600) of Chapter 5 of Part 2 of Division 3 of Title 4 of the Government Code. Not-for-profit hospitals and public hospitals that belong to integrated health care systems with more than two separately licensed hospital facilities shall be ineligible for state assistance under the program.
(5) In determining a hospital’s eligibility for funding, the Department of Health Care Access and Information may consider criteria including, but not limited to, the following:
(A) The hospital’s financial ratios, such as days’ cash on hand, current ratio, operating margin, net cash runway, and debt service coverage ratio.
(B) The hospital’s potential to access capital through organizational collaboration including, but not limited to, affiliation, merger, partnership, or through lending;
(C) Whether a hospital is small, rural, a critical access hospital, a trauma center, an urban hospital providing access for an underserved area, a hospital that serves a disproportionate share of Medicaid patients, or serving a rural catchment area.
(D) How closure of the hospital would impact access to services in the region.
(E) Any other criteria as determined by the Department of Health Care Access and Information, in consultation with the Department of Finance.
(c) The Department of Health Care Access and Information may execute grants and contracts, including exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts and grants entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.
(d) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 [commencing with Section 11340] of Part 1 of Division 3 of Title 2 of the Government Code), the Department of Health Care Access and Information may implement, interpret, or make specific the requirements of this provision, in whole or in part, by means of information notices or other similar instructions, without taking any further regulatory action.
(e) Any unencumbered funds pursuant to this provision shall revert to the General Fund as of June 30, 2027.
5. Of the funds appropriated in Schedule (1), $30,000,000 is available to support an uncompensated care fund for abortion services. These funds shall be available for encumbrance or expenditure until June 30, 2029.
5. (a) Of the funds appropriated in Schedule (2), $29,000,000 is available for the Uncompensated Care Program, pursuant to Health and Safety Code Sections 127630-127639, to support abortion services, abortion-related services, family planning services, family planning-related services, and gender-affirming care services. These funds shall be available for encumbrance or expenditure until June 30, 2029.
(b) The Department of Health Care Access and Information may engage with partners and subject matter experts to assess the need for uncompensated care support for abortion, contraception, and gender affirming care services before allocating funds.
(c) Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5. of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services. This exemption shall last until June 30, 2029.
(d) Contracts, grants, and related information created or obtained pursuant to this provision shall not be made public and are exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). The Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest: in order to protect confidential and personal medical information, the safety of medical providers, and access to reproductive health, family planning, and gender-affirming care services, it is necessary that grants, contracts, and related information created or obtained pursuant to this provision are exempt from disclosure.
(e) In implementing this provision, the Department of Health Care Access and Information shall be exempt from the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. This exemption shall last until June 30, 2029.
6. Of the funds appropriated in Schedule (1), $10,000,000 is available to support the Abortion Practical Support Fund, which will provide grants for non-profit organizations and health care providers assisting patients overcoming barriers to abortion care, consistent with the provisions of Article 2.3 (commencing with Section 123451) of Chapter 2 of Part 2 of Division 106 of the Health and Safety Code. These fund shall be available for encumbrance or expenditure until June 30, 2029.
6. (a) Of the funds appropriated in Schedule (2), $10,000,000 is available to support the Abortion Practical Support Fund, which will provide grants for non-profit organizations and health care providers assisting patients overcoming barriers to abortion care, consistent with the provisions of Article 2.3 (commencing with Section 123451) of Chapter 2 of Part 2 of Division 106 of the Health and Safety Code. These fund shall be available for encumbrance or expenditure until June 30, 2029.
(b) Contracts, grants, and related information created or obtained pursuant to this provision shall not be made public and are exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). The Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest: in order to protect confidential and personal medical information, the safety of medical providers, and access to reproductive health and family planning services, it is necessary that grants, contracts, and related information created or obtained pursuant to this provision are exempt from disclosure.
(c) In implementing this provision, the Department of Health Care Access and Information shall be exempt from the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. This exemption shall last until June 30, 2029.
7. Of the funds appropriated in Schedule (2), $5,000,000 is available to support the Charles R. Drew University of Medicine and Science.
8. (a) Of the amount appropriated in Schedule (2), $4,900,000 is available to support the Physician Access Workforce Program. These funds shall be available for encumbrance or expenditure until June 30, 2029.
(1) Of this amount, $1,900,000 is available to establish a new grant or subgrant program for medical school loan repayment for areas that are classified as “Health Workforce Shortage Areas,” combined with a High Cost of Living Index including Median Home values.
(A) The intent of this grant is to ensure physicians are retained in areas with high cost of living yet lack primary care access.
(B) Each individual award shall be a minimum of $100,000.
(2) Of this amount, $1,000,000 is for Cal Poly, San Luis Obispo to complete a study of physician access and need in San Luis Obispo County and in Central Coast region. The study will assess and identify the following:
(A) Feasibility of the creation of a medical school in partnership with the UC and CSU.
(B) Current residencies and paths to creating new residencies, including through partnerships with local hospitals and providers, in San Luis Obispo County.
(C) Options for existing medical student loans for residents of the Central Coast and proposed recommendations for increasing loan repayment eligibility for students.
(D) Policy recommendations for physician retention on the Central Coast, including within Santa Cruz, Monterey, San Luis Obispo and Santa Barbara Counties.
(E) This study is to be completed no later than 12 months from the receipt of funding.
(3) Of this amount, $2,000,000 is for the Transitions Mental Health Association (TMAH) of San Luis Obispo for the purposes of hiring and retaining providers for community-based behavioral health services, including the Full-Service Partnership and Adult Transitional Program. Within 12 months of receipt of state funding, THMA shall provide the following to the Department:
(A) Number of psychiatrists, psychiatry nurse practitioner, substance use counselors, and therapists hired and trained to serve San Luis Obispo for severe mental health disorders.
(B) Number of individuals receiving care and specific forms of care provided, including services most in demand.
(C) Identified gaps in care, particularly following release or discharge of patients.
(b) Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5. of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.
9. (a) Of the amount appropriated in schedule (2), $9,000,000 is available to support nonprofit organizations to maintain and develop capacity to provide gender affirming care services. These funds shall be available for encumbrance or expenditure until June 30, 2029.
(b) The department is authorized to use a third-party administrator through a grant or contract, to support the administration of the grant program.
(c) Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5. of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services. This exemption shall last until June 30, 2029.
(d) Contracts, grants, and related information created or obtained pursuant to this provision shall not be made public and are exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). The Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest: in order to protect confidential and personal medical information, the safety of medical providers, and access to gender-affirming services, it is necessary that grants, contracts, and related information created or obtained pursuant to this provision are exempt from disclosure.
(e) In implementing this provision, the Department of Health Care Access and Information shall be exempt from the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. This exemption shall last until June 30, 2029.
10. Of the amount appropriated in Schedule (2), $15,000,000 is available to support workforce training and expansion for promotoras.
11. Of the amount appropriated in Schedule (1), $15,500,000 shall be available to the Department of Health Care Access and Information to support low-cost options for epinephrine pens and tuberculosis drugs.

SEC. 81.

 Item 4140-101-0890 of Section 2.00 of the Budget Act of 2026 is amended to read:
4140-101-0890—For local assistance, Department of Health Care Access and Information, payable from the Federal Trust Fund ........................

116,593,000
207,609,000
Schedule:
(1)
3835-Health Care Workforce ........................
1,625,000
(2) 3861-Rural Health Transformation ........................
114,968,000
205,984,000
Provisions:
1. Until June 30, 2028, the Department of Health Care Access and Information may execute grants and contracts, including exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts and grants entered into or amended pursuant to the federal Rural Health Transformation Program shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10110) of Division 2 of the Public Contract Code (excepting Chapter 3 (commencing with Section 12100)), and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services. This exemption does not apply to procurements overseen by the Department of Technology.
2. The Department of Health Care Access and Information may contract with a third-party nonprofit organization to implement the requirements of the federal Rural Health Transformation Program.

SEC. 82.

 Item 4140-101-3085 of Section 2.00 of the Budget Act of 2026 is amended to read:
4140-101-3085—For local assistance, Department of Health Care Access and Information, payable from the Behavioral Health Services Fund ........................

124,993,000
113,003,000
Schedule:
(1)
3835-Health Care Workforce ........................

96,493,000
84,503,000
(1.5)
3836-BH Connect Workforce Initiative ........................
28,500,000
Provisions:
1.
Of the funds appropriated in this item, $28,500,000 shall be available to support the Behavioral Health Services Act Program.
2.
The Department of Health Care Access and Information may execute grants and contracts, including exclusive or nonexclusive contacts, or amend existing contracts, on a bid or negotiated basis. Contracts and grants entered into or amended shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code (excepting Chapter 3 (commencing with Section 12100)), and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services. This exemption does not apply to procurements typically overseen by the California Department of Technology.
3.
Of the funds appropriated in Schedule (1), $4,500,000 shall be available to support $22,900,000 shall be available to provide reimbursement to the State Department of Social Services for the purposes of supporting the Title IV-E Stipend Project.
4.
The funds appropriated in this item shall be available for encumbrance or expenditure until June 30, 2029.

SEC. 83.

 Item 4140-490 of Section 2.00 of the Budget Act of 2026 is amended to read:
4140-490—Reappropriation, Department of Health Care Access and Information. The amounts specified in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure until June 30, 2029: 2030:
0001—General Fund
(1) Up to $105,000 in Item 4140-001-0001, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022) to implement the CalRX Biosimilar Insulin Initiative.
(2) Up to $18,300,000 in Item 4140-101-0001, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022) to implement the CalRX Biosimilar Insulin Initiative.

SEC. 84.

 Item 4260-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
4260-001-0001—For support of State Department of Health Care Services ........................

351,964,000
402,564,000
Schedule:
(1)
3960-Health Care Services ........................

381,802,000
432,402,000
(2)
Reimbursements to 3960-Health Care Services ........................
−29,838,000
Provisions:
1.
The State Department of Health Care Services, in coordination with other state entities involved in the Medi-Cal Enterprise Systems modernization project efforts, shall provide the appropriate fiscal and policy committees of the Legislature, the Legislative Analyst’s Office, the Department of Technology, and the California State Auditor with annual project status updates, including newly executed contracts, their purpose, and cost.
2.
Of the funds appropriated in this item, $605,000 is to reimburse the State Department of Public Health for lease-revenue bond base rental payments associated with the State Department of Health Care Services’ occupancy in the State Department of Public Health’s Richmond Laboratory. The Controller shall transfer funds appropriated in this item to the State Department of Public Health, in the amount shown in this provision as and when provided for in the schedule submitted by the State Public Works Board.
3.
The Department of Finance may decrease this item by up to $7,811,000 if the Centers for Medicare and Medicaid Services’ Medicaid and Children’s Health Insurance Program Managed Care Access, Finance, and Quality Final Rule (CMS-2439-F) or the Ensuring Access to Medicaid Services Final Rule (CMS-2442-F) is rescinded or repealed. Any adjustment of this item shall be reported in writing to the chairpersons of the fiscal committees in each house of the Legislature and the Chairperson of the Joint Legislative Budget Committee within 10 days of the date the adjustment is approved.
4. (a)
Of the funds appropriated in this item, $15,549,000 is available to support implementation of the provisions of Public Law 119-21.
(b)
For purposes of implementing this provision, the State Department of Health Care Services may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts entered into or amended pursuant to this provision, through June 30, 2027, shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.
(c)
Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the State Department of Health Care Services may implement, interpret, or make specific this provision, in whole or in part, by means of plan or county letters, information notices, plan or provider bulletins, or other similar instructions without taking any further regulatory action.
(d)
The Department of Finance may decrease this item by up to $15,549,000 if federal policy provisions related to Medicaid Eligibility within Public Law 119-21 are rescinded or repealed. Any adjustment of this item shall be reported in writing to the chairpersons of the fiscal committees in each house of the Legislature and the chairperson of the Joint Legislative Budget Committee within 10 days of the date the adjustment is approved.
5. (a)
Of the funds appropriated in this item, $5,332,000 is available to support the State Department of Health Care Services in development of a comprehensive hospital value strategy to advance access to high-quality inpatient and outpatient hospital services, financially incentivize appropriate care delivery, and improve health outcomes for Medi-Cal beneficiaries.
(b)
The State Department of Health Care Services may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid, nonbid, or negotiated basis to support the design, implementation, and ongoing support of the hospital value strategy and state directed payments for hospitals. Contracts entered into or amended pursuant to this provision, through June 30, 2027, shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the State Contracting Manual and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.
(c)
Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the State Department of Health Care Services may implement, interpret, or make specific this provision, in whole or in part, by means of plan or county letters, information notices, plan or provider bulletins, or other similar instructions without taking any further regulatory action.
6. The Department of Finance may increase expenditure authority in this item up to $25,000,000 in the 2026–27 fiscal year to support administrative costs for the transition of individuals with unsatisfactory immigration status to the fee-for-service delivery system.
7. Of the funds appropriated in Schedule (1), $400,000 is available to hire additional nursing staff to evaluate the applications of frail, older Californians applying to enroll in a Program of All-Inclusive Care for the Elderly (PACE).
8. Of the amount appropriated in Schedule (1), $31,000,000 is available for care coordination services to support Medi-Cal members with unsatisfactory immigration status transitioning from managed care to the fee-for-service delivery system, consistent with federal Medicaid requirements. Funds may be used for the following purposes:
(a) Contracted clinical and non-clinical staffing to provide care coordination and navigation services, including language access capabilities, integrated care planning, member outreach, and coordination with fee-for-service providers, with a focus on special populations and members with complex care needs.
(b) Enhancements to the Population Health Management service, including modifications to the longitudinal member record, care planning tools, dashboards, flags, and measures to support active care management of transitioning members and integration with the nurse advice line.
(c) The State Department of Health Care Services may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid, nonbid, or negotiated basis to support the design, implementation, and ongoing support of this provision entered into or amended pursuant to this provision, through June 30, 2028, shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the State Contracting Manual and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.
9. Of the funds appropriated in Schedule (1), $8,000,000 is available for contracts with clinics and community-based organizations to provide culturally and linguistically appropriate care navigation services to Medi-Cal members transitioning from managed care to the fee-for-service delivery system.
(a) The State Department of Health Care Services may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid, nonbid, or negotiated basis to support the design, implementation, and ongoing support of this provision entered into or amended pursuant to this provision, through June 30, 2028, shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the State Contracting Manual and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.
10. Of the amount appropriated in Schedule (1), $5,200,000 shall be available for the department to hire staff or enter into non-competitive bid contracts to assist with expediting Medi-Cal provider enrollment, revalidation, or recertification applications and reduce any backlogs.
(a) The State Department of Health Care Services may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid, nonbid, or negotiated basis to support the design, implementation, and ongoing support of this provision entered into or amended pursuant to this provision, through June 30, 2028, shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the State Contracting Manual and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.
11. Of the funds appropriated in Schedule (1), $2,000,000 shall be available to support implementation of the Children and Youth Behavioral Health Initiative.

SEC. 85.

 Item 4260-001-0890 of Section 2.00 of the Budget Act of 2026 is amended to read:
4260-001-0890—For support of State Department of Health Care Services, payable from the Federal Trust Fund ........................

653,533,000
663,133,000
Schedule:
(1)
3960-Health Care Services ........................

653,533,000
663,133,000
Provisions:
1.
Of the funds appropriated in this item, $605,000 is to reimburse the State Department of Public Health for lease-revenue bond base rental payments associated with the State Department of Health Care Services’ occupancy in the State Department of Public Health’s Richmond Laboratory. The Controller shall transfer funds appropriated in this item to the State Department of Public Health in the amount shown in this provision as and when provided for in the schedule submitted by the State Public Works Board.
2.
Of the funds appropriated in this item, $1,500,000 shall be available for the State Department of Health Care Services, in consultation with stakeholders, to develop a Comprehensive Value Strategy for Skilled Nursing Facility Services, to inform the reauthorization of the Medi-Cal Long-Term Care Reimbursement Act (Article 3.8 (commencing with Section 14126) of Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code) for dates of service on or after January 1, 2028. The State Department of Health Care Services may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis to implement this provision. Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from review or approval of any division of the Department of General Services.
3. (a)
Of the funds appropriated in this item, $17,500,000 is available to support implementation of the provisions of the federal One, Big, Beautiful Bill Act (Public Law 119-21).
(b)
For purposes of implementing this provision, the State Department of Health Care Services may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts entered into or amended pursuant to this provision, through June 30, 2027, shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.
(c)
Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the State Department of Health Care Services may implement, interpret, or make specific this provision, in whole or in part, by means of plan or county letters, information notices, plan or provider bulletins, or other similar instructions without taking any further regulatory action.
(d)
The Department of Finance may decrease this item by up to $17,500,000 if federal policy provisions related to Medicaid within the federal One, Big, Beautiful Bill Act (Public Law 119-21) are rescinded or repealed. Any adjustment of this item shall be reported in writing to the chairpersons of the fiscal committees in each house of the Legislature and the chairperson of the Joint Legislative Budget Committee within 10 days of the date the adjustment is approved.
4. (a)
Of the funds appropriated in Schedule (1), $5,332,000 is available to support the State Department of Health Care Services in development of a comprehensive hospital value strategy to advance access to high-quality inpatient and outpatient hospital services, financially incentivize appropriate care delivery, and improve health outcomes for Medi-Cal beneficiaries.
(b)
The State Department of Health Care Services may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid, nonbid, or negotiated basis to support the design, implementation, and ongoing support of the hospital value strategy and state directed payments for hospitals. Contracts entered into or amended pursuant to this provision, through June 30, 2027, shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the State Contracting Manual and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.
(c)
Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the State Department of Health Care Services may implement, interpret, or make specific this provision, in whole or in part, by means of plan or county letters, information notices, plan or provider bulletins, or other similar instructions without taking any further regulatory action.
5. Of the amount appropriated in Schedule (1), $5,200,000 shall be available for the department to hire staff or enter into non-competitive bid contracts to assist with expediting Medi-Cal provider enrollment, revalidation, or recertification applications and reduce any backlogs.
(a) The State Department of Health Care Services may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid, nonbid, or negotiated basis to support the design, implementation, and ongoing support of this provision entered into or amended pursuant to this provision, through June 30, 2028, shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the State Contracting Manual and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.

SEC. 86.

 Item 4260-001-3397 is added to Section 2.00 of the Budget Act of 2026, to read:
4260-001-3397—For support of State Department of Health Care Services, payable from the California Opioid Settlements Fund ........................
2,671,000
Schedule:
(1) 3960-Health Care Services ........................ 2,671,000

SEC. 87.

 Item 4260-101-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
4260-101-0001—For local assistance, State Department of Health Care Services, California Medical Assistance Program, payable from the Health Care Deposit Fund after transfer from the General Fund ........................

46,572,226,000
46,512,583,000
Schedule:
(1)
3960015-County and Other Local Assistance Administration ........................

2,063,037,000
2,103,137,000
(2)
3960022-Benefits (Medical Care and Services) ........................

51,536,907,000
51,493,964,000
(3)
Reimbursements to 3960015-County and Other Local Assistance Administration ........................

−92,131,000
−148,931,000
(4)
Reimbursements to 3960022-Benefits (Medical Care and Services) ........................
−6,935,587,000
Provisions:
1.
The aggregate principal amount of disproportionate share hospital general obligation debt that may be issued in the current fiscal year pursuant to subparagraph (A) of paragraph (2) of subdivision (f) of Section 14085.5 of the Welfare and Institutions Code shall be $0.
2.
Notwithstanding any other law, both the federal and nonfederal shares of any moneys recovered for previously paid health care services, provided pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code, are hereby appropriated and shall be expended as soon as practicable for medical care and services as defined in the Welfare and Institutions Code.
3.
Notwithstanding any other law, accounts receivable for recoveries as described in Provision 2 shall have no effect upon the positive balance of the General Fund or the Health Care Deposit Fund. Notwithstanding any other law, moneys recovered as described in this item that are required to be transferred from the Health Care Deposit Fund to the General Fund shall be credited by the Controller to the General Fund without regard to the appropriation from which it was drawn.
4.
Upon order of the Department of Finance and without regard to fiscal year, the General Fund shall make one or more loans available not to exceed a cumulative total of $1,000,000,000 to be transferred as needed to the Health Care Deposit Fund to meet cash needs. All moneys so transferred shall be repaid as soon as sufficient revenue or reimbursements have been collected to meet immediate cash needs and in installments as revenue or reimbursements accumulate if the loan is outstanding for more than one year.
5.
Notwithstanding any other law, the State Department of Health Care Services may give public notice relative to proposing or amending any rule or regulation or administrative directive that could result in increased costs in the Medi-Cal program only after approval by the Department of Finance. Additionally, any rule or regulation adopted by the State Department of Health Care Services and any communication that increases costs in the Medi-Cal program shall be effective only after the date upon which it is approved by the Department of Finance.
6.
Change orders to the medical or the dental fiscal intermediary contract for amounts exceeding a total cost of $250,000 shall be approved by the Department of Finance not sooner than 30 days after written notification of the change order is provided to the chairpersons of the fiscal and policy committees in each house of the Legislature and to the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time after that notification as the chairperson of the joint committee, or the chairperson’s designee, may determine. The semiannual estimates of Medi-Cal expenditures provided to the Legislature in January and May may constitute the notification required by this provision.
7.
Recoveries of advances made to counties in prior years pursuant to Section 14153 of the Welfare and Institutions Code are reappropriated to the Health Care Deposit Fund for reimbursement of those counties where allowable costs exceeded the amounts advanced. Recoveries in excess of the amounts required to fully reimburse allowable costs shall be transferred to the General Fund. When a projected deficiency exists in the California Medical Assistance Program, these funds, subject to notification to the Chairperson of the Joint Legislative Budget Committee, are appropriated and shall be expended as soon as practicable for the state’s share of payments for medical care and services and county and other local assistance administration.
8.
The Department of Finance may transfer funds representing all or any portion of any estimated savings that are a result of improvements in the Medi-Cal claims processing procedures from the Medi-Cal services budget or the support budget of the State Department of Health Care Services (Item 4260-001-0001) to the fiscal intermediary budget item for purposes of making improvements to the Medi-Cal claims system.
9.
Notwithstanding any other law, the Department of Finance may authorize the transfer of expenditure authority between schedules within this item and between this item and Items 4260-102-0001, 4260-111-0001, 4260-114-0001, and 4260-117-0001 in order to effectively administer the programs funded in these items. The Department of Finance may revise reimbursement authority in this item in order to effectively administer the programs funded in those items. The Department of Finance shall notify the Legislature within 10 days of authorizing such a transfer unless prior notification of the transfer has been included in the Medi-Cal estimates submitted pursuant to Section 14100.5 of the Welfare and Institutions Code. The 10-day notification to the Legislature shall include the reasons for the transfer, the fiscal assumptions used in calculating the transfer amount, and any potential fiscal effects on the program from which funds are being transferred or for which funds are being reduced.
10.
If a federal grant that provides 75 percent federal financial participation to allow individuals in nursing homes to voluntarily move into a community setting and still receive the same amount of funding for services is awarded to the State Department of Health Care Services during the current fiscal year, then, notwithstanding any other law, the department may count expenditures from the appropriation made to this item as state matching funds for that grant.
11.
Notwithstanding any other law, the Department of Finance may authorize an increase to this appropriation to address costs resulting from adverse court rulings. The Department of Finance shall provide a 30-day notice of any proposed increase to the Legislature. The notification shall include the specifics of any cases with adverse rulings and the overall fiscal impact. Submission of the semiannual Medi-Cal estimate provided to the Legislature in January and May shall be considered meeting the notification requirement of this provision if the required information is included in the estimate.
12.
To the extent practicable and consistent with existing procedures, the State Department of Health Care Services, in its sole discretion, shall seek favorable terms from the federal government regarding the repayment of federal funds for state-only populations in order to minimize the annual impact on the General Fund in any individual fiscal year.
13.
Notwithstanding any other law, the Department of Finance may adjust amounts in this item, Item 4260-111-0001, or any other related item resulting from the State Department of Health Care Services obtaining federal approval to claim federal financial participation for expenditures associated with Designated State Health Programs as part of the CalAIM Demonstration. Within 30 days of making any adjustment pursuant to this provision, the Department of Finance shall report the adjustment in writing to the Joint Legislative Budget Committee. Submission of the semiannual Medi-Cal estimate provided to the Legislature in January and May shall be considered meeting the reporting requirement of this provision if the required information is included in the estimate.
13.5. (a) Of the funds appropriated in Schedule (2), up to $10,000,000 is available for the Hearing Aid Coverage for Children Pro-gram for the purpose of providing medically necessary hearing aids and related services to eligible persons as described in subprovision (b).
(b) A person is eligible for the program de-scribed in this provision if they meet all of the following criteria:
(1) The person is under 21 years of age.
(2) The person’s household income does not exceed 600 percent of the federal poverty level.
(3) The person is not eligible for the Medi-Cal program or the California Children’s Services Program.
(4) The person does not have health insurance coverage for hearing aids.
(c) For purposes of paragraph (4) of subprovision (b), a person is deemed to have no health insurance coverage if any of the following apply:
(1) The person has no health insurance coverage.
(2) The person has health insurance coverage that excludes coverage for hearing aids.
(3) The person has health insurance coverage that has a coverage limit of $1,500 or less for hearing aids.
(d) The State Department of Health Care Services shall specify the benefits and services provided to eligible persons under the program described in this provision. This shall include hearing aids, including bone conduction devices, when medically necessary.
(e) The State Department of Health Care Services shall develop processes to ensure, to the extent practicable, health insurance coverage for hearing aids and related ser-vices covered pursuant to this provision is used before the Hearing Aid Coverage for Children Program is billed.
(f) The State Department of Health Care Services may contract with public and private entities in order to implement this provision. Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 1 (commencing with Section 14600) of Part 5.5 of Division 3 of Title 2 of the Government Code, Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Con-tract Code, the State Contracting Manual, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the State Department of General Services.
(g) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the State Department of Health Care Services may implement, interpret, or make specific this provision, in whole or in part, by means of provider bulletin or similar instructions, without taking any further regulatory action.
14. (a)
The State Department of Health Care Services may enter into exclusive or nonexclusive contracts on a bid, non-bid, or negotiated basis with a drug rebate aggregator or another entity that provides rebate aggregation services to consolidate and manage drug rebate negotiation, invoicing, collection, dispute resolution, and other related activities with manufacturers, distributors, dispensers, or suppliers of single-source and multiple source drugs, appliances, durable medical equipment, medical supplies, and other product type health care services. Contracts entered into or amended pursuant to this section shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the State Contracting Manual and the State Administrative Manual and shall be exempt from the review or approval of any division of the Department of General Services.
(b)
Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the State Department of Health Care Services may implement, interpret, or make specific this section, in whole or in part, by means of plan or county letters, information notices, plan or provider bulletins, or other similar instructions without taking any further regulatory action.
15.
Notwithstanding Section 16531.1 of the Government Code, the General Fund cash loans made to the Medical Providers Interim Payment Fund in the 2024–25 and 2025–26 fiscal years are available over the 2024–25 and 2025–26 fiscal years for programs funded within this item. No later than June 30, 2034, an allocation from the General Fund shall be made to recognize for budgetary financial reporting the cost of the loans made to the Medical Providers Interim Payment Fund in the 2024–25 and 2025–26 fiscal years. The Director of Finance may order the repayment of all or a portion of the loans sooner if the Department of Finance, in consultation with the State Department of Health Care Services, determines that the funds appropriated in this item exceed the required costs for programs funded within the item.
16.
The Legislature finds that the total funds appropriated in this item exceeds the amount of General Fund revenue appropriated to support the Medi-Cal program prior to the effective date of Chapter 7.5 (commencing with Section 14199.100) of Part 3 of Division 9 of the Welfare and Institutions Code (Proposition 35). The Legislature further finds that, for purposes of Proposition 35, increases in Medi-Cal base managed care capitation rates reflect an expansion of healthcare benefits, healthcare services, health-care workforce, and payment rates above and beyond those already in effect or in existence as of January 1, 2024, and are in addition to existing reimbursement rates and any other payments made by the department as of January 1, 2024, and do not supplant amounts that would otherwise be payable by a Medi-Cal managed care plan or the department, as applicable, to a recipient of moneys provided by Article 4 (commencing with Section 14199.109) of Chapter 7.5 of Part 3 of Division 9 of the Welfare and Institutions Code.
17. Of the funds appropriated in Schedule (3), $2,000,000 is available for the H.R. 1 Navigators for Clinics Program.
(a) These funds will be made available as a reimbursement to the General Fund, subject to the deposit of nonstate money made to the State Department of Health Care Services and made with the intent for the exclusive use of the H.R. 1 Navigators for Clinics Program.
(b) The State Department of Health Care Services shall seek any necessary federal approvals for purposes of obtaining federal funding for activities conducted under this item.
(c) Notwithstanding any other law, these funds shall be allocated for Medi-Cal outreach and enrollment activities.
(d) For purposes of implementing this provision, the State Department of Health Care Services may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Notwithstanding any other law, contracts entered into or amended pursuant to this subdivision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, and Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.
(e) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the State Department of Health Care Services may implement, interpret, or make specific this provision, in whole or in part, by means of all-county letters, plan letters, information notices, provider bulletins, or other similar instructions, without taking any further regulatory action.
(f) Notwithstanding any other law, the Department of Finance may authorize an increase to this appropriation for reimbursements received for providing health navigation to Community Health Centers and Regional Clinic Associations to maintain enrollment or retain coverage for Medi-Cal eligible individuals. Submission of the semiannual Medi-Cal estimate provided to the Legislature in January and May shall be considered meeting the notification requirement of this provision if the required information is included in the estimate.
18. Of the funds appropriated in Schedule (2), $125,000,000 shall support county indigent care programs to provide, at a minimum, emergency services benefits for uninsured Californians.
19. Of the funds appropriated in Schedule (2), $250,000,000 shall support California’s public hospital system.
20. Of the funds appropriated in Schedule (2), $7,700,000 shall support rate increases as bridge funding for Congregate Living Health Facilities pending transition into the managed care delivery system.
(a) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the Department of Health Care Services may implement, interpret, or make specific this item, or any appertaining Medi-Cal reimbursement methodologies in whole or in part, by means of all-county letters, plan letters, provider bulletins, information notices, or other similar instructions, without taking any further regulatory action.
(b) The Department of Health Care Services may require Medi-Cal providers, Medi-Cal managed care plans, and other persons or entities pertaining to the Medi-Cal program to submit information the department deems necessary to implement and monitor compliance with this item, at the times and in the form and manner specified by the department.
(c) The Department of Health Care Services may, at its sole discretion, direct Medi-Cal managed care plans to reimburse eligible Congregate Living Health Facilities in accordance with one or more directed payment methodologies pursuant to subsection (d) of Section 438.6 of Title 42 of the Code of Federal Regulations.
(d) This item shall be implemented only to the extent that any necessary federal approvals are obtained and federal financial participation is available and is not otherwise jeopardized.
21. Of the funds appropriated in Schedule (2), $1,500,000 shall support staffing or contract authority to enable the Department to clear the Medi-Cal Home and Community Based Alternatives (HCBA) Waiver waitlist and serve all eligible individuals seeking enrollment in the HCBA Waiver program.
22. Of the funds appropriated in Schedule (2), $25,000,000 shall support a gender-affirming care provider network stabilization and uncompensated care grant program, and $1,000,000 shall support the establishment of a gender-affirming care state-only Medi-Cal coverage and billing pathway.
23. (a) Of the amount appropriated in Schedule (2), a one-time $20,000,000 allocation shall be available for the State Department of Health Care Services to provide non-competitive grants to county behavioral health departments to support the implementation of Proposition 36 (2024).
(b) Grants shall be provided to counties according to an allocation methodology determined by the department, in consultation with the Judicial Council.
(c) Counties shall spend at least 50 percent of the funds allocated pursuant to this provision to support planning and capacity building activities to expand and accelerate services, including, but not limited to, capital for housing and treatment, including recovery housing; hiring, training, and development of policies and procedures; support for information technology infrastructure costs, including, but not limited to, changes needed to electronic medical record systems; and changes needed for reporting data, and case tracking. No matching funds are required for any portion of a county’s allocation that is expended solely on planning and capacity building activities.
(d) Any portion of a county’s allocation expended on behavioral health treatment services shall be matched by a 25 percent match from local funding sources. County behavioral health departments must maximize federal reimbursements for eligible services, in collaboration with the courts and other partners. Funding allocated under this provision may not be used to pay for services that are covered by an individual’s commercial insurance coverage. These provisions are not intended to replace or relieve current county funding obligations required to draw down federal matching funds for Medi-Cal covered services.
(e) Funding spent on services pursuant to subprovision (d) may be used to cover costs associated with Proposition 36 (2024) that are not Medi-Cal reimbursable, including workload and behavioral health evaluations related to court proceedings and treatment not covered by Medi-Cal, or private commercial insurance.
(f) As a condition of receiving funds pursuant to this provision, county behavioral health departments shall provide data and outcomes, including, but not limited to, information on how funds were expended and the number of people served, in a manner determined by the State Department of Health Care Services, in consultation with the Judicial Council. The State Department of Health Care Services shall coordinate with the Judicial Council to ensure that the data is collected and reported necessary for the Judicial Council to comply with the reporting requirement in Provision 17.4 of Item 0250-101-0001.
(g) Up to 5 percent of this funding may be retained by the State Department of Health Care Services for administering this funding.
(h) The funding allocated in this provision shall be available for expenditure or encumbrance until June 30, 2029.
(i) In providing the funding allocated in this provision, it is the intent of the Legislature to help offset county responsibilities related to the initial implementation of Proposition 36 (2024).
(j) For purposes of implementing this provision, the State Department of Health Care Services may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Notwithstanding any other law, contracts entered into or amended pursuant to this section shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, and Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and shall be exempt from the review or approval of any division of the Department of General Services.
(k) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the State Department of Health Care Services, without taking any further regulatory action, shall implement, interpret, and make specific this section by means of all-county letters, plan letters, information notices, or similar instructions.
24. (a) Of the funds appropriated in this item, $250,000,000 is available to the State Department of Health Care Services to make grants to designated public hospitals in support of their health care expenditures.
(b) Grants made pursuant to this provision shall:
(1) Not constitute Medi-Cal payments or patient care payments.
(2) Not supplant or reduce any other financial obligations of the state toward designated public hospitals.
(3) Not be offset by the state for any purpose.
(4) Not be considered “revenue and other funds paid or payable for the fiscal year,” as such term is used in paragraph (1) of subdivision (a) of Section 17612.3 of the Welfare and Institutions Code or “total revenues” as defined in paragraph (7) of subdivision (b) of Section 17612.5 of the Welfare and Institutions Code and as used in paragraph (1) of subdivision (a) of Section 17612.5 of the Welfare and Institutions Code, for purposes of redirection of realignment calculations pursuant to Article 12 of Chapter 6 of Part 5 of Division 9 of the Welfare and Institutions Code.
(5) Be supplemental to all other funding for health care.
(c) The department shall distribute the direct grant funds made available in this provision pursuant to a methodology developed in consultation with the designated public hospitals. The methodology shall not require prospective or retrospective documentation of the use of the grants, nor shall the grants be subject to any reconciliation process.
(d) For purposes of this provision, “designated public hospital” has the meaning given in subdivision (f) of Section 14184.10 of the Welfare and Institutions Code.
(e) This provision shall be implemented only to the extent the department determines federal financial participation under the Medi-Cal program is not jeopardized.
(f) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may implement, interpret, or make specific this provision by means provider bulletins or other similar instructions, without taking any further regulatory action.
25. (a) Notwithstanding subdivision (e) of Section 14132.57 of the Welfare and Institutions Code, of the amount appropriated in Schedule (2) of this item, $42,200,000 shall be available to support extension of the community-based mobile crisis response services benefit in the Medi-Cal program until June 30, 2027.
(b) Notwithstanding subdivision (e) of Section 14132.57 of the Welfare and Institutions Code, the provisions of Section 14132.57 shall remain operative and shall govern the provision of community-based mobile-crisis services funded by this item until June 30, 2027.
26. Of the funds appropriated in Schedule (2), $5,000,000 is provided for one-time direct payment to CenCal Health for the purposes of establishing a behavioral health pilot program on the treatment of severe schizophrenia, or anosognosia, in the Managed Care Plan’s service region.
27. Of the funds appropriated in Schedule (2), $2,000,000 is available for encumbrance or expenditure until June 30, 2028, for one-time direct payment to the Yurok Tribe of California to support their health programs.
28. Of the funds appropriated in Schedule (2), $30,000,000 shall support Medi-Cal payment increases for Private Duty Nursing services for dates of service no sooner than January 1, 2027.
(a) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the Department of Health Care Services may implement, interpret, or make specific this item, or any appertaining Medi-Cal reimbursement methodologies in whole or in part, by means of all-county letters, plan letters, provider bulletins, information notices, or other similar instructions, without taking any further regulatory action.
(b) The Department of Health Care Services may require Medi-Cal providers, Medi-Cal managed care plans, and other persons or entities pertaining to the Medi-Cal program to submit information the department deems necessary to implement and monitor compliance with this item, at the times and in the form and manner specified by the department.
(c) The Department of Health Care Services may, at its sole discretion, direct Medi-Cal managed care plans to reimburse eligible providers of Private Duty Nursing services in accordance with one or more directed payment methodologies pursuant to subsection (c) of Section 438.6 of Title 42 of the Code of Federal Regulations.
(d) This item shall be implemented only to the extent that any necessary federal approvals are obtained and federal financial participation is available and is not otherwise jeopardized.
29. Of the funds appropriated in Schedule (2), $5,000,000 is provided for one-time direct payment to support Allcove youth mental health centers.
30. (a) Of the amount appropriated in Schedule (1) of this item, $32,200,000 is available to support county eligibility workload related to the Medi-Cal program.
(b) These funds shall be available for encumbrance or expenditure until June 30, 2028.
(c) Notwithstanding paragraph (2) of subdivision (c) of Section 14154 of the Welfare and Institutions Code, these funds shall be considered a cost-of-doing-business adjustment for the 2026–27 and 2027–28 fiscal years.

SEC. 88.

 Item 4260-101-0890 of Section 2.00 of the Budget Act of 2026 is amended to read:
4260-101-0890—For local assistance, State Department of Health Care Services, payable from the Federal Trust Fund ........................

132,926,806,000
132,875,380,000
Schedule:
(1)
3960015-County and Other Local Assistance Administration ........................

6,455,582,000
6,411,546,000
(2)
3960022-Benefits (Medical Care and Services) ........................

126,471,224,000
126,463,834,000
Provisions:
1.
Notwithstanding any other law, the Department of Finance may authorize the transfer of expenditure authority between Schedules (1) and (2) of this item and between this item and Items 4260-102-0890, 4260-106-0890, 4260-111-0890, 4260-114-0890, and 4260-117-0890 in order to effectively administer the programs funded in these items. The Department of Finance shall notify the Legislature within 10 days of authorizing such a transfer unless prior notification of the transfer has been included in the Medi-Cal estimates submitted pursuant to Section 14100.5 of the Welfare and Institutions Code. The 10-day notification to the Legislature shall include the reasons for the transfer, the fiscal assumptions used in calculating the transfer amount, and any potential fiscal effects on the program from which funds are being transferred or for which funds are being reduced.
2. (a)
The Department of Finance is authorized to approve expenditures payable from the Federal Trust Fund (Item 4260-101-0890) in those amounts made necessary by changes in either caseload or payments.
(b)
If the Department of Finance determines that the estimate of expenditures will exceed the expenditures authorized for this item, the Department of Finance shall so report to the Legislature. At the time the report is made, the amount of the appropriation made in this item shall be increased by the amount of the excess unless and until otherwise provided by law.
3. (a)
Of the funds appropriated in Schedule (1), up to $3,500,000 is available for California’s Transforming Maternal Health (TMaH) Provider Infrastructure Payments. For the purpose of implementing TMaH Provider Infrastructure Payments, the State Department of Health Care Services may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts entered into or amended pursuant to this provision, through June 30, 2027, shall be exempt from Chapter 1 (commencing with Section 14600) of Part 5.5 of Division 3 of Title 2 of the Government Code, Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the State Contracting Manual, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.
(b)
Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the State Department of Health Care Services may implement this provision by means of plan or county letters, information notices, plan or provider bulletins, or other similar instructions, without taking regulatory action.
4. Of the funds appropriated in Schedule (2), $30,000,000 shall support Medi-Cal payment increases for Private Duty Nursing services for dates of service no sooner than January 1, 2027.
(a) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the Department of Health Care Services may implement, interpret, or make specific this item, or any appertaining Medi-Cal reimbursement methodologies in whole or in part, by means of all-county letters, plan letters, provider bulletins, information notices, or other similar instructions, without taking any further regulatory action.
(b) The Department of Health Care Services may require Medi-Cal providers, Medi-Cal managed care plans, and other persons or entities pertaining to the Medi-Cal program to submit information the department deems necessary to implement and monitor compliance with this item, at the times and in the form and manner specified by the department.
(c) The Department of Health Care Services may, at its sole discretion, direct Medi-Cal managed care plans to reimburse eligible providers of Private Duty Nursing services in accordance with one or more directed payment methodologies pursuant to subsection (c) of Section 438.6 of Title 42 of the Code of Federal Regulations.
(d) This item shall be implemented only to the extent that any necessary federal approvals are obtained and federal financial participation is available and is not otherwise jeopardized.
5. Of the funds appropriated in Schedule (2), $7,700,000 shall support Medi-Cal payment increases for Congregate Living Health Facilities for dates of service prior to the transition of applicable services into the managed care delivery system.
(a) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the Department of Health Care Services may implement, interpret, or make specific this item, or any appertaining Medi-Cal reimbursement methodologies in whole or in part, by means of all-county letters, plan letters, provider bulletins, information notices, or other similar instructions, without taking any further regulatory action.
(b) The Department of Health Care Services may require Medi-Cal providers, Medi-Cal managed care plans, and other persons or entities pertaining to the Medi-Cal program to submit information the department deems necessary to implement and monitor compliance with this item, at the times and in the form and manner specified by the department.
(c) The Department of Health Care Services may, at its sole discretion, direct Medi-Cal managed care plans to reimburse eligible Congregate Living Health Facilities in accordance with one or more directed payment methodologies pursuant to subsection (c) of Section 438.6 of Title 42 of the Code of Federal Regulations.
(d) This item shall be implemented only to the extent that any necessary federal approvals are obtained and federal financial participation is available and is not otherwise jeopardized.

SEC. 89.

 Item 4260-101-3085 of Section 2.00 of the Budget Act of 2026 is amended to read:
4260-101-3085—For local assistance, State Department of Health Care Services, payable from the Behavioral Health Services Fund ........................

258,528,000
154,728,000
Schedule:
(1)
3960015-County and Other Local Assistance Administration ........................
10,000,000
(2)
3960022-Benefits (Medical Care and Services) ........................

248,528,000
144,728,000

SEC. 90.

 Item 4260-101-3397 of Section 2.00 of the Budget Act of 2026 is amended to read:
4260-101-3397—For local assistance, State Department of Health Care Services, payable from the Opioid Settlements Fund ........................

59,453,000
35,400,000
Schedule:
(1) 3960022-Benefits (Medical Care and Services) ........................
59,453,000
35,400,000

SEC. 91.

 Item 4260-101-3414 of Section 2.00 of the Budget Act of 2026 is repealed.

4260-101-3414—For local assistance, State Department of Health Care Services, payable from the 988 State Suicide and Behavioral Health Crisis Services Fund

125,000,000

Schedule:

(1)

3960022-Benefits (Medical Care and Services)

125,000,000
Provisions:

SEC. 92.

 Item 4260-115-3414 of Section 2.00 of the Budget Act of 2026 is amended to read:
4260-115-3414—For local assistance, State Department of Health Care Services, payable from the 988 State Suicide and Behavioral Health Crisis Services Fund ........................

56,961,000
31,961,000
Schedule:
(1)
3960050-Other Care Services ........................

56,961,000
31,961,000
Provisions:
1. Of the funds appropriated in this item, $5,000,000 is available to support the California “Press 3” option for LGBTQ+ suicide prevention resources.

SEC. 93.

 Item 4260-116-3397 is added to Section 2.00 of the Budget Act of 2026, to read:
4260-116-3397—For local assistance, State Department of Health Care Services, payable from the Opioid Settlements Fund ........................
21,382,000
Schedule:
(1) 3960050-Other Care Services ........................ 21,382,000
Provisions:
1. Upon order of the Director of Finance, the Controller shall transfer funds received in the Litigation Deposits Fund allocated to the state for state opioid remediation from the Purdue Pharma bankruptcy, including any related settlements with the Sackler Family, to the Opioid Settlements Fund.

SEC. 94.

 Item 4265-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
4265-001-0001—For support of State Department of Public Health ........................

374,617,000
381,362,000
Schedule:
(1)
4040-Public Health Emergency Preparedness ........................
17,351,000
(2)
4045-Public and Environmental Health ........................

567,555,000
574,300,000
(3)
4050-Licensing and Certification ........................
28,685,000
(4)
9900100-Administration ........................
60,433,000
(5)
9900200-Administration—​Distributed ........................
−60,433,000
(6)
Reimbursements to 4045-Public and Environmental Health ........................
−222,833,000
(7)
Reimbursements to 4050-Licensing and Certification ........................
−16,141,000
Provisions:
1.
Except as otherwise prohibited by law, the State Department of Public Health shall promulgate emergency regulations to adjust the public health fees set by regulation to an amount such that, if the new fees were effective throughout the 2026–27 fiscal year, the estimated revenues would be sufficient to offset at least 95 percent of the approved program level intended to be supported by those fees. The General Fund fees of the department that are subject to the annual fee adjustment pursuant to subdivision (a) of Section 100425 of the Health and Safety Code shall be increased by 20.3 percent. The special fund fees of the department that are subject to the annual fee adjustment pursuant to subdivision (a) of Section 100425 of the Health and Safety Code may be increased by 20.3 percent only if the fund condition statement for a fund projects a reserve less than 10 percent of estimated expenditures and the revenues projected for the 2026–27 fiscal year are less than the appropriation contained in this act.
2.
Notwithstanding subdivision (b) of Section 100450 of the Health and Safety Code, departmental fees that are subject to the annual fee adjustment pursuant to subdivision (a) of Section 100450 of the Health and Safety Code shall not be increased for the 2026–27 fiscal year. This adjustment shall not be applied to fees established by subdivisions (f), (g), (m), and (s) of Section 1300 of the Business and Professions Code.
3.
The State Department of Public Health shall limit expenditures in this item to implement the Uniform Anatomical Gift Act (Chapter 3.5 (commencing with Section 7150) of Part 1 of Division 7 of the Health and Safety Code) to the amount of actual fees collected from tissue banks.
4.
Notwithstanding any other law, and upon approval of the Director of Finance, the amount appropriated in Schedule (1) shall be increased to adjust for federal reimbursement from the Federal Emergency Management Agency for wildfires and related emergencies. The Department of Finance shall notify the Legislature within 10 days of authorizing an augmentation pursuant to this provision. The notification to the Legislature shall describe the reason for the augmentation.
5.
Of the funds appropriated in Schedule (2), $1,020,000 shall be available for implementation and consulting contract costs associated with the implementation of the Real Foods, Healthy Kids Act upon approval of Stage 4 of the Project Approval Lifecycle or a Project Delegation Request by the Department of Technology.
6. Of the amount appropriated in Schedule (2), up to $10,000,000 shall be available to design, develop, and implement a disease surveillance system upon approval of Stage 4 Project Approval Lifecycle project documents by the Department of Technology.
7. Of the funds appropriated in Schedule (2), $5,000,000 shall be available for the Governor’s Advisory Council for Physical Fitness and Well-Being.
8. Of the amount appropriated in Schedule (2), $750,000 is allocated for healthy foods subject to legislation.
9. Of the amount appropriated in Schedule (2), $995,000 shall be available for expenditure or encumbrance through June 30, 2030, to administer grants to sustain existing programs and expand services in less resourced regions provided by LGBTQ+ serving organizations and LGBTQ+ community centers that provide culturally responsive health and social services to lesbian, gay, bisexual, transgender, queer, questioning, intersex, asexual, and other sexual and gender diverse individuals and communities.

SEC. 95.

 Item 4265-001-3085 of Section 2.00 of the Budget Act of 2026 is amended to read:
4265-001-3085—For support of State Department of Public Health, payable from the Behavioral Health Services Fund ........................

114,836,000
133,036,000
Schedule:
(1)
4045-Public and Environmental Health ........................

114,836,000
133,036,000
Provisions:
1. Funds appropriated in this item shall be available for encumbrance or expenditure until June 30, 2029, for the State Department of Public Health to implement behavioral health programs and initiatives authorized under Proposition 1 (March 5, 2024, statewide general election).
2. Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.

SEC. 96.

 Item 4265-111-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
4265-111-0001—For local assistance, State Department of Public Health ........................

363,537,000
368,742,000
Schedule:
(1)
4040-Public Health Emergency Preparedness ........................
4,960,000
(2)
4045-Public and Environmental Health ........................

710,408,000
715,613,000
(3)
Reimbursements to 4045-Public and Environmental Health ........................
−351,831,000
Provisions:
1.
The Office of AIDS in the State Department of Public Health, in allocating and processing contracts and grants, shall comply with the same requirements that are established for contracts and grants for other public health programs. Notwithstanding any other law, the contracts or grants administered by the Office of AIDS shall be exempt from the Public Contract Code and shall not require approval by the Department of General Services prior to their execution.
2.
Of the amount appropriated in Schedule (2), $6,000,000 shall be available for Sickle Cell Centers for Excellence as pass-through funds.
3. Of the amount appropriated in Schedule (2), $3,500,000 shall be available as pass-through funds to the ALS Network, to provide a wraparound model of care for individuals diagnosed with amyotrophic lateral sclerosis and their caregivers.
4. Of the amount appropriated in Schedule (2), $10,000,000 $9,005,000 shall be available to support LGBTQ+ Community Centers. for expenditure or encumbrance through June 30, 2030, for grants to sustain existing programs and expand services in less-resourced regions provided by LGBTQ+ serving organizations and LGBTQ+ community centers that provide culturally responsive health and social services to lesbian, gay, bisexual, transgender, queer, questioning, intersex, asexual, and other sexual and gender diverse individuals and communities. Funds may be used to fund LGBTQ+ serving organizations for the purposes of providing, expanding, coordinating, and sustaining culturally responsive health and supportive services that improve health outcomes and reduce barriers to care for LGBTQ+ individuals and communities. Eligible activities may include, but are not limited to:
(a) Physical health, behavioral health, HIV prevention and treatment, sexual health, substance use disorder, and gender affirming health care services.
(b) Care coordination, patient navigation, linkage-to-care services, and other activities that improve access to care, care retention, continuity of care, and overall health outcomes.
(c) Services and interventions that address social, economic and structural barriers to health and well-being, including housing stability, homelessness prevention, supportive housing access, housing navigation, intensive case management, workforce development, benefits enrollment, immigration-related services, transportation assistance, food security, outreach, peer support, social connectedness, and other culturally responsive supportive services.
(d) Activities that strengthen grantee operational sustainability and continuity of care, including coordinated service delivery, provider network stabilization, workforce capacity, data security, emergency preparedness, uncompensated care, and responses to funding disruptions, cyberattacks, harassment, violence, and other threats that may impede access to care or disrupt service delivery. Including, but not limited to, rent, mortgage, capital expenses for security improvements, and other expenses that contribute to ensuring that centers are able to continue to operate.
5. In administering Provision 4, the State Department of Public Health shall prioritize equitable geographic distribution of grants throughout the state, including rural, frontier, and historically underserved communities. The department shall consult with LGBTQ+ community stakeholders, service providers, public health experts, and individuals with lived experience in developing program guidance and grant criteria for purposes of implementing this provision.
(a) Notwithstanding any other law, contracts entered into or amended pursuant to this provision are exempt from the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, from Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the State Administrative Manual, and the State Contracting Manual, and are further exempt from the review or approval of the Department of General Services, including as specified in Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code. This exemption shall last until June 30, 2030.
(b) The department shall be authorized to provide up to 50 percent of grant funding in advance to address the immediate crisis Centers are experiencing.
6. Of the amount appropriated in Schedule (2), $3,200,000 shall be available to the Foundation for a Better Life for Atlas and Unshame CA.
7. Of the funds appropriated in Schedule (2), $3,000,000 is allocated to implement the Youth Sports for All Act (Article 2.8 (commencing with Section 124250) of Chapter 4 of Part 2 of Division 106 of the Health and Safety Code).

SEC. 97.

 Item 4265-111-3085 of Section 2.00 of the Budget Act of 2026 is amended to read:
4265-111-3085—For support of local assistance, State Department of Public Health, payable from the Behavioral Health Services Fund ........................

60,000,000
41,800,000
Schedule:
(1) 4045-Public and Environmental Health ........................
60,000,000
41,800,000
Provisions:
1. Funds appropriated in this item shall be available for encumbrance or expenditure until June 30, 2029, for the State Department of Public Health to implement behavioral health programs and initiatives authorized under Proposition 1. Activities include, but are not limited to, planning, coordination, and distribution of funds through allocations to local health jurisdictions and community-based organizations to expand access to behavioral health services.
2. Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and shall be exempt from the review or approval of any division of the Department of General Services.
3. Notwithstanding any other law, the State Department of Public Health may provide local assistance by direct allocation to local health jurisdictions to support behavioral health programs and initiatives authorized under Proposition 1. Direct allocations will be provided via memoranda of understanding and supplemental agreements, wherever necessary, between the State Department of Public Health and local health jurisdictions. The State Department of Public Health’s allocation formula shall be exempt from the administrative regulation and rulemaking requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

SEC. 98.

 Item 4300-101-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
4300-101-0001—For local assistance, State Department of Developmental Services, for Regional Centers ........................

13,093,743,000
13,089,062,000
Schedule:
(1)
4140015-Operations ........................

1,803,093,000
1,796,398,000
(2)
4140019-Purchase of Services ........................
19,229,874,000
(3)
4140031-Early Start Family Resource Services ........................
2,003,000
(4)
Reimbursements to 4140015-Operations ........................

−593,966,000
−591,952,000
(5)
Reimbursements to 4140019-Purchase of Services ........................
−7,347,261,000
Provisions:
1.
Upon order of the Director of Finance, the Controller shall transfer such funds as are necessary between this item and Item 4300-001-0001. Within 10 working days after approval of a transfer as authorized by this provision, the Director of Finance shall notify the chairpersons of the fiscal committees in each house of the Legislature and the Chairperson of the Joint Legislative Budget Committee of the transfer, including the amount transferred, how the amount transferred was determined, and how the amount transferred will be utilized.
2.
A loan or loans shall be made available from the General Fund to the State Department of Developmental Services not to exceed a cumulative total of $1,588,373,000. The loan funds shall be transferred to this item as needed to meet cashflow needs due to delays in collecting reimbursements from the Health Care Deposit Fund. All moneys so transferred shall be repaid as soon as sufficient reimbursements have been collected to meet immediate cash needs and in installments as reimbursements accumulate if the loan is outstanding for more than one year.
3.
Notwithstanding Section 26.00, the Director of Finance may authorize transfer of expenditure authority between Schedules (1) and (2) in order to more accurately reflect expenditures in the Early Intervention Program (Part C of the federal Individuals with Disabilities Education Act (20 U.S.C. Sec. 1431 et seq.)).
4.
Notwithstanding Section 26.00, the Director of Finance may authorize transfer of expenditure authority from Schedule (3) 4140031-Early Start Family Resource Services to Schedule (2) 4140019-Purchase of Services to more accurately reflect expenditures in the Early Start Programs.
5.
Notwithstanding Section 26.00, the Director of Finance may authorize a transfer of up to $5,000,000 in expenditure authority from Schedule (1) to Schedule (2) to more accurately reflect year-end expenditures.

SEC. 99.

 Item 4300-490 of Section 2.00 of the Budget Act of 2026 is repealed.

4300-490—Reappropriation, State Department of Developmental Services. The amounts specified in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure until June 30, 2030.

0001—General Fund
(1)$1,200,000 in Program 4140015-Operations in Item 4300-101-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023) for activities related to Local Volunteer Advisory Committees.
(2)$1,400,000 in Program 4140015-Operations in Item 4300-101-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) for activities related to Local Volunteer Advisory Committees.
(3)$1,700,000 in Program 4140015-Operations in Item 4300-101-0001, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025) for activities related to Local Volunteer Advisory Committees.

SEC. 100.

 Item 4440-011-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
4440-011-0001—For support of State Department of State Hospitals ........................
2,928,867,000
Schedule:
(1)
4400-Administration ........................

307,031,000
307,009,000
(2)
4410-State Hospitals ........................

2,152,845,000
2,152,867,000
(3)
4420-Conditional Release Program ........................
99,847,000
(4)
4430-Contracted Patient Services ........................
529,551,000
(5)
4450-Evaluation and Forensic Services ........................
34,217,000
(6)
Reimbursements to 4400-Administration ........................

−250,000
−5,473,000
(7)
Reimbursements to 4410-State Hospitals ........................

−194,374,000
−189,151,000
Provisions:
1.
The reimbursements shall include amounts received in Schedule (7) by the State Department of State Hospitals as a result of billing state hospital bed day expenditures attributable to conservatees who are gravely disabled as defined in subparagraph (B) of paragraph (1) of subdivision (h) of Section 5008 of the Welfare and Institutions Code (Murphy Conservatee).
2.
The Controller shall transfer the total amount attributable in the 2026–27 fiscal year to patient-generated collections as revenue to the General Fund.
3.
Notwithstanding any other law, funds appropriated to accommodate projected hospital population levels in excess of those that actually materialize, if any, shall revert to the General Fund. However, the Department of Finance may approve an increase in expenditures that are not related to caseload for the state hospitals through the redirection of funding that is reasonably believed not to be needed for accommodating projected hospital population levels if the approval is made in writing and filed with the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the committees of each house of the Legislature that consider appropriations not later than 30 days prior to the effective date of the approval, or prior to whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may in each instance determine. All notifications shall include (a) the reason for the proposed redirection of caseload funding to expenditures that are not related to caseload, (b) the approved amount, and (c) the basis of the Director of Finance’s determination that the funding is not needed for accommodating projected hospital population levels.
4.
The funds appropriated in Schedule (3) shall be used to provide community services as provided in Section 4360 of the Welfare and Institutions Code. These funds shall support direct community services, as well as administrative and ancillary services related to the provision of direct services.
5.
The State Department of State Hospitals shall provide forensic conditional release services mandated either in Title 15 (commencing with Section 1600) of Part 2 of the Penal Code or in Article 4 (commencing with Section 2960) of Chapter 7 of Title 1 of Part 3 of the Penal Code, through contracts with programs which integrate the supervision and treatment roles and providers selected consistent with Section 1615 of the Penal Code.
6.
Of the funds appropriated in Schedule (3), it is intended that funds shall not be available for the payment of treatment services to persons on court visit from state hospitals to the community as designated in subdivision (a) of Section 4117 of the Welfare and Institutions Code.
7.
Upon approval of the State Department of State Hospitals, a portion of the funds appropriated in Schedule (2) shall be available to reimburse counties for the cost of treatment and legal services to patients in the five state hospitals, pursuant to Section 4117 of the Welfare and Institutions Code. Expenditures made under this item shall be charged to either the fiscal year in which the claim is received or the fiscal year in which the Controller issues the warrant. Claims filed by local jurisdictions for legal services may be scheduled by the Controller for payment.
8.
The Director of State Hospitals shall submit, as part of the annual Governor’s Budget and May Revision estimate, each institution’s expenditures for its approved allotments. If any institution’s expenditures are trending above the allotments provided to it, the Director of State Hospitals shall detail the reasons why the institution is spending at a level above its allotments and list the actions the State Department of State Hospitals is undertaking in order to align expenditures with approved allotments. The report shall contain a yearend summary and an operating budget for each of the institutions under the control of the department. Specifically, the report shall include all of the following:
(a)
The year-end expenditures by line-item detail for each institution.
(b)
The budgeted amounts for each institution in the past year, current year, and budget year, and past year actual, projected current, and budget year expenditures for each institution including staffing, overtime, benefits, registry, and operating expenses.
(c)
The number of authorized and vacant positions for each institution.
(d)
The number of authorized and vacant positions for each institution specific to: (1) psychiatric technicians, (2) nurses, (3) physicians, (4) psychiatrists, (5) social workers, and (6) rehabilitation therapists.
(e)
The number of positions in the temporary help blanket for each institution.
9.
The State Department of State Hospitals shall provide a status update on the recruitment and retention of hospital police officers, to be included in the department’s 2027–28 Governor’s Budget estimate and subsequent May Revision estimate. The update shall include the number of authorized and vacant positions for each hospital, the actual attrition rate for the 2026–27 fiscal year, the projected attrition rate for the 2027–28 fiscal year, and the rate of success pertaining to the number of hospital police officer cadet graduates of the OPS Police Academy.
10.
Of the amount appropriated in Schedule (2), $11,565,000 shall be expended for ligature risk special repair projects at Atascadero, Metropolitan, Napa, and Patton State Hospitals. The amount allocated shall be available for encumbrance or expenditure until June 30, 2029.
11.
Contracts entered into or amended from funding included in this item to address the Incompetent to Stand Trial waitlist are exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, and Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and from the review or approval of any division of the Department of General Services.
12.
It is the intent of the Legislature that, to the extent possible, the Department of State Hospitals hire civil service psychiatric and mental health staff rather than utilizing contractors. It is also the intent of the Legislature that any cost savings realized from using fewer contractors should be prioritized towards hiring civil service employees or recruitment and retention efforts, as needed.
13. (a)
The State Department of State Hospitals may enter into agreements with educational institutions and hospitals for the purpose of providing clinical training and educational opportunities related to providing care to patients. The training may take the form of, but not be limited to, rotations, residencies, fellowships, internships, or externships at a state-operated hospital, as described in Section 4100 of Welfare and Institutions Code, or internships for the State Department of State Hospital’s employees and interns to receive clinical training and educational opportunities at a hospital or clinical program.
(b)
These agreements shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, Section 18670 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Administrative Manual, and from the review or approval of any division of the Department of General Services.
15.
The Department of Finance may increase expenditure authority in this item for the costs associated with an updated project schedule and negotiated vendor costs, as well as system administration, for the Electronic Health Record Continuum project, upon notification from the Department of State Hospitals. Any such increase shall be authorized not less than 30 days following written notification to the Chairperson of the Joint Legislative Budget Committee, or a lesser period if requested by the department and approved by the chairperson or the chairperson’s designee.
16. Notwithstanding any other law, the Department of State Hospitals may enter into contracts for online services and subscriptions providing health care or pharmaceutical information that support the quality and access to patient health care without review, supervision, or approval of the Department of Technology or the Department of General Services in cases in which only one qualified bid may be received, until June 30, 2028.

SEC. 101.

 Item 4700-001-6093 of Section 2.00 of the Budget Act of 2026 is amended to read:
4700-001-6093—For support of Department of Community Services and Development, payable from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund ........................
230,000
Schedule:
(1) Energy Programs4181-Energy Programs ........................ 230,000

SEC. 102.

 Item 4700-490 is added to Section 2.00 of the Budget Act of 2026, to read:
4700-490—Reappropriation, Department of Community Services and Development. The balances of the appropriations provided in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance, expenditure, and liquidation until June 30, 2027.
3228—Greenhouse Gas Reduction Fund
(1) Subdivision (c)(2)(A) of Control Section 19.58, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022) transferred for administrative costs per subdivision (a)(5) of Control Section 19.58, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022).

SEC. 103.

 Item 4700-491 is added to Section 2.00 of the Budget Act of 2026, to read:
4700-491—Reappropriation, Department of Community Services and Development. Notwithstanding any other law, the period to liquidate encumbrances of the following citations is extended to June 30, 2027.
3228—Greenhouse Gas Reduction Fund
(1) Subdivision (c)(2)(A) of Control Section 19.58, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022).

SEC. 104.

 Item 4700-492 is added to Section 2.00 of the Budget Act of 2026, to read:
4700-492—Reappropriation, Department of Community Services and Development. The balances of the appropriations provided in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance, expenditure, and liquidation until June 30, 2028.
3228—Greenhouse Gas Reduction Fund
(1) Item 4700-001-3228, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021).
(2) Item 4700-001-3228, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).

SEC. 105.

 Item 4700-493 is added to Section 2.00 of the Budget Act of 2026, to read:
4700-493—Reappropriation, Department of Community Services and Development. Notwithstanding any other law, the period to liquidate encumbrances of the following citations is extended to June 30, 2028.
3228—Greenhouse Gas Reduction Fund
(1) Item 4700-101-3228, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021).
(2) Item 4700-101-3228, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).

SEC. 106.

 Item 5180-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
5180-001-0001—For support of State Department of Social Services ........................

391,205,000
395,305,000
Schedule:
(1)
4270-Welfare Programs ........................

96,143,000
99,726,000
(2)
4275-Social Services and Licensing ........................

297,424,000
297,756,000
(3)
4285-Disability Evaluation and Other Services ........................
70,730,000
(4)
Reimbursements to 4270-Welfare Programs ........................

−2,949,000
−2,764,000
(5)
Reimbursements to 4275-Social Services and Licensing ........................
−32,401,000
(6)
Reimbursements to 4285-Disability Evaluation and Other Services ........................
−37,742,000
Provisions:
1.
The Department of Finance may authorize the transfer of funds from Schedule (2) of this item to Schedule (1), Program 4275019, of Item 5180-151-0001, Children and Adult Services and Licensing, in order to allow counties to perform the facilities evaluation function.
2.
The Department of Finance may authorize the transfer of funds from Schedule (2) of this item to Schedule (1), Program 4275019, of Item 5180-151-0001, Children and Adult Services and Licensing, in order to allow counties to perform the adoptions program function.
3.
Nonfederal funds appropriated in this item that have been budgeted to meet the state’s Temporary Assistance for Needy Families maintenance-of-effort requirement established pursuant to the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193) shall not be expended in any way that would cause their disqualification as a federally allowable maintenance-of-effort expenditure.
4.
Notwithstanding paragraph (4) of subdivision (b) of Section 1778 of the Health and Safety Code, the State Department of Social Services may use no more than 20 percent of the fees collected pursuant to Chapter 10 (commencing with Section 1770) of Division 2 of the Health and Safety Code for overhead costs, facilities operation, and indirect department costs.
5.
Upon request of the State Department of Social Services and the State Department of Health Care Services, the Director of Finance may authorize the transfer of amounts from Item 4260-101-0001, State Department of Health Care Services, to this item to fund the cost of the administrative hearing process associated with changes in aid or service payments in the Medi-Cal program. The Department of Finance shall report to the Legislature the amount to be transferred pursuant to this provision. The transfer shall be authorized at the time the report is made.
6.
Provision 1 of Items 5180-001-0270 and 5180-001-0279 also applies to this item.
7.
Notwithstanding any other law, upon approval of the Department of Finance, expenditure and position authority may be transferred between schedules within or between the following items for the State Department of Education and the State Department of Social Services: Items 6100-001-0001, 5180-001-0001, and reimbursements. Of the amount appropriated in Schedule (1), up to $6,000,000 shall be available for this purpose upon approval of the Department of Finance. The aggregate amount of General Fund appropriation increases provided under this item during the fiscal year may not exceed the aggregate amount of General Fund appropriation decreases. This provision supports the continuity of care in the programs transitioned from the State Department of Education to the State Department of Social Services.
8.
The State Department of Social Services may contract with a vendor to provide direct deposit to childcare contractors. Contracts awarded pursuant to this section shall allow for advance payment. The department is hereby authorized to provide advance payment in order to implement direct deposit to childcare contractors. Contracts awarded pursuant to this section shall be exempt from the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code. For purposes of this provision, the State Department of Social Services is exempt from the requirements of Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code and from the requirements of Article 6 (commencing with Section 999) of Chapter 6 of Division 4 of the Military and Veterans Code.
9.
The Department of Finance is authorized to approve expenditures in excess of the amounts appropriated in this item, upon notification from the State Department of Social Services, to cover costs associated with increased fair hearing requests due to Medi-Cal redeterminations or Public Law 119-21.
10.
For the funds appropriated in this item for Child and Family Services Acute Review and Response, the State Department of Social Services shall report annually on January 10 to the policy and fiscal committees of the Legislature on key metrics, including, but not limited to, shelter stays for children under six years of age and overstays for youth at short-term residential therapeutic program placements.
11.
The Department of Finance may increase expenditure authority in this item up to $250,000 to comply with the federal Able-Bodied Adult Without Dependents (ABAWD) rule.
12.
Upon approval of the Department of Finance, Schedule (1) may be augmented to continue the contract to provide direct deposit payments with vendors until the FI$Cal EFT system is fully integrated into the State Department of Social Services’ accounting and payment business practices. The State Department of Social Services is hereby authorized to provide advance payment in order to implement direct deposit to childcare contractors. Contracts awarded pursuant to this section shall allow for advance payment. The department is hereby authorized to provide advance payment in order to implement direct deposit to childcare contractors. Contracts awarded pursuant to this section shall be exempt from the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code. For purposes of this provision, the State Department of Social Services is exempt from the requirements of Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code and from the requirements of Article 6 (commencing with Section 999) of Chapter 6 of Division 4 of the Military and Veterans Code.
13.
Notwithstanding any other law, upon approval of the Plan for Operations and Management and the Implementation Advance Planning Document Update by the United States Department of Agriculture Food and Nutrition Service, the Department of Finance may augment this item for costs associated with the implementation and administration of the Summer Electronic Benefits Transfer for Children (Summer EBT) established pursuant to 42 U.S.C. Sec. 1762, also known as SUN Bucks, no sooner than 30 days after notification in writing is provided to the chairpersons of the fiscal committees in each house of the Legislature and the Chairperson of the Joint Legislative Budget Committee.
14.
Of the funds appropriated in this item, $200,000 shall be allocated for the purposes of developing a strategic plan for how the State Department of Social Services’ methodology and outreach strategies will be implemented and executed to maximize benefits to those eligible for CalFresh benefits, pursuant to the requirements of Section 18901.58 of the Welfare and Institutions Code.
16. Notwithstanding Chapter 1 (commencing with Section 18000) of Part 6 of Division 9 of the Welfare and Institutions Code, a loan not to exceed $125,587,000 shall be made available from the General Fund, from funds not otherwise appropriated, to cover the federal or reimbursable share, or both, of costs of a program or programs when the federal funds or reimbursements have not been received by the state prior to the usual time for transmitting state payments for the federal or reimbursable share of costs. This loan from the General Fund shall be repaid when the federal share of costs or the reimbursements for the program or programs become available.

SEC. 107.

 Item 5180-001-0890 of Section 2.00 of the Budget Act of 2026 is amended to read:
5180-001-0890—For support of State Department of Social Services, payable from the Federal Trust Fund ........................

634,419,000
634,901,000
Schedule:
(1)
4270-Welfare Programs ........................

161,518,000
161,948,000
(2)
4275-Social Services and Licensing ........................

153,830,000
153,882,000
(3)
4285-Disability Evaluation and Other Services ........................
319,071,000
Provisions:
1.
The Department of Finance may authorize the transfer of federal funds from this item to Item 5180-151-0890 in order to allow counties to perform the adoption program functions and the facilities evaluation function in the Community Care Licensing Division of the State Department of Social Services.
2.
Notwithstanding any other law, upon approval of the Department of Finance, expenditure and position authority may be transferred between schedules within or between the following items for the State Department of Education and the State Department of Social Services: Items 6100-001-0890, 5180-001-0890, and reimbursements. The aggregate amount of appropriation increases provided under this section during the fiscal year may not exceed the aggregate amount of appropriation decreases. This provision supports the continuity of care in the programs transitioned from the State Department of Education to the State Department of Social Services.
3.
Notwithstanding any other law, upon approval of the Department of Finance, expenditure and position authority may be transferred between schedules within or between the following items for the State Department of Education and the State Department of Social Services: Items 6100-001-0890, 5180-001-0890, and reimbursements. The aggregate amount of appropriation increases provided under this provision during the fiscal year may not exceed the aggregate amount of appropriation decreases. This provision supports the administration and implementation of the Summer Electronic Benefit Transfer program established pursuant to Section 1762 of Title 42 of the United States Code.
4.
Notwithstanding any other law, upon selection of the State of California, the Department of Finance may augment this item in Schedule (1) for future annual expenditure authority to expend funding awarded through the Preschool Development Grant, no sooner than 30 days after notification in writing is provided to the chairpersons of the fiscal committees in each house of the Legislature and the Chairperson of the Joint Legislative Budget Committee.
5.
The Department of Finance may increase expenditure authority in this item by up to $250,000 to comply with the federal able-bodied adults without dependents (ABAWD) time limit specified in Section 273.24 of Title 7 of the Code of Federal Regulations.
6.
Provision 14 of Item 5180-001-0001 also applies to this item.

SEC. 108.

 Item 5180-101-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
5180-101-0001—For local assistance, State Department of Social Services ........................

7,183,785,000
7,178,798,000
Schedule:
(1)
4270010-CalWORKs ........................

1,476,196,000
1,482,031,000
(2)
4270019-Other Assistance Payments ........................

738,160,000
774,660,000
(3)
4270020-Child Care ........................

5,009,629,000
4,962,307,000
(4)
Reimbursements to 4270010-CalWORKs ........................
0
(5)
Reimbursements to 4270019-Other Assistance Payments ........................
−40,200,000
Provisions:
1. (a)
Funds appropriated in this item shall not be encumbered unless every rule or regulation adopted and every all-county letter issued by the State Department of Social Services that adds to the costs of any program is approved by the Department of Finance as to the availability of funds before it becomes effective. In making the determination as to availability of funds to meet the expenditures of a rule, regulation, or all-county letter that would increase the costs of a program, the Department of Finance shall consider the amount of the proposed increase on an annualized basis, the effect the change would have on the expenditure limitations for the program set forth in this act, the extent to which the rule, regulation, or all-county letter constitutes a deviation from the premises under which the expenditure limitations were prepared, and any additional factors relating to the fiscal integrity of the program or the state’s fiscal situation.
(b)
Notwithstanding Sections 28.00 and 28.50, the availability of funds contained in this item for rules, regulations, or all-county letters that add to program costs funded from the General Fund in excess of $500,000 on an annual basis, including those that are the result of a federal regulation, but excluding those that are (1) specifically required as a result of the enactment of a federal or state law or (2) included in the appropriation made by this act, shall not be approved by the Department of Finance sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee, or sooner than such lesser time after notification as the chairperson of the joint committee, or the chairperson’s designee, may in each instance determine.
2.
Notwithstanding Chapter 1 (commencing with Section 18000) of Part 6 of Division 9 of the Welfare and Institutions Code, a loan not to exceed $1,485,361,000 shall be made available from the General Fund, from funds not otherwise appropriated, to: (a) cover the costs of a program or programs when the federal funds have not been received been delayed or funds in any subaccount within the Local Revenue Fund have not been deposited prior to the usual time for the state to transmit payment to the counties or (b) ensure cash disbursement needs in this item are met when abatements have not yet posted in time for disbursement. For this purpose, the Department of Finance may authorize an augmentation to this item to ensure cash disbursement requirements are met. This loan from the General Fund shall be repaid when the federal funds or the funds for any subaccounts within the Local Revenue Fund for the program or programs becomes available.
3.
The Department of Finance may authorize the transfer of amounts from this item to Item 5180-001-0001 in order to fund the costs of the administrative hearing process associated with the CalWORKs program.
4. (a)
The Department of Finance is authorized to approve expenditures in those amounts made necessary by changes in either caseload or payments, including, but not limited to, the timing of federal payments, or any rule or regulation adopted and any all-county letter issued as a result of the enactment of a federal or state law, the adoption of a federal regulation, or a court action, during the 2026–27 fiscal year that are within or in excess of amounts appropriated in this act for that year.
(b)
If the Department of Finance determines that the estimate of expenditures will exceed the expenditures authorized for this item, the department shall so report to the Legislature. At the time the report is made, the amount of the appropriation made in this item shall be increased by the amount of the excess unless and until otherwise provided by law.
5.
Nonfederal funds appropriated in this item which have been budgeted to meet the state’s Temporary Assistance for Needy Families maintenance-of-effort requirement established pursuant to the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Pub. L. 104-193 (Aug. 22, 1996) 110 Stat. 2105) shall not be expended in any way that would cause their disqualification as a federally allowable maintenance-of-effort expenditure.
6.
In the event of a declared disaster and upon county request, the State Department of Social Services may act in the place of any county and assume direct responsibility for the administration of eligibility and grant determination. The Department of Finance may authorize the transfer of funds from this item and Item 5180-101-0890 to Items 5180-001-0001 and 5180-001-0890, for this purpose.
7.
Pursuant to the Electronic Benefits Transfer (EBT) Act (Chapter 3 (commencing with Section 10065) of Part 1 of Division 9 of the Welfare and Institutions Code) and in accordance with the EBT System regulations (Manual of Policies and Procedures Section 16-401.15), in the event a county fails to reimburse the EBT contractor for settlement of EBT transactions made against the county’s cash assistance programs, the state is required to pay the contractor. The State Department of Social Services may use funds from this item to reimburse the EBT contractor for settlement on behalf of the county. The county shall be required to reimburse the department for the county’s settlement via direct payment or administrative offset.
8.
The Department of Finance is authorized to approve expenditures for the California Food Assistance Program in those amounts made necessary by changes in the CalFresh Program Standard Utility Allowance, including changes that result from midyear Standard Utility Allowance adjustments requested by the state and any adjustments necessary to maintain parity with federal program changes. If the Department of Finance determines that the estimate of expenditures will exceed the expenditure authority of this item, the department shall so report to the Legislature. At the time the report is made, the amount of the appropriation made in this item shall be increased by the amount of the excess unless and until otherwise provided by law.
9.
The Department of Finance is authorized to approve expenditures in excess of the amounts appropriated in Schedule (2), upon notification from the State Department of Social Services, to replenish the State Emergency Food Bank Reserve.
10.
Notwithstanding any other law, upon approval of the Department of Finance, expenditure authority may be transferred between schedules within or between the following items for the State Department of Education and the State Department of Social Services: Items 6100-194-0001, 5180-101-0001, and reimbursements. The aggregate amount of General Fund appropriation increases provided under this section during the fiscal year may not exceed the aggregate amount of General Fund appropriation decreases. This provision supports the continuity of care in the programs transitioned from the State Department of Education to the State Department of Social Services.
11.
Notwithstanding any other law, the Department of Finance may authorize a cash loan from the General Fund for cashflow purposes, in an amount not to exceed $20,000,000, under the following conditions:
(a)
The loan shall meet cash needs resulting from a delay in the receipt of reimbursements from the General Child Care and Development program (CCTR) funds.
(b)
The loan shall be used for a short-term need and shall be repaid within 90 days of the loan origination date.
(c)
Interest charges may be waived pursuant to Section 16314 of the Government Code.
12.

Of the funds appropriated in Schedule (3), $1,819,566,000 shall be allocated for Alternative Payment Program, General Child Care and Migrant Child Care slots to expand childcare access, with a priority for General Child Care and Development slots serving children who are 0 to 3 years of age. It is the intent of the Legislature that $199,000,000 of this amount be allocated for approximately 2,070 additional General Child Care and Development slots, effective April 1, 2027, and 20,700 additional Alternative Payment Program slots, effective October 1, 2026.

12. (a) Of the funds appropriated in Schedule (3), $1,860,993,000 shall be allocated for Alternative Payment Program, General Child Care and Migrant Child Care slots to expand childcare access, with a priority for General Child Care and Development slots serving children who are 0 to 3 years of age. It is the intent of the Legislature that $199,000,000 of this amount be allocated for approximately 2,070 additional General Child Care and Development slots, effective April 1, 2027, and approximately 20,700 additional Alternative Payment Program slots, effective October 1, 2026.
(b) Of the funds appropriated to expand General Child Care and Development slots in Schedule (3), the State Department of Social Services may use up to 15 percent for purposes consistent with Section 10245 of the Welfare and Institutions Code.
13.
Funds allocated for Resource and Referral, California Child Care Initiative, Quality Improvement, and Local Planning Councils shall be allocated to meet federal requirements to improve the quality of childcare and shall be used in accordance with the approved California State Plan for the federal Child Care and Development Fund that is developed pursuant to the requirements of Section 10211.5 of the Welfare and Institutions Code.
14.
Notwithstanding any other law, funds in accounts payable are available for alternative payment programs for actual and allowable costs incurred for additional services, pursuant to Section 10228.1 of the Welfare and Institutions Code. The State Department of Social Services shall give priority for the allocation of these funds for accounts payable.
15. (a) (1)
The State Department of Social Services shall conduct monthly analyses of CalWORKs Stage 2 and Stage 3 caseloads and expenditures and adjust agency contract maximum reimbursement amounts and allocations as necessary to ensure funds are distributed proportionally to need.
(2)
Notwithstanding any other law or any other provision of this act, the Department of Finance may augment the appropriation for CalWORKs Stage 3 if the estimate of expenditures, as determined by the Department of Finance, will exceed the expenditures authorized in Schedule (3). The Department of Finance shall report any augmentation pursuant to this paragraph to the Joint Legislative Budget Committee. At the time the report is made, the amount of the appropriation made in Schedule (3) shall be increased by the amount of the augmentation.
(3)
An augmentation may be authorized not sooner than 30 days after notification in writing of the necessity to exceed the limitations is provided to the Joint Legislative Budget Committee, or whatever lesser time the chairperson of the joint committee may determine. Any request made by the State Department of Social Services to augment the CalWORKs Stage 3 appropriation shall be approved only in order to cover increases in costs that are consistent with assumptions of this act. This provision shall not be construed to treat Stage 3 as an entitlement.
(b)
Notwithstanding any other law, the funds in Schedule (3) are reserved exclusively for continuing childcare for the following families:
(1)
Former CalWORKs families who are working, have left cash aid, and have exhausted their two-year eligibility for transitional services in either Stage 1 or Stage 2 pursuant to subdivision (c) of Section 10371 or Section 10372 of the Welfare and Institutions Code, respectively, but still meet eligibility requirements for receipt of subsidized childcare services.
(2)
Families who received lump-sum diversion payments or diversion services under Section 11266.5 of the Welfare and Institutions Code and have spent two years in Stage 2 off of cash aid, but still meet eligibility requirements for receipt of subsidized childcare services.
(c)
Notwithstanding any other law, each local planning council receiving funds appropriated in Schedule (3) shall meet the requirements of Section 10486 of the Welfare and Institutions Code to the extent feasible and to the extent data is readily accessible.
(d) (1)
Notwithstanding any other law, families shall be disenrolled from subsidized childcare services consistent with the priorities for services specified in subdivision (b) of Section 10271 of the Welfare and Institutions Code. Families shall be disenrolled in the following order:
(A)
Families with the highest income below 85 percent of the State Median Income (SMI) adjusted for family size.
(B)
Of families with the same income level, those that have been receiving childcare services for the longest period of time.
(C)
Of families with the same income level, those that have a child with exceptional needs.
(D)
Families with children who are receiving child protective services or are at risk of being neglected or abused, regardless of family income.
(2)
Notwithstanding any other law, the implementation of paragraph (1) of this subprovision is not subject to the appeal and resolution procedures for agencies that contract with the State Department of Social Services for the provision of childcare services or the due process requirements afforded to families that are denied services specified in Chapter 19 (commencing with Section 17906) of Division 1 of Title 5 of the California Code of Regulations.
(3)
The reimbursement for meals served in childcare centers and homes shall be $0.2203 per meal.
16.
Of the amount appropriated in Schedule (3), up to $9,145,000 shall be available for the child nutrition program state match for the program.
17.
The Department of Finance is authorized to approve expenditures in excess of the amounts appropriated in Schedule (3) for accounts payable, upon notification from the State Department of Social Services, to reimburse for actual and allowable costs incurred to Childcare and Development Programs, as defined in Section 10213.5 of the Welfare and Institutions Code.
18.
The Department of Finance may increase expenditure authority in this item for increased costs related to the reimbursement of stolen food and cash benefits.
20.
Of the amount appropriated in Schedule (3), up to $70,000,000 is available to alternative payment programs funded by the State Department of Social Services programs, including migrant alternative payment programs, pursuant to Chapter 3 (commencing with Section 10225) or 10225), Family Child Care Home Education Networks pursuant to Chapter 8 (Commencing with Section 10250), and Chapter 21 (commencing with Section 10370) of Part 1.8 of, and Chapter 2 (commencing with Section 11200) of Part 3 of, Division 9 of the Welfare and Institutions Code, to provide resources to alternative payment program agencies for administration and support costs associated with implementing ongoing provisions of the Memorandum of Understanding with Child Care Providers United. Notwithstanding any other law, the State Department of Social Services may provide written directives for the amount and manner of reimbursement for these costs and the manner of implementation. The State Department of Social Services shall allocate this $70,000,000 across each program described in this provision proportionally based on each program’s total contract amount.
21.
Upon approval by the Department of Finance, funds appropriated in Schedule (1) of this item for the CalWORKs Housing Support Program may be transferred to Item 5180-001-0001 for state operations.
22.
Upon approval of the Department of Finance, the amount in Schedule (3) may be increased as follows to restore the balances of the Child Care Providers United—​California (CCPU) funds within 90 days of receiving the annual report from CCPU detailing the distribution of funds from the prior year and any remaining balance, pursuant to the agreement entered into by the Governor and CCPU:
(a)
Up to $100,000,000 for the CCPU Workers Health Care Fund.
(b)
Up to $80,000,000 for the CCPU Retirement Trust.
(c)
Up to $15,000,000 for the CCPU Training Partnership Fund.
23.
Of the funds appropriated in Schedule (3), up to $192,000 shall be available for the Infrastructure Grant Program pursuant to Section 10310.1 of the Welfare and Institutions Code. These funds shall be available for encumbrance or expenditure until June 30, 2028.
24. Of the funds appropriated in this item, $100,000,000 shall be allocated on a one-time basis for the CalFood program and shall be available for encumbrance or expenditure until June 30, 2028. This amount combined with the $8,000,000 in the CalFood Program baseline budget totals $108,000,000 appropriated for the program in this act.
25. (a) Of the funds appropriated in Schedule (1), (2), $16,500,000 shall be available to the State Department of Social Services to provide allocations to the following organizations for diaper and wipe distribution to low income families with infants or toddlers;
(1) Community Action Partnership of Orange County
(2) Community Partnership of San Bernardino
(3) Central California Food Bank
(4) Help a Mother Out (located in the San Francisco Bay Area)
(5) Los Angeles Regional Food Bank
(6) Redwood Empire Food Bank
(7) Sacramento Food Bank and Family Services
(8) Jacobs and Cushman San Diego Food Bank
(9) Food Share Ventura County
(10) Second Harvest Food Bank of Santa Cruz
(11) Food Bank of Contra Costa and Solano
(b) The department shall determine the best method for allocation to ensure the funds are used for the purposes specified in this provision. Self-attestation by the receiving entity is an acceptable method of verification of the use of funds, if determined by the department.
(c) These funds shall be available for encumbrance or expenditure until June 30, 2027, 2028, and liquidation until June 30, 2029. 2030.
(d) Notwithstanding any other law, the department may provide the allocation as an advance lump sum payment.
(e) Notwithstanding any other law, allocations pursuant to this section are exempt from the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, from Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and the State Contracting Manual, and are not subject to the approval of the Department of General Services, including the requirements of Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of the Title 2 of the Government Code.
26. (a) Of the funds appropriated in this item, $20,000,000 shall be allocated on a one-time basis for CalFresh Fruit and Vegetable Electronic Benefit Transfer Pilot and shall be available for encumbrance or expenditure until June 30, 2028.
(b) Upon approval of the Department of Finance, up to five percent of funds appropriated in subprovision (a) may be transferred to Item 5180-001-0001 to implement and administer the CalFresh Fruit and Vegetable Electronic Benefit Transfer Pilot.

SEC. 109.

 Item 5180-101-0890 of Section 2.00 of the Budget Act of 2026 is amended to read:
5180-101-0890—For local assistance, State Department of Social Services, payable from the Federal Trust Fund ........................

7,166,140,000
7,140,466,000
Schedule:
(1)
4270010-CalWORKs ........................
3,022,209,000
(2)
4270019-Other Assistance Payments ........................
2,358,752,000
(3)
4270020-Child Care ........................

1,785,179,000
1,759,505,000
Provisions:
1.
Provisions 1, 4, 6, and 7 of Item 5180-101-0001 also apply to this item.
2.
The Department of Finance may authorize the transfer of amounts from this item to Item 5180-001-0890 in order to fund the costs of the administrative hearing process associated with the CalWORKs program.
3.
Upon request of the State Department of Social Services, the Department of Finance may increase or decrease the expenditure authority in this item to offset any increases or decreases in collections deposited in the Child Support Collections Recovery Fund and appropriated in Item 5180-101-8004. The Department of Finance shall provide notification of the adjustment to the Joint Legislative Budget Committee within 10 working days from the date of the department’s approval of the adjustment.
4.
Upon request by the Department of Finance, the Controller shall transfer funds between this item and Item 5180-151-0890 as needed to reflect the estimated expenditure amounts for counties receiving funds provided by the federal Families First Transition Act. The Department of Finance shall report to the Legislature the amount to be transferred pursuant to this provision. The transfer shall be authorized at the time the report is made.
5.
Notwithstanding any other law, upon approval of the Department of Finance, expenditure authority may be transferred between schedules within or between the following items for the State Department of Education and the State Department of Social Services: Items 6100-201-0890 and 5180-101-0890, and reimbursements. The aggregate amount of appropriation increases provided under this section during the fiscal year may not exceed the aggregate amount of appropriation decreases. This provision supports the continuity of care in the programs transitioned from the State Department of Education to the State Department of Social Services.
6. (a)
Funds shall be allocated to meet federal requirements to improve the quality of childcare and shall be used in accordance with the approved California state plan for the federal Child Care and Development Fund that is developed pursuant to the requirements of Section 10211.5 of the Welfare and Institutions Code.
(b)
Funds appropriated in this item shall not be expended to develop or support new information technology projects unless approved by the Department of Finance and not sooner than 30 days after notification to the chairperson of the Joint Legislative Budget Committee.

SEC. 110.

 Item 5180-111-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
5180-111-0001—For local assistance, State Department of Social Services ........................

16,504,293,000
16,498,929,000
Schedule:
(1)
4270028-SSI/SSP ........................
3,612,345,000
(2)
4275010-IHSS ........................

33,877,986,000
33,878,132,000
(3)
Reimbursements to 4275010-IHSS ........................

−20,986,038,000
−20,991,548,000
Provisions:
1.
Provisions 1 and 4 of Item 5180-101-0001 also apply to this item.
2.
Notwithstanding Chapter 1 (commencing with Section 18000) of Part 6 of Division 9 of the Welfare and Institutions Code, a loan not to exceed $2,000,000,000 shall be made available from the General Fund from funds not otherwise appropriated, to cover the federal share or reimbursable share, or both, of costs of a program or programs when the federal funds or reimbursements (from the Health Care Deposit Fund or counties) have not been received by this state prior to the usual time for transmitting payments for the federal or reimbursable share of costs for this state. That loan from the General Fund shall be repaid when the federal share of costs for the program or programs becomes available, or in the case of reimbursements, subject to Section 16351 of the Government Code. County reimbursements also shall be subject to Section 16314 of the Government Code, which specifies the rate of interest. The State Department of Social Services may offset a county’s share of cost of the In-Home Supportive Services (IHSS) program against local assistance payments made to the county if the county fails to reimburse its share of the cost of the IHSS program to the state.
3.
The Department of Finance may authorize the transfer of amounts from this item to Item 5180-001-0001 in order to fund the cost of the administrative hearing process associated with changes in aid or service payments in the IHSS program. The Department of Finance shall report to the Legislature the amount to be transferred pursuant to this provision. The transfer shall be authorized at the time the report is made.

SEC. 111.

 Item 5180-141-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
5180-141-0001—For local assistance, State Department of Social Services ........................

2,025,499,000
1,986,401,000
Schedule:
(1)
4270037-County Administration and Automation Projects ........................

2,225,378,000
2,186,280,000
(2)
Reimbursements to 4270037-County Administration and Automation Projects ........................
−199,879,000
Provisions:
1.
Notwithstanding Chapter 1 (commencing with Section 18000) of Part 6 of Division 9 of the Welfare and Institutions Code, a loan not to exceed $400,417,000 shall be made available from the General Fund, from funds not otherwise appropriated, to cover the federal or reimbursable share, or both, of costs of a program or programs when the federal funds or reimbursements have not been received by this are delayed to the state prior to the usual time for transmitting state payments for the federal or reimbursable share of costs. This loan from the General Fund shall be repaid when the federal share of costs or the reimbursements for the program or programs become available.
2.
In the event of a declared disaster and upon county request, the State Department of Social Services may act in the place of any county and assume direct responsibility for the administration of eligibility and grant determination. The Department of Finance may authorize the transfer of funds from this item and Item 5180-141-0890 to Items 5180-001-0001 and 5180-001-0890, for this purpose.
3.
Provision 1 of Item 5180-101-0001 also applies to this item.
4.
Pursuant to public assistance caseload estimates reflected in the annual Governor’s Budget, the Department of Finance may approve expenditures in those amounts made necessary by a court action or changes in caseload that are in excess of amounts appropriated in this act. If the Department of Finance determines that the estimate of expenditures will exceed the expenditures authorized for this item, the department shall so report to the Legislature. At the time the report is made, the amount of the appropriation made by this item shall be increased by the amount of the excess unless and until otherwise provided by law.
5.
Nonfederal funds appropriated in this item which have been budgeted to meet the state’s Temporary Assistance for Needy Families maintenance-of-effort requirement established pursuant to the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193) shall not be expended in any way that would cause their disqualification as a federally allowable maintenance-of-effort expenditure.
6.
This item may be increased by order of the Department of Finance to address system changes necessary to implement the requirements of the federal Patient Protection and Affordable Care Act (P.L. 111-148). The Director of Finance shall provide notification in writing to the Joint Legislative Budget Committee of any expenditure approved under this provision not less than 30 days prior to the effective date of the approval.
7.
The Department of Finance may increase expenditure authority in this item for the State Department of Social Services in order to fund the administrative costs to prepare for and respond to a declaration of a major disaster by the President of the United States and to maximize the amount of assistance requested and received through the federal Disaster Supplemental Nutrition Assistance Program and other federally funded nutrition assistance programs.
8.
The Department of Finance may increase expenditure authority in this item for the costs associated with an updated project schedule, clarified requirements, and negotiated vendor costs for the California Statewide Automated Welfare System project, upon notification from the Office of Systems Integration. Any such increase shall be authorized not less than 30 days following written notification to the Chairperson of the Joint Legislative Budget Committee, or a lesser period if requested by the department and approved by the chairperson or the chairperson’s designee.
9.
Of the amount appropriated in Schedule (1), up to $2,000,000 shall be available for the State Department of Social Services for the purpose of updating public benefit program forms, notices, or reports necessary to maintain compliance with federal regulation or state law.
10.
The Department of Finance may authorize the transfer of amounts in this item to Item 5180-001-0001 in order to fund the costs of administration and implementation of the SUN Bucks California program established pursuant to Section 1762 of Title 42 of the United States Code.
11.
The Department of Finance may increase expenditure authority in this item for increased costs related to the reimbursement of stolen food and cash benefits.
12. Notwithstanding any other law, upon request by the State Department of Social Services, the Department of Finance may adjust the expenditure authority in this item to support State Administrative Expenditures for the CalFresh program. The Department of Finance shall provide notification of the adjustment to the Joint Legislative Budget Committee within 10 working days from the date the Department of Finance approves the adjustment.
13. (a) Of the funds appropriated in Schedule (1), $179,774,000 is for the support of activities related to the Child Welfare Services-California Automated Response and Engagement System (CWS-CARES) project. Expenditure of these funds is contingent upon the CWS-CARES project receiving project continuation approval from the Department of Technology. This amount may be augmented from unspent appropriations and augmentation amounts authorized in prior years upon approval by the Department of Finance. In providing approval of any augmentation, the Department of Finance, in consultation with the Department of Technology, shall consider verified satisfactory progress toward milestones associated with the CWS-CARES Product Roadmap, product adoption, and the roadmap change management process. Satisfactory progress shall be defined as: (1) The completion of planned product milestones, including all planned data conversion, hardening, and testing without significant deviation from the baseline project cost, schedule, and scope in the most recent Special Project Report; (2) Incorporation of relevant end user feedback into product design, development, and implementation, to the extent possible, without significant increases in the total CWS-CARES project cost, schedule, and scope; (3) Demonstrable progress made towards user adoption that is consistent with the project’s strategic plan for user engagement, communication, and adoption, including clearly defined processes that measure and report on stakeholder engagements with the project (such as, for example, stakeholder impact assessments). Such an augmentation shall be aligned with planned project activities and shall not be used to increase total project costs. Any such augmentation shall be authorized no less than 30 calendar days following written notification to the Chairperson of the Joint Legislative Budget Committee, or a lesser period of time requested by the Department of Finance and approved by the Chairperson of the Joint Legislative Budget Committee, or the chairperson’s designee. The Department of Finance’s written notification shall include, at a minimum, its consideration of verified satisfactory progress as defined above.
(b) The Department of Finance may authorize the transfer of funds appropriated for the CWS-CARES project in Schedule (1) to Item 5180-001-0001 for project-related activities, including, but not limited to, necessary personal services expenditures, interagency agreements, and contracts.
(c) Of the amount appropriated in this item, $100,000 is available to fund reimbursements to Indian tribes, as defined in subdivision (a) of Section 224.1 of the Welfare and Institutions Code, or the tribe’s designee, for costs associated with participating with the State Department of Social Services to guide the development of an automated system used for Child Welfare Services. Notwithstanding any other law, the amount and manner of reimbursements shall be determined by the State Department of Social Services in written directives.
(d) The Department of Social Services, in coordination with the Department of Finance and the Office of Technology and Solutions Integration, shall provide written notification to the Joint Legislative Budget Committee, relevant fiscal and policy committee staff, and the Legislative Analyst’s Office if the scheduled implementation of any child welfare program changes will be delayed due to changes in the CWS-CARES project schedule. The Department of Social Services shall provide this written notification no later than 30 days after its determination that project schedule changes will delay program changes.
14. Of the amount appropriated in Schedule (1), up to $215,000,000 $223,000,000 shall be available for county administration of the CalFresh program and to support increased workload to help clients maintain access to CalFresh as a result of federal H.R. 1 (Public Law 119-21). to implement the time limit for Able Bodied Adults Without Dependents as a result of Public Law 119-21 and so that eligible people maintain access to CalFresh. Funds allocated pursuant to this provision shall be available for encumbrance or expenditure until June 30, 2029.
15. Of the amount appropriated in this item, $14,000,000 shall be used for the CalFresh Outreach Program and shall be available for encumbrance or expenditure until June 30, 2028.
16. Of the funds appropriated in this item, $5,000,000 shall be allocated on a one-time basis for the automation necessary to enable the policy changes in the California Food Assistance Program pursuant to statutory changes in Welfare and Institutions Code Sections 18930 and 18930.1 and shall be available for encumbrance or expenditure until June 30, 2028.
16. Of the amount appropriated in this item, $1,000,000 shall be available for Federal Children’s Savings Accounts Automation.

SEC. 112.

 Item 5180-141-0890 of Section 2.00 of the Budget Act of 2026 is amended to read:
5180-141-0890—For local assistance, State Department of Social Services, payable from the Federal Trust Fund ........................

1,442,931,000
1,428,671,000
Schedule:
(1)
4270037-County Administration and Automation Projects ........................

1,442,931,000
1,428,671,000
Provisions:
1.
Provisions 2, 4, 6, 7, 8, and 13 of Item 5180-141-0001 also apply to this item.
2.
Upon notification by the Department of Social Services, the Controller is authorized to transfer funds from this item to the CalFresh E&T Workers’ Compensation Fund in accordance with Section 18926.8 of the Welfare and Institutions Code. This provision also applies to Item 5180-141-0890 of the Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023) and Item 5180-141-0890 of the Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).
3. The Department of Finance may authorize the transfer of amounts from this item to Item 5180-001-0890 in order to fund the costs of the administrative hearing process associated with the CalWORKs program.
4. The Department of Finance may authorize the transfer of amounts in this item to Item 5180-001-0890 in order to fund the costs of administration and implementation of the SUN Bucks California program established pursuant to Section 1762 of Title 42 of the United States Code. This provision also applies to Item 5180-141-0890 of the Budget Act of 2025 (Chs. 4 and 5, Stats. 2025).
5. Of the amount appropriated in Schedule 1, up to $138,000,000 $142,794,000 shall be available for county administration of the CalFresh program and to support increased workload to help clients maintain access to CalFresh as a result of federal H.R. 1 (Public Law 119-21). Funds allocated pursuant to this provision shall be available for encumbrance or expenditure until June 30, 2029. to implement the time limit for Able Bodied Adults Without Dependents as a result of Public Law 119-21 and so that eligible people maintain access to CalFresh.

SEC. 113.

 Item 5180-151-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
5180-151-0001—For local assistance, State Department of Social Services ........................

884,792,000
875,747,000
Schedule:
(1)
4275019-Children and Adult Services and Licensing ........................

1,222,768,000
1,212,583,000
(2)
4275028-Special Programs ........................

286,492,000
306,032,000
(3)
Reimbursements to 4275019-Children and Adult Services and Licensing ........................

−614,468,000
−632,868,000
(4)
Reimbursements to 4275028-Special Programs ........................
−10,000,000
Provisions:
1.
Provision 1 of Item 5180-101-0001 also applies to this item.
2.
Notwithstanding Chapter 1 (commencing with Section 18000) of Part 6 of Division 9 of the Welfare and Institutions Code and pursuant to Section 30029.8 of the Government Code, a loan not to exceed $345,410,000 shall be made available from the General Fund, from funds not otherwise appropriated, to cover the federal share or reimbursable share, or both, of costs of a program or programs when the federal funds or reimbursements have not been received by the state prior to the usual time for transmitting state payments for the federal or reimbursable share of costs. The loan from the General Fund shall be repaid when the federal or reimbursable share of costs for the program or programs becomes available.
3.
The Department of Finance may authorize the establishment of positions and transfer of amounts from this item to Item 5180-001-0001, in order to allow the state to perform the facilities evaluation function of the Community Care Licensing Division in the event the counties fail to perform that function.
4.
Nonfederal funds appropriated in this item that have been budgeted to meet the state’s Temporary Assistance for Needy Families maintenance-of-effort requirement established pursuant to the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193) shall not be expended in any way that would cause their disqualification as a federally allowable maintenance-of-effort expenditure.
5.
The Department of Finance may authorize the establishment of positions and transfer of amounts from this item to Item 5180-001-0001 in order to allow the state to perform the adoptions function in the event that a county notifies the State Department of Social Services that it intends to cease performing that function.
6.
Funds appropriated in this item for the Commercially Sexually Exploited Children Program required by Chapter 5.2 (commencing with Section 16524.6) of Part 4 of Division 9 of the Welfare and Institutions Code shall be appropriately reduced by the Department of Finance to the extent any activities for which funding is included are also required by the federal Preventing Sex Trafficking and Strengthening Families Act (P.L. 113-183).
7.
Of the total amount appropriated in this item, up to $4,000,000 shall be available for a county-optional block grant program, for allocation to local agencies to fund activities the Commission on State Mandates identified as reimbursable state mandates in the Interagency Child Abuse and Neglect Investigation Reports (CSM-00-TC-22) mandate. A local agency that receives funding according to this item shall not be eligible to submit claims to the Controller for reimbursement under Section 17560 of the Government Code for any costs related to the reimbursable state-mandated activities identified in CSM-00-TC-22 incurred in the same fiscal year during which the local agency received funding according to this item. The State Department of Social Services, in consultation with the California State Association of Counties, shall develop an allocation methodology for the purpose of distributing these funds to participating counties. Block grant funding apportioned according to this item is subject to annual financial and compliance audits.
8.
Of the amount appropriated in this item, $7,000,000 shall be available for contracts under the authority of Chapter 5.6 (commencing with Section 13300) of Part 3 of Division 9 of the Welfare and Institutions Code with organizations qualified pursuant to that chapter, to provide legal services to persons on California State University campuses. Use of these funds shall be reported in updates provided to the Legislature on the State Department of Social Services’ immigration programs.
9. (a)
Of the funds appropriated in Schedule (1), $87,000 shall be available to eligible federally recognized Indian tribes or tribal agencies to purchase Live Scan machines and receive ongoing reimbursements for fingerprinting costs, other maintenance and operation items, or related activities necessary to enable the tribes or tribal agencies to complete background checks for the purpose of approving tribally approved homes for the placement of Indian children into foster or adoptive care pursuant to Section 10553.12 of the Welfare and Institutions Code.
(b)
The funding in subdivision (a) shall be available to the tribes or tribal agencies currently approved by the Department of Justice to receive state and federal level summary criminal history information pursuant to Section 11105.08 of the Penal Code.
(c)
Of the funding in subdivision (a), the amount that each tribe or tribal agency can utilize for the purposes specified in subdivision (a) will be determined in consultation with, and subject to review and approval by, the State Department of Social Services.
10.
Of the funds appropriated in Schedule (1), $18,146,000 shall be available to support enhanced care planning and assessment services, exceptional care and supervision needs for a child in a licensed setting, or other exceptional community, educational, or family supports that have been identified by a qualified individual or a child and family team, as necessary to meet the needs of a child in the least restrictive setting. The State Department of Social Services shall allocate funds through contracts with community-based providers or entities or through local assistance allocations to counties that support new or expanded programs, services, and practices that ensure the provision of the high-quality continuum of care that is designed to support foster children in the least restrictive setting, consistent with a child’s permanency plan.
11.
Of the funds appropriated in Schedule (1), $4,145,000 shall be available for the State Department of Social Services to provide funding to support legal counsel to represent an Indian tribe in California juvenile court proceedings contingent upon the enactment of statutory changes detailing objectives, implementation design and timelines, data collection, and outcome measurements for these activities.
12.
Of the funds appropriated in Schedule (1), $4,777,000 shall be available for the State Department of Social Services to provide financial assistance with recruiting and approving homes for the purpose of foster or adoptive placement of an Indian child contingent upon the enactment of statutory changes detailing objectives, implementation design and timelines, data collection, and outcome measurements for these activities. The department shall seek federal approvals or waivers necessary to claim federal reimbursement under Title IV-E of the federal Social Security Act (42 U.S.C. Sec. 670 et seq.) in order to maximize funding for the purpose described in this section.
13.
Of the amount appropriated in this item, $10,000,000 shall be available for legal services pursuant to Chapter 5.6 (commencing with Section 13300) of Part 3 of Division 9 of the Welfare and Institutions Code, for, but not limited to, unaccompanied undocumented minors and other minors in removal proceedings, and current or past beneficiaries of federal temporary protected status, to be allocated at the discretion of the State Department of Social Services. Use of these funds shall be reported in updates provided to the Legislature on the department’s immigration programs.
14.

Upon approval by the Department of Finance, funds appropriated in Schedule (1) and Schedule (2) of this item for the Home Safe, Bringing Families Home, and the Housing and Disability Income Advocacy Program may be transferred to Item 5180-001-0001 for state operations.

15. (a) Of the amount appropriated in Schedule (2), $35,500,000 shall be available for grants or contracts, and state operations, under the authority of Chapter 5.6 (commencing with Section 13300) of Part 3 of Division 9 of the Welfare and Institutions Code with organizations qualified pursuant to that chapter to provide immigration-related services, including removal defense. at least $20,000,000 for legal strategies that increase legal capacity for removal defense particularly for individuals in civil immigration detention. These funds shall be available for encumbrance or expenditure until June 30, 2028. 2029.
(b) Upon approval of the Department of Finance, funds made available pursuant to up to five percent of funds appropriated in subprovision (a) may be transferred to Item 5180-001-0001 to implement and administer immigration-related services.
16. Of the funds appropriated in this item, $15,000,000 shall be allocated on a one-time basis for the Children’s Holistic Immigration Representation Project and shall be available for encumbrance or expenditure until June 30, 2028.
17. Of the funds appropriated in this item, $5,000,000 shall be allocated on a one-time basis for the Black Immigrant and Refugee Equity Project. These funds shall be available for encumbrance or expenditure until June 30, 2028.
18. Of the funds appropriated in this item, $7,500,000 shall be allocated for the Immigration Legal Fellowship Project. These funds shall be available for encumbrance or expenditure until June 30, 2029.
19. Of the funds appropriated in this item, $5,000,000 shall be allocated on a one-time basis for an access to counsel pilot project to operate at immigration courts through an attorney of the day model; to expand community-based legal support through coordinated screening, referral, and legal assistance; and to expand access to habeas relief. These funds shall be available for encumbrance or expenditure until June 30, 2028.
16. (a) Of the funds appropriated in this item, $15,000,000 shall be allocated on a one-time basis for the Children’s Holistic Immigration Representation Project and shall be available for encumbrance or expenditure until June 30, 2029.
(b) Upon approval of the Department of Finance, up to five percent of funds appropriated in subprovision (a) may be transferred to Item 5180-001-0001 to implement and administer the Children’s Holistic Representation Project.
17. (a) Of the funds appropriated in this item, $5,000,000 shall be allocated on a one-time basis to improve outreach for immigration-related services to underserved populations. Funds shall be used in accordance with the operational and contracting authority provided under Chapter 5.6 (commencing with Section 13300) of Part 3 of Division 9 of the Welfare and Institutions Code. These funds shall be available for encumbrance or expenditure until June 30, 2029.
(b) Upon approval of the Department of Finance, up to five percent of funds appropriated in subprovision (a) may be transferred to Item 5180-001-0001 to implement and administer outreach for immigration-related services to underserved populations.
18. (a) Of the funds appropriated in this item, $7,500,000 shall be allocated for the Immigration Legal Fellowship Project to support sustainable, cost-effective fellowship strategies. Funds shall be used in accordance with the operational and contracting authority provided under Chapter 5.6 (commencing with Section 13300) of Part 3 of Division 9 of the Welfare and Institutions Code. These funds shall be available for encumbrance or expenditure until June 30, 2029.
(b) Upon approval of the Department of Finance, up to five percent of funds appropriated in subprovision (a) may be transferred to Item 5180-001-0001 to implement and administer the Immigration Legal Fellowship Project.
19. (a) Of the funds appropriated in this item, $5,000,000 shall be allocated on a one-time basis for an access to counsel pilot project, which may include but is not limited to services offered at immigration courts through an attorney of the day model; to expand community-based legal support through coordinated screening, referral, and legal assistance; and to expand access to habeas relief. Funds shall be used in accordance with the operational and contracting authority provided under Chapter 5.6 (commencing with Section 13300) of Part 3 Division 9 of the Welfare and Institutions Code. These funds shall be available for encumbrance or expenditure until June 30, 2029.
(b) Upon approval of the Department of Finance, up to five percent of funds appropriated in subprovision (a) may be transferred to Item 5180-001-0001 to implement and administer the access to counsel pilot project.
20. Of the funds appropriated in this item, $5,000,000 $10,000,000 shall be allocated on a one-time basis to the Coalition for Humane Immigrant Rights (CHIRLA) for immigration legal resources. resources, used in accordance with the operational and contracting authority provided under Chapter 5.6 (commencing with Section 13300) of Part 3 of Division 9 of the Welfare Institutions Code, and to support the Immigrant Welcome and Empowerment Center that will provide services to the public. These funds shall be available for encumbrance or expenditure until June 30, 2028.
21. (a) Of the funds appropriated in Schedule (1), $20,000,000 shall be available to counties for the purpose of maintaining and increasing the number of child welfare social workers in emergency response services. The funding shall be used by county child welfare agencies to enhance existing emergency response services to ensure timely emergency response by well-trained social workers to reports of child abuse, neglect, or exploitation with the goal of reducing entries into foster care where possible and appropriate, reducing the disproportionate representation of children of color entering foster care, promoting kin-based care, and strengthening families through connection to community-based resources. These funds shall be available for encumbrance or expenditure until June 30, 2028.
(b) The State Department of Social Services shall develop, in consultation with the County Welfare Directors Association of California, a method for allocation of these funds, which may take into account historical referral data and outcomes, including, but not limited to, caseloads, timeliness to completion of investigations, expenditures, and the use of established risk and safety assessments.
(c) The State Department of Social Services, in consultation with the County Welfare Directors Association of California, shall require an implementation plan and outcome report from the participating counties, which may be integrated into county system improvement plans required pursuant to Section 10601.2 of the Welfare and Institutions Code.
(d) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the State Department of Social Services may implement, interpret, or make specific this item, in whole or in part, by means of information notices or other similar instructions, without taking any further regulatory action.
22. Of the funds appropriated in this item, $5,000,000 shall be allocated on a one-time basis for the Immigrant Welcome and Empowerment Center, and shall be available for encumbrance or expenditure until June 30, 2028.
23. Of the funds appropriated in this item, $12,000,000 shall be allocated on a one-time basis for the Enhanced Services for Asylees and Vulnerable Noncitizens Program as established in Section 13650 of the Welfare and Institutions Code, and shall be available for encumbrance or expenditure until June 30, 2028.
24. Of the funds appropriated in this item, $10,000,000 shall be allocated on a one-time basis for the regional capacity-building in underserved communities, including the Central Coast, Central Valley, Inland Empire, Imperial Valley, and North State, and shall be available for encumbrance or expenditure until June 30, 2028.
23. (a) Of the funds appropriated in this item, $12,000,000 shall be allocated on a one-time basis for outreach, coordination, and services under the Enhanced Services for Asylees and Vulnerable Noncitizens Program as established in Section 13650 of the Welfare and Institutions Code, and shall be available for encumbrance or expenditure until June 30, 2029.
(b) Upon approval of the Department of Finance, up to 5 percent of funds appropriated in subprovision (a) may be transferred to Item 5180-001-0001 to implement and administer the Enhanced Services for Asylees and Vulnerable Noncitizens Program.
24. (a) Of the funds appropriated in this item, $10,000,000 shall be allocated on a one-time basis for the regional capacity-building in underserved communities, including the Central Coast, Central Valley, Inland Empire, Imperial Valley, and North State, and shall be available for encumbrance or expenditure until June 30, 2029. Funds shall be used in accordance with the operational and contracting authority provided under Chapter 5.6 (commencing with Section 13300) of Part 3 of Division 9 of the Welfare and Institutions Code.
(b) Upon approval of the Department of Finance, up to 5 percent of funds appropriated in subprovision (a) may be transferred to Item 5180-001-0001 to implement and administer the program.
25. Of the funds appropriated in this item, $25,000,000 shall be allocated on a one-time basis for the Housing and Disability Advocacy Program, and shall be available for encumbrance or expenditure until June 30, 2028. Upon order of the Department of Finance, up to five percent of the amount appropriated for the Housing and Disability Advocacy Program may be transferred to Item 5180-001-0001 for administrative costs for the program, including, but not limited to, the technical assistance and outcomes tracking referenced in Section 10618.8 of the Welfare and Institutions Code. Funds transferred to Item 5180-001-0001 shall also be available for encumbrance or expenditure until June 30, 2028. All funds expended towards the purposes described in Section 10618.8 of the Welfare and Institutions Code shall be subject to subdivision (f) of that section.
26. Of the funds appropriated in this item, $50,000,000 shall be allocated on a one-time basis for the Home Safe Program and shall be available for encumbrance or expenditure until June 30, 2028. Upon order of the Department of Finance, up to 5 percent of the amount appropriated for the Home Safe Program may be transferred to Item 5180-001-0001 for administrative costs for the program, including, but not limited to the technical assistance and outcomes tracking referenced in Section 10618.8 of the Welfare and Institutions Code. Funds transferred to Item 5180-001-0001 shall also be available for encumbrance or expenditure until June 30, 2028. All funds expended towards the purposes described in Section 10618.8 of the Welfare and Institutions Code shall be subject to subdivision (f) of that section.
27. Of the funds appropriated in this item, $25,000,000 $15,000,000 shall be allocated on a one-time basis for the Bringing Families Home Program, and shall be available for encumbrance or expenditure until June 30, 2028. Upon order of the Department of Finance, up to 5 percent of the amount appropriated for the Bringing Families Home Program may be transferred to Item 5180-001-0001 for administrative costs for the program, including, but not limited to the technical assistance and outcomes tracking referenced in Section 10618.8 of the Welfare and Institutions Code. Funds transferred to Item 5180-001-0001 shall also be available for encumbrance or expenditure until June 30, 2028. All funds expended towards the purposes described in Section 10618.8 of the Welfare and Institutions Code shall be subject to subdivision (f) of that section.
28. Of the funds appropriated in this item, a total of $30,000,000 shall be allocated on a one-time basis for the Stop the Hate Program, pursuant to statutory changes in Section 8260 of the Government Code. These funds shall be available for encumbrance or expenditure until June 30, 2028.
28. (a) Of the funds appropriated in this item, a total of $30,000,000 shall be allocated on a one-time basis for the Stop the Hate Program, pursuant to statutory changes in Section 8260 of the Government Code. These funds shall be available for encumbrance or expenditure until June 30, 2029.
(b) Upon approval of the Department of Finance, up to 7.6 percent of funds appropriated in subprovision (a) may be transferred to Item 5180-001-0001 to implement and administer the Stop the Hate Program. It is the intent of the Legislature to provide an adequate amount of administrative funding for this program while maximizing resources for qualified grantees. The Legislature does not intend to create a new precedent for administrative costs.
29. Of the funds appropriated in this item, $2,400,000 $2,215,000 shall be allocated on an on-going basis for the Tribal Foster Care Prevention Program Initiative to award grants to eligible tribes and tribal organizations to provide prevention services for children and families at risk of entering the foster care system, pursuant to statutory changes in Section 10553.16 of the Welfare and Institutions Code, and shall be available for encumbrance or expenditure until June 30, 2028.
30. Of the funds appropriated in this item, $12,000,000 shall be allocated in the 2026–27 fiscal year, $12,000,000 shall be allocated in the 2027–28 fiscal year, and $12,000,000 shall be allocated in the 2028–29 fiscal year, for the Holocaust Survivor Assistance Program, and shall be available for encumbrance or expenditure until June 30, 2028.
31. Of the funds appropriated in this item, $6,000,000 shall be allocated on a one-time basis for the Center Against Racism and Trauma (CART) to expand anti-racism programming and trauma-recovery resources in the Inland Empire. These funds shall be available for encumbrance or expenditure until June 30, 2028.
32. Of the funds appropriated in this item, $10,000,000 shall be allocated on a one-time basis for the CalWORKs Housing Support Program, and shall be available for encumbrance or expenditure until June 30, 2028. Upon order of the Department of Finance, up to five percent of the amount appropriated for the CalWORKs Housing Support Program may be transferred to Item 5180-001-0001 for administrative costs for the program, including, but not limited to, the technical assistance and outcomes tracking referenced in Section 10618.8 of the Welfare and Institutions Code. Funds transferred to Item 5180-001-0001 shall also be available for encumbrance or expenditure until June 30, 2028. All funds expended towards the purposes described in Section 10618.8 of the Welfare and Institutions Code shall be subject to subdivision (f) of that section.
33. Of the funds appropriated in this item, $4,000,000 shall be allocated on a one-time basis for Feeding San Diego.
34. Of the funds appropriated in this item, $710,000 shall be allocated on a one-time basis for Meals on Wheels San Diego County.
35. Of the funds appropriated in this item, $1,500,000 shall be allocated on a one-time basis for Every Day Action for infrastructure, vehicles, and operations.
36. Of the funds appropriated in this item, $1,330,000 shall be allocated on a one-time basis for San Diego Food Bank.
37. Of the funds appropriated in this item, $2,000,000 shall be allocated on a one-time basis for Centro La Familia for immigrant support services.
38. Of the funds appropriated in this item, $10,000,000 shall be allocated on a one-time basis to the Southern Central Coast Regional Network Hub for Immigrant Families. Funds shall be used in accordance with Chapter 5.6 (commencing with Section 13300) of Part 3 of Division 9 of the Welfare and Institutions Code.

SEC. 114.

 Item 5180-493 of Section 2.00 of the Budget Act of 2026 is amended to read:
5180-493—Reappropriation, State Department of Social Services. The balances of the appropriations provided amounts specified in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure until June 30, 2028, and may be used to support enhanced care planning and service navigation to access care in the least restrictive setting for adoptive children and their families to prevent reentry into the foster care system. Upon departmental approval of all final invoices and claims for the respective county allocation, including any claiming reconciliation as part of the closeout process, unspent balances available for this purpose shall be reported to the appropriate subcommittees in each house of the Legislature that consider the state budget. In the event the unspent balances do not reach a minimum of $5,000,000, the remainder shall be appropriated from this item. Up to $1,124,000 shall be transferred to Item 5180-001-0001 of this Budget Act for state operations expenditures and shall be available for encumbrance or expenditure until June 30, 2028.
0001—General Fund
(1) Subprovision (a) Up to $6,124,000 appropriated in subprovision (a) of Provision 32 of Item 5180-151-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021). 2021), as reappropriated by the Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022).
(2) Provision 13 of Item 5180-151-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(3) Provision 10 of Item 5180-151-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).

SEC. 115.

 Item 5180-494 is added to Section 2.00 of the Budget Act of 2026, to read:
5180-494—Reappropriation, State Department of Social Services. The balances of the appropriations provided in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure until June 30, 2028:
0001—General Fund
(1) Schedule (1) of Item 5180-101-0001, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025) for the CalWORKs Housing Support Program.

SEC. 116.

 Item 5225-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
5225-001-0001—For support of Department of Corrections and Rehabilitation ........................

8,469,301,000
8,559,950,000
Schedule:
(1)
4500-Corrections and Rehabilitation Administration ........................

645,629,000
720,629,000
(2)
4505-Peace Officer Selection and Employee Development ........................
132,609,000
(3)
4510-Department of Justice Legal Services ........................
74,032,000
(4)
4530-Adult Corrections and Rehabilitation Operations—​General Security ........................

5,175,556,000
5,184,780,000
(5)
4540-Adult Corrections and Rehabilitation Operations—​Inmate Support ........................
1,417,619,000
(6)
4550-Adult Corrections and Rehabilitation Operations—​Institution Administration ........................

647,436,000
647,683,000
(7)
4555-Parole Operations—​Adult Supervision ........................

348,096,000
354,274,000
(8)
4560-Parole Operations—​Adult Community-Based Programs ........................
102,862,000
(9)
4565-Parole Operations—​Adult Administration ........................
85,348,000
(10)
4570-Sex Offender Management Board and SARATSO Review Committee ........................
1,419,000
(11)
Reimbursements to 4500-Corrections and Rehabilitation Administration ........................
−4,812,000
(12)
Reimbursements to 4505-Peace Officer Selection and Employee Development ........................
−150,000
(13)
Reimbursements to 4530-Adult Corrections and Rehabilitation Operations—​General Security ........................
−65,918,000
(14)
Reimbursements to 4540-Adult Corrections and Rehabilitation Operations—​Inmate Support ........................
−68,911,000
(15)
Reimbursements to 4550-Adult Corrections and Rehabilitation Operations—​Institution Administration ........................
−19,999,000
(16)
Reimbursements to 4555-Parole Operations—​Adult Supervision ........................
−515,000
(17)
Reimbursements to 4560-Parole Operations—​Adult Community-Based Programs ........................
−500,000
(18)
Reimbursements to 4565-Parole Operations—​Adult Administration ........................
−500,000
Provisions:
1.
The Department of Corrections and Rehabilitation shall store all audio and video obtained through the statewide correctional video surveillance program for a period of no less than 90 days from the date recorded. Additionally, the following events shall require the department to preserve the recorded data for a longer period as potential evidence in an investigation, or an administrative, civil, or criminal proceeding:
(a)
Any use-of-force incident.
(b)
Riots.
(c)
Suspected felonious criminal activity.
(d)
Any incident resulting in serious bodily injury, great bodily injury, or a suspicious death.
(e)
Sexual assault allegations.
(f)
Allegations of staff misconduct by an incarcerated person, employee, visitor, or other person.
(g)
Incidents that may be potentially referred to the district attorney’s office.
(h)
An employee report to a supervisor of injury. The following events shall require staff to preserve the recorded data for a longer period if filed or reported within 90 days of the event:
(1)
Incarcerated person claims with the California Victim Compensation Board.
(2)
The Department of Corrections and Rehabilitation’s Office of Internal Affairs may request to review audio and video recordings when conducting an inquiry as it relates to a submitted third-level appeal.
An audio or video recording that becomes evidence in a Department of Corrections and Rehabilitation’s Office of Internal Affairs investigation shall be stored until resolution of any investigation and written release by the Office of Internal Affairs, Department of Corrections and Rehabilitation’s Office of Legal Affairs, the Attorney General, or the Employment Advocacy and Prosecution Team of the Office of Legal Affairs. An audio or video recording that the Department of Corrections and Rehabilitation has reason to believe may become evidence in an administrative, civil, or criminal proceeding shall be stored indefinitely unless other direction is given by the Office of Legal Affairs or, in the event of a criminal proceeding, the district attorney’s office.
2.
The Department of Corrections and Rehabilitation shall utilize video obtained through the statewide correctional video surveillance program during the review of staff complaints and other serious appeals and complaints.
3.
Of the amount appropriated in Schedules (4) and (5), $20,147,000 and $1,525,000 is available for the Integrated Substance Use Disorder Treatment Program, respectively. Any unencumbered balances of the amounts identified in this provision shall revert to the General Fund on June 30, 2027.
4.
The Department of Corrections and Rehabilitation shall report spending on class action lawsuits against the department to the budget committees of both houses of the Legislature and the Legislative Analyst’s Office by January 31 of each year. At a minimum, this report shall include spending for each lawsuit in the most recently completed fiscal year on all litigation activities, including, but not limited to, the costs of the department’s legal staff time, payments to outside counsel for legal services, and payments to plaintiffs, monitors, and court experts.
5.
The Department of Corrections and Rehabilitation shall submit an updated report to the chairpersons of the budget committees of both houses of the Legislature and the Joint Legislative Budget Committee by January 10 of each year until 2030, of the status of state-owned deactivated adult and juvenile correctional facility properties for evaluation. The report shall include an inventory of all deactivated facilities, a discussion of any functions the properties are currently serving, and projected timelines for declaring properties as surplus to the Department of General Services.
6.
Of the amount specified in Schedule (6) of this item, up to $19,999,000 is specified for the purpose of the Air Cooling Pilot Program and shall be available for encumbrance or expenditure until June 30, 2029.
(a)
On or before January 10, 2027, the Department of Corrections and Rehabilitation shall submit to the budget committees of each house, the Joint Legislative Budget Committee, and the Legislative Analyst’s Office a report on the following:
(1)
The department’s current capabilities and plans to collect statewide data on temperature in housing units as well as other areas of prisons that may also require cooling, such as kitchens.
(2)
For the Air Cooling Pilot Program housing units, the design type, existing air cooling infrastructure, if any, and number of days with indoor temperatures exceeding 90 degrees between November 1, 2025 and October 31, 2026.
(3)
The number of days in Stage 1, 2, and 3 heat alerts in the prior calendar year during the reporting period of November 1, 2025 through October 31, 2026, by institution.
(4)
A discussion of the steps taken or planned steps, such as conducting additional engineering studies, to identify cooling options for housing units not included in the pilot.
(5)
A discussion of policies or practices adopted or under consideration to mitigate the effects of indoor heat in the near term.
(b)
On or before January 10, 2031, the Department of Corrections and Rehabilitation shall submit to the budget committees of each house, the Joint Legislative Budget Committee, and the Legislative Analyst’s Office a report on the results of the pilot program and recommended statewide strategy for scaling air cooling in a timely and efficient manner. To the extent the strategy would involve deactivating housing units while air cooling is being installed, the report should discuss how the department would manage the impact to the prison population and employees. In addition, the report should include consideration of options to expedite installation.
7.

Schedule (1) of this item reflects an unallocated reduction of $75,000,000 for the 2026–27 fiscal year for the purposes of effectuating planned savings from various operational efficiencies across the Department of Corrections and Rehabilitation. To implement this plan, upon order of the Department of Finance, up to $75,000,000 may be transferred between schedules in this item and the Department of Finance may order that funds be transferred between this item and schedules within other items of appropriation for the Department of Corrections and Rehabilitation as follows: Items 5225-001-0001, 5225-002-0001, 5225-008-0001, 5225-009-0001, 5225-012-0001, 5225-014-0001, 5225-016-0001, 5225-025-0001, 5225-093-0001, 5225-094-0001, and 5225-101-0001. The aggregate appropriation adjustments allocated under this provision shall balance to $0. The Department of Finance shall notify the Joint Legislative Budget Committee 30 days prior to implementing any adjustments authorized under this provision. It is the intent of the Legislature that in effectuating these planned savings, no reductions shall be made, to the extent possible, to the level, quantity, or quality of rehabilitative and reentry programming, especially programs provided by community-based non-profit organizations, or of programs related to family connection, including phone calls and the frequency and duration of visitation. The administration shall first consider other reductions that do not otherwise violate a court order or jeopardize the health and safety of the staff, incarcerated persons, or the public. The Integrated Substance Use Disorder Treatment Program is not included in the category of rehabilitative or reentry programming for the purposes of this provision.

8.
The Department of Corrections and Rehabilitation shall provide copies of its regular status updates on implementing the Office of the Inspector General’s Natural Disaster Emergency Preparedness and Mitigation Efforts audits to the budget and policy committees of each house, the Joint Legislative Budget Committee, and the Legislative Analyst’s Office at the same intervals the updates are provided to the Office of the Inspector General.
9. Up to $4,623,000 of the amount appropriated in Schedule (1) and up to $536,000 of the amount appropriated in Schedule (6) is available for the Department of Corrections and Rehabilitation to implement the provisions of Chapter 681 of the Statutes of 2025 (AB 247). On a quarterly basis in 2026–27, the department shall submit implementation progress reports to the Department of Finance and to the relevant budget subcommittees of the Legislature in each house, the Joint Legislative Budget Committee, and the Legislative Analyst’s Office that describe, at a minimum, what steps the department took in the past quarter to implement the bill’s provisions, what steps the department plans to take in the upcoming quarter, and what obstacles remain for full implementation.
10. On or before January 10, 2027, the California Sex Offender Management Board and the State Authorized Risk Assessment Tools for Sex Offenders Review Committee shall provide a report to the relevant budget subcommittees of the Legislature in each house, the Joint Legislative Budget Committee, and the Legislative Analyst’s Office that describes how the board and committee could restructure their operations and fees, including by increasing fees above current statutory limits. The report shall, at a minimum, consider three funding plan options that, after accounting for any additional grant funds that could be obtained and cost reductions stemming from recently completed information technology projects, restructure fees so that the board and committee (1) require no ongoing General Fund support, (2) generate at least $450,000 in additional revenue annually, and (3) generate more revenue than the existing fee structure. The report shall also discuss what the effects on service levels or broader outcomes would be, if any, under each of the options considered.
11. In addition to prisons already identified for closure prior to the enactment of this act, the Department of Corrections and Rehabilitation shall select a prison for closure and notify the chairperson of the Joint Legislative Budget Committee of its choice no later than November 1, 2026. The department shall close the selected prison by the end of the 2027–28 fiscal year. The department shall not undertake facility improvements at any prison that is a candidate for closure. Notwithstanding the foregoing, the department may undertake facility improvements at prisons that are candidates for closure if either (1) those improvements are minor and necessary to continue operating the prison through 2027–28 or (2) are necessary to respond to serious health, life, or safety concerns and cannot be delayed until after November 1, 2026.
12. Beginning in 2027, the The Department of Corrections and Rehabilitation shall submit an annual a report on or before January 10 of each year 10, 2027, and annually thereafter, to the budget committees of each house and the Legislative Analyst’s Office on midyear spending, vacancies, and salary savings. The report shall include the following:
(a) An estimated projection of the amount of salary savings expected to materialize within the department in the current and upcoming fiscal years. fiscal year calculated from vacancies as of November 30.
(b) An estimated spending plan for how these projected salary savings are expected to be used.
(c) For each collective bargaining unit representing its employees, the following information: (1) the number of vacant and filled authorized civil service positions, (2) the number of vacant and filled authorized temporary positions, converted to full-time equivalents (FTEs), (3) contracted staff used to backfill positions in FTEs, and (4) overtime used to backfill positions in FTEs. The number of vacant and filled authorized positions by bargaining unit.
(d) A midyear An expenditure update comparing projected and authorized spending by program for the current fiscal year. year based on the latest available data.
(e) Actual data on the amount of salary savings accrued in the previous fiscal year and how it was spent. Amount of salary savings calculated from vacancies as of June 30 and categories for which the savings were used.
(f) A discussion of the assumptions and methodology that the department used to make its projections.The report should include the types of forecasting methods utilized to make projections.
13. The Department of Finance and the Department of Corrections and Rehabilitation shall provide quarterly written updates to the Legislature on the contract authorized by Provision 5 of Item 8860-001-0001, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025), as they relate to the Department of Corrections and Rehabilitation. These updates shall be submitted in writing no later than 15 calendar days after the end of each quarter of the fiscal year to the chairpersons of the committees and appropriate subcommittees of each house of the Legislature that consider the State Budget, the chairpersons of the committees in each house of the Legislature that consider appropriations, and the Chairperson of the Joint Legislative Budget Committee. Updates shall be provided on both the work of the contractor itself and on any projects in affected programs or departments initiated as a result of the contract. For each workstream designated in the contract, updates shall include: (1) the primary activities accomplished in the most recent quarter, (2) any significant changes in activities or timelines relative to the last quarterly report, and (3) an overview of planned activities and time lines for the upcoming quarter. The updates shall also include plans to achieve $100,000,000 in assumed future savings and a summary of all recommendations and areas explored as part of the contract, including recommendations not taken by the department. These quarterly updates shall continue throughout implementation of any projects initiated as a result of the contract.

SEC. 117.

 Item 5225-002-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
5225-002-0001—For support of Department of Corrections and Rehabilitation ........................
4,205,602,000
Schedule:
(1)
4650-Medical Services—​Adult ........................
2,773,677,000
(2)
4655-Dental Services—​Adult ........................
181,424,000
(3)
4660-Mental Health Services—​Adult ........................
763,286,000
(4)
4665-Ancillary Health Care Services—​Adult ........................
476,355,000
(5)
4670-Dental and Mental Health Services Administration—​Adult ........................
80,454,000
(6)
Reimbursements to 4650-Medical Services—​Adult ........................
−53,971,000
(6.5)
Reimbursements to 4660-Mental Health Services—​Adult ........................
−1,232,000
(7)
Reimbursements to 4665-Ancillary Health Care Services—​Adult ........................
−13,400,000
(8)
Reimbursements to 4670-Dental and Mental Health Services Administration—​Adult ........................
−991,000
Provisions:
1.
On February 14, 2006, the United States District Court in the case of Plata v. Newsom (No. C01-1351-JST) suspended the exercise by the Secretary of the Department of Corrections and Rehabilitation of all powers related to the administration, control, management, operation, and financing of the California prison medical health care system. The court ordered that all such powers vested in the Secretary of the Department of Corrections and Rehabilitation were to be performed by a Receiver appointed by the court commencing April 17, 2006, until further order of the court. The Undersecretary of Health Care Services of the Department of Corrections and Rehabilitation is to administer this item to the extent directed by the Receiver.
2.
Notwithstanding any other law, the Department of Corrections and Rehabilitation is not required to competitively bid for health services contracts in cases in which contracting experience or history indicates that only one qualified bid will be received.
3.
Notwithstanding Section 13324 of the Government Code or Section 32.00 of this act, a state employee shall not be held personally liable for any expenditure or the creation of any indebtedness in excess of the amounts appropriated therefor as a result of complying with the directions of the Receiver or orders of the United States District Court in Plata v. Newsom.
4.
The amounts appropriated in Schedules (1) and (4) are available for expenditure by the Receiver appointed by the Plata v. Newsom court to carry out its mission to deliver constitutionally adequate medical care to the incarcerated population.
5.
The amount appropriated in Schedule (2) is available for expenditure by the Department of Corrections and Rehabilitation to provide dental services. The amount appropriated in Schedule (5) is available for expenditure by the Department of Corrections and Rehabilitation, only to the extent related to the provision of dental services.
6.
Of the amounts appropriated in Schedules (1) and (4), $138,057,000 $131,265,000 and $70,241,000 $67,393,000 are available for the Integrated Substance Use Disorder Treatment Program, respectively. Any unencumbered balances of the amounts identified in this provision shall revert to the General Fund on June 30, 2027.
7.
The amount appropriated in Schedule (4) reflects a reduction of $10,315,000 based on estimated abatement amounts that will be received by the Department of Corrections and Rehabilitation from the Pharmaceutical Fiscal Intermediary. Notwithstanding any other law, upon order of the Department of Finance, the amount in Schedule (4) may be adjusted to align with actual or estimated abatement amounts that are received or projected to be received from the Pharmaceutical Fiscal Intermediary and to meet cashflow needs resulting from the delay in receipt of abatement amounts. To the extent an adjustment is made pursuant to this provision related to cashflow needs, the Department of Finance may order subsequent adjustments to the amount in Schedule (4) of this item consistent with receipt of abatement amounts.
8.
The Department of Corrections and Rehabilitation shall provide biannual reporting to the Legislature on abatements received and adjustments made pursuant to Provision 7 by July 31 and January 31 of each year, beginning July 31, 2025, through January 1, 2028.
9.

The Department of Corrections and Rehabilitation shall work in collaboration with other state agencies, community-based service providers, and other stakeholders as determined by the department, to develop a report focused on alternatives to incarceration for individuals who are advanced in age, disabled, or have significant medical needs. Alternatives may include identifying community correctional reentry centers, Medi-Cal offset possibilities, and the development of new community-based programs, among other alternatives as determined by the department. The report may also identify potential changes the department has or is considering to existing programs, such as the compassionate release, medical parole, and elderly parole programs, to the extent any changes are considered, and any limitations to changes considered. The alternatives shall address the growing number of incarcerated individuals who are advanced in age, disabled, or have significant medical needs. In evaluating the alternatives, the department shall assess the potential to reduce departmental costs, provide the appropriate treatment settings required, challenges faced, and recommendations for accompanying statutory or policy changes that would facilitate the alternatives explored. The department shall provide the report to the Legislature on or before March 1, 2026.

10.

The reports required by Provision 9 of this item shall be submitted to the Legislature pursuant to Section 9795 of the Government Code.

11.
The amount appropriated in Schedules (1) and (4) incorporates General Fund offsets of $5,000,000 and $6,000,000, $13,200,000, respectively, based on anticipated federal reimbursements for the California Advancing and Innovating Medi-Cal Justice Involved Initiative (CalAIM). Notwithstanding any other law, upon order of the Department of Finance, the amounts available in Schedules (1) and (4) of this item may be adjusted to align with actual or estimated reimbursement amounts under CalAIM.
12.
On August 27, 2025, the United States District Court in the case of Coleman v. Newsom (No. 2:90-cv-00520-KJM-SCR) suspended the exercise by the Secretary of the Department of Corrections and Rehabilitation of all powers related to the administration, control, management, operation, and financing of the California prison Mental Health Services Delivery System. The court ordered that all such powers vested in the Secretary of the Department of Corrections and Rehabilitation were to be performed by a Receiver appointed by the court commencing September 1, 2025, until further order of the court. The Undersecretary of Health Care Services of the Department of Corrections and Rehabilitation is to administer this item to the extent directed by the Receiver.
13.
Notwithstanding any other law, the Department of Corrections and Rehabilitation is not required to competitively bid for mental health care contracts in cases in which contracting experience or history indicates that only one qualified bid will be received.
14.
Notwithstanding Section 13324 of the Government Code or Section 32.00 of this act, a state employee shall not be held personally liable for any expenditure or the creation of any indebtedness in excess of the amounts appropriated therefor as a result of complying with the directions of the Receiver or orders of the United States District Court in Coleman v. Newsom.
15.
The amount appropriated in Schedule (3) is available for expenditure by the Receiver appointed by the Coleman v. Newsom court to carry out its mission to deliver constitutionally adequate mental health services to the incarcerated population, in accordance with the Amended Order Setting Out Powers and Duties of Receiver issued September 5, 2025 and as may be amended by the court.
16.
The amount appropriated in Schedule (5) is available, only to the extent related to the provision of mental health services, for expenditure by the Receiver appointed by the Coleman v. Newsom court to carry out its mission to deliver constitutionally adequate mental health services to the incarcerated population, in accordance with the Amended Order Setting Out Powers and Duties of Receiver issued September 5, 2025, and as may be amended by the court.
17. The Department of Corrections and Rehabilitation shall provide a report to the relevant budget subcommittees of the Legislature in each house, the Joint Legislative Budget Committee, and Legislative Analyst’s Office by January 10, 2028, on the impact of tele-mental health programs at state prisons. The report shall include (1) the impact of tele-mental health expansion on the recruitment of on-site staff; (2) an evaluation on whether the tele-mental health program has affected the department’s use of contract registry positions; (3) (2) an evaluation of the overall fiscal impacts of tele-mental health programs, including, but not limited to, the costs of additional equipment and staff positions; (4) and (3) a description of how the department allocates tele-mental health positions, including, but not limited to, what criteria or thresholds it uses to expand tele-mental health at a particular prison; and (5) a plan on how to more efficiently allocate tele-mental health positions. prison.
18. By November Beginning July 1, 2026, the Department of Corrections and Rehabilitation and the Office of the Coleman Receiver shall provide a report annually copies of Coleman quarterly reports, upon submittal to the Coleman court, to the relevant budget subcommittees of the Legislature in each house, the Joint Legislative Budget Committee, and Legislative Analyst’s Office on progress made towards implementing the Receiver’s Action Plan in the Coleman v. Newsom case, any challenges to implementation, and newly identified substantive deficiencies or changes to the plan. The report shall include a summary of the new resources made available to serve the mental health prison population, a summary of new initiatives, and outcomes and data on the effectiveness of new programs or resources. This report shall cover additional resources provided in this act, including, but not limited to: crisis intervention teams, resource teams, pay differentials and bonuses, and additional mental health staffing. For each of these new resources or programs, the department shall report relevant outcome data including, but not limited to, changes in vacancy rates; number of avoided referrals to higher levels of care; estimates of the savings generated; changes in violence, rules violation, suicide watch hours, rates of self-harm, or rates of suicide; and additional outcome data determined by the department and the Receiver to be relevant. Office.
19. The Department of Corrections and Rehabilitation shall provide a report no later than January 10, 2027, to the relevant budget subcommittees of the Legislature in each house, the Joint Legislative Budget Committee, and Legislative Analyst’s Office on the feasibility of consolidating high-need populations in order to consolidate and streamline service delivery and improve the ability to recruit and retain necessary civil service staff. This report shall focus on individuals who are advanced in age, disabled, or have significant medical or mental health needs. This report shall (1) identify trends in civil service medical and mental health vacancy rates by prison in the past 5 years; (2) consider whether the civil service medical and mental health care vacancy rates at each prison are temporary or affected by unique factors; (3) determine which facilities are consistently the easiest to recruit and retain civil service medical and mental health care staff; (4) provide feasible options as to how the state could consolidate the specified populations at prisons where it is easiest to recruit and retain civil service medical and mental health care staff; (5) consider what the security, rehabilitation, or other challenges would be of consolidating the specified populations at these prisons; (6) provide additional options for consolidating the specified populations that assume patients requiring in-person care are consolidated at prisons where it is easiest to recruit and retain in-person civil service providers while patients who can be treated by tele-health providers are housed elsewhere; and (7) estimate the cost of consolidating the specified populations and include any construction projects that may be necessary for each option. The report may include additional relevant information as determined by the department.
20. Of the amount appropriated in Schedule (1) of Item 5225-002-0001, up to $2,200,000 is available for the Department of Corrections and Rehabilitation to implement artificial intelligence notetaking capabilities for the department’s electronic health record system. On a quarterly basis in the 2026–27 fiscal year, the department shall submit implementation progress reports to the Department of Finance and to the relevant budget subcommittees of the Legislature in each house, the Joint Legislative Budget Committee, and Legislative Analyst’s Office, describing, at a minimum, what steps the department took in the past quarter to implement this change, what steps the department plans to take in the upcoming quarter, and what obstacles remain for full implementation. The department shall also report, by January 10, 2028, on (1) how often this new technology is being used; (2) efficiencies or improvements from this deployment, including estimated cost savings; (3) estimates of staff time saved from its use; and (4) deployment; and (3) policies in place to ensure that patients have consented to the use of artificial intelligence technology and to ensure the accuracy of the medical record.
21. The Department of Finance may augment this item by up to $1,232,000 for the Department of Corrections and Rehabilitation to implement behavioral health staff training programs in the event projected revenues to the Behavioral Health Services Fund are insufficient to support these expenditures. Any augmentation of this item shall be reported in writing to the chairpersons of the fiscal committees in each house of the Legislature and the Chairperson of the Joint Legislative Budget Committee within 10 days of the date the augmentation is approved.
22. The Department of Finance may augment this item by up to $991,000 for the Department of Corrections and Rehabilitation to implement mental health training and outreach programs in the event projected revenues to the Behavioral Health Services Fund are insufficient to support these expenditures. Any augmentation of this item shall be reported in writing to the chairpersons of the fiscal committees in each house of the Legislature and the Chairperson of the Joint Legislative Budget Committee within 10 days of the date the augmentation is approved.

SEC. 118.

 Item 5225-008-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
5225-008-0001—For support of Department of Corrections and Rehabilitation ........................

633,974,000
636,174,000
Schedule:
(1)
4560-Parole Operations—​Adult Community-Based Programs ........................
173,591,000
(2)
4585-Rehabilitative Programs—​Adult Education ........................

270,322,000
270,522,000
(3)
4590-Rehabilitative Programs—​Cognitive Behavioral Therapy and Reentry Services ........................

212,763,000
214,763,000
(4)
4600-Rehabilitative Programs—​Adult Administration ........................
30,085,000
(5)
Reimbursements to 4560-Parole Operations—​Adult Community-Based Programs  ........................
−44,583,000
(6)
Reimbursements to 4585-Rehabilitative Programs—​Adult Education ........................
−8,204,000
Provisions:
1.
The funds appropriated in this item shall be used only to support rehabilitation programs for incarcerated and supervised individuals. Any unencumbered funds at the end of the 2026–27 fiscal year shall revert to the General Fund on June 30, 2027.
2.
Of the amount appropriated in Schedule (3), $5,000,000 shall be provided for the California Reentry and Enrichment Grant Program to provide grants to community-based organizations that provide rehabilitative services to incarcerated individuals.
3.
Of the amount appropriated in Schedule (1) of this item, $12,900,000 is for support of the Returning Home Well program. The funding for this program shall not supplant existing funding for Specialized Treatment for Optimized Programming. Notwithstanding any other law, contracts or grants awarded or amended to support the Returning Home Well program are exempt from the Public Contract Code and the State Contracting Manual, and are not subject to the approval of the Department of General Services. Consistent with Provision 3 of Item 5225-008-0001, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), on or before March 1, 2026, the department shall provide the Legislature a report on the Returning Home Well program. The report shall include, for each quarter the program is in operation, a description of how the housing need was determined, how many individuals were released from prison to parole with an identified housing need, the number of unique participants served, the average number of days spent in the program, and the actual costs of the program. The report shall also include, for program participants, data on housing status after leaving the program, return to prison rates, reconviction rates, and arrest rates. The report may include additional relevant outcomes, metrics, or information as determined by the department.
4.
Of the amounts appropriated in Schedules (3) and (4), $54,633,000 and $738,000 are available for the Integrated Substance Use Disorder Treatment Program, respectively. Any unencumbered balances of the amounts identified in this provision shall revert to the General Fund on June 30, 2027.
5.
Of the amount appropriated in Schedule (3) of this item, $1,950,000 shall be available to transform and expand the Pine Grove Youth Conservation Camp in the County of Amador into a camp that also promotes rehabilitation and life skills. The amount identified in this provision shall be available to expand the Pine Grove Youth Conservation Camp in the County of Amador for additional qualifying participants, and for providing mental health care services, life skills support, peer-to-peer mentorship, life coaches, support groups based on cognitive-behavioral principles, prosocial peer support, and robust reentry preparation support, which includes, but is not limited to, connecting reentering members of society to housing, GED programs, higher education, and career development programs that lead to meaningful employment. The amount identified in this provision shall only be available to nongovernmental organizations that have experience working with formerly or currently incarcerated youth and young adults as well as reentry populations. These organizations shall also have experience providing career development services to formerly or currently incarcerated youth or young adults.
6.
The Department of Corrections and Rehabilitation shall provide an annual report to the Legislature, on or before January 10 of each year, related to expansion of community correctional reentry centers as defined in Chapter 9.5 (commencing with Section 6250) of Title 7 of Part 3 of the Penal Code, including funds expended, additional capacity planned and achieved, and challenges to expansion. The report shall also include a plan to introduce annual cost-of-living adjustments into future contracts to operationally and financially sustain existing community correctional reentry facilities.
7.
It is the intent of the Legislature that the Department of Corrections and Rehabilitation maximize Medi-Cal reimbursements whenever possible. On or before January 10, 2027, the Department of Corrections and Rehabilitation shall submit a report on the status and steps taken pursuant to the plan submitted to the Legislature in response to Provision 10 of Item 5225-008-0001 of the Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), to leverage Medi-Cal, where possible, for Specialized Treatment for Optimized Programming (STOP) services. The report shall provide a status update on the approach outlined in the plan, including monitoring direct referrals to Medi-Cal services for STOP participants. This report shall be submitted to the budget committees of each house, the Joint Legislative Budget Committee, and the Legislative Analyst’s Office.
8. Of the amount appropriated in this item, $2,000,000 shall be available to support organized sports programming in the Department of Corrections and Rehabilitation institutions upon enactment of legislation.

SEC. 119.

 Item 5225-017-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
5225-017-0001—For support of Department of Corrections and Rehabilitation ........................
20,000,000
Schedule:
(1) 4590-Rehabilitative Programs-Cognitive Behavioral Therapy and Reentry Services ........................ 20,000,000
Provisions:
1. The funds appropriated in this item shall be available for state operations or local assistance, and shall be used to establish the Rehabilitative Investment Grants for Healing and Transformation (RIGHT) Grant 4.0 to support community-based, nonprofit organizations for the purpose of delivering trauma-informed, rehabilitative, and restorative justice programming in California prisons. RIGHT Grant 4.0 funds shall not be used for the provision of college educational programming. This funding may be used to sustain or expand currently existing programs. To the extent the organizations seek to utilize funds to provide a new program in institutions where the program is not currently offered, or to significantly expand a currently existing program, the organization must receive approval from the warden of the applicable institution. This funding shall be allocated by the Department of Corrections and Rehabilitation to each organization that meets the following requirements: (1) the organization is in good standing as a 501(c)(3) nonprofit community-based organization or is a nonprofit community-based organization that is fiscally sponsored by a fiscal agent with nonprofit status, (2) the organization has a preexisting record of providing in-prison rehabilitative programming within the department during at least two of the five years preceding their application, and (3) the organization is providing an existing rehabilitative program. Fiscal agents may receive multiple full grants on behalf of multiple fiscally sponsored organizations. The department shall post the notice by October 1, 2026, and applications shall be submitted within 60 days from the date posted. Following receipt of applications, the department shall determine eligibility and provide notice to organizations regarding their eligibility determination within 90 days. In all cases where a program is determined to not meet the eligibility requirements, the department shall offer a 30-day window in which the organization may resubmit their proposed program for a possible later determination of eligibility. After this 30-day period, the department shall then issue grant funds to eligible grantees within 90 days.
2. Individual grant amounts shall be subject to the total number of qualifying applications that are received by the Department of Corrections and Rehabilitation.
3. No more than 3 percent of the amount appropriated in this item may be used by the Department of Corrections and Rehabilitation to administer this grant.
4. Qualifying organizations shall be awarded grants based on their current organizational budget, or the average budget of the last two years, whichever is greater, as follows:
(a) Organizations with budgets under $250,000 shall be awarded one qualifying point.
(b) Organizations with budgets between $250,000 and $500,000, inclusive, shall be awarded two qualifying points.
(c) Organizations with budgets above $500,000 shall be awarded three qualifying points.
5. Priority shall be given in underserved institutions, including women’s institutions, as follows: organizations applying to provide existing programs in underserved institutions may be awarded an additional one-half point. The Department of Corrections and Rehabilitation shall provide a list of underserved institutions defined by a lack of community-based programming services available relative to other institutions. Priority shall also be given to programs serving special populations, including women’s prisons, restricted housing units, and enhanced outpatient programs/mental health crisis beds, and programs offered in languages other than English, as follows: organizations applying to provide programs to these special populations may be awarded an additional one-half point. The department shall provide a list of special population locations, which shall include women’s prisons, in the Request for Funding (RFP). No more than two half-points (totaling one additional point) may be awarded to an organization.
6. The total funding available shall be divided by the total points awarded to all applicants as specified above, resulting in a dollar amount for each point. Each qualifying organization shall then receive the value of the total points that organization was awarded based on the size of their annual budget and additional proposed programming options. All of the funds available shall be distributed based on this system.
7. The funds appropriated in this item are available for encumbrance and expenditure until December 1, 2029. Each grant recipient shall submit to the Department of Corrections and Rehabilitation a report that details the expenditures of their grant, including a summary of how the resources enhanced their ability to deliver in-prison programming, by December 1, 2030. The department may require of all funded organizations an annual report detailing the use of the funds by each recipient.
8. The Department of Corrections and Rehabilitation shall submit a report to the budget committees of each house of the Legislature no later than April 1, 2029, 2031, detailing how the funds for the RIGHT Grant 4.0 program were distributed and how they were spent by recipients. The report shall include copies of all reports submitted by all organizations receiving RIGHT Grant 4.0 funds.

SEC. 120.

 Item 5227-122-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
5227-122-0001—For local assistance, Board of State and Community Corrections ........................
15,000,000
Schedule:
(1) 4945-Corrections Planning and Grant Programs ........................ 15,000,000
Provisions:
1. These funds shall be awarded by the Board of State and Community Corrections as competitive grants to federally recognized Indian tribes in California to support efforts to identify, collect case-level data, publicize, and investigate and solve cases involving missing and murdered indigenous people. The Board shall consult with and include stakeholders from the indigenous community to inform the grant outreach process and the process to select and administer grants.
2. Grants should focus on activities including, but not limited to, developing culturally based prevention strategies, strengthening responses to human trafficking, and improving cooperation and communication on jurisdictional issues between state, local, federal, and tribal law enforcement to investigate and solve cases involving missing and murdered indigenous people. Allowable expenditures may include reimbursement to eligible tribes for contracted services with local law enforcement agencies for staffing in support of eligible grant activities.
3. Of the amount identified in this item, up to 5 percent shall be available for transfer to Item 5227-001-0001 for administrative costs. Funds transferred pursuant to this provision are available for encumbrance or expenditure until June 30, 2032.
4. Funds appropriated in this item are available for encumbrance or expenditure until June 30, 2032.
5. The Board of State and Community Corrections shall provide a report to the relevant policy and fiscal committees of the Legislature by December 31, 2031, no later than 120 days after the end of a grant cycle that includes, but is not limited to, information about the grant recipients, the allocation of funds, and applicable metrics and outcomes of the program.

SEC. 121.

 Item 6051-001-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
6051-001-0001—For Support of Office of the Superintendent of Public Instruction ........................
1,511,000
Schedule:
(1) 5185-Office of the Superintendent ........................ 1,511,000

SEC. 122.

 Item 6100-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6100-001-0001—For support of State Department of Education ........................

121,032,000
120,580,000
Schedule:
(1)
5205010-Curriculum Services ........................

86,600,000
86,023,000
(1.5)
5210048-After School Programs ........................
1,604,000
(2)
5210066-Special Program Support ........................

42,138,000
42,263,000
(3)
9900100-Administration ........................
60,447,000
(4)
9900200-Administration—​Distributed ........................
−60,447,000
(5)
Reimbursements to 5205010-Curriculum Services ........................
−8,341,000
(6)
Reimbursements to 5210066-Special Program Support ........................
−969,000
Provisions:
1.
Notwithstanding Section 33190 of the Education Code or any other law, the State Department of Education shall not expend funds to prepare a statewide summary of pupil performance on school district proficiency assessments or a compilation of information on private schools with five or fewer pupils.
2.
Funds appropriated in this item may be expended or encumbered to make one or more payments under a personal services contract of a visiting educator pursuant to Section 19050.8 of the Government Code, a long-term special consultant services contract, or an employment contract between an entity that is not a state agency and a person who is under the direct or daily supervision of a state agency, only if all of the following conditions are met:
(a)
The person providing service under the contract provides full financial disclosure to the Fair Political Practices Commission in accordance with the rules and regulations of the commission.
(b)
The service provided under the contract does not result in the displacement of any represented civil service employee.
(c)
The rate of compensation for salary and health benefits for the person providing service under the contract does not exceed by more than 10 percent the current rate of compensation for salary and health benefits determined by the Department of Human Resources for civil service personnel in a comparable position. The payment of any other compensation or any reimbursement for travel or per diem expenses shall be in accordance with the State Administrative Manual and the rules and regulations of the California Victim Compensation Board.
3.
The funds appropriated in this item shall not be expended for the development or dissemination of program advisories, including, but not limited to, program advisories on the subject areas of reading, writing, and mathematics, unless explicitly authorized by the State Board of Education.
4.
Of the funds appropriated in this item, $206,000 shall be available as matching funds for the Department of Corrections and Rehabilitation to provide coordinated services to disabled pupils.
5.
By October 31 of each year, the State Department of Education shall provide to the Department of Finance a file of all charter school average daily attendance (ADA) and state and local revenue associated with charter school general purpose entitlements as part of the P2 Local Control Funding Formula File. By March 1 of each year, the State Department of Education shall provide to the Department of Finance a file of all charter school ADA and state and local revenue associated with charter school general purpose entitlements as part of the P1 Local Control Funding Formula File. It is the expectation that such reports will be provided annually.
6.
On or before April 15 of each year, the State Department of Education shall provide to the Department of Finance an electronic file that includes complete district- and county-level state appropriations limit information reported to the State Department of Education. The State Department of Education shall make every effort to ensure that all districts have submitted the necessary information requested on the relevant reporting forms.
7.
The State Department of Education shall make information available to the Department of Finance, the Legislative Analyst’s Office, and the budget committees of each house of the Legislature by October 31, March 31, and May 31 of each year regarding the amount of Proposition 98 savings estimated to be available for reversion by June 30 of that year.
8.
Reimbursement expenditures pursuant to this item resulting from the imposition by the State Department of Education of a commercial copyright fee shall not be expended sooner than 30 days after the State Department of Education submits to the Department of Finance a legal opinion affirming the authority to impose such fees and the arguments supporting that position against any objections or legal challenges to the fee filed with the State Department of Education. Any funds received pursuant to imposition of a commercial copyright fee may only be expended as necessary for outside counsel contingent on a certification of the Superintendent of Public Instruction that sufficient expertise is not available within departmental legal staff. The State Department of Education shall not expend greater than $300,000 for such purposes without first notifying the Department of Finance of the necessity therefor, and upon receiving approval in writing.
9.
Of the funds appropriated in this item, up to $1,011,000 is available for dispute resolution services, including mediation and fair hearing services, provided through contract for special education programs.
10.
Of the reimbursement funds appropriated in this item, at least $612,000 is provided to the State Department of Education for the oversight of State Board of Education-authorized charter schools. The Department of Finance may administratively establish up to 2.0 positions for this purpose as workload materializes.
11.
Of the funds appropriated in this item, at least $109,000 shall be for 1.0 position within the State Department of Education to support activities associated with the Clean Energy Job Creation Fund.
12.
Of the amount appropriated in this item, at least $852,000 and 6.0 positions are provided to support the Local Control Funding Formula administration pursuant to Chapter 47 of the Statutes of 2013. These funds and positions shall be used by the State Department of Education to support the apportionment of, and fiscal oversight of, funding pursuant to the Local Control Funding Formula.
13.
Of the funds appropriated in this item, at least $115,000 and 1.0 position shall be available for the State Department of Education to support activities associated with charter school appeals as required under subdivision (k) of Section 47605 of the Education Code.
14.
Of the funds appropriated in this item, at least $1,140,000 and 8.0 positions are provided to support the implementation of the Local Control Funding Formula accountability system pursuant to Chapter 47 of the Statutes of 2013.
15.
Of the funds appropriated in this item, at least $120,000 and 1.0 permanent position are provided to support implementation of the Local Control Funding Formula, such as providing unduplicated pupil counts, matching foster data received from the State Department of Social Services, and meeting foster youth reporting requirements.
16.
Of the funds appropriated in this item, $271,000 and 2.0 positions are provided to continue the development and maintenance of the state and federal accountability systems.
17.
Of the funds appropriated in this item, $129,000 is provided to support 1.0 existing position for workload associated with school district reorganizations.
18.
Of the funds appropriated in this item, $108,000 is provided to support 1.0 existing position to assist local educational agencies applying for a universal meal service program, pursuant to Chapter 724 of the Statutes of 2017.
19.
Of the funds appropriated in this item, $128,000 is provided to support 1.0 existing position to complete additional education equity compliance reviews, pursuant to Chapter 493 of the Statutes of 2017.
20.
Of the funds appropriated in Schedule (1), $252,000 shall be used to support the development and maintenance of a computer-based English Language Proficiency Assessment for California (ELPAC) and a computer-based alternative ELPAC for students with disabilities.
21.
Of the funds appropriated in this item, $257,000 is provided to support 2.0 existing positions for the coordination of a centralized Uniform Complaint Procedures process and database to improve the administration and resolution of Uniform Complaint Procedures complaints and appeals received by the State Department of Education; to standardize Uniform Complaint Procedures policies, procedures, and templates departmentwide; and to provide a report by January 31 of each year with a summary of the number of days for completion of appeals by complaint type and program area, including the rationale for complaints that exceeded 60 days.
23.
Of the funds appropriated in this item, $600,000 is provided to support 2.0 existing positions and workload related to school-based comprehensive sexual health education.
24.
Of the funds appropriated in this item, $105,000 and 1.0 position are to support increases in emergency average daily attendance waiver requests.
25.
Of the funds appropriated in this item, $452,000 is provided for 3.0 positions to support compliance workload within the State Department of Education’s Special Education Division.
26.
Of the funds appropriated in this item, at least $275,000 and 2.0 positions are provided to support the Career Technical Education Incentive Grant Program and the K–12 component of the Strong Workforce Program. Availability of these funds is contingent upon the State Department of Education fully supporting no fewer than 6.0 full-time regional program consultants in agricultural career technical education in the Agricultural Education Unit of the Career and College Transition Division using federal Perkins V Act funding. If the State Department of Education is unable to support at least 6.0 full-time regional program consultants in agricultural career technical education with federal Perkins V Act funding, $142,000 and 1.0 position provided in this item to support the Career Technical Education Incentive Grant Program and the K–12 component of the Strong Workforce Program shall be redirected for that purpose. As a condition of receiving this funding, the State Department of Education shall make information available to the Department of Finance, the Legislative Analyst’s Office, and the budget committees of each house of the Legislature by October 31 of each fiscal year regarding the split of the federal Perkins V Act funding between the State Department of Education and the Chancellor’s Office of the California Community Colleges. This information shall include, but is not limited to, the maximum set-asides allowable for state administration and state leadership activities, the minimum amount required for local program distribution, as well as a breakdown of how the State Department of Education is utilizing the funds in each category.
27.
Of the funds appropriated in this item, $303,000 is provided to support 2.0 positions for the joint interagency resolution team and foster youth coordinated services pursuant to Chapter 815 of the Statutes of 2018.
28.
Of the funds appropriated in this item, $77,000 is provided to support 0.5 existing position to update existing, and develop new, resources and strategies, and in-service teacher training to support lesbian, gay, bisexual, transgender, queer, and questioning students, pursuant to Chapter 775 of the Statutes of 2019.
29.
Of the funds appropriated in this item, $77,000 is provided to support 1.0 position to provide appropriate language access in American Sign Language.
30.
Of the funds appropriated in this item, $696,000 and 3.0 positions are available for the department to collect data to track the implementation of the changes for charter school petitions and renewals, pursuant to Chapter 486 of the Statutes of 2019.
31.
Of the amount provided in this item, $192,000 reimbursements are provided on an ongoing basis to support the administration of the California High School Proficiency Examination.
32.
Of the funds appropriated in this item, $264,000 and 2.0 positions are provided to establish a state education disaster team to support activities related to disaster planning, preparedness, and response for schools as part of California’s Disaster Preparedness, Response, and Recovery efforts.
33.
Of the amount appropriated in this item, $336,000 and 3.0 positions are available to support new ongoing workload for the School Fiscal Services Division related to deferrals and average daily attendance changes pursuant to Chapter 24 of the Statutes of 2020.
34.
Of the amount appropriated in this item, $136,000 and 1.0 position are provided to support workload related to creating a school emergency reporting system.
35.
Of the amount appropriated in this item, $12,598,000 is provided to support 52.8 existing positions in the Nutrition Services Division, and 30.0 positions in the Early Education Division to support remaining early learning workload after the transition of childcare programs to the State Department of Social Services.
36.
Of the funds appropriated in this item, $376,000 and 3.0 positions are provided to support increased workload in the accounting office.
38.
Of the funds appropriated in Schedule (1), $3,403,000 is provided to support existing authorized administrative positions.
39.
Of the funds appropriated in Schedule (2), $2,960,000 is provided to support existing authorized administrative positions.
40.
Of the funds appropriated in Schedule (1), $700,000 is provided to support 5.0 new positions and 1.0 existing position for the State Department of Education to establish the Office of School-Based Health.
41.
Of the funds appropriated in this item, $250,000 and 1.0 permanent position are provided to establish the California Computer Science Coordinator. The coordinator shall provide statewide coordination in implementing the computer science content standards developed pursuant to Section 60605.4 of the Education Code and lead the implementation of the computer science strategic implementation plan adopted by the State Board of Education.
42.
Of the funds appropriated in Schedule (2), $425,000 and 2.5 positions are available to support workload associated with expanded Transitional Kindergarten programs.
43.
Of the funds appropriated in Schedule (2), $437,000 and 3.0 positions are available to support early learning workload in the Child Development and Nutrition Fiscal Services Division.
44.
Of the funds appropriated in Schedule (2), $1,670,000 and 3.0 positions are available to support early learning workload in the Early Education Division.
45.
Of the funds appropriated in Schedule (2), $2,583,000 and 11.7 positions are provided to support early learning workload.
46.
Of the funds appropriated in Schedule (1), $143,000 and 1.0 position are available for a Medi-Cal billing coordinator to serve as a liaison with the State Department of Health Care Services, stakeholders, and others with respect to Medi-Cal billing options, the school-based Medi-Cal Administrative Activities Program, and medically necessary federal Early and Periodic Screening, Diagnostic, and Treatment Benefits.
47.
Of the funds appropriated in Schedule (1), $467,000 and 4.0 positions are provided for the School Fiscal Services Division to support workload related to state apportionment calculations, review of average daily attendance waivers, technical assistance, and implementation of grant programs.
48.
Of the amount appropriated in this item, $1,653,000 and 14.0 positions are provided for the Expanded Learning Division to provide students in classroom-based instructional programs with access to comprehensive after school and intersessional expanded learning opportunities.
49.
Of the funds appropriated in this item, $130,000 and 1.0 position are provided to support implementation of the Standardized Account Code Structure web-based application.
50.
Of the amount appropriated in this item, at least $286,000 and 2.0 positions are provided to support professional development programs, including, but not limited to, the National Board Certification Incentive Grant, the Educator Effectiveness Block Grant, Professional Development on Social Emotional Learning and Trauma Informed Practices, Professional Development for Reading Instruction and Intervention, Training for Youth Mental and Behavioral Health, and other teacher professional development.
51.
Of the funds appropriated in this item, $286,000 and 2.0 positions are provided to support the implementation of the universal school meals program.
52.
Of the funds appropriated in this item, $561,000 and 4.0 positions are provided to the School Fiscal Services Division for work related to the Expanded Learning and Transitional Kindergarten Programs.
53.
Of the funds appropriated in this item, $425,000 and 3.0 positions are provided for additional new formula-driven program implementation.
54.
Of the funds appropriated in this item, $155,000 and 1.0 position are provided to the Technology Services Division for Transitional Kindergarten average daily attendance data collection.
55.
Of the funds appropriated in this item, $742,000 and 5.0 positions are provided to support the Community Schools Partnership Grant Program.
56.
Of the funds appropriated in this item, $143,000 and 1.0 position are provided to support the California Healthy Kids Survey and social-emotional learning professional development.
57.
Of the funds appropriated in this item, $143,000 and 1.0 position are provided for the Early Education Division to address increased workload in the California State Preschool Program.
58.
Of the funds appropriated in this item, $130,000 and 1.0 position are provided for the Fiscal and Administrative Services Division to address increased workload in the California State Preschool Program.
61.
Of the funds appropriated in Schedule (1), $201,000 is provided for 2.0 positions in the Office of School Transportation.
62.
Of the funds appropriated in Schedule (1), $161,000 and 1.0 position are provided to support the Supporting Inclusive Practices Grant.
63.
Of the funds appropriated in Schedule (1), $690,000 and 5.0 positions are provided to improve transitions from Part C Early Intervention Services to Part B Special Education Services.
64.
Of the funds appropriated in Schedule (1), $266,000 and 2.0 positions are available to support increased departmental information technology needs and workload.
65.
Of the funds appropriated in Schedule (1), $2,681,000 is provided in the 2025–26 fiscal year to continue supporting departmental information security infrastructure. Of this amount, $2,632,000 and 6.0 positions are provided on an ongoing basis to support replacement of aging hardware, maintaining already implemented cybersecurity technical capabilities, and implementing the remaining cybersecurity technical capabilities to achieve full compliance with the Department of Technology’s Cal-Secure Information Security Roadmap.
66.
Of the funds appropriated in Schedule (1), $1,702,000 and 9.0 positions are provided to support implementation and ongoing workload for the Cradle-to-Career Data System.
69.
Of the funds appropriated in Schedule (1), $383,000 and 3.0 positions are provided to the Budget Management Office to effectively support new and expanded programs and address increased workload due to FI$Cal implementation.
70.
Of the amount appropriated in this item, $159,000 and 1.0 position are provided to coordinate improved access to early intervention services for children prior to entering kindergarten.
71.
Of the amount appropriated in this item, $458,000 and 3.0 positions are provided to support the implementation of Chapter 498 of the Statutes of 2021 (AB 1363).
72.
Of the amount appropriated in this item, $633,000 and 4.0 positions are provided for the programmatic monitoring of the California State Preschool Program.
73.
Of the amount appropriated in this item, $119,000 and 1.0 position are appropriated for the fiscal monitoring of the California State Preschool Program.
74.
Of the amount appropriated in this item, $436,000 and 2.5 positions are provided to support the implementation of Universal Transitional Kindergarten.
75.
Of the funds appropriated in this item, $90,000 and 0.5 position are provided to support fiscal compliance monitoring reviews of program funds.
76.
Of the funds appropriated in this item, $122,000 and 1.0 position are provided to support fund reconciliation workload.
77.
Of the funds appropriated in this item, 1.0 position is provided to support an increase in legal workload related to new and expanded programs including Universal Transitional Kindergarten and the California State Preschool Program.
78.
Of the funds appropriated in this item, $167,000 is provided for Zoom licenses to host webinars and online meetings.
81.
Of the funds appropriated in this item, $350,000 and 2.0 positions are provided to support increased workload related to operating the information technology systems used by the State Department of Education’s early education programs.
82.
Of the funds appropriated in this item, $276,000 and 2.0 positions are provided to incorporate early identification for learning disabilities into the State Department of Education’s preschool assessment tools, and to provide training for educators on effective use of those tools.
83.
Of the funds appropriated in this item, $612,000 and 4.0 positions are provided to support increased workload related to administering the Inclusive Early Education Expansion Program.
84.
Of the funds appropriated in this item, $769,000 and 5.0 positions are provided to support increased workload related to revising California State Preschool Program policies.
85.
Of the funds appropriated in this item, $356,000 and 2.5 positions are provided to support workload associated with expanded Transitional Kindergarten programs.
87.
Of the amount provided in this item, $75,000 reimbursements is provided through the 2026–27 fiscal year for state operations support of Fresno Unified School District in facilitation of grant funds from the Wallace Foundation.
88.
Of the funds appropriated in this item, $161,000 and 1.0 position are provided to support the development and expansion of California Science Test (CAST) and the California Alternate Assessment (CAA) for Science within the Assessment Development and Administration Division.
89.
Of the funds appropriated in this item, $161,000 and 1.0 position are provided to support the development and expansion of English Language Proficiency Assessments for California (ELPAC) and the California Spanish Assessment (CSA) within the Assessment Development and Administration Division.
90.
Of the funds appropriated in this item, $140,000 is provided through June 30, 2027, to provide technical assistance and support to local educational agencies in hiring and training literacy coaches and reading specialists through the Literacy Coaches and Reading Specialists Grant Program, pursuant to Chapter 52 of the Statutes of 2022.
92.
Of the funds appropriated in Schedule (1), $1,069,000 and 8.0 positions are provided to the School Fiscal Services Division for workload related to the Local Control Funding Formula declining enrollment protection proposal, AB 602 Special Education formula changes, and other fiscal-related workload for new programs.
93.
Of the funds appropriated in Schedule (1), $250,000 is available to the Superintendent of Public Instruction for fiscal oversight of county offices of education and the seven school districts in the state that share the same governing board as their county office of education for the services of a fiscal expert or adviser pursuant to Section 1630 of the Education Code or to compensate members of a Budget Review Committee established pursuant to Education Code Sections 1623 or 42127.1. The State Department of Education shall notify and receive approval from the Director of Finance in advance of retaining the services of a fiscal expert or fiscal adviser.
94.
Of the funds appropriated in this item, $150,000 and 1.0 position are provided to the School Health and Safety Office to support LGBTQ+ initiatives and best practices.
95.
Of the funds appropriated in Schedule (1), $160,000 is provided for Education Commission of the States membership dues.
96.
Of the funds appropriated in Schedule (1), $1,232,000 and 8.0 positions are provided to the Analysis, Measurement, and Accountability Reporting Division to establish a Data Science Office for the purposes of collecting new one-time or short-term data, providing contextual analysis to measure priority initiatives and programs, and providing timely data and information directly to policymakers including the State Board of Education and the Joint Legislative Budget Committee within 30 days.
97.
Of the funds appropriated in this item, $910,000 is available on a one-time basis in the 2026–27 fiscal year, for the State Department of Education to contract with a vendor to provide direct deposit to State Preschool contractors, beginning November 1, 2023. Contracts awarded pursuant to this provision shall allow for advance payment, and the department is hereby authorized to provide advance payment in order to implement direct deposit to State Preschool contractors. Contracts awarded pursuant to this provision shall be exempt from the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code. For purposes of this provision, the department is exempt from the requirements of Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code and from the requirements of Article 6 (commencing with Section 999) of Chapter 6 of Division 4 of the Military and Veterans Code.
101.
Of the funds appropriated in Schedule (2), $152,000 and 1.0 position are provided to support workload associated with the Quality Rating and Improvement System (QRIS) Block Grant.
102.
Of the funds appropriated in Schedule (2), $645,000 and 3.0 positions are provided to support workload related to implementing Classroom Assessments Scoring System (CLASS) for all California State Preschool Program (CSPP) providers.
103.
Of the funds appropriated in Schedule (2), $740,000 and 5.0 positions are provided to support workload associated with implementing the requirements of Chapter 915 of the Statutes of 2022 which revised provisions related to the suspension and expulsion of children from the CSPP and increased the requirements for early childhood mental health consultation services.
104.
Of the funds appropriated in Schedule (2), $3,932,000 and 9.0 positions are provided to support workload associated with collecting student and teacher level data from California State Preschool Programs (CSPPs) that are operated by a local educational agency pursuant to Chapter 901 of the Statutes of 2022.
105.
Of the funds provided in Schedule (2), $449,000 is provided in the 2024–25 fiscal year and 3.0 positions, and $164,000 ongoing to support the development of the Whole Child Equity Framework and the Whole Child Community Equity Screening Tool, pursuant to Chapter 699 of the Statutes of 2022.
106.
Of the funds appropriated in this item, $138,000 and 1.0 position are provided to the Office of School Transportation for the data processing workload associated with the Home-to-School Transportation program.
107.
Of the funds appropriated in this item, $164,000 General Fund and 1.0 position are provided to the School Fiscal Services Division for the additional data processing workload associated with the Home-to-School Transportation program.
108.
Of the funds appropriated in this item, $1,316,000 and 7.0 positions are provided to support improved Teacher Assignment Monitoring Outcomes data collection and reporting through the California Longitudinal Pupil Achievement Data System and partnership with the Commission on Teacher Credentialing and the California Statewide Assignment Accountability System.
109.
Of the funds appropriated in this item, $300,000 and 2.0 positions are provided to the Analysis, Measurement and Accountability Reporting Division for workload related to the California School Dashboard state indicator data and the timelines associated with the collection of data through the California Longitudinal Pupil Achievement Data System.
110.
Of the funds appropriated in Schedule (1), $524,000 and 3.0 positions are provided to the School Fiscal Services and Curriculum Frameworks and Instruction Resources Divisions, for workload related to the implementation of Proposition 28, and schoolsite level data collection workload related to the equity multiplier allocation.
111.
Of the funds appropriated in Schedule (1), $380,000 is available on an ongoing basis for warranty support for network equipment and to upgrade server software at the State Special Schools and Diagnostic Centers.
113.
Of the funds appropriated in Schedule (5), $152,000 is provided to support the State Department of Education’s Broadband Coordinator position.
114.
Of the amount appropriated in Schedule (1), $321,000 and 2.0 positions are available to support new ongoing workload associated with the implementation of Chapter 342 of the Statutes of 2023.
115.
Of the amount appropriated in Schedule (1), $392,000 and 2.0 positions are available to support new ongoing workload associated with the implementation of Chapter 229 of the Statutes of 2023.
116.
Of the amount appropriated in Schedule (2), 1.0 position, and $182,000 ongoing are provided to support new ongoing workload associated with the implementation of Chapter 435 of the Statutes of 2023.
117.
Of the amount appropriated in Schedule (1), $164,000 and 1.0 position is available to support the statewide implementation of the English Learner Roadmap Policy pursuant to Chapter 946 of the Statutes of 2024.
118.
Of the funds appropriated in Schedule (1), $538,000 and 3.0 positions are available to the School Fiscal Services Division to facilitate migration to the new Principal Apportionment Application, ongoing maintenance, operation, and programming updates.
119.
Of the funds appropriated in Schedule (1), $1,408,000 and 9.0 positions are available to support the development of an updated Form J-90 and associated data collection, pursuant to Chapter 345 of the Statutes of 2024, in the 2026–27 fiscal year. $1,239,000 and 8.0 positions shall be available for this purpose in the 2027–28 fiscal year, and ongoing.
120.
Of the amount appropriated in Schedule (1), $141,000 and 1.0 position are available to support ongoing workload associated with the District of Choice program.
121.
Of the amount appropriated in Schedule (2), $385,000 is available to support the Summer Electronic Benefits Transfer Program.
122.
Of the funds appropriated in Schedule (2), $1,092,000 and 8.0 positions are available to support the California State Preschool Program in the 2025–26 fiscal year and ongoing.
123.
Of the amount appropriated in Schedule (2), $294,000 and 1.0 position are available in fiscal year 2026–27, $817,000 and 4.5 positions are available in 2027–28, $885,000 and 5.0 positions are available in 2028–29, and $1,017,000 and 6.0 positions are available in 2029–30 and ongoing to support the implementation of the Real Food, Healthy Kids Act of 2025 (Chapter 467, Statutes of 2025).
124.
Of the amount appropriated in Schedule (1), $316,000 and 1.0 position are available in fiscal year 2026–27 through 2028–29, and $184,000 and 1.0 position are available in 2029–30 and ongoing to support local educational agencies in identifying multilingual learners in transitional kindergarten by using a screening instrument as required by Section 48004 of the Education Code.
125.
Of the funds appropriated in Schedule (1), $251,000 is provided in fiscal year 2025–26 and $1,117,000 and 4.0 positions are provided in fiscal year 2026–27 and ongoing to support new workload associated with the implementation of Chapters 428 and 429 of the Statutes of 2025.
126.
Of the funds appropriated in Schedule (1), $1,264,000 is provided in fiscal year 2026–27 to support the replacement of the State Department of Education’s Computer Room Air Conditioning and Uninterruptible Power Supply systems.
127. Of the funds appropriated in Schedule (2), $552,000 is available for the Technology Services Division to support implementation of the single reimbursement rate structure for the California State Preschool Program in the 2026–27 fiscal year and ongoing.
128. Of the funds appropriated in Schedule (2), $910,000 is available each fiscal year beginning 2026–27 to 2028–29, inclusive, for the State Department of Education to obtain the services of the Office of State Audits and Evaluations within the Department of Finance to provide support for California State Preschool Program audits. Unexpended funds shall be made available in each of the following fiscal years by the Office of State Audits and Evaluations within the Department of Finance in support of California State Preschool Program audits.
129. Of the funds appropriated in Schedule (1), $178,000 and 1.0 position is provided to support the State Department of Education’s increased oversight responsibilities of all county offices of education, including single-district counties.
130. Of the funds appropriated in Schedule (1), $850,000 is provided in the 2026–27 fiscal year and ongoing to support increasing salary costs for state employees working on the federal Title I, Part A program.
131. Of the funds appropriated in Schedule (1), $934,000 is provided in the 2026–27 fiscal year, and $1,868,000 is provided in the 2027–28 fiscal year and future fiscal years to support State Board of Education positions that shifted to the State Department of Education.

SEC. 123.

 Item 6100-001-6093 is added to Section 2.00 of the Budget Act of 2026, to read:
6100-001-6093—For support of State Department of Education, payable from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund ........................
1,050,000
Schedule:
(1) 5205010-Curriculum Services ........................ 1,050,000
Provisions:
1. Funds appropriated in this item are available for encumbrance or expenditure until June 30, 2028, contingent upon the enactment of Assembly Bill 1486 introduced in the 2025–26 Regular Session.

SEC. 124.

 Item 6100-009-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6100-009-0001—For support of State Department of Education ........................

5,535,000
4,601,000
Schedule:
(1)
5220-State Board of Education ........................

5,535,000
4,601,000
Provisions:
1.
The funds appropriated in this item shall be available for support of the State Board of Education and shall be directed to meet the policy priorities of its members.
2.
Of the amount appropriated in this item, $572,000 $286,000 and 3.0 positions are to support the continued implementation of the Local Control Funding Formula, as authorized by Section 115 of Chapter 47 of the Statutes of 2013 (Assembly Bill 97 of the 2013–14 Regular Session), including statewide system of support, accountability, special education reforms, support for English learners, professional development, educator preparation, and distance learning.
3.
Of the amount appropriated in this item, $1,296,000 $648,000 and 6.0 positions are provided to lead and coordinate efforts of the administration to respond to the impacts of health emergencies and other natural disasters on K–12 schools, provide guidance to the State Department of Education in the implementation of new and continuing legislative education initiatives, and act as a liaison between the administration and the public, other local, state, and federal agencies, and the Legislature on acute and ongoing issues in public education.

SEC. 125.

 Item 6100-101-6093 is added to Section 2.00 of the Budget Act of 2026, to read:
6100-101-6093—For local assistance, State Department of Education, payable from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund ........................
13,838,000
Schedule:
(1) 5205223—Supplemental Grants ........................ 13,838,000
Provisions:
1. The funds appropriated in this item are available to the State Department of Education, in consultation with the Department of Food and Agriculture, for grants to public postsecondary educational institutions that are designated as Agricultural Experiment Stations or Agricultural Research Institutes, to develop research farms to improve climate resiliency.
2. Funds appropriated in this item shall be available for encumbrance or expenditure until June 30, 2028, and liquidation until June 30, 2031, and are available contingent upon the enactment of Assembly Bill 1486 of the 2025–26 Regular Session.

SEC. 126.

 Item 6100-104-0890 of Section 2.00 of the Budget Act of 2026 is amended to read:
6100-104-0890—For local assistance, State Department of Education, payable from the Federal Trust Fund ........................

1,100,000
1,140,000
Schedule:
(1)
5205025-Project AWARE Grant ........................

1,100,000
1,140,000
Provisions:
1.
Of the funds appropriated in Schedule (1), $1,100,000 is available to support Project Cal-Well.
2. Of the funds appropriated in Schedule (1), $40,000 in federal carryover is provided on a one-time basis to support the existing Project Cal-Well program.

SEC. 127.

 Item 6100-110-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6100-110-0001—For local assistance, State Department of Education (Proposition 98), Expanded Learning Opportunities Program ........................

4,669,186,000
4,672,910,000
Schedule:
(1)
5200010-School Apportionment ........................

4,669,186,000
4,672,910,000
Provisions:
1.
The funds appropriated in this item shall be allocated to school districts and charter schools to increase access to comprehensive before school or after school and intersessional expanded learning opportunities, in addition to expanded learning opportunities on non-school days pursuant to Section 46120 of the Education Code.

SEC. 128.

 Item 6100-115-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
6100-115-0001—For local assistance, State Department of Education (Proposition 98), Community Schools Apportionment Program ........................
1,000,000,000
Schedule:
(1) 5200236-Community Schools Apportionment Program ........................ 1,000,000,000
Provisions:
1. The funds appropriated in this item shall be allocated to local educational agencies to implement community schools models pursuant to Section 8903 of the Education Code.
2. It is the intent of the Legislature that, of the funds appropriated in this item, $20,000,000 shall be allocated on an annual basis beginning in the 2030–31 fiscal year to county offices of education to coordinate county-level governmental, nonprofit community-based organizations, and other external partnerships to support community school implementation in their county pursuant to Section 8903 of the Education Code.

SEC. 129.

 Item 6100-142-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
6100-142-0001—For local assistance, State Department of Education (Proposition 98), Sacramento County Office of Education, for support of the Reading Difficulties Screener ........................
5,000,000
Schedule:
(1) 5200220-Dyslexia Research and Training ........................ 5,000,000
Provisions:
1. Funds appropriated in Schedule (1) of this item shall be allocated to the Sacramento County Office of Education for the University of California, San Francisco Dyslexia Center to support the reading difficulties screening tool for pupils in kindergarten and grades 1 and 2 and for research and development of the tool for use in multiple languages.
2. Indirect costs may not be applied to any contract entered into using funds provided in Schedule (1) of this item.
3. The funding provided in Schedule (1) of this item shall be contingent upon the reading difficulties screening tool remaining free to local educational agencies for administration to pupils in kindergarten and grades 1 and 2.
4. It is the intent of the Legislature that, beginning in the 2027–28 fiscal year, $5,000,000 from the General Fund (Proposition 98) be shifted from Schedule (2) of Item 6100-172-0001 to Schedule (1) of this item on an ongoing basis.

SEC. 130.

 Item 6100-161-0890 of Section 2.00 of the Budget Act of 2026 is amended to read:
6100-161-0890—For local assistance, State Department of Education, payable from the Federal Trust Fund, Special Education Programs for Exceptional Children ........................

1,443,970,000
1,455,434,000
Schedule:
(1)
5200203-Local Agency Entitlements, IDEA Special Education ........................

1,320,685,000
1,330,698,000
(2)
5200209-State Level Activities, IDEA Special Education ........................
79,747,000
(3)
5200211-Preschool Grant Program, IDEA Special Education ........................

42,152,000
43,603,000
(4)
5200213-State Improvement Grant, IDEA Special Education ........................
0
(5)
5200215-Family Empowerment Centers, IDEA Special Education ........................
1,386,000
(6)
5205231-Supplemental Grants: Newborn Hearing Screening Grants ........................
0
Provisions:
1.
In accordance with federal law, the funds appropriated in Schedule (1) shall be distributed to local and state agencies on the basis of the federal Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.) permanent formula.
2.
Of the funds appropriated in Schedule (2), up to $1,950,000 shall be used to develop and test procedures, materials, and training for alternative dispute resolution in special education.
3.
Of the funds appropriated in Schedule (3) for the Preschool Grant Program, $1,228,000 shall be used for in-service training and shall include a parent training component and may, in addition, include a staff training program. These funds may be used to provide training in alternative dispute resolution and the local mediation of disputes. This program shall include state sponsored and local components.
4.
The resources that were available for local assistance grants to monitor local educational agency compliance with state and federal laws and regulations governing special education and the Supporting Inclusive Practices Grant are in Schedule (1) of Item 6100-161-0001.
5.
The resources available for the purposes of supporting Family Empowerment Centers on Disability pursuant to Chapter 4.3 (commencing with Section 56400) of Part 30 of Division 4 of Title 2 of the Education Code are in Schedule (1) of Item 6100-161-0001.
6.
Of the funds appropriated in Schedule (2), $69,000,000 shall be available only for the purpose of providing educationally related mental health services, including out-of-home residential services for emotionally disturbed pupils, required by an individualized education program pursuant to the federal Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.) and as described in Section 56363 of the Education Code. The Superintendent of Public Instruction shall allocate these funds to local educational agencies based upon an equal rate per pupil using the methodology specified in Section 56836.07 of the Education Code.
7.
Of the funds appropriated in Schedule (2), up to $3,894,000 shall be available for transfer to the state special schools for student transportation allowances.
8.
Of the funds appropriated in Schedule (2), up to $3,861,000 in federal Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.) funds shall be available for the State Department of Education to provide accessible instructional materials to local educational agencies.
9.
Of the funds appropriated in Schedule (2), up to $500,000 is provided to develop resources and provide technical assistance to local educational agencies for implementation of the State Systemic Improvement Plan.
10.
Of the funds appropriated in Schedule (3), no less than $500,000 shall be used for the Supporting Inclusive Practices Grant.
11.
Of the funds appropriated in Schedule (2), $542,000 is provided in fiscal year 2026–27 for the expansion of the California Technical Assistance Network servers and optimization of search capabilities.
12. Of the funds appropriated in Schedule (3), $1,700,000 is available in one-time carryover funds.
13. Of the funds appropriated in Schedule (5), $1,386,000 is available in one-time carryover funds.

SEC. 131.

 Item 6100-172-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6100-172-0001—For local assistance, State Department of Education (Proposition 98), for college planning and preparation internet website ........................
29,184,000
Schedule:
(1)
5205227-Student Friendly Services ........................
23,684,000
(2)
5205229-Online Educational Resources ........................
5,500,000
Provisions:
1.
The funds appropriated in this item shall be apportioned to the Riverside County Office of Education.
2.
The funds appropriated in Schedule (1) shall be used to provide information regarding planning and preparation for postsecondary education and services related to matriculation to postsecondary educational institutions.
3.
The Riverside County Office of Education shall report to the State Department of Education, the Director of Finance, and the Legislature, pursuant to Section 9795 of the Government Code, regarding the expenditures supported by this appropriation and the number and categories of students who accessed services through the program funded through Schedule (1).
4. (a) The funds appropriated in Schedule (2) shall be used for high-quality online instructional materials and educational resources, including resources for educators. Resources shall be available to local educational agencies at no cost. Up to 5 percent of the funds appropriated in Schedule (2) may be used for administrative costs by the Riverside County Office of Education.
(b) No later November 15, 2026, the Riverside County Office of Education shall report to the State Department of Education, the Director of Finance, and the fiscal committees of the Legislature on the use of funds by fiscal year, beginning in the 2017–18 fiscal year, and include, at a minimum:
(1) The total amount appropriated by fiscal year.
(2) The contractors who were allocated funds, and the amount of funds that went to each contractor. The Riverside County Office of Education shall also include any increases in contract costs and the reason.
(3) The total balance of carryover funds at the beginning of each fiscal year, and how much carryover funds are currently available.
(4) The total amount reimbursed to the California State Library, by use of funds.
(c) No later than November 15, 2026, the California State Library shall report to the State Department of Education. the Director of Finance. and the fiscal committees of the Legislature on its activities related to the implementation of the California Online Media Program for Access and Student Success program beginning in the 2017–18 fiscal year, including, but not limited to, all of the following:
(1) Planning activities for the use of funds.
(2) Vendor solicitation and selection.
(3) After the vendors were selected. outreach and awareness of services with local educational agencies and local libraries.
(4) Any efforts to collaborate with the State Department of Education, the California Collaborative for Educational Excellence, the State Board of Education, or the Kern County Office of Education to provide access to high-quality online instructional materials pursuant to Section 41 of Chapter 252 of the Statutes of 2021.
5. The funds appropriated in Schedule (2) shall be provided on a one-time basis in the 2026–27 fiscal year. Additionally, it is the intent of the Legislature that, beginning in the 2027–28 fiscal year, the following applies:
(a) $600,000 in funds from the Proposition 98 General Fund shall be shifted from Schedule (2) of this item to Item 6100-130-0001 on an ongoing basis for allocation from the General Fund to the State Department of Education to support the county office of education selected, in collaboration with a technical partner, to curate and maintain the California Educators Together online repository of high-quality online open educational resources for use by local educational agencies.
(b) $5,000,000 in funds from the Proposition 98 General Fund shall be shifted from Schedule (2) of this item to Item 6100-142-0001 on an ongoing basis for allocation from the General Fund to the State Department of Education to allocate to the Sacramento County Office of Education for support for the Multitudes screener developed by the University of California, San Francisco Dyslexia Center.

SEC. 132.

 Item 6100-195-0890 of Section 2.00 of the Budget Act of 2026 is amended to read:
6100-195-0890—For local assistance, State Department of Education, Part A of Title II of the federal Elementary and Secondary Education Act (20 U.S.C. Sec. 6621 et seq.; Preparing, Training, and Recruiting High Quality Teachers, Principals or Other School Leaders), payable from the Federal Trust Fund ........................
233,959,000
Schedule:
(1)
5205168-Supporting Effective Instruction Local Grants ........................
219,157,000
(2)
5205150-California Subject Matter Projects ........................
3,410,000
(3)
5205180-Supporting Effective Instruction State Level Activity Grants ........................
11,392,000
Provisions:
1.
The funds appropriated in Schedule (2) shall be transferred to the University of California, which shall use the funds for the subject matter projects pursuant to Article 1 (commencing with Section 99200) of Chapter 5 of Part 65 of Division 14 of Title 3 of the Education Code.
2.
Of the funds appropriated in Schedule (3), $12,822,000 $11,192,000 in ongoing federal funds shall be used to support the 21st Century California School Leadership Academy pursuant to Section 44690 of the Education Code. Specifically, this amount reflects $7,517,000 $5,887,000 in ongoing federal Title II funds, and $5,305,000 in ongoing federal Title IV funds, transferred to Title II, consistent with the California State Plan adopted by the State Board of Education pursuant to the Every Student Succeeds Act. This program shall be implemented pursuant to Title II of the federal Every Student Succeeds Act (20 U.S.C. Sec. 6601 et seq.) and consistent with the statewide system of support pursuant to Article 4.5 (commencing with Section 52059.5) of Chapter 6.1 of Part 28 of Division 4 of Title 2 of the Education Code.
3.
Of the funds appropriated in Schedule (3), $200,000 is available from federal Title II funds for the State Department of Education to provide funding to the California Collaborative for Educational Excellence to assist the State Department of Education in administering the 21st Century California School Leadership Academy. Of these funds, $25,000 shall be for the Marin County Office of Education and $175,000 shall be for the California Collaborative for Educational Excellence to assist the State Department of Education in administering the 21st Century California School Leadership Academy. The collaborative shall participate in selecting grantees, determining allocation of funding, and managing and directing grantees to ensure that grant activities are provided consistent with the statewide system of support pursuant to Article 4.5 (commencing with Section 52059.5) of Chapter 6.1 of Part 28 of Division 4 of Title 2 of the Education Code. Pursuant to subdivision (e) of Section 52074 of the Education Code, the State Department of Education, with the support of the Department of General Services, shall provide funding to the Marin County Office of Education as the administrative agent no later than August 31, of each year, and complete the transfer of funds to the California Collaborative for Educational Excellence no later than December 15, of each year.
4.
Of the funds appropriated in Schedule (1), $5,963,000 is available as a one-time carryover.

SEC. 133.

 Item 6100-196-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6100-196-0001—For local assistance, State Department of Education (Proposition 98), for allocation by the Superintendent of Public Instruction to school districts, county offices of education, and other agencies for the purposes of California state preschool programs pursuant to Article 2 (commencing with Section 8207) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code funded in this item, in lieu of the amount that otherwise would be appropriated pursuant to any other statute and the Inclusive Early Education Expansion Program pursuant to Article 16 (commencing with Section 8337) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code ........................

2,808,730,000
2,838,365,000
Schedule:
(1)
5210020-State Preschool ........................

2,738,730,000
2,768,365,000
(2)
5210010-Child Development, Quality Rating Improvement System Grants ........................
70,000,000
Provisions:
1.
Nonfederal funds appropriated in this item that have been budgeted to meet the state’s Temporary Assistance for Needy Families maintenance-of-effort requirement established pursuant to the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193) shall not be expended in any way that would cause their disqualification as a federally allowable maintenance-of-effort expenditure.
2.
Of the amount appropriated in Schedule (1), up to $5,000,000 is available for the family literacy supplemental grant provided to California state preschool programs pursuant to Section 8221 of the Education Code.
3.
The amount appropriated in Schedule (2) is available for Quality Rating and Improvement System grants provided to California state preschool programs pursuant to Section 8203.1 of the Education Code.
4.
Funds appropriated in Schedule (1) shall be allocated to both the part-day and full-day California State Preschool Program.
5.
Of the amount appropriated in Schedule (1), $1,075,000 is available for funding a tool to strengthen teacher-child interactions and support quality improvement.
6.
Of the amount appropriated in Schedule (1), $29,874,000 is available for the family fee policy to reduce childcare fees to 1 percent of monthly income for families with adjusted monthly income at or above 75 percent of the state median family income pursuant to Section 8252 of the Education Code.
7.
Of the amount appropriated in Schedule (1), $98,610,000 is available for the State Department of Education to issue to California State Preschool Program contractors to augment their contracts due to projected increases in the number of three-year-old children served.
8.
Of the amount appropriated in Schedule (1), $29,468,000 is available for the State Department of Education to issue to California State Preschool Program contractors as an increase to their cost of care reimbursement rates.
9.
Of the amount appropriated in Schedule (1), $51,425,000 is available for the State Department of Education to issue to California State Preschool Program contractors as an increase to their cost of care reimbursement rates for the 2026–27 fiscal year and ongoing.
10. Of the amount appropriated in Schedule (1), $115,000,000 is available for the State Department of Education to augment contracts projected to exceed maximum reimbursable amounts due to an anticipated increase in three-year-olds served as reported pursuant to Section 8215 of the Education Code. To the extent funding exceeds projected need, funding shall be distributed proportionally to demand.

SEC. 134.

 Item 6100-197-0890 of Section 2.00 of the Budget Act of 2026 is amended to read:
6100-197-0890—For local assistance, State Department of Education, payable from the Federal Trust Fund, 21st Century Community Learning Centers Program ........................
162,424,000
Schedule:
(1)
5210050-21st Century Community Learning Centers ........................
162,424,000
Provisions:
1.
For the 2026–27 fiscal year, the daily per pupil funding provided to local educational agencies participating in the 21st Century Community Learning Centers Program shall be $10.18.
2.
Of the funds appropriated in Schedule (1), $1,004,000 $6,004,000 in federal carryover is provided on a one-time basis to support the existing program.
3. Of the funds appropriated in Schedule (1), $5,000,000 in federal carryover is provided on a one-time basis for Save the Children to operate after school education and safety programs in rural districts.

SEC. 135.

 Item 6100-222-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
6100-222-0001—For local assistance, State Department of Education, Save the Children ........................
5,000,000
Schedule:
(1) 5210048-After School Programs ........................ 5,000,000
Provisions:
1. Of the funds appropriated in Schedule (1), $5,000,000 shall be made available on a one-time basis for Save the Children to operate after school education and safety programs in rural school districts.

SEC. 136.

 Item 6100-295-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6100-295-0001—For local assistance, State Department of Education (Proposition 98), for reimbursement, in accordance with the provisions of Section 6 of Article XIII B of the California Constitution or Section 17561 of the Government Code, of the cost of any new program or increased level of service of an existing program mandated by statute or executive order, for disbursement by the Controller for claims for costs incurred during the 2024–25 fiscal year ........................
51,000
Schedule:
(1)
5240016-K–12 Mandated Cost Reimbursement Program: For payment of the following mandate claims for costs incurred during the 2023–24 2024–25 fiscal year ........................
51,000
(a)
Consolidation of Annual Parent Notification/Schoolsite Discipline Rules/Alternative Schools (Ch. 36, Stats. 1977) (CSM 4445, 4453, 4461, 4462, 4474, 4488, 97-TC-24, 99-TC-09, and 00-TC-12) ........................
1,000
(b)
Caregiver Affidavits to Establish Residence for School Attendance (Ch. 98, Stats. 1994) (CSM 4497) ........................
1,000
(c)
School District Fiscal Accountability Reporting and Employee Benefits Disclosure (Consolidation) (Ch. 100, Stats. 1981) (97-TC-19) ........................
1,000
(d)
Intradistrict Attendance (Ch. 161, Stats. 1993) (CSM 4454) ........................
1,000
(e)
Interdistrict Attendance Permits (Ch. 172, Stats. 1986) ........................
1,000
(f)
Differential Pay and Reemployment (Ch. 30, Stats. 1998) (99-TC-02) ........................
1,000
(g)
Immunization Records—​Mumps, Rubella, and Hepatitis B (Ch. 325, Stats. 1978 and Ch. 435, Stats. 1979) (98-TC-05 and 14-MR-04) ........................
1,000
(h)
Notification of Truancy (Ch. 498, Stats. 1983) (CSM 4133) ........................
1,000
(i)
Criminal Background Checks I (Ch. 588, Stats. 1997) (97-TC-16) ........................
1,000
(j)
Criminal Background Checks II (Ch. 594, Stats. 1998 and Ch. 840, Stats. 1998; Ch. 78, Stats. 1999) (00-TC-05) ........................
1,000
(k)
California State Teachers’ Retirement System Service Credit (Ch. 603, Stats. 1994) (02-TC-19) ........................
1,000
(l)
Child Abuse and Neglect Reporting (Ch. 640, Stats. 1987) (01-TC-21) ........................
1,000
(m)
Comprehensive School Safety Plans I and II (Ch. 736, Stats. 1997) (98-TC-01 and 99-TC-10) ........................
1,000
(n)
Pupil Promotion and Retention (Ch. 100, Stats. 1981) (98-TC-19) ........................
1,000
(o)
Charter Schools I, II, and III (Ch. 781, Stats. 1992) (CSM 4437 et al., 99-TC-03, and 99-TC-14) ........................
1,000
(p)
AIDS Instruction and AIDS Prevention Instruction (Ch. 818, Stats. 1991 and Ch. 403, Stats. 1998) (CSM 4422, 99-TC-07, and 00-TC-01) ........................
1,000
(q)
Agency Fee Arrangements (Ch. 893, Stats. 2000 and Ch. 805, Stats. 2001) (00-TC-17 and 01-TC-14) ........................
1,000
(r)
County Office of Education Fiscal Accountability Reporting (Ch. 917, Stats. 1987) (97-TC-20) ........................
1,000
(s)
Collective Bargaining and Collective Bargaining Agreement Disclosure (Ch. 961, Stats. 1975) (CSM 4425 and 97-TC-08) ........................
1,000
(t)
Pupil Health Screenings (Ch. 1208, Stats. 1976) (CSM 4440) ........................
1,000
(u)
Physical Performance Tests (Ch. 975, Stats. 1995) (96-365-01) ........................
1,000
(v)
Juvenile Court Notices II (Ch. 1011, Stats. 1984 and Ch. 1423, Stats. 1984) (CSM 4475) ........................
1,000
(w)
Charter Schools IV (Ch. 1058, Stats. 2002) (03-TC-03) ........................
1,000
(x)
Public Contracts (Ch. 1073, Stats. 1985) (02-TC-35) ........................
1,000
(y)
Uniform Complaint Procedures (Ch. 1117, Stats. 1982) (03-TC-02) ........................
1,000
(z)
Consolidation of Law Enforcement Agency Notifications (LEAN) and Missing Children Reports (MCR) (Ch. 1117, Stats. 1989) (CSM 4505 and 4505-2) ........................
1,000
(aa)
Immunization Records (Ch. 1176, Stats. 1977) (SB 90-120) ........................
1,000
(bb)
Habitual Truant (Ch. 1184, Stats. 1975) (CSM 4487 and 4487-A) ........................
1,000
(cc)
School District Reorganization (Ch. 1192, Stats. 1980 and Ch. 1186, Stats. 1994) (98-TC-24) ........................
1,000
(dd)
Prevailing Wage Rate (Ch. 1249, Stats. 1978) (01-TC-28) ........................
1,000
(ee)
Threats Against Peace Officers (Ch. 1249, Stats. 1992) ........................
1,000
(ff)
Expulsion of Pupils: Transcript Cost for Appeals (Ch. 1253, Stats. 1975) ........................
1,000
(gg)
Consolidation of Notification to Teachers: Pupils Subject to Suspension or Expulsion I and II, and Pupil Discipline Records (Ch. 345, Stats. 2000) (00-TC-10 and 00-TC-11) ........................
1,000
(hh)
School Accountability Report Cards (Ch. 912, Stats. 1997) (00-TC-09, 00-TC-13, and 02-TC-32) ........................
1,000
(ii)
Financial and Compliance Audits (Ch. 36, Stats. 1977) (CSM 4498 and 4498-A) ........................
1,000
(jj)
The Stull Act (Ch. 498, Stats. 1983 and Ch. 4, Stats. 1999) (98-TC-25) ........................
1,000
(kk)
Pupil Safety Notices (Ch. 498, Stats. 1983) (02-TC-13) ........................
1,000
(ll)
Graduation Requirements (Ch. 498, Stats. 1983) (CSM 4181-A) ........................
1,000
(mm)
Student Records (Ch. 593, Stats. 1989) (02-TC-34) ........................
1,000
(nn)
Williams Case Implementation I, II, and III (Ch. 900, Stats. 2004) (05-TC-04, 07-TC-06, and 08-TC-01) ........................
1,000
(oo)
Parental Involvement Programs (Ch. 1400, Stats. 1990) (03-TC-16) ........................
1,000
(pp)
Developer Fees (Ch. 955, Stats. 1977) (02-TC-42) ........................
1,000
(qq)
Consolidated Suspensions, Expulsions, and Expulsion Appeals (Chs. 972 and 974, Stats. 1995) (96-358-03, 03A, 98-TC-22, 01-TC-18, 98-TC-23, 97-TC-09, CSM 4456, 4455, and 4463) ........................
1,000
(rr)
Immunization Records—​Pertussis (Ch. 434, Stats. 2010) (11-TC-02) ........................
1,000
(ss)
Race to the Top (Chs. 2 and 3, Stats. 2010, 5th Ex. Sess.) (10-TC-06) ........................
1,000
(tt)
Training for School Employee Mandated Reporters (Ch. 797, Stats. 2014) (14-TC-02) ........................
1,000
(uu)
California Assessment of Student Performance and Progress (CAASPP) (Ch. 489, Stats. 2013) (14-TC-01 and 14-TC-04) ........................
1,000
(vv)
Cal Grant: Opt-Out Notice and Grade Point Average Submission (Ch. 679, Stats. 2014 and Ch. 82, Stats. 2016) (16-TC-02) ........................
1,000
(ww)
Public School Restrooms: Feminine Hygiene Products (Ch. 687, Stats. 2017) (18-TC-01) ........................
1,000
(xx)
Free Application for Federal Student Aid (FAFSA) (Ch. 560, Stats. 2021) (22-TC-05) ........................
1,000
(yy) Public School Restrooms: Menstrual Products (Ch. 664, Stats. 2021) (22-TC-04) ........................ 1,000
Provisions:
1.
If the amount appropriated in this item is less than the amount required to fund eligible claims, the Controller shall prorate the payments accordingly.

SEC. 137.

 Item 6100-488 of Section 2.00 of the Budget Act of 2026 is amended to read:
6100-488—Reappropriation, State Department of Education. Notwithstanding any other law, the balances from the following appropriations are available for reappropriation for the purposes specified in the provisions below:
0001—​General Fund
(1)
$656,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the Child Nutrition Programs in Chapter 52 of the Statutes of 2022.
(2)
$18,390,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the Child Nutrition Programs in Schedule (1) of Item 6100-203-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(3)
$140,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the Special Education Program for Individuals with Exceptional Needs in Schedule (1) of Item 6100-161-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(4)
$20,000,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the Child Nutrition Programs in Schedule (1) of Item 6100-203-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).
(5)
$65,480,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the California State Preschool Program in Item 6100-196-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).
(6) $3,106,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for After School Programs in Schedule (1) of Item 6100-149-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(7) $13,623,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the 21st Century Community Learning Centers in Schedule (2) of Item 6100-149-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(8) $35,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the Special Education Program for Individuals with Exceptional Needs in Schedule (1) of Item 6100-161-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).
(9) $36,567,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the 21st Century Community Learning Centers in Schedule (2) of Item 6100-149-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).
(10) $53,823,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the 21st Century Community Learning Centers in Schedule (2) of Item 6100-149-0001, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025).
(11) $2,629,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the California State Preschool Program in Item 6100-196-0001, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025).
(12) $1,296,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the Career Technical Education Initiative in Item 6100-170-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).
(13) $3,020,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the Career Technical Education Incentive Grant in Item 6100-168-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).
(14) $10,003,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the Career Technical Education Incentive Grant in Item 6100-168- 0001, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025).
(15) $485,068,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the California Community Schools Partnership Program in Chapter 53 of the Statutes of 2022.
(16) $354,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the Education Services for Foster Youth Program in Chapter 44 of the Statutes of 2021.
(17) $189,708,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the Expanded Learning Opportunities Program in Item 6100-110-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(18) $39,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the American Indian Early Childhood Education Program in Item 6100-150-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(19) $413,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the California Partnership Academies in Schedule (1) of Item 6100-166-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(20) $7,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the Clean Technology Partnerships in Schedule (2) of Item 6100-166-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(21) $1,300,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the Career Technical Education Initiative in Item 6100-170-001. Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(22) $35,021,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the California State Preschool Program in Item 6100-196-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(23) $415,000 or whatever greater or lesser amount of the unexpended balance of the amount reappropriated for the Learning Recovery Emergency Block Grant in Provision 4 of Item 6100-488, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(24) $31,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the California Partnership Academies in Schedule (1) of Item 6100-166-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).
(25) $139,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for the Student Support and Professional Development Discretionary Block Grant in Chapter 8 of the Statutes of 2025.
Provisions:
1.
The sum of $836,263,000 $626,263,000 is hereby appropriated to the State Department of Education for allocation to local educational agencies for the Student Support and Professional Development Discretionary Block Grant pursuant to provisions provided in the education finance omnibus trailer bill identified in Section 39.00 of this act for this purpose.
2. The sum of $15,000,000 is hereby appropriated to the State Department of Education for the 21st Century California School Leadership Academy pursuant to Section 44690.1 of the Education Code. These funds shall be available for encumbrance through June 30, 2031.
3. The sum of $25,000,000 is hereby appropriated to the State Department of Education to support inclusive programs for students with intellectual disabilities pursuant to Section 66032 of the Education Code. These funds shall be available for encumbrance through June 30, 2032.
4. The sum of $30,000,000 $46,000,000 is hereby appropriated to the State Department of Education for grants to local educational agencies to support youth experiencing homelessness pursuant to provisions in the education finance omnibus trailer bill identified in Section 39.00 of this act for this purpose.
5. The sum of $30,000,000 is hereby appropriated to the State Department of Education for transfer to the Commission on Teacher Credentialing for Teacher Residency and National Board technical assistance pursuant to Section 44415.71 of the Education Code. These funds shall be available for encumbrance through June 30, 2034.
6. The sum of $5,000,000 is hereby appropriated to the State Department of Education for transfer to the Commission on Teacher Credentialing for the development of a teacher candidate transcript review platform, pursuant to Section 44259.8 of the Education Code. These funds shall be available for encumbrance through June 30, 2029.
7. The sum of $84,000,000 is hereby appropriated to the State Department of Education for the California Community Schools Apportionments Program pursuant to provisions in the education finance omnibus trailer bill identified in Section 39.00 of this act for this purpose.
8. The sum of $100,000,000 is hereby appropriated to the State Department of Education for grants to local educational agencies to support kitchen equipment, infrastructure, training, and the continued implementation of universal school meals pursuant to Section 49509.5 of the Education Code. These funds shall be available for encumbrance through June 30, 2030.
9. The sum of $10,000,000 is hereby appropriated to the State Department of Education for the Sacramento County Office of Education to develop resources and provide technical assistance to support the implementation of alternative pathways and means to a high school diploma, pursuant to Section 51225.33 of the Education Code. These funds shall be available for encumbrance through June 30, 2031.

SEC. 138.

 Item 6100-499 is added to Section 2.00 of the Budget Act of 2026, to read:
6100-499—Reversion, State Department of Education. As of June 30, 2026, the unencumbered balances of the appropriations provided in the following citations shall revert to the fund balances of the funds from which the appropriations were made.
6093—Safe Drinking Water, Wildlife Prevention, Drought Preparedness, and Clean Air Fund
(1) Item 6100-001-6093, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025).
(2) Item 6100-101-6093, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025).

SEC. 139.

 Item 6120-011-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6120-011-0001—For support of California State Library and California Library Services Board ........................

28,863,000
29,985,000
Schedule:
(1)
5310-State Library Services ........................

23,373,000
24,495,000
(2)
5312-Library Development Services ........................
2,244,000
(3)
5314-Information Technology Services ........................
3,546,000
(4)
Reimbursements to 5310-State Library Services ........................
−300,000
Provisions:
1.
Of the amount appropriated in Schedule (1), $500,000 shall continue to be provided to the Braille Institute of America in Los Angeles.
2. Of the amount appropriated in Schedule (1), $1,122,000 shall only be used to meet the increased building rental expenses for Library and Courts I and Library and Courts II.

SEC. 140.

 Item 6120-211-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6120-211-0001—For local assistance, California State Library, California Library Services Act, pursuant to Chapter 4 (commencing with Section 18700) of Part 11 of Division 1 of Title 1 of the Education Code ........................
2,880,000
Schedule:
(1)
5312-Library Development Services ........................
2,880,000
Provisions:
1. The funds in Schedule (1) shall be allocated to library systems, as defined in Section 18740 of the Education Code, to support collaborative resource sharing, direct patron access services, and innovative regional service delivery models activities as defined in Sections 18745 and 18746 of the Education Code. The funds shall be allocated pursuant to the following distribution schedule:
(a) Black Gold Cooperative Library System ........................
$110,219
$110,221
(b) 49-99 Cooperative Library System ........................ $119,245
(c) Inland Library System ........................ $291,139
(d) NorthNet Library System ........................ $660,046
(e) Pacific Library Partnership ........................ $563,069
(f) San Joaquin Valley Library System ........................ $190,816
(g) Santiago Library System ........................ $182,483
(h) Serra Cooperative Library System ........................ $210,857
(i) Southern California Library Cooperative ........................ $552,124
2. On November 15 of each year, the California State Library shall submit a report to the Department of Finance and the fiscal committees of the Legislature on the allocation of funds to each library system and how each library system used funds in the prior fiscal year. Reporting requirements shall remain substantially consistent with prior reporting obligations, are reasonable and quantifiable in nature, and do not impose significant new administrative burdens on grant recipients.

SEC. 141.

 Item 6120-218-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
6120-218-0001—For local assistance, California State Library ........................
5,000,000
Schedule:
(1) 5312-Library Development Services ........................ 5,000,000
Provisions:
1. The funds appropriated in this item shall be used for the Career Online High School program.
2. On or before May 1, 2027, the California State Library shall submit a report to the Department of Finance and the fiscal committees of the Legislature on the allocation of funds, the number of participants enrolled in the program, how many scholarships were provided and the funding amount provided for the scholarships, and the outcomes for participants in the Career Online High School program, including program completion rates and the number of diplomas issued.

SEC. 142.

 Item 6440-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6440-001-0001—For support of University of California ........................

5,298,771,000
5,361,906,000
Schedule:
(1)
5440-Support ........................

5,298,771,000
5,361,906,000
Provisions:
1.
This appropriation is exempt from Sections 6.00 and 31.00.
2. (a)
The Regents of the University of California shall implement measures to reduce the university’s cost structure.
(b)
The Legislature finds and declares that many state employees hold positions with comparable scope of responsibilities, complexity, breadth of job functions, experience requirements, and other relevant factors to those employees designated to be in the Senior Management Group pursuant to existing Regents Policy.
(c) (1)
Therefore, at a minimum, the Regents shall, when considering compensation for any employee designated to be in the Senior Management Group, use a market reference zone that includes state employees.
(2)
At a minimum, the Regents shall include in a market reference zone all comparable positions from the lists included in subdivision (l) of Section 8 of Article III of the California Constitution and Article 1 (commencing with Section 11550) of Chapter 6 of Part 1 of Division 3 of Title 2 of the Government Code.
2.1.
Notwithstanding any other law, the Director of Finance may reduce funds appropriated in this item by an amount equal to the estimated Cal Grant and Middle Class Scholarship Program cost increases caused by a 2026–27 academic year increase in systemwide tuition. No reduction may be authorized pursuant to this provision sooner than 30 days after the Director of Finance provides notice of the intended reduction to the Chairperson of the Joint Legislative Budget Committee.
3. (a)
The Controller shall transfer funds from this appropriation upon receipt of a report from the Department of Finance indicating the amount of debt service anticipated to become due and payable in the fiscal year associated with state general obligation bonds issued for university projects.
(b)
The Controller shall return funds to this appropriation upon receipt of a report from the Department of Finance.
4.
Payments made by the state to the University of California for each month from July through April shall not exceed one-twelfth of the amount appropriated in this item, less the amount that is expected to be transferred pursuant to Provision 3. Transfers of funds pursuant to Provision 3 shall not be considered payments made by the state to the university.
5.
Of the funds appropriated in this item, $15,800,000 shall be available to support meal donation programs, food pantries serving students, CalFresh enrollment, and other means of directly providing nutrition assistance to students. These funds shall be expended and reported as specified in Section 66023.9 of the Education Code.
6.
Of the funds appropriated in this item, $21,300,000 shall be available to increase student mental health resources. These funds shall be expended and reported as specified in Section 66023.9 of the Education Code.
7.
Of the funds appropriated in this item, $3,700,000 shall be available to support rapid rehousing efforts assisting homeless and housing-insecure students.These students. These funds shall be expended and reported as specified in Section 66023.9 of the Education Code.
8. (a)
Of the funds appropriated in this item, $12,900,000 shall be available to support and expand existing UC Programs in Medical Education and to establish a new UC Program in Medical Education focused on Native American communities. These funds may also be available to establish additional UC Programs in Medical Education that are state priorities. The University of California is encouraged to use these funds to support UC Programs in Medical Education that would serve underrepresented areas of the state.
(b)
One-third of the funds appropriated in this provision shall be used to augment need-based financial aid for UC Programs in Medical Education students.
(c)
The University of California shall report the following information about UC Programs in Medical Education program outcomes to the Department of Finance and the Legislature annually by March 1, until March 1, 2027:
(1)
Enrollment numbers and student demographics in each program.
(2)
A summary of each program’s current curriculum.
(3)
Graduation and residency placement rates for each program.
(4)
To the extent feasible, postgraduate data on where each program’s graduates currently practice and the extent to which they serve the populations and communities targeted by the program in which they participated.
9.
Of the funds appropriated in this item, $1,823,000 shall be used for legal services for undocumented and immigrant students, faculty, and staff.
10.
Of the funds appropriated in this item, $3,000,000 shall be used for the University of California Firearm Violence Research Center. It is the intent of the Legislature that these funds be directly allocated by the University of California to the University of California Firearm Violence Research Center, and that the University of California and the University of California, Davis, campus shall not assess administrative costs or charges against these funds.
11.
Of the funds appropriated in this item, $1,000,000 shall be used for the Institute on Global Conflict and Cooperation.
12.
Of the funds appropriated in this item, $4,000,000 shall be used by the University of California to provide summer-term financial aid to any student who is eligible for state financial aid and is a California resident, including students receiving an exemption for nonresident tuition pursuant to Section 68130.5 of the Education Code. These funds shall be used to supplement and not supplant existing funds provided by the University of California for summer-term financial aid. The Legislature finds and declares that this provision is a state law within the meaning of subsection (d) of Section 1621 of Title 8 of the United States Code.
13.
Of the funds appropriated in this item, $6,000,000 shall be available to support foster youth programs pursuant to Section 92663 of the Education Code.
14.
By November 1 each year, the University of California shall report key information regarding UCPath to the Department of Finance and the Joint Legislative Budget Committee. At a minimum, the report shall include UCPath’s staffing levels, funding by source, and spending by function. The funding source data shall summarize fund sources used by campuses to cover any campus assessment. The report shall include actual data for the prior fiscal year, budgeted data for the current fiscal year, and projected data for the coming fiscal year. The report shall include any cost savings resulting from the UCPath project at the campus level.
15.
To provide for legislative oversight, the Office of the President of the University of California shall report to the Legislature and the Department of Finance, by September 30 each year, all of the following information for the preceding fiscal year and estimates of all of the following for the current fiscal year:
(a)
The amount of any campus assessments charged to support the Office of the President of the University of California, reflecting amounts contributed by each campus and the fund source or sources from which those amounts were paid.
(b)
The total budget of the Office of the President of the University of California.
(c)
A categorized list of actual and planned budgetary expenditures for the Office of the President of the University of California.
(d)
Factors contributing to any year-over-year change in the budget of the Office of the President of the University of California.
(e)
The amount of the budget of the Office of the President of the University of California that either passes through to recipients across the state or supports fee-for-service activities aligned with the university’s mission.
(f)
Information on reserves and fund balances held by the Office of the President of the University of California.
16.
Of the funds appropriated in this item, $650,000 shall be available to support the integration of Association of Independent California Colleges and Universities members onto the ASSIST platform.
17.
Of the funds appropriated in this item, $1,000,000 shall be available to support the California Vectorborne Disease Surveillance Gateway.
18.
Of the funds appropriated in this item, $4,000,000 shall be available to the University of California for disbursement to all undergraduate-serving University of California campuses, after consultation with Underground Scholars directors and coordinators, to establish and sustain Underground Scholars programs as a centralized location on campus where incarcerated, formerly incarcerated, and system-impacted students can be provided with recruitment programs, retention services, advocacy, and wellness programs to support admission to the University of California system and timely program completion. Campuses shall share best practices for program operations annually with other University of California campuses for purposes of developing spending plans to serve incarcerated, formerly incarcerated, and system-impacted students. Each undergraduate-serving University of California campus shall have one or more dedicated Underground Scholars directors and coordinators who will serve as a point of contact for students.
19.
Of the funds appropriated in this item, $5,000,000 shall be available for the University of California to establish and operate student services programs on each campus to serve undocumented students.
20.
Of the funds appropriated in this item, $22,500,000 shall be available to support Student Academic Preparation and Educational Partnerships programs.
21.
Of the funds appropriated in this item, $75,000 shall be available to support the University of California, Los Angeles Anderson School of Management to include climate change economic impacts by California region in the UCLA Anderson Forecast economic forecasting model for California.
22.
Of the funds appropriated in this item, $21,000,000 shall be available to the University of California to support UC Medical School Projects at UC Merced and UC Riverside.
23.
Of the funds appropriated in this item, $13,000,000 shall be available to support research, education, and public engagement on labor issues in California. The funds shall be allocated as follows:
(a)
$3,000,000 to the University of California, Berkeley Labor Center.
(b)
$3,000,000 to the University of California, Los Angeles Labor Center.
(c)
$3,000,000 to the University of California, Merced Community and Labor Center.
(d)
$500,000 to the University of California, Berkeley Labor Occupational Health Program.
(e)
$500,000 to the University of California, Los Angeles Labor Occupational Safety and Health Program.
(f)
$3,000,000 to be allocated to support a multicampus initiative as determined by a five-member committee comprising the directors of the centers specified in subprovisions (a), (b), and (c), or their designees, as well as two members appointed by the California Federation of Labor. The committee shall allocate these funds based on proposals submitted by the University of California’s Davis, Irvine, Riverside, San Diego, Santa Barbara, and Santa Cruz campuses. The committee shall determine the criteria and timeline to submit proposals, as well as how to allocate funds among eligible proposals.
24.
Of the funds appropriated in this item, $41,601,000 shall be available to support approved UC Higher Education Student Housing Grant Program projects.
25.
Of the funds appropriated in this item, $33,300,000 shall be available to support UC Merced and UC Riverside Campus Expansion Project and the UC Berkeley Clean Energy Campus Project.
26.
Of the funds appropriated in this item, $2,000,000 shall be available to support the UC Riverside School of Medicine.
27.
Of the funds appropriated in this item, $254,361,000 is provided as a five percent base funding increase and shall be available to support operational costs.
28.
It is the intent of the Legislature to defer $129,692,000 one-time from the General Fund from the 2026–27 fiscal year until the 2027–28 fiscal year.
29.
For the 2026–27 fiscal year, the Director of Finance may authorize a no-interest, short-term loan from General Fund resources, upon the request of the University of California, to assist cash flow resources for purposes of remediating state payment deferrals.
(a)
A loan may be authorized pursuant to this section no sooner than 30 days after notification in writing of the necessity therefor is provided to the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time that notification the chairperson of that joint committee, or the chairperson’s designee, may in each instance determine.
30. (a)
Of the funds appropriated in this item, $153,000,000 is provided for the replacement of 4,510 nonresident undergraduate full-time equivalent students. As specified in Section 93000 of the Education Code, it is the intent of the Legislature that the University of California replace the 4,510 nonresident undergraduate full-time equivalent students by replacing 902 nonresident undergraduate full-time equivalent students annually from 2022–23 through 2026–27 with an equal number of resident undergraduate full-time equivalent students combined at the Berkeley, Los Angeles, and San Diego campuses. The total combined annual replacement of nonresident students should be 902 full-time equivalent students, with Berkeley, Los Angeles, and San Diego each contributing towards the 902 full-time equivalent student replacement total annually. If the University of California replaces more than 902 nonresident undergraduate full-time students in the 2025–26 enrollment target, those additional students can be counted towards the 2026–27 target. Nonresident undergraduate full-time equivalent student replacement above that annual 902 target from 2022–23, 2023–24, 2024–25, and 2025–26 can be counted towards the replacement of 902 nonresident undergraduate full-time equivalent students in 2026–27. If the actual reduction in nonresident undergraduate enrollment in 2026–27 at these campuses is fewer than 902 full-time equivalent students, the Director of Finance shall reduce funding for the University of California by the portion that is attributable to each student under the target reduction level, as specified in Section 93000 of the Education Code.
(b) It is the intent of the Legislature to provide $31,000,000 one-time General Fund support for the purposes specified in subprovision (a) in 2027–28.
31.
Of the funds appropriated in this item, $1,500,000 shall be available to support students with disabilities. This funding shall supplement, not supplant, core funds the University of California spends to support these students. The University of California shall allocate these funds to campuses based upon their number of students with disabilities. Campuses shall use these funds to improve services for these students, with a focus on increasing the number of professional staff serving them, thereby reducing their associated caseload.
32.
Of the funds appropriated in this item, $3,000,000 shall be available to support the University of California, Los Angeles Ralph J. Bunche Center for African American Studies.
33.
Of the funds appropriated in this item, $430,000 shall be available to support the California Newspaper Projects at the University of California, Riverside.
34. Of the funds appropriated in this item, $1,500,000 shall be available on a one-time basis to sustain and expand the support for students in foster care through the University of California First Star Program for postsecondary education success. Campuses shall be selected through a competitive grant process by the Office of the President of the University of California. When selecting the participating campuses, the Office of the President shall consider, at least, the following factors: the foster youth population density around each proposed campus location, possible partnerships with other organizations assisting the foster youth population, public transportation accessibility, and ability to leverage other funding sources or in-kind resources to support program implementation.
35. (a) It is the intent of the Legislature that the University of California also increase resident undergraduate enrollment by 2,968 full-time equivalent students in 2026–27, for a total level of 212,503 resident undergraduate full-time equivalent students in 2026–27.
(b) The systemwide growth identified in this provision is inclusive of the additional 902 resident undergraduate full-time equivalent students resulting from the replacement of nonresident undergraduate full-time equivalent students identified in Provision 30 of this item.
36. Of the funds appropriated in this item, $3,400,000 is available on a one-time basis to support perimenopause and menopause care coverage and statewide public awareness. The funds specified for education and public awareness shall be allocated to the University of California Menopause Centers of Excellence to advance statewide communication sciences, the sharing of evidence-based education, rural outreach, addressing care gaps, language access, and professional development and education for providers. Systemwide coordination, provider training, outreach activities, and implementation shall be led by the UCLA Comprehensive Menopause Program, which serves as the UC’s established infrastructure for menopause care delivery and program development. Remaining funds shall support the continued development of menopause services across the other UC campuses within the systemwide framework.
37. Of the funds appropriated in this item, $9,000,000 is available on a one-time basis for the Cal-Bridge program at the University of California.
38. Of the funds appropriated in this item, $750,000 is available on a one-time basis for the ENLACE program at the University of California.
39. Of the funds appropriated in this item, $5,000,000 is available on a one-time basis for UCLA, for the Center for Reproductive Health, Law, and Policy.
40. Of the funds appropriated in this item, $3,600,000 is available on a one-time basis for UC San Diego for Prime Rx.
41. Of the funds appropriated in this item, $1,800,000 is available on a one-time basis for UC Berkeley, for ACCESS (Optometry).
42. (a) Of the funds appropriated in this item, $6,500,000 is available on a one-time basis for the University of California Office of the President for UC voting rights programs.
(b) Of the amount described in subprovision (a), $5,000,000 shall be used to support the Voting Rights Project and $1,500,000 shall be used to support the Center for Race and Democracy Studies.
(c) The University of California Office of the President shall not retain or utilize any portion of the funds appropriated pursuant to this provision for administrative costs.
43. Of the funds appropriated in this item, $3,000,000 is available on a one-time basis for UC San Diego to develop and offer in South San Diego a bachelor’s degree program combining business principles with data science, or an additional STEM-related degree program, to address high regional workforce needs, strengthen the local talent pipeline, and support economic growth in the region.
44. Of the funds appropriated in this item, $3,000,000 shall be available on a one-time basis for the University of California, Los Angeles Ralph J. Bunche Center for African American Studies to support research, training, and community-engaged programs on the condition of Black life in California.
45. Funds appropriated in Provisions 34, 36, 37, 38, 39, 40, 41, 42, 43, and 44 of this item shall be available for encumbrance or expenditure without regard to fiscal years.
45. Of the amount appropriated in this item, $5,000,000 shall be available on a one-time basis to the University of California for UC Degree Plus.
46. Of the amount appropriated in this item, $5,260,000 shall be available on a one-time basis to the University of California, Berkeley for Cal Stadium Lighting.
47. Of the amount appropriated in this item, $5,000,000 shall be available on a one-time basis to the University of California for the CA Institute for Science and Innovation (including CITRIS).
48. Of the amount appropriated in this item, $1,380,000 shall be available on a one-time basis to the University of California, Berkeley for the IGS Library Digitization Project.
49. Of the amount appropriated in this item, $750,000 shall be available on a one-time basis to the University of California, Berkeley for AAPI Data Research.
50. Of the amount appropriated in this item, $7,500,000 shall be available on a one-time basis to the University of California, Los Angeles for the UC/CSU Collaboration for Neurodiversity and Learning.
51. Of the amount appropriated in this item, $200,000 shall be available on a one-time basis to the University of California, Los Angeles for Bruin One Access as a State-CalFresh Enrollment Accelerator.
52. Of the amount appropriated in this item, $10,000,000 shall be available on a one-time basis to the University of California for the UC Climate Change Research Institute.
53. Of the amount appropriated in this item, $15,000,000 shall be available on a one-time basis to the University of California for UC Journalism Fellowships.
54. Of the amount appropriated in this item, $3,300,000 shall be made available on a one-time basis to support the PRIME Central Coast program at the University of California, Davis School of Medicine, in collaboration with the University of California, Santa Cruz.
55. Of the amount appropriated in this item, $20,000,000 shall be available on a one-time basis to the University of California for UC Student Basic Needs, Housing, and Disability Services.
56. Funds appropriated in Provisions 34, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, and 55 of this item shall be available for encumbrance or expenditure without regard to fiscal years.

SEC. 143.

 Item 6440-005-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6440-005-0001—For support of University of California ........................

125,111,000
135,366,000
Schedule:
(1)
5440-Support ........................

125,111,000
135,366,000
Provisions:
1.
The funds appropriated in this item shall be for the University of California, Division of Agriculture and Natural Resources. These funds shall be used to supplement and not supplant other existing funds provided to the division by the University of California.

SEC. 144.

 Item 6610-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6610-001-0001—For support of California State University ........................
5,586,762,000
Schedule:
(1)
5560-Support ........................
5,586,762,000
Provisions:
1.
This appropriation is exempt from Sections 6.00 and 31.00.
2. (a)
Of the funds appropriated in this item, $264,868,000 is provided as a five percent base funding increase and shall be available to support operational costs.
2.1. (a)
Of the funds appropriated in this item, $15,800,000 shall be available to increase student mental health resources. These funds shall be expended and reported as specified in Section 66023.9 of the Education Code.
(b)
Of the funds appropriated in this item, $26,300,000 is available for the Graduation Initiative to sustain and expand the California State University Basic Needs Initiative. These funds shall be expended and reported as specified in Section 66023.9 of the Education Code.
2.2.
Of the funds appropriated in this item, $25,000,000 shall be available to support the transition of Humboldt State University into a polytechnic university.
2.3.
Of the funds appropriated in this item, $35,000,000 shall be available to support the Graduation Initiative 2025. This funding shall be used exclusively to support efforts to close equity gaps in graduation rates for low-income students and historically underrepresented students. California State University shall report on the activities it is undertaking to close equity gaps, how it is evaluating the result of these activities, the most important lessons it has learned to date, and what changes it needs to make moving forward to eliminate these gaps. The California State University also shall report systemwide and campus graduation rates for all students, low-income students, and historically underrepresented students, disaggregated by race. All of this information may be included in its annual report required by Section 89295 of the Education Code.
2.4. (a)
Of the funds appropriated in this item, $11,300,000 shall be available to support Project Rebound programs for formerly incarcerated students at participating California State University campuses. Funds shall be distributed to campuses using a funding formula that provides campuses with (1) standard baseline operating funds, (2) augmented baseline funding based on matriculated student enrollment headcounts in individual campus programs, and (3) annually recurring equity allocations for student basic needs relative to the indices of student need among program participants in individual campus programs, such as number of Pell Grant recipients, students who have exhausted their lifetime Pell Grant eligibility, students eligible for tuition exemptions pursuant to Chapter 814 of the Statutes of 2001 (Assembly Bill 540 of the 2001–02 Regular Session), and student parents of minor children. Model programming shall incorporate the following program components:
(1)
Admissions supports, including, but not limited to: (I) permitting eligible students to apply after the application initial filing period, (II) utilizing general exceptions as an educational opportunity program pursuant to Section 40900 of Title 5 of the California Code of Regulations and subdivision (c) of Section 66022.5 of the Education Code; and (III) facilitating the seamless transfer from one California State University to another of students enrolled in California State University degree programs while incarcerated who are released from custody prior to degree completion.
(2)
Comprehensive support to assist students with the transition to on-campus higher education, including (I) wraparound student support services that address needs such as books and supplies, tuition, scholarships, housing, food, and transportation; and (II) collaboration with offices of financial aid to provide individualized cost of attendance adjustments to minimize the impacts of program basic needs supports on student financial aid eligibility.
(3)
Staffing and space commitments, including: (I) dedicated staffing of a program coordinator or director, dedicated academic adviser or retention specialist, and student peer navigators with preference for staff with lived experience in the criminal justice system; (II) dedicated space on the university campus for the program that allows for both privacy and community; (III) use of the Federal Work-Study Program to provide eligible students with employment and professional development opportunities; and (IV) formal partnerships with California Community Colleges to build transfer pathways, and with other key stakeholders, including, but not limited to, the Department of Corrections and Rehabilitation, probation departments, and community-based organizations.
(b)
As a condition of receiving the $11,300,000 specified in this provision, the California State University shall, no later than April 1, 2027, and annually each year thereafter, report to the Department of Finance and the relevant policy and fiscal committees of the Legislature regarding the California State University’s use of these funds, program enrollment, and student outcomes. The report shall include, but not be limited to, the following:
(1)
A description of educational and support services each Project Rebound campus provides to students and potential students.
(2)
A description of outreach, orientation, and transfer support services the Project Rebound Consortium provides to students and potential students in the custody of the Department of Corrections and Rehabilitation.
(3)
Student enrollment in Project Rebound, disaggregated by race, ethnicity, gender, and age, as well as first-time freshmen, transfer students, undergraduate students, and graduate students, as well as students with prior foster care system involvement, prior juvenile justice involvement, and students that are parents of minor children.
(4)
Outcomes associated with the program, disaggregated by campus, including, but not limited to, student retention, graduation, and recidivism rates.
(5)
Any plans to expand Project Rebound to other California State University campuses.
2.5. Of the funds appropriated in this item, $6,800,000 shall be available to support rapid rehousing efforts assisting homeless and housing-insecure students. These funds shall be expended and reported as specified in Section 66023.9 of the Education Code.
3. (a)
The Controller shall transfer funds from this appropriation as follows:
(1)
For base rental as and when provided for in the schedule submitted by the Department of Finance. Notwithstanding the payment dates in any related facility lease or indenture, the schedule may provide for an earlier transfer of funds to ensure debt requirements are met and to pay base rental in full when due.
(2)
For additional rental no later than 30 days after enactment of this budget, $64,000 of the amount appropriated in this item to the Expense Account in the Public Buildings Construction Fund.
(3)
This item may be adjusted pursuant to Section 4.30. Any adjustments to this item shall be reported to the Joint Legislative Budget Committee pursuant to Section 4.30.
(4)
For debt service anticipated to become due and payable in the fiscal year associated with state general obligation bonds issued for university projects upon receipt of any report from the Department of Finance.
(b)
The Controller shall return funds to this appropriation if directed pursuant to a report from the Department of Finance.
3.1.
Notwithstanding any other law, the Director of Finance may reduce funds appropriated in this item by an amount equal to the estimated Cal Grant and Middle Class Scholarship program cost increases caused by a 2026–27 academic year increase in systemwide tuition. A reduction shall not be authorized pursuant to this provision sooner than 30 days after the Director of Finance provides notice of the intended reduction to the Chairperson of the Joint Legislative Budget Committee.
3.5.
Payments made by the state to the California State University for each month from July through April shall not exceed one-twelfth of the amount appropriated in this item, less than the amount that is expected to be transferred pursuant to Provision 3. Transfers of funds pursuant to Provision 3 shall not be considered payments made by the state to the university.
3.6. It is the intent of the Legislature that the California State University increase resident undergraduate enrollment in 2026–27. It is the expectation of the Legislature that the California State University increase resident undergraduate enrollment by an additional 10,161 3,511 full-time equivalent students (FTES) in 2026–27 for a total resident undergraduate enrollment of 360,160 356,341 FTES.
4.
Of the funds appropriated in this item, $6,000,000 shall be used by the California State University to provide summer-term financial aid to any student who is eligible for state financial aid and who is a California resident, including students who receive an exemption from nonresident tuition pursuant to Section 68130.5 of the Education Code. These funds shall be used to supplement and not supplant existing funds provided by the California State University for summer-term financial aid. The Legislature finds and declares that this provision is a state law within the meaning of subsection (d) of Section 1621 of Title 8 of the United States Code.
5.
Of the funds appropriated in this item, $5,500,000 shall be available to support the estimated costs of an expanded fee waiver for Medal of Honor recipients, children of Medal of Honor recipients, and dependents of service-injured veterans attending the California State University.
6.
Of the funds appropriated in this item, $12,000,000 shall be available to support foster youth programs pursuant to Section 89348 of the Education Code.
7.
Of the funds appropriated in this item, $8,000,000 shall be available to support the Asian American, Native Hawaiian, and Pacific Islander Student Achievement Program pursuant to Article 11 (commencing with Section 89297) of Chapter 2 of Part 55 of Division 8 of Title 3 of the Education Code.
8.
Of the funds appropriated in this item, $1,000,000 shall be available to support students with disabilities. This funding shall supplement, not supplant, California State University core expenditures to support these students. The California State University shall allocate these funds to campuses based upon the number of students with disabilities. Campuses shall use these funds to improve services for these students, with a focus on increasing the number of professional staff serving them, thereby reducing their associated caseload.
9.
Of the funds appropriated in this item, $1,000,000 shall be available to support the Mervyn M. Dymally African American Political and Economic Institute at the California State University, Dominguez Hills.
10.
It is the intent of the Legislature to defer $143,839,000 one-time General Fund from the 2026–27 fiscal year to the 2027–28 fiscal year.
11.
For the 2026–27 fiscal year, the Director of Finance may authorize a no-interest, short-term loan from General Fund resources, upon request of the university, to assist cash flow resources for purposes of remediating state payment deferrals. A loan may be authorized pursuant to this section not sooner than 30 days after notification in writing of the necessity therefor is provided to the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee or not sooner than whatever lesser time after that notification the Chairperson of the Joint Legislative Budget Committee, or the Chairperson’s designee, may in each instance determine.
12. Of the funds appropriated in this item, $52,000,000 shall be available to support approved Higher Education Student Housing Grant Program projects of the California State University.
13. (a) It is the intent of the Legislature that the California State University system prioritize funding providing new enrollment growth funding to campuses that have met or exceeded enrollment funding targets over the last two years.
(b) By December 31 of each year, beginning in 2026, each California State University campus that has experienced sustained enrollment declines and is not currently providing an annual progress report shall submit a turnaround plan to the Chancellor of the California State University. Campuses shall consult with the community and campus stakeholders as they prepare the plan. Each turnaround plan shall include, but not be limited to, the following information:
(1) A list of strategies the campus has decided to implement to increase student demand and enrollment; the expected outcomes of each strategy, including any results to date; an implementation timeline for each strategy, including actions taken to date; and the cost of each strategy (one time, ongoing, and total). Comparable information shall also be provided for any other strategies that the campus is seriously considering to increase its enrollment, even if the campus has not yet finalized or begun implementing them.
(2) Enrollment projections for each of the next five years.
(3) A list of cost-saving strategies the campus has decided to implement; the amount of associated savings (one time, ongoing, and total) expected to be achieved as a result of each strategy, including any savings achieved to date; and an implementation timeline for each strategy, including actions taken to date. Comparable information shall also be provided for any other strategies that the campus is seriously considering to reduce its costs, even if the campus has not yet finalized or begun implementing them.
(c) Each campus with a turnaround plan, beginning with those submitted pursuant to the Budget Act of 2025 (Chs. 4 and 5, Stats. 2025), shall provide annual progress reports for the subsequent five years. Each of these reports shall track the progress made by the campus to increase enrollment and implement the strategies identified in its turnaround plan. These campuses shall submit their progress reports to the Chancellor of the California State University no later than December 31 of each year.
(d) Any California State University campus that meets its final enrollment growth target set forth in its turnaround plan prior to the end of the multi-year reporting period is no longer required to provide annual progress reports.
(e) The Chancellor of the California State University shall review and compile campus turnaround plans and progress reports into one consolidated report each year. The consolidated report also shall include strategies for increasing student demand and enrollment systemwide as well as strategies for reducing systemwide costs, particularly through management efficiencies and improved or innovative coordination. By March 1 each year, beginning in 2027, the Chancellor of the California State University shall submit the consolidated report to the Department of Finance and Joint Legislative Budget Committee.
14. (a) Of the funds appropriated in this item, $5,400,000 shall be available on a one-time basis to the California State University system. The California State University shall establish the California-Mexican Initiative for New Opportunities (CAMINO) program for the development and implementation of binational higher education initiatives benefiting California and the border region.
(b) Funds appropriated in this provision shall be administered by San Diego State University and may be used, as determined by San Diego State University, for purposes including, but not limited to, all of the following:
(1) Binational student and faculty mobility or exchange programs.
(2) Cross-border workforce and economic development initiatives.
(3) Joint degree or academic partnerships.
(4) Border region research and innovation collaborations.
(5) Student support services for border-region communities.
(6) Conferences, convenings, summits, public forums, and related events that support or advance California-Mexico higher education, workforce, research, or economic collaboration.
(c) The San Diego State University may award grant funding available to any California State University campus or community-based organization that applies for funding pursuant to this provision. Any participating California State University campus or community-based organization shall demonstrate substantial experience and success in California-Mexico educational, workforce, research, economic development, or binational collaboration activities.
(d) Beginning on March 1, 2027, and annually thereafter, until all program funds are expended, the San Diego State University shall submit a report to the Legislature regarding activities supported through the CAMINO program. The report shall include the following:
(1) The California State University campuses and community-based organizations that received grant funding through the program, the amount of funding awarded to each recipient and a summary of the activities supported by those funds.
(2) A summary of student, faculty, research, and community participation in program activities, including, to the extent feasible, the number of participants and the entities involved in program activities.
(3) A description of partnerships established, expanded, or supported through the program, including academic, research, workforce development, economic development, and community-based partnerships.
(4) A summary of program outcomes.

SEC. 145.

 Item 6870-101-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6870-101-0001—For local assistance, Board of Governors of the California Community Colleges (Proposition 98) ........................

6,960,978,000
6,899,880,000
Schedule:
(1)
5670015-Apportionments ........................

4,510,270,000
4,410,603,000
(2)
5670019-Apprenticeship ........................
80,960,000
(3)
5670023-Apprenticeship Training and Instruction ........................
64,241,000
(4)
5675040-Student Equity and Achievement Program ........................
554,081,000
(5)
5675019-Student Financial Aid Administration ........................

95,602,000
95,408,000
(6)
5675027-Disabled Students ........................
183,814,000
(7)
5675031-Student Services for CalWORKs Recipients ........................
58,556,000
(8)
5675035-Foster Care Education Program ........................
6,154,000
(9)
5675045-Legal Services ........................
10,000,000
(10)
5675061-Academic Senate for the Community Colleges ........................
1,796,000
(11)
5675069-Equal Employment Opportunity ........................
12,767,000
(12)
5675073-Part-Time Faculty Health Insurance ........................
200,490,000
(13)
5675077-Part-Time Faculty Compensation ........................
26,542,000
(14)
5675081-Part-Time Faculty Office Hours ........................
23,626,000
(15)
5670035-Expand the Delivery of Courses through Technology ........................
23,000,000
(16)
5675119-Economic Development ........................

323,029,000
353,786,000
(17)
5675123-Transfer Education and Articulation ........................
2,079,000
(18)
5675023-Extended Opportunity Programs and Services ........................
230,338,000
(19)
5675115-Fund for Student Success ........................

367,705,000
375,711,000
(20)
5675150-Campus Childcare Tax Bailout ........................
4,547,000
(21)
5675156-Nursing Program Support ........................
13,378,000
(22)
5675109-Institutional Effectiveness ........................
27,500,000
(23)
5675098-Integrated Technology ........................
130,503,000
(24)
5675042-Community College Summer Assistance Program ........................
2,000,000
(25)
5675117-AANHPI Student Achievement Program ........................
8,000,000
Provisions:
1.
The funds appropriated in this item are for transfer by the Controller during the 2026–27 fiscal year to Section B of the State School Fund.
2. (a)
The funds appropriated in Schedule (1) shall be allocated using the budget formula established pursuant to Section 84750.4 of the Education Code. The budget formula shall be adjusted to reflect the following:
(1)
Of the funds appropriated in Schedule (1), $166,009,000 $97,756,000 shall be used to increase statewide growth of full-time equivalent students (FTES) by 2.55 1.5 percent.
(2)
Of the funds appropriated in Schedule (1), $440,539,000 shall be used to reflect a cost-of-living adjustment of 4.31 percent.
(3)
Notwithstanding paragraph (1), the Chancellor’s Office of the California Community Colleges may allocate unused growth funding to backfill any unanticipated shortfalls in the total amount of funding appropriated and support the budget formula established pursuant to Section 84750.4 of the Education Code.
(b)
Funds allocated to a community college district from funds appropriated in Schedule (1) shall directly offset any mandated costs claimed for the Minimum Conditions for State Aid (02-TC-25 and 02-TC-31) program or any costs of complying with Section 84754.5 of the Education Code.
(c)
Of the funds appropriated in Schedule (1):
(1)
Up to $100,000 is for a maintenance allowance, pursuant to Section 54200 of Title 5 of the California Code of Regulations.
(2)
Up to $500,000 is to reimburse colleges for the costs of federal aid repayments related to assessed fees for fee waiver recipients. This reimbursement only applies to students who completely withdraw from college before the census date pursuant to Section 58508 of Title 5 of the California Code of Regulations.
(d)
Of the funds appropriated in Schedule (1), $91,207,000 shall be allocated to support the California College Promise pursuant to Article 3 (commencing with Section 76396) of Chapter 2 of Part 47 of Division 7 of Title 3 of the Education Code.
(e) (1)
Of the funds appropriated in Schedule (1), $50,000,000 shall be used to hire new full-time faculty for community college districts to increase their percentage of full-time faculty toward meeting the 75 percent full-time faculty target. The Chancellor’s Office of the California Community Colleges shall consult with representatives from the Department of Finance, the Legislature, and the Legislative Analyst’s Office before distributing these funds to community college districts.
(2)
Of the funds appropriated in Schedule (1), $100,000,000 shall be used to hire new full-time faculty for participating community college districts to increase their percentage of full-time faculty toward meeting the 75 percent full-time faculty target. The Chancellor’s Office of the California Community Colleges shall consult with representatives from the Department of Finance, the Legislature, and the Legislative Analyst’s Office before distributing these funds to community college districts. It is the intent of the Legislature that the funding available pursuant to this paragraph be used to increase a district’s hiring of full-time faculty above the level that the district would have otherwise employed each year.
(f) Funds allocated to a community college district from funds appropriated in Schedule (1) shall first be used to reimburse any required costs imposed by Sections 87766 and 88193 of the Education Code.
3. (a) (1)
The funds appropriated in Schedule (2) shall be available pursuant to Article 3 (commencing with Section 79140) of Chapter 9 of Part 48 of Division 7 of Title 3 of the Education Code. Funds appropriated pursuant to this subdivision shall be available for encumbrance or expenditure until June 30, 2029.
(2)
Pursuant to Section 79149.3 of the Education Code, the reimbursement rate shall be $10.61 per hour.
(b)
Of the funds appropriated in Schedule (2), $30,000,000 shall be used for the California Apprenticeship Initiative pursuant to Section 79148.1 of the Education Code. Funds appropriated pursuant to this subdivision shall be available for encumbrance or expenditure until June 30, 2032.
(c) Of the funds appropriated in Schedule (2), $14,337,000 shall be available to support the California Healthy School Food Pathways program. Funds appropriated pursuant to this subprovision shall be available for encumbrance or expenditure until June 30, 2029 2029. Of these funds, at least 80 percent shall support direct program costs, including instruction and training for participants.
(d)
By February 1 of each year, beginning in 2027, the Chancellor’s Office of the California Community Colleges shall submit a report to the Department of Finance and relevant policy and fiscal committees of the Legislature regarding the California Healthy School Food Pathways program. Contractors involved in administering the program shall provide any and all necessary information to the Chancellor’s Office to facilitate the report. The report shall include the following information for the pre-apprenticeship, apprenticeship, and fellowship components of the program: following data for the previous fiscal year.
(1) The number of participants and their demographics.
(2) The percentage of participants who completed the program component.
(3) Of those participants who completed the pre-apprenticeship, the percentage who transitioned to the apprenticeship.
(4) The following employment outcomes of completers in the 12 months after completion, compared when applicable to the 12 months before entry:
(A) Percentage employed before entry and after completion.
(B) Average wages before entry and after completion.
(C) Percentage retained with original employer after completion.
(D) Percentage promoted to a new position after completion.
(1) A description of the activities funded.
(2) The amount of state funding spent, broken down by expenditure type.
(3) The following data for the pre-apprenticeship, apprenticeship, and fellowship components of the program.
(A) The number of participants and their demographics.
(B) The cost per participant.
(C) The percentage of participants who completed the program component.
(D) Of those participants who completed the pre-apprenticeship, the percentage who transitioned to the apprenticeship.
(E) The following employment outcomes of completers in the 12 months after completion, compared when applicable to the 12 months before entry:
(i) Percentage employed before entry and after completion.
(ii) Average wages before entry and after completion.
(iii) Percentage retained with original employer after completion.
(iv) Percentage promoted to a new position after completion.
4. (a)
The funds appropriated in Schedule (3) shall be available pursuant to Article 8 (commencing with Section 8150) of Chapter 1 of Part 6 of Division 1 of Title 1 of the Education Code. Funds appropriated pursuant to this subdivision shall be available for encumbrance or expenditure until June 30, 2029.
(b)
Pursuant to Section 8152 of the Education Code, the reimbursement rate shall be $10.61 per hour.
5.
The funds appropriated in Schedule (4) shall be apportioned to community college districts pursuant to Section 78222 of the Education Code.
6. (a)
Of the funds appropriated in Schedule (5):
(1)
Not less than $14,807,000 $14,711,000 is available to provide $0.91 per unit reimbursement to community college districts for the provision of California College Promise Grants pursuant to paragraph (2) of subdivision (m) of Section 76300 of the Education Code.
(2)
Not less than $14,970,000 $14,872,000 is available for the Board Financial Assistance Program to provide reimbursement of 2 percent of total waiver value to community college districts for the provision of California College Promise Grants pursuant to paragraph (2) of subdivision (m) of Section 76300 of the Education Code.
(3) (A) $5,300,000 shall be allocated to a community college district to conduct a statewide outreach, marketing, and paid media campaign to promote the following messages: (i) many types of financial aid are available year-round to cover fees and help with college costs, such as books, housing, and other educational costs; (ii) students can contact their local community college financial aid office to get one-on-one assistance with completing and submitting financial aid applications and forms; and (iii) a community college education can improve the lives of students and their families by providing financial aid, as well as career training and guaranteed transfer opportunities to get into a rewarding, good-paying career. The campaign should target efforts to reach ethnically diverse, low-income students in primarily underresourced communities who must overcome barriers in accessing postsecondary education. The Chancellor’s Office of the California Community Colleges shall apprise the Student Aid Commission of ongoing outreach and marketing efforts.
(B) Of the amount identified in subparagraph (A), $2,500,000 shall be allocated to: (i) expand outreach for students from non-English speaking households and bilingual households; (ii) tie financial aid messaging to enrollment messaging where applicable to encourage current and potential students to enroll or continue their education at a California Community College and apply for financial aid; and (iii) marketing and outreach aimed at increasing current and potential student awareness of the California College Promise Grant and other types of financial aid available for California Community College students. Bilingual efforts shall target areas of the state that meet at least one of the following conditions: (i) have concentrations of non-English speaking and bilingual households, or (ii) have underserved populations, a history of declining community college attendance, or both.
(4)
Not more than $45,200,000 shall be for direct contact with potential and current financial aid applicants. Each California Community College campus shall receive a minimum allocation of $50,000. The remainder of the funding shall be allocated to campuses based upon a formula reflecting full-time equivalent students (FTES) weighted by a measure of low-income populations demonstrated by the California College Promise Grant program participation within a district.
(5)
Funds allocated to a community college district pursuant to paragraphs (1) and (2) shall supplement, not supplant, the level of funds allocated for the administration of student financial aid programs during the 2001–02 or 2006–07 fiscal year, whichever is greater.
(6)
Funding allocated to a community college district pursuant to paragraphs (1) and (2) shall directly offset any costs claimed by that district for any of the following mandates: Enrollment Fee Collection (99-TC-13), Enrollment Fee Waivers (00-TC-15), Cal Grants (02-TC-28), and Tuition Fee Waivers (02-TC-21).
(7)
Notwithstanding subdivision (m) of Section 76300 of the Education Code or any other law, the amount of funds appropriated for the purpose of administering fee waivers for the 2026–27 fiscal year shall be determined in this act.
(8)
Not more than $5,000,000 shall be for ongoing maintenance, subscription, and training costs for financial aid technology advancements and innovations that streamline the financial aid verification process and enable colleges to more efficiently process state and federal financial aid grants. It is the intent of the Legislature that system improvements supported by this funding have the effect of reducing the manual processing of financial aid applications, thereby enabling financial aid program staff to provide additional technical assistance and guidance to students seeking financial aid. The Chancellor’s Office of the California Community Colleges shall determine the methodology for allocating these funds to community college districts.
7. (a)
The funds appropriated in Schedule (6) shall be used to assist districts in funding the excess direct instructional cost of providing special support services or instruction, or both, to disabled students enrolled at community colleges and for state hospital programs, as mandated by federal law.
(b)
Of the amount appropriated in Schedule (6):
(1)
At least $3,945,000 shall be used to address deficiencies identified by the United States Department of Education Office for Civil Rights.
(2)
At least $943,000 shall be used to support the High Tech Centers for activities, including, but not limited to, training of district employees, staff, and students in the use of specialized computer equipment for the disabled.
(3)
At least $9,600,000 shall be allocated to community college districts for sign language interpreter services, real-time captioning equipment, or other communication accommodations for hearing-impaired students. A community college district is required to spend $1 from local or other resources for every $4 received pursuant to this paragraph.
8. (a)
The funds appropriated in Schedule (7) shall be allocated pursuant to Article 5 (commencing with Section 79200) of Chapter 9 of Part 48 of Division 7 of Title 3 of the Education Code.
(b)
Of the amount appropriated in Schedule (7):
(1)
$11,834,000 shall be for childcare, except that a community college district may request that the Chancellor of the California Community Colleges approve the use of funds for other purposes.
(2)
No less than $6,311,000 shall be used to provide direct workstudy wage reimbursement for students served under this program, and $791,000 is available for campus job development and placement services.
9.
The funds appropriated in Schedule (8) shall be allocated to community college districts to provide foster and relative or kinship care education and training pursuant to Article 8 (commencing with Section 79420) of Chapter 9 of Part 48 of Division 7 of Title 3 of the Education Code. A community college district shall ensure that education and training required pursuant to paragraphs (12) and (13) of subdivision (g) of Section 16519.5 of the Welfare and Institutions Code receive priority.
10.
The funds appropriated in Schedule (9) shall be allocated to a community college district to contract with the State Department of Social Services in order to contract with organizations qualified pursuant to Chapter 5.6 (commencing with Section 13300) of Part 3 of Division 9 of the Welfare and Institutions Code to provide services pursuant to that chapter to persons on California Community College campuses. Use of these funds shall be included in updates provided to the Legislature on the State Department of Social Services’ immigration programs.
11.
Of the amount appropriated in Schedule (10), $685,000 is available to support the Academic Senate for California Community Colleges course identification numbering system efforts and shall be subject to the requirements of subparagraph (B) of paragraph (5) of subdivision (b) of Section 70901 of the Education Code.
12.
Of the amount appropriated in Schedule (11), $10,000,000 shall be allocated to community college districts to support the continued implementation of equal employment opportunity plans and to enable campuses to engage in sustainable practices to diversify faculty, staff, and administrators, including the continued use of best practices and tools identified by office of the Chancellor of the California Community Colleges’ Equal Employment Opportunity and Diversity Advisory Committee.
13.
The funds appropriated in Schedule (12) shall be allocated to community college districts for the purpose of providing a state incentive program to encourage community college districts to offer health insurance for part-time faculty pursuant to Article 9 (commencing with Section 87860) of Chapter 3 of Part 51 of Division 7 of Title 3 of the Education Code.
14.
The funds in Schedule (13) shall be allocated to increase compensation for part-time faculty. Funds shall be allocated to districts based on the total actual number of full-time equivalent students (FTES) in the previous fiscal year, with an adjustment to the allocations provided to small districts. These funds shall be used to assist districts in making part-time faculty salaries more comparable to full-time salaries for similar work, as determined through collective bargaining in each community college district. If a community college district achieves parity between compensation for full-time faculty and part-time faculty, funds received pursuant to this provision may be used for any other educational purpose.
15.
Of the funds appropriated in Schedule (15):
(a)
$20,000,000 shall be allocated to the Chancellor of the California Community Colleges to increase the number of courses available through the use of technology, provide alternative methods for students to earn college credit, and support the California Virtual Campus Distance Education Program. These funds may be used to pay for a consistent learning management system to help implement this program. The chancellor shall ensure, to the extent possible, that the following conditions are satisfied:
(1)
These courses can be articulated across all community college districts.
(2)
These courses are made available to students systemwide, regardless of the campus at which a student is enrolled.
(3)
Students who complete these courses are granted degree-applicable credit across community colleges.
(4)
These funds shall be used for those courses that have the highest demand, fill quickly, and are prerequisites for many different degrees.
(b)
By September 1 of each fiscal year, up to $3,000,000 shall be disbursed by the Office of the Chancellor of the California Community Colleges to one or more community college districts to provide textbooks or digital course content to students incarcerated or detained in federal or state prison, county jail, juvenile facility, or other correctional institutions who are enrolled in one or more California Community College courses. The provision of this material is expected to enable community college districts to provide instruction to incarcerated or detained students.
(1)
To the extent possible, community college districts providing textbooks or digital course content pursuant to this subdivision are encouraged to first use open educational resources.
(2)
Notwithstanding any other law, a contract between the Office of the Chancellor of the California Community Colleges and a community college district for purposes of this subdivision is not subject to any competitive bidding requirements of Section 10340 of the Public Contract Code.
16.
Of the funds appropriated in Schedule (16):
(a)
$22,929,000 is available for the following purposes:
(1)
Up to 10 percent may be allocated for state-level technical assistance, including activities that support statewide network leadership; enhance technology-enabled labor market data and tools; provide professional development to improve program accountability and reporting; manage the statewide advisory body; support regional consortia coordination; and enhance information and support services.
(2)
All remaining funds shall be allocated for programs that target investments in priority and emergent sectors, including statewide or regional centers, hubs, collaborative communities, and advisory bodies. Priority shall be given to projects that place graduates into high-wage jobs. Funds may support curriculum modernization, work-based learning, and technology-enabled training aligned with regional labor-market demand, consistent with the goals of the Strong Workforce Program.
(3)
Funds applied to performance-based training shall be matched by a minimum of $1 contributed by private businesses or industry for each $1 of state funds. The Chancellor of the California Community Colleges shall consider the level of involvement and financial commitments of business and industry in making awards for performance-based training.
(b)
$290,400,000 $306,157,000, of which $290,400,000 is ongoing, shall be available to support the Strong Workforce Program pursuant to Part 54.5 (commencing with Section 88820) of Division 7 of Title 3 of the Education Code. Of this amount, $60,000,000 shall be available to support the Rebuilding Nursing Infrastructure Grant Program pursuant to Sections 88770, 88771, 88772, and 88773 of the Education Code. It is the intent of the Legislature to appropriate $60,000,000 each fiscal year between 2026–27 to 2028–29, inclusive, to support the Rebuilding Nursing Infrastructure Grant Program.
(c) $9,700,000 shall be available on a one-time basis to support the Adult Learner Demonstration Project for low-income workers. The amount shall be available for encumbrance or expenditure until June 30, 2029.
(d) $15,000,000 shall be available on a one-time basis to support the Future of Creative Industries Pilot Project.
17.
Of the funds provided in Schedule (17):
(a)
$1,381,000 shall be used to support the Historically Black Colleges and Universities (HBCU) Transfer Pathway program, which helps develop transfer guarantee agreements that help facilitate a smooth transition for students from the California Community Colleges to partnered HBCU institutions.
(b) (1)
$698,000 shall be used to support transfer and articulation projects and common course numbering projects.
(2)
Funding provided to community college districts shall directly offset any costs claimed by community college districts to be mandates pursuant to Chapter 737 of the Statutes of 2004.
18. (a)
Of the funds appropriated in Schedule (18):
(1)
$194,731,000 shall be used pursuant to Article 8 (commencing with Section 69640) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code. Funds provided in this item for Community College Extended Opportunity Programs and Services shall be available to students on all campuses within the California Community Colleges system.
(2)
$35,607,000 shall be used for funding, at all colleges, the Cooperative Agencies Resources for Education program in accordance with Article 4 (commencing with Section 79150) of Chapter 9 of Part 48 of Division 7 of Title 3 of the Education Code. The Chancellor of the California Community Colleges shall allocate these funds to local programs on the basis of need for student services.
(b)
Of the amount allocated pursuant to subdivision (a), no less than $4,972,000 shall be available to support additional textbook assistance grants to community college students.
19.
The funds appropriated in Schedule (19) shall be used for the following purposes:
(a)
$13,326,000 shall be used for the Puente Project to support up to 115 colleges. These funds are available if matched by $200,000 of private funds and if the participating community colleges and University of California campuses maintain their 1995–96 fiscal year support level for the Puente Project.
(1)
Of the funds provided in subdivision (a), $5,331,000 shall be allocated to a community college district to contract with the Puente Project to support the general operation of, and direct services delivered through, central administration which includes, but is not limited to, professional development, program data collection, program research and evaluation, and initiatives to improve student transfer rates.
(2)
Of the funds provided in subdivision (a), $7,995,000 shall be allocated directly to participating districts in accordance with their participation agreement.
(3) (A) If the appropriation provided in this subdivision is increased from the funding level provided in the 2022–23 fiscal year, funding allocated to districts as described in paragraphs (1) and (2) shall be adjusted consistent with their percentage share of total funding in this subdivision.
(B)
Notwithstanding paragraphs (1) and (2), if the appropriation provided in this subdivision is reduced from the funding level provided in the 2022–23 fiscal year, the Puente Project, in consultation with the Chancellor’s Office of the California Community Colleges, will determine the funding allocation to support services and programs provided in paragraphs (1) and (2).
(4)
In any fiscal year in which districts have any unexpended or unencumbered funds allocated pursuant to paragraph (2) by June 30, the Puente Project will determine a reallocation of funds that may include, but not be limited to, maintaining the allocation level for a participating site or reallocating funds to another participating site.
(b) (1)
$39,423,000 is to allow all colleges to establish and support California Community College Mathematics, Engineering, Science Achievement (MESA) programs. Funds provided in this item for MESA programs shall be available to students on all campuses within the California Community Colleges system to enhance California’s STEM workforce, while aiding the state and nation in reducing equity and achievement gaps.
(2)
The Office of the Chancellor of the California Community Colleges shall award each MESA program ongoing annual funding to meet the program’s goals, at a minimum allocation of $280,000 per college. Colleges receiving an allocation shall use the funding to supplement, but not supplant, local sources of funding supporting MESA programs.
(3)
In any fiscal year in which districts have any unexpended or unencumbered funds allocated pursuant to subprovision (2) by June 30 of that year, MESA shall make a determination regarding the reallocation of funds that shall include maintaining the allocation level for a participating MESA program or reallocating funds to another participating MESA program.
(c)
No less than $1,836,000 is for the Middle College High School Program. With the exception of special part-time students at the community colleges pursuant to Sections 48802 and 76001 of the Education Code, student workload based on participation in the Middle College High School Program shall not be eligible for community college state apportionment.
(d) (1) (A) No less than $9,178,000 is for the Umoja program.
(B)
Of funds provided in subparagraph (A), $3,671,000 shall be allocated to a community college district to contract with the Umoja Statewide program office to provide additional resources to facilitate the capacity building and development of the statewide office in an effort to expand the Umoja program, build a data support system, target the needs of special populations in the African American community, improve tutoring and mental health resources, enhance STEM/STEAM and career opportunities, and improve outcomes for students enrolled in Umoja campus programs.
(C)
Of the funds provided in subparagraph (A), $5,507,000 shall be allocated by the Office of the Chancellor of the California Community Colleges directly to participating districts in accordance with their Umoja Statewide participation agreement for campuses with Umoja programming. Umoja Statewide, in consultation with the Chancellor’s Office, shall determine the allocation of resources to campuses. The Umoja Statewide program shall annually report, by July 30, updates on the status of Umoja’s capacity building and expansion plan to the Office of the Chancellor of the California Community Colleges and the budget committees of the Senate and Assembly. Of the funds provided in this subparagraph, a negotiated amount, not to exceed 1 percent may be provided directly to the community college district contracting with the Umoja Statewide program office for purposes related to this subparagraph.
(e)
Consistent with the intent of Article 7 (commencing with Section 79220) of Chapter 9 of Part 48 of Division 7 of Title 3 of the Education Code, the chancellor shall enter into agreements with community college districts to provide additional services in support of postsecondary education for foster youth. Up to $54,110,000 of the funds appropriated in this item shall be prioritized for services pursuant to Article 7 (commencing with Section 79220) of Chapter 9 of Part 48 of Division 7 of Title 3 of the Education Code. Further, the chancellor shall ensure that the list of eligible expenditures developed pursuant to subdivision (d) of Section 78221 of the Education Code includes expenditures that are consistent with the intent of Article 7 (commencing with Section 79220) of Chapter 9 of Part 48 of Division 7 of Title 3 of the Education Code.
(f)
$10,822,000 of the funds shall be for support of Veteran Resource Centers. To the extent funding is provided in the annual Budget Act, the chancellor shall only allocate funding to community colleges that commit to either meeting or making progress towards meeting the minimum standards developed by the Office of the Chancellor of the California Community Colleges.
(g) (1)
Colleges shall establish ongoing partnerships with community organizations that have a tradition of helping populations experiencing homelessness to provide wraparound services and rental subsidies for homeless and housing-insecure students. $20,562,000 of the funds appropriated in Schedule (19) may be used for, but are not limited to, the following authorized activities:
(A)
Connecting students with community case managers who have knowledge and expertise in accessing safety net resources.
(B)
Establishing ongoing emergency housing procedures, including on-campus and off-campus resources.
(C)
Providing emergency grants that are necessary to secure housing or to prevent the imminent loss of housing.
(2)
Funding shall be allocated to campuses based on demonstrated need.
(3)
“Homeless” and “housing-insecure” mean students who lack a fixed, regular, and adequate nighttime residence. This includes students who are:
(A)
Sharing the housing of other persons due to loss of housing, economic hardship, or a similar reason.
(B)
Living in motels, hotels, trailer parks, or camping grounds due to the lack of alternative adequate accommodations.
(C)
Living in emergency or transitional shelters.
(D)
Abandoned in hospitals.
(E)
Living in a primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings.
(F)
Living in cars, parks, public spaces, abandoned buildings, substandard housing, bus or train stations, or similar settings.
(4)
By July 15 of each year, the Office of the Chancellor of the California Community Colleges shall submit a report to the Director of Finance and, in conformity with Section 9795 of the Government Code, to the Legislature regarding the prior year use of these funds, including the number of coordinators hired, the number of students served by campus, the distribution of funds by campus, a description of the types of programs funded, and other relevant outcomes, such as the number of students who were able to secure permanent housing, and whether students receiving support remained enrolled at the institution or graduated.
(h)
$41,994,000, of which $15,000,000 is ongoing, $35,000,000 of one-time funding shall be allocated by the Chancellor’s Office of the California Community Colleges to community colleges to support Dreamer Resource Liaisons and student support services, including those related to career pathways and economic mobility, for immigrant students, pursuant to Section 66021.8 of the Education Code.
(i)
$83,754,000 shall be available to support the basic needs of community college students.
(1) (A) Of the amount allocated for this subdivision, $32,466,000 shall be available to provide for student mental health resources.
(B)
The Chancellor’s Office of the California Community Colleges shall submit a report to the Department of Finance and relevant policy and fiscal committees of the Legislature by January 1, 2025, and every three years thereafter, regarding the use of funds specified in this paragraph. The report shall include, but not necessarily be limited to, all of the following information:
(i)
The amount of funds provided for each community college district.
(ii)
A description of how the funds were used for the purposes reflected in this paragraph.
(iii)
A description of the types of programs in which districts invested.
(iv)
The number of students receiving mental health services on campus disaggregated by race/ethnicity, gender, age group, and type of service received.
(v)
The average wait time for initial routine mental health counseling appointments.
(vi)
The average number of campus mental health counseling appointments per student.
(vii)
The number of students referred to off-campus providers for mental health services.
(viii)
Total spending on student mental health services, by fund source, including spending covered by insurance providers.
(ix)
Other findings and best practices implemented by districts.
(2)
Of the amount made available by this subdivision, $51,288,000 shall be allocated by the Chancellor’s Office of the California Community Colleges for colleges to establish and operate basic needs centers as a centralized location on campus where students experiencing basic needs insecurity can be identified, supported, and linked to on- and off-campus resources to support timely program completion pursuant to Section 66023.5 of the Education Code. Colleges shall also designate or hire dedicated basic needs coordinators for the basic needs centers who will serve as a single point of contact for students. It is the intent of the Legislature that an additional $8,000,000 be available for basic needs centers on a one-time basis in fiscal years 2026–27 and 2027–28, which includes, but is not limited to, providing classified employees with access to food pantry services offered by basic needs centers pursuant to paragraph (7) of subdivision (b) of Section 66023.5 of the Education Code.
(j) (1)
$35,000,000 shall be available to support the Rising Scholars Network pursuant to Article 6 (commencing with Section 78070) of Chapter 1 of Part 48 of Division 7 of Title 3 of the Education Code.
(2) (A) Of the funds provided for in paragraph (1), 60 percent annually shall support ongoing implementation of model programming for juvenile justice-impacted students, as a grant program administered and supported by the Rising Scholars Network of the Chancellor’s Office of the California Community Colleges. Funds shall be used for model college programming with key components based on the Project Change model, to be offered both within juvenile facilities and on the community college campus, to establish a direct pathway to college for juvenile justice-impacted young people.
(B)
Of the funds provided for in subparagraph (A), at least 86.7 percent annually shall support a maximum of 45 community colleges on 5-year grant cycles to implement model programming to serve juvenile justice-impacted students, incorporating the three following core Project Change program components:
(i)
College programming that is: (I) offering University of California and California State University transferable courses and comprehensive student support programming; (II) provided by a California Community College through instruction; and (III) offered both on campus at a community college and in local juvenile detention facilities.
(ii)
Comprehensive support to assist students with the transition to on-campus higher education, including: (I) wraparound student support services that address basic needs such as books and supplies, tuition, fees, stipends, housing, food, and transportation; and (II) educational transition plans for students, outlining their multiyear framework from high school through college completion.
(iii)
Staffing and space commitments, including: (I) dedicated staffing of a program lead, counselor, and retention specialist; (II) dedicated space on the college campus for the program; and (III) formal partnerships with key stakeholders, including, but not limited to, the local county office of education, probation department, local high school districts, and community-based organizations.
(C)
Community colleges may implement model program components on a phased timeline. Model programs must utilize both Dual Enrollment and Guided Pathways frameworks. At the conclusion of the 5-year cohort, community colleges may reapply for continued funding support.
(D)
Colleges may be funded on a tiered model. Tiered model funding may consider the number of core program components a college can implement; student counts; whether the college already has an established or funded Rising Scholars program; and other metrics determined by the Rising Scholars Network of the Office of the Chancellor of the California Community Colleges.
(E)
Of the funds provided in subparagraph (A), 8.3 percent annually shall support technical assistance for successful implementation of model programming overseen by the Rising Scholars Network of the Office of the Chancellor of the California Community Colleges. Technical assistance includes contract staffing positions to oversee the project implementation, in-person trainings, and support.
(k) (1)
$1,100,000 shall be allocated by the Chancellor’s Office for the expansion of African American Male Education Network and Development (A2MEND) student charters at up to 50 colleges to improve academic success and develop a student support structure for African American male students attending community colleges.
(2)
In considering an allocation methodology to community colleges, the Office of the Chancellor of the California Community Colleges shall consider a factor that allocates funds to community colleges that have submitted work plans pursuant to paragraph (3) of subdivision (c) of Section 88922 of the Education Code, including considering the community college’s guided pathways activities and practices.
(l)
$42,000,000, of which $7,000,000 is ongoing, shall be available to support the Credit for Prior Learning Initiative pursuant to Section 26 of Chapter 9 of the Statutes of 2025.
(m) $3,000,000 in one-time funds shall be available for the Southwestern Community College District to reconstitute the Pharmacy Technician Associate Degree program, develop an Associate Degree in Data Science, support transfer pathway development in both disciplines, and request collaboration with the University of California, San Diego, to ensure seamless transfer pathways, including coordination on externship placements for pharmacy technician students and alignment with emerging bachelor’s degree programs at the University of California, San Diego.
(n) (1) )$15,000,000 shall be allocated on a one-time basis by the Chancellor’s Office of the California Community Colleges to participating community college districts to provide additional funds to support LGBTQ+ students. For the purposes of allocating and expending this funding, the Chancellor’s Office of the California Community Colleges and participating community college districts shall follow the requirements as stipulated in Section 89 of Chapter 144 of the Statutes of 2021.
(2) Notwithstanding paragraph (2) of subdivision (b) of Section 89 of Chapter 144 of the Statutes of 2021, the Chancellor’s Office of the California Community Colleges shall provide grants of up to $900,000 for participating community college districts based on the proportional share of students they serve and equity metrics to ensure that small rural colleges are also able to access the grants. Participating community college districts may encumber the funds over a five-year period.
20.
The funds appropriated in Schedule (20) shall be allocated by the Chancellor of the California Community Colleges to community college districts that levied childcare permissive override taxes in the 1977–78 fiscal year pursuant to Sections 8272 and 8272.5 of the Education Code in an amount proportional to the property tax revenues, tax relief subventions, and state aid required to be made available by the district to its childcare and development program for the 1979–80 fiscal year pursuant to Section 30 of Chapter 1035 of the Statutes of 1979, increased or decreased by any cost-of-living adjustment granted in subsequent fiscal years. These funds shall be used only for the purpose of community college childcare and development programs.
21.
Of the funds appropriated in Schedule (21):
(a)
$8,475,000 shall be used to provide support for nursing programs.
(b)
$4,903,000 shall be used for diagnostic and support services, preentry coursework, alternative program delivery model development, and other services to reduce the incidence of student attrition in nursing programs.
22.
Of the amount appropriated in Schedule (22):
(a) (1)
$7,500,000 may be used by the Chancellor of the California Community Colleges to provide technical assistance to community college districts that demonstrate low performance in any area of operations. It is the intent of the Legislature that technical assistance providers be contracted in a cost-effective manner, that they primarily consist of experts who are current and former employees of the California Community Colleges, and that they provide technical assistance consistent with the vision for the California Community Colleges.
(2)
Technical assistance funded pursuant to this paragraph that is initiated by the chancellor may be provided at no cost to the community college district. If a community college district requests technical assistance, the district is required to spend at least $1 from local or other resources for every $2 received, as determined by the chancellor.
(b) (1)
$20,000,000 may be used by the chancellor to provide regional and online workshops and trainings to community college personnel to promote statewide priorities, including, but not limited to, strategies to improve student achievement; strategies to improve community college operations; and system leadership training to better coordinate planning and implementation of statewide initiatives in alignment with the Board of Governors of the California Community Colleges’ Vision for Success. To the extent possible, the chancellor shall partner with existing statewide initiatives with proven results of improving student success and institutional effectiveness. Each fiscal year, the chancellor shall submit a report on the use of funds appropriated pursuant to this provision in the prior year to the Department of Finance and the Joint Legislative Budget Committee no later than December 31 of each year and, beginning in the 2025–26 fiscal year and every three years thereafter, the chancellor shall submit a report on the use of the funds appropriated pursuant to this provision in the prior three years to the Department of Finance and the Joint Legislative Budget Committee no later than December 31 of that year. This report shall include information regarding California Community Colleges’ participation in the activities funded pursuant to this provision.
(2)
Funding available pursuant to this paragraph may be used by the chancellor to coordinate with community college districts to conduct policy research, and develop and disseminate effective practices through the establishment of an online clearinghouse of information. The development of effective practices shall include, but not be limited to, statewide priorities such as the development of educational programs or courses for the incarcerated adults in prisons and jails, and the formerly incarcerated, educational programs or courses for California Conservation Corps members, and other effective practices. The online clearinghouse of information shall also reflect effective practices, guidance, policies, curriculum, courses, and programs developed by local community colleges in support of the Strong Workforce Program established pursuant to Part 54.5 (commencing with Section 88820) of Division 7 of Title 3 of the Education Code.
(3)
It is the intent of the Legislature to encourage the chancellor to facilitate the development of local community college courses for the California Conservation Corps and the incarcerated adults in prisons and jails, and the formerly incarcerated. The Department of Corrections and Rehabilitation and the California Conservation Corps are encouraged to partner with the Chancellor’s Office in the development and dissemination of local community college courses and effective practices pursuant to this paragraph and paragraph (2).
23.
Of the funds appropriated in Schedule (23):
(a)
$10,613,000 shall be allocated to continue providing a systemwide and integrated online infrastructure that supports the continuity of education and quality distance learning across the community college system. These infrastructure investments may include, but are not limited to, access to online tutoring and counseling, ensuring available and accessible technical support, and providing mental health services and other student support services.
(b)
$8,000,000 shall be provided to cover increased administrative costs related to the Corporation for Education Network Initiatives in California.
(c)
$41,890,000 shall be allocated by the Chancellor of the California Community Colleges for the following purposes:
(1)
Procurement, development, evaluation, and upgrading of high-priority systemwide technology tools and infrastructure, including, but not limited to, e-transcript, e-planning, and other tools to assist colleges to implement multiple measures of assessment pursuant to Chapter 745 of the Statutes of 2017, and technologies that facilitate portability of education credentials.
(2)
Provision of access to statewide multimedia hosting and delivery services for colleges and districts.
(3)
Provision of systemwide internet, audio bridging, data security, and telephony.
(4)
Services related to technology use, including accessibility guidance and information security.
(5)
Technology product development and program management, technical assistance and planning, and cooperative purchase agreements.
(6)
Ongoing faculty and staff development related to technology use and adoption.
(7)
Ongoing support of the California Partnership for Achieving Student Success (Cal-PASS) program.
(8)
Ongoing support for programs designed to use technology in assisting accreditation and the alignment of curricula across K–20 segments in California, as well as to support integration and interoperability toward an improved student experience.
(9)
Support for technology pilots and ongoing technology programs and applications that serve to maximize the utility and economy of scale of the technology investments of the community college system toward improving learning outcomes.
(10)
Up to 5 percent of the funds may be allocated by the chancellor to a community college district for statewide activities, not limited to statewide technical assistance to evaluate, plan, and continuously improve the system’s data and technology roadmap and deployment.
(d)
Any funds not allocated pursuant to subdivision (c) shall be available for allocations to districts to maintain technology capabilities.
(e)
$4,000,000 shall be used to expand the implementation of the systemwide technology platform for library services to better manage and deliver digital information to support teaching and learning, including for students enrolled in distance education.
(f) (1)
$25,000,000 shall be provided for community college districts to implement local and systemwide technology and data security measures that support improved oversight of fraud mitigation, online learning quality, and cybersecurity efforts. Funds shall be used by community college districts to hire local cybersecurity staff, and funds shall also be used for systemwide measures, including, but not limited to, security upgrades for CCCApply and education technology platforms and the establishment of systemwide cybersecurity teams.
(2)
As a condition of receiving funds pursuant to this subdivision, a community college district shall do all of the following:
(A)
Complete an annual cybersecurity self-assessment of their information technology infrastructure to determine their National Institute of Standards and Technology (NIST) Computer Systems Laboratory (CSL) score and report their current phase in Cal-Secure standards.
(B)
Participate in the following regularly scheduled cybersecurity reporting:
(i)
Submit remediation updates twice per year, for the fall and spring semester terms, on vulnerability and other issues identified in the previous self-assessment or triennial assessment.
(ii)
Submit detailed after-action reports of all cybersecurity incidents that either lead to a breach of personally identifiable information or lead to the disruption of services, including, but not limited to, a breach of student identification numbers, distributed denial-of-service attacks, and ransomware.
(iii)
The total number of admission applications received from CCCApply that are determined to be fraudulent, including applications marked as “likely fraud” within CCCApply, on an annual basis.
(iv)
Information requested on suspected fraudulent enrollments, and fraudulent receipt of financial aid, on an annual basis.
(C)
Reporting required by this section shall not be duplicated by other reporting required by the Office of the Chancellor of the California Community Colleges.
(3)
If the reporting required pursuant to paragraph (2) is duplicative of other reports provided by a community college district, a community college district may submit those reports in lieu of the reporting required by paragraph (2).
(g)
Of the amount appropriated in Schedule (23), $41,000,000, of which $5,000,000 is ongoing, shall be provided for the Common Cloud Data Platform. This platform shall enhance statewide reporting, data sharing, and available analytical tools across community college districts and the Chancellor’s Office. The platform shall be designed to support community college student success initiatives, improve community college districts’ stewardship of resources and ability to use data-driven decision making, streamline community college administrative processes, and inform state budget and policy making.
24.
The funds appropriated in Schedule (24) shall be allocated to support the Classified Community College Employee Summer Assistance Program established pursuant to Article 11 (commencing with Section 88280) of Chapter 4 of Part 51 of Division 7 of Title 3 of the Education Code.
25.
The funds appropriated in Schedule (25) shall be allocated on an ongoing basis by the Office of the Chancellor to support the California Community Colleges Asian American, Native Hawaiian, and Pacific Islander Student Achievement Program pursuant to Article 10 (commencing with Section 79510) of Chapter 9 of Part 48 of Division 7 of Title 3 of the Education Code.
26.
Beginning on October 1, 2022, and annually thereafter, the Chancellor of the California Community Colleges shall provide the Legislature and Department of Finance a list of all statewide or regional projects, initiatives, and services administered by districts in partnership with the Office of the Chancellor. The list shall include the amount of each agreement from the prior fiscal year, the categorical program funding source, the name of the fiscal agent, the contractor, and a brief description of the services provided by and the deliverables expected of the contractor to the Office of the Chancellor or other districts. The list shall be comprehensive, including all grants and contracts.

SEC. 146.

 Item 6870-109-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6870-109-0001—For local assistance, Board of Governors of the California Community Colleges (Proposition 98) ........................

14,200,000
42,600,000
Schedule:
(1) 5670015-Apportionments ........................
14,200,000
42,600,000
Provisions:
1. The funds appropriated in Schedule (1) shall be available on a one-time basis to support the California Indian Nations College located in Palm Desert, California. The amount shall be available for encumbrance or expenditure until June 30, 2029.

SEC. 147.

 Item 6870-488 of Section 2.00 of the Budget Act of 2026 is amended to read:
6870-488—Reappropriation (Proposition 98), Board of Governors of the California Community Colleges. Notwithstanding any other law, the balances from the following appropriations are available for reappropriation for the purposes specified in Provision 1:
0001—General Fund
(1) $10,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for Student Success and Support in Schedule (9) of Item 6870-101-0001, Budget Act of 2017 (Chs. 14, 22, and 54, Stats. 2017).
(2) $770,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for California State Pathways in Technology in Section 45 of Chapter 33 of the Statutes of 2018.
(3) $6,048,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for repayment of deferred apportionments funding in Section 8 of Chapter 25 of the Statutes of 2020.
(4) $63,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for Workforce Investment Initiatives in Section 87 of Chapter 144 of the Statutes of 2021.
(5) $42,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for lease-revenue bond payments in Schedule (1) of Item 6870-103-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021).
(6) $4,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for lease-revenue bond payments in Schedule (1) of Item 6870-103-0001, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022).
(7) $9,588,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for Community College Summer Assistance Program in Schedule (24) of Item 6870-101-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(8) $10,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for lease-revenue bond payments in Schedule (1) of Item 6870-103-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(9) $13,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for mandates in Item 6870-295-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023).
(10) $100,732,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for apportionments in Schedule (1) of Item 6870-101-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), as amended by Chapter 9 of the Statutes of 2025 and Chapter 745 of the Statutes of 2025.
(11) $47,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for maintenance allowance in Schedule (1) of Item 6870-101-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) as amended by Chapter 9 of the Statutes of 2025 and Chapter 745 of the Statutes of 2025.
(12) $18,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for lease-revenue bond payments in Schedule (1) of Item 6870-103-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).
(13) $13,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for mandates in Item 6870-295-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).
(14) $30,000 or whatever greater or lesser amount of the unexpended balance of the amount appropriated for mandates in Item 6870-296-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024).
Provisions:
1. The sum of $78,253,000 $117,388,000 is reappropriated for transfer by the Controller to Section B of the State School Fund to support deferred maintenance costs, pursuant to pending legislation. Funds appropriated pursuant to this provision shall be available for encumbrance or expenditure until June 30, 2031.
2. The sum of $39,135,000 is reappropriated for transfer by the Controller to Section B of the State School Fund to support Student Support Block Grant costs, pursuant to pending legislation. Funds appropriated pursuant to this provision shall be available for encumbrance or expenditure until June 30, 2030.

SEC. 148.

 Item 6980-101-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
6980-101-0001—For local assistance, Student Aid Commission ........................

3,790,899,000
3,800,899,000
Schedule:
(1)
5755-Financial Aid Grants Program ........................

4,228,147,000
4,238,147,000
(2)
Reimbursements to 5755-Financial Aid Grants Program ........................
−437,248,000
Provisions:
1.
The funds appropriated in this item are for costs of all of the following:
(a)
The Cal Grant Program, pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42 of Division 5 of Title 3 of the Education Code.
(b)
The Law Enforcement Personnel Dependents Scholarship Program, pursuant to Section 4709 of the Labor Code.
(c)
The Assumption Program of Loans for Education, pursuant to Article 5 (commencing with Section 69612) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code.
(d)
The State Nursing Assumption Program of Loans for Education (SNAPLE), pursuant to Article 1 (commencing with Section 70100) of Chapter 3 of Part 42 of Division 5 of Title 3 of the Education Code.
(f)
The Cash for College Program, pursuant to Article 3.5 (commencing with Section 69551) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code.
(g)
The Student Opportunity and Access Program (Cal-SOAP), pursuant to Article 4 (commencing with Section 69560) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code.
(h)
Of the funds appropriated in this item, $2,400,000 is available on an ongoing basis to support the Inland Empire Cal-SOAP projects.
1.1.
The Student Aid Commission shall report to the Department of Finance and the relevant policy and fiscal committees of the Legislature by December 1, 2027, regarding the use of funds specified in subprovision (f) of Provision 1. The report shall include, but not necessarily be limited to, all of the following information regarding the Cash for College Program in 2026–27:
(a)
A list of regional coordinating organizations specifying, for each organization, whether it was newly added to the program in 2026–27, and the areas of the state that it covers.
(b)
The services provided by the program, including the number of financial aid application workshops hosted.
(c)
The number of students participating in financial aid application workshops and the number of those students who completed a Free Application for Federal Student Aid or California Dream Act Application.
(d)
A description of the coordination between the program and other financial aid outreach efforts conducted by state agencies, local educational agencies, and other entities.
1.2. Of the reimbursements identified amount appropriated in Schedule (2) of this item, $1,630,000 is for Federal Title II, Part A support for the Golden State Teacher Grant Program, pursuant to Article 5.1 (commencing with Section 69617) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code and shall be available on a one-time basis for encumbrance and expenditure through June 30, 2030.
1.3. Of the reimbursements identified amount appropriated in Schedule (2) of this item, $16,152,000 is for the federal Individuals with Disabilities Act (IDEA) to support the Golden State Teacher Grant Program recipients who are pursuing a special education credential, pursuant to Article 5.1 (commencing with Section 69617) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, and shall be available for encumbrance and expenditure through June 30, 2030.
1.4 It is the intent of the Legislature to appropriate $10,000,000 on a one-time basis in fiscal year 2027–28 for the 2027–28 Golden State Teacher Grant Program to support students earning a teaching credential in high-need fields of study pursuant to Article 5.1 (commencing with Section 69617) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code.
1.4. Of the amount appropriated in Schedule (1) of this item, it is the intent of the Legislature to provide $10,000,000 on a one-time basis for the 2027–28 Golden State Teacher Grant program to support students earning a teaching credential in a high-need field of study pursuant to Article 5.1 (commencing with Section 69617) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code.
1.5.
Of the amount appropriated in this item, $7,500,000 is to fund the California Dream Act Service Incentive Grant Program pursuant to Article 5.5 (commencing with Section 69438) of Chapter 1.7 of Part 42 of Division 5 of Title 3 of the Education Code.
2.
Notwithstanding any other law, the maximum Cal Grant award for:
(a)
New recipients attending private, for-profit institutions that are not accredited by the Western Association of Schools and Colleges as of July 1, 2023, shall be $4,000.
(b)
New recipients attending private, for-profit institutions that are accredited by the Western Association of Schools and Colleges as of July 1, 2023, shall be $8,056.
(c)
All recipients attending private, nonprofit institutions shall be $9,358.
(d)
All recipients of Cal Grant B access awards shall be $1,648.
(e)
All recipients receiving Cal Grant C tuition and fee awards shall be $2,462.
(f)
All recipients attending community colleges receiving Cal Grant C book and supply awards shall be $1,094.
(g)
All recipients not attending community colleges receiving Cal Grant C book and supply awards shall be $547.
(h)
All University of California student recipients receiving Cal Grant awards shall be the amount approved for mandatory systemwide tuition and fees by the Regents of the University of California for the 2026–27 academic year.
(i)
All California State University student recipients receiving Cal Grant awards shall be the amount approved for mandatory systemwide tuition and fees by the Trustees of the California State University for the 2026–27 academic year.
3.
Notwithstanding Provision 2 of this item and any other law:
(a)
All Cal Grant A award recipients attending a University of California, California State University, or a private nonprofit institution and who have a dependent child or dependent children shall also receive an access award. The maximum amount of this access award shall be $6,000.
(b)
All Cal Grant B access award recipients attending a University of California, California State University, California Community College, or a private nonprofit institution and who have a dependent child or dependent children shall have a maximum access award of $6,000.
(c)
All Cal Grant C book and supply award recipients attending a California Community College and who have a dependent child or dependent children shall have a maximum book and supply award of $4,000.
4.
Notwithstanding Provision 2 of this item and any other law:
(a)
All Cal Grant A award recipients attending a University of California, California State University, California Community College, or a private nonprofit institution and who are former or current foster youth shall have a maximum access award of $6,000.
(b)
All Cal Grant B award recipients attending a University of California, California State University, California Community College, or a private nonprofit institution and who are former or current foster youth shall have a maximum access award of $6,000.
(c)
All Cal Grant C book and supply award recipients attending a California Community College and who are former or current foster youth shall have a maximum book and supply award of $4,000.
4.1 It is the intent of the Legislature to provide $9,800,000 on a one-time basis for a multiyear appropriation in fiscal years 2027–28 through 2031–32 $13,491,000 in the 2027–28 fiscal year, $22,211,000 in the 2028–29 fiscal year, $23,540,000 in the 2029–30 fiscal year, $24,952,000 in the 2030–31 fiscal year, and $26,454,000 in the 2031–32 fiscal year to expand access to Cal Grant to students of up to 30 years of age pursuant to Article 4 (commencing with Section 69436) of Chapter 1.7 of Part 42 of Division 5 of Title 3 of the Education Code.
5.
Notwithstanding any other law, the Department of Finance may authorize an augmentation, from the Special Fund for Economic Uncertainties established pursuant to Section 16418 of the Government Code, of the amount appropriated in this item to make Cal Grant awards, pursuant to Chapter 1.7 (commencing with Section 69430) of Part 42 of Division 5 of Title 3 of the Education Code. No augmentation may be authorized pursuant to this provision sooner than 30 days after the Department of Finance provides notice of the intended augmentation to the chairpersons of the committees in each house of the Legislature that consider appropriations.
6.
Notwithstanding any other law, the Department of Finance may authorize a loan from the General Fund for cashflow purposes, in an amount not to exceed $125,000,000, provided that:
(a)
The loan is to meet cash needs resulting from a delay in the receipt of reimbursements from federal Temporary Assistance for Needy Families (TANF) funds.
(b)
The Student Aid Commission has received confirmation from the State Department of Social Services that there are no available TANF resources that could be advanced to them.
(c)
The loan is for a short-term need and shall be repaid within 90 days of the loan’s origination date.
(d)
Interest charges may be waived pursuant to subdivision (e) of Section 16314 of the Government Code.
7. (a)
For the 2026–27 award year, Middle Class Scholarship awards shall cover up to 17.5 23.0 percent of a student’s remaining financial need, as calculated pursuant to Section 70022 of the Education Code.
(b) It is the intent of the Legislature to appropriate funding in the succeeding state budget sufficient to retire the loan authorized pursuant to subdivision (c).
(c) The Department of Finance shall authorize a loan from the General Fund for cashflow purposes to cover the cost of Middle Class Scholarship awards issued in 2026–2027. Interest charges shall be waived pursuant to subdivision (e) of Section 16314 of the Government Code.

SEC. 149.

 Item 7100-011-0890 of Section 2.00 of the Budget Act of 2026 is amended to read:
7100-011-0890—For support of Employment Development Department, payable from the Federal Trust Fund, for transfer to the Unemployment Administration Fund ........................

(1,102,535,000)
(1,100,874,000)
Provisions:
1.
Notwithstanding Section 28.00, the Department of Finance may adjust the amount transferred by this item to align with the approved Employment Development Department’s planned administrative expenditures from the Unemployment Administration Fund.

SEC. 150.

 Item 7100-021-0890 of Section 2.00 of the Budget Act of 2026 is amended to read:
7100-021-0890—For support of Employment Development Department, payable from the Federal Trust Fund, for transfer to the Consolidated Work Program Fund ........................

(219,214,000)
(219,215,000)
Provisions:
1.
Notwithstanding Section 28.00, the Department of Finance may adjust the amount transferred by this item to align with the approved Employment Development Department’s planned expenditures from the Consolidated Work Program Fund.

SEC. 151.

 Item 7120-001-3228 is added to Section 2.00 of the Budget Act of 2026, to read:
7120-001-3228—For support of California Workforce Development Board, payable from the Greenhouse Gas Reduction Fund ........................
261,000
Schedule:
(1) 6040-California Workforce Development Board ........................ 261,000
Provisions:
1. The funds appropriated in this item shall be used to support apprenticeship and job training programs for workers and disadvantaged individuals consistent with the State Strategic Workforce Development Plan, including support for training opportunities necessary to transition the state’s workforce to a low-carbon economy.
2. The funds appropriated in this item shall not be subject to the provisions of subdivision (b) of Section 15.14.

SEC. 152.

 Item 7120-101-3078 of Section 2.00 of the Budget Act of 2026 is repealed.

7120-101-3078—For support of California Workforce Development Board, payable from the Labor and Workforce Development Fund

5,000,000
Schedule:
(1)6040-California Workforce Development Board5,000,000
Provisions:
1.The funds appropriated in this item shall be allocated as passthrough grants to the Los Angeles County Department of Economic Opportunity and the Los Angeles County Justice, Care, and Opportunities Department for the Jails 2 Jobs Program. The funds allocated pursuant to this provision shall be used to support outreach, education, training, and technical assistance activities designed to help employers, applicants, employees, and workforce professionals understand and navigate employment-related issues involving individuals with pending criminal cases. Eligible uses of funds shall include:
(a)Employer outreach, education , and technical assistance on California labor laws, hiring practices, workplace retention strategies, and compliance requirements related to applicants and employees with pending criminal cases.
(b)Development and distribution of educational materials, toolkits, and guidance documents for employers, applicants, and employees.
(c)Outreach and education for applicants and employees with pending criminal cases regarding workplace rights and responsibilities, disclosure issues, employment requirements, and balancing employment with court obligations.

SEC. 153.

 Item 7120-103-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
7120-103-0001—For support of California Workforce Development Board ........................
20,800,000
Schedule:
(1) 6040-California Workforce Development Board ........................ 20,800,000
Provisions:
1. Of the amount appropriated in this item, $5,000,000 shall be available for grants for ports workforce training. Up to 10 percent of this amount may be used for administrative costs.
2. Of the amount appropriated in this item, $10,800,000 shall be available for state operations or local assistance for the Social Entrepreneurs for Economic Development program.
3. Of the amount appropriated in this item, $5,000,000 shall be available to the Hospitality Training Academy.

SEC. 154.

 Item 7350-001-3078 of Section 2.00 of the Budget Act of 2026 is amended to read:
7350-001-3078—For support of Department of Industrial Relations, payable from the Labor and Workforce Development Fund ........................
93,476,000
Schedule:
(1)
6090-Division of Workers’ Compensation ........................
45,570,000
(2)
6100-Division of Occupational Safety and Health ........................
30,771,000
(3)
6105-Division of Labor Standards Enforcement ........................
17,135,000
Provisions:
1.
The amount appropriated in this item includes revenues derived from the assessment of fines and penalties imposed pursuant to Section 13332.18 of the Government Code.
2.
Of the funds appropriated in this item, $4,611,000 shall be used for the Rural Strategic Engagement Program.
3.
For the duration of the Rural Strategic Engagement Program, $3,000,000 shall be used for grants to community-based organizations to conduct outreach and host walk-in clinics, and $2,000,000 shall be used for vendor contracts for drafting, translation, design, printing of written materials, and conducting social media campaigns.
4.
Vendors selected to conduct evaluations of the program shall consult with community-based organizations when designing their evaluation about the criteria and guidelines that will be used to assess the success of clinics.
5.
Of the amount appropriated in Schedule (1) of this item, $44,096,000 is allocated for project activities associated with the Electronic Adjudication Management System Modernization Project. Of this amount, up to $16,000,000 shall be available upon order of the Department of Finance and contingent upon updated project approval or other project documents by the Department of Technology.
6.
Of the amount appropriated in Schedule (2) of this item, $2,442,000 $28,442,000 is available for the Cal/OSHA Data Modernization Project. Of this amount, upon order of the Department of Finance, $3,000,000 shall be available upon approval of a Special Project Report or equivalent document by the Department of Technology.

SEC. 155.

 Item 7350-001-3121 of Section 2.00 of the Budget Act of 2026 is amended to read:
7350-001-3121—For support of Department of Industrial Relations, payable from the Occupational Safety and Health Fund ........................

161,235,000
161,585,000
Schedule:
(1)
6100-Division of Occupational Safety and Health ........................

161,797,000
162,147,000
(2)
Reimbursements to 6100-Division of Occupational Safety and Health ........................
−562,000
Provisions:
1.
The Department of Industrial Relations shall report to the Director of Finance and the Joint Legislative Budget Committee by March 1, 2013, and biennially thereafter, on the accomplishments of the Labor Enforcement Task Force and its enforcement activities regarding labor, tax, and licensing law violators operating in the underground economy. The report shall include the following information:
(a)
The “value added” by the task force, including the baseline accomplishments of each participating entity compared to the additional accomplishments achieved by virtue of its participation in the task force, and the efforts to increase collaboration and coordination of the interagency enforcement efforts of the task force.
(b)
Efforts by the task force to develop targeting and statistical reporting methods that facilitate empirical identification of noncompliant employers.
(c)
Any recommended changes to statutes that would improve the operation of the task force, including data sharing across participating agencies.
(d)
Detailed objectives of the task force for the next reporting period and a description of how the task force intends to achieve those objectives.
2. Of the amount appropriated in Schedule (1) of this item, $1,000,000 shall be used by the Department of Industrial Relations to contract with either the University of California, Berkeley Labor Occupational Health Program and or the University of California, Los Angeles Labor Occupational Safety and Health Program to conduct a study of Cal/OSHA field inspector vacancy rates and develop recommendations for the design of a Compliance Safety and Health Officer recruitment and training pipeline program. The study shall be conducted in consultation with the Department of Industrial Relations. Contracts awarded with the funding identified in this provision are exempt from the Public Contract Code and the State Contracting Manual, and are not subject to the approval of the Department of General Services. The outcomes of the study shall not circumvent the collective bargaining process pursuant to the Ralph C. Dills Act (Chapter 10.3 (commencing with Section 3512) of Division 4 of Title 1 of the Government Code).
3. Of the amount available in Schedule (1), $350,000 shall be available to the Department of Industrial Relations for administrative costs and to provide the consultation described in Provision 2.

SEC. 156.

 Item 7350-101-3078 of Section 2.00 of the Budget Act of 2026 is amended to read:
7350-101-3078—For local assistance, Department of Industrial Relations, payable from the Labor and Workforce Development Fund ........................

39,000,000
44,000,000
Schedule:
(1) 6090-Division of Workers’ Compensation ........................ 6,000,000
(2) 6100-Division of Occupational Safety and Health ........................ 13,500,000
(3) 6105-Division of Labor Standards Enforcement ........................
19,500,000
24,500,000
Provisions:
1. Of the amount appropriated in this item, $6,000,000 in Schedule (1), $13,500,000 in Schedule (2), and $10,500,000 in Schedule (3) shall be available to support the California Workplace Outreach Project to promote the awareness and education of labor protections for California workers. The funds identified in the schedules described in this provision may be transferred between schedules to facilitate program implementation. The amount identified in this provision shall be available for encumbrance or expenditure until June 30, 2031, 2028, for support or local assistance. Up to 5 15 percent of the amount identified in this provision may be used for administrative costs.
(a) The Department of Industrial Relations may establish reporting criteria for grantees to report on the number of employers and individuals reached, the number of technical assistance hours provided, the number of referrals to and/or complaints filed with the department’s enforcement divisions as a result of grantee support, and any other criteria as determined by the department.
(a)(b) It is the intent of the Legislature to appropriate $30,000,000 for the purpose described in this provision, on a one-time basis in each of the 2027–28, 2028–29, 2029–30, and 2030–31 2027–28 and 2028–29 fiscal years.
2. Of the amount appropriated in Schedule (3) of this item, $9,000,000 shall be available for encumbrance or expenditure until June 30, 2029, for the Workers’ Rights Enforcement Grant Program. Up to 5 percent of the amount identified in this provision may be used for administrative costs. This program will provide grants to eligible public prosecutors to defray costs expended on state labor law enforcement and serves the public purpose of enhancing labor law enforcement to assist workers in combating wage theft, prevent unfair competition, and protect state revenue. Grants under the program shall be awarded on a competitive basis by the Department of Industrial Relations.
(a) Grant funding shall support activities related to the enforcement of state labor laws, and may be used to defray a portion of the cost or the entire cost associated with evidence gathering, investigations, coordination with other law enforcement entities, resolutions, appeals, and settlements.
(b) For purposes of this program, “eligible public prosecutor” is defined as a district attorney, a city attorney, a county counsel, or any other city or county prosecutor who has established an office or division of workers’ rights enforcement.
3. Of the amount appropriated in this item, $5,000,000 in Schedule (3) shall be available for grants to either the Los Angeles County Department of Economic Opportunity or the Los Angeles County Justice, Care, and Opportunities Department, or both, to support a pilot program to promote the education of employers and workers on protections under Labor Code pertinent to individuals with pending criminal cases. The funds identified in this provision may be transferred between schedules to facilitate program implementation. The amount identified in this provision shall be available for encumbrance or expenditure until June 30, 2028, for state operations or local assistance. Up to 15 percent of the amount identified in this provision may be used for administrative costs. Contracts entered into or amended pursuant to this provision are exempt from the Public Contract Code and the State Contracting Manual, and are not subject to the approval of the Department of General Services.

SEC. 157.

 Item 7502-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
7502-001-0001—For support of Department of Technology ........................
56,388,000
Schedule:
(1)
6230-Department of Technology ........................
56,388,000
Provisions:
1.
On January 1, 2027, and every six months thereafter, the Department of Technology shall provide, to the extent that information is available, a report to the Chairperson of the Joint Legislative Budget Committee, or their designee, that includes which agencies and departments are participating or are expected to participate in the Digital Identity Pilot Program and the status of the development and implementation of the Digital Identity Pilot Program.
2.
Any individual data collected under the Digital Identity Pilot Program shall be treated as personal information, as defined in Section 1798.3 of the Civil Code.
3.
The Department of Technology shall not operate the Digital Identity Pilot Program with departments that knowingly hold personal information on minors, educational records subject to the federal Family Educational Rights and Privacy Act (20 U.S.C. Sec. 1232g) (FERPA), medical information subject to the federal Health Insurance Portability and Accountability Act (Public Law 104-191), or information on an individual’s immigration status.
4.
The Digital Identity Pilot Program shall not collect precise geolocation information, as defined in subdivision (w) of Section 1798.140 of the Civil Code, and may only use other location information for the purposes of preventing malicious fraudulent activity.
5.
Any contract entered into with the Department of Technology to implement the Digital Identity Pilot Program shall include provisions identified in Section 5305-8 of the State Administrative Manual.
6.
During the implementation of the Digital Identity Pilot Program, the Department of Technology may use de-identified data to conduct research to justify requests for resources should the department seek approval to expand the scope of the pilot program.
7.
The Digital ID ecosystem will be architected to deliver program efficiencies and a seamless user experience for residents accessing government services, while prioritizing user consent and privacy, and ensuring the highest levels of security for the data involved. The ecosystem will be fully compliant with state and federal statutes and policies applicable to the type of personal information collected, including, but not limited to, the Information Practices Act (IPA) and the Health Insurance Portability and Accountability Act (HIPAA). Privacy controls include the following:
(a)
Residents will be required to consent to and designate each service that is authorized to receive personal information provided for the creation of the digital ID.
(b)
Resident information required for authentication will be program specific and obtained incrementally on an as-needed basis.
(c)
Resident information will be provided to departments for designated purposes only.
(d)
Law enforcement will be required to obtain a subpoena, search warrant, or other legal process to access the information in the system.
(e)
Information collected from residents will be customized to the program requirements for authentication.
(f)
Resident information uploaded for authentication purposes will be deleted after their identity has been confirmed.
(g)
Security controls will be implemented to match the Impact Level of the information collected. Data will be further protected through encryption and tokenization.
8. Notwithstanding any other law, the Department of Finance may authorize additional expenditures in excess of the amount appropriated in this item, up to $22,000,000, to address any shortage of revenues required to operate the Middle-Mile Broadband Network. Any augmentations shall not be authorized sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the State Budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the Chairperson of the Joint Legislative Budget Committee, or the chairperson’s designee, may determine.
9. Beginning January 1, 2027, and every quarter thereafter, the Department of Technology shall provide an update to the Chairperson of the Joint Legislative Budget Committee, or their designee, on the operations of the Middle-Mile Broadband Network, including update on revenues and expenditures. The Legislature may request to meet to discuss the quarterly reports with the Department of Finance and Department of Technology.
10. On or before February 1, 2027, the Department of Technology shall submit to the Chairperson of the Joint Legislative Budget Committee, or their designee, a revised Middle-Mile Broadband Network Business Plan.

SEC. 158.

 Item 7760-301-0660 is added to Section 2.00 of the Budget Act of 2026, to read:
7760-301-0660—For capital outlay, Department of General Services, payable from the Public Buildings Construction Fund ........................
15,638,000
Schedule:
(1) 0016980-O Street State Parking Garage ........................ 1,292,000
(a) Preconstruction ........................ 1,292,000
(2) 0017000-10th and O Street Reconfiguration ........................ 14,346,000
(a) Preconstruction ........................ 14,346,000
Provisions:
1. The Department of General Services is authorized to execute and deliver any and all leases, contracts, agreements, or other documents necessary or advisable to consummate the sale and issuance of bonds by the State Public Works Board in accordance with the State Building Construction Act of 1955 (Part 10b (commencing with Section 15800) of Division 3 of Title 2 of the Government Code) or otherwise to effectuate the financing of the scheduled project.
2. Notwithstanding paragraph (2) of subdivision (a) of Section 10198.1 of the Public Contract Code, projects identified in this item are authorized to be delivered using the progressive design-build method.
3. For the project identified in Schedule (2), the Department of General Services shall not begin any portion of physical construction or otherwise interfere with current operations within the 1021 O Street Building until the execution of a written agreement between the Joint Rules Committee, Department of Finance, and the Department of General Services on the future use of the 1021 O Street Building.

SEC. 159.

 Item 8120-002-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
8120-002-0001—For support of Commission on Peace Officer Standards and Training ........................

30,089,000
32,030,000
Schedule:
(1)
6500-Standards ........................

11,320,000
12,311,000
(2)
6505-Training ........................
8,476,000
(3)
6515-POST Administration ........................

10,293,000
11,243,000
Provisions:
1.
Upon approval by the Department of Finance, funds may be transferred between this item and Item 8120-102-0001 to meet the needs of the local training programs. Upon requesting a transfer, the department shall provide justification for the increased expenditure in the item to which funds are transferred and the availability of excess funds in the item from which funds are transferred.
2.
Of the amount appropriated in this item, $2,000,000 $3,941,000 is available for expenditure for Office of Administrative Hearings and Department of Justice costs related to implementation of Chapter 409 of the Statutes of 2021.

SEC. 160.

 Item 8260-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
8260-001-0001—For support of the Arts Council ........................

15,707,000
25,707,000
Schedule:
(1)
6540-Arts Council ........................

15,904,000
25,904,000
(2)
Reimbursements to 6540-Arts Council ........................
−197,000
Provisions:
1.
The two positions funded through this item shall provide outreach and contract or grant management activities to further expand programs into communities and populations that continue to be underrepresented in the arts.
2.
Of the amount appropriated in this item, $5,000,000 shall be available for cultural investments.
3. Of the amount appropriated in this item, $5,000,000 shall be available to support LA 28-related arts and cultural programming that showcases California artists and communities.
4. Of the amount appropriated in this item, $5,000,000 shall be available for Protagonist Black to get more books in homes in marginalized communities.

SEC. 161.

 Item 8260-101-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
8260-101-0001—For local assistance, Arts Council ........................

24,300,000
26,100,000
Schedule:
(1)
6540-Arts Council ........................

24,300,000
26,100,000
Provisions:
2.
Upon order of the Department of Finance, the Controller shall transfer up to $500,000 of the funding appropriated in Schedule (1) of this item to Schedule (1) of Item 8260-001-0001 for the administration of arts programming grants.
3.
Of the amount appropriated in this item, at least $10,000,000 of the granted funds shall require a match from grantees.
4. Of the amount appropriated in this item, $1,800,000 shall be available for the Actors’ Gang Prison Project to provide theater arts programming in prisons and reentry facilities.

SEC. 162.

 Item 8570-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
8570-001-0001—For support of Department of Food and Agriculture ........................

186,261,000
163,261,000
Schedule:
(1)
6570-Agricultural Plant and Animal Health; Pest Prevention; Food Safety Services ........................
145,967,000
(2)
6575-Marketing; Commodities and Agricultural Services ........................
23,167,000
(3)
6580-Assistance to Fair and County Agricultural Activities ........................
3,254,000
(4)
6590-General Agricultural Activities ........................

59,431,000
36,431,000
(5)
9900100-Administration ........................
41,928,000
(6)
9900200-Administration—​Distributed ........................
−41,749,000
(7)
Reimbursements to 6570-Agricultural Plant and Animal Health; Pest Prevention; Food Safety Services ........................
−5,644,000
(8)
Reimbursements to 6575-Marketing; Commodities and Agricultural Services ........................
−12,573,000
(9)
Reimbursements to 6590-General Agricultural Activities ........................
−27,341,000
(10)
Reimbursements to 9900100-Administration ........................
−179,000
Provisions:
1.
The amount appropriated in this item for an agreement with the Regents of the University of California to operate poultry and livestock disease laboratories shall be adjusted annually, as necessary, for University of California negotiated employee compensation and benefit adjustments.
2.
$10,500,000 of the amount appropriated in this item is available contingent upon federal funds not being received from the federal government for the Invasive Fruit Fly program in the 2026–27 fiscal year. The Department of Finance may decrease the amount appropriated in this item by up to $10,500,000 if federal funds for these purposes are made available in the 2026–27 fiscal year.

SEC. 163.

 Item 8570-103-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
8570-103-0001—For local assistance, Department of Food and Agriculture ........................
15,000,000
Schedule:
(1) 6590-General Agricultural Activities6575-Marketing; Commodities and Agricultural Services ........................ 15,000,000
Provisions:
1. The amount appropriated in this item shall be used for the California Nutrition Incentive Program. This amount shall be available for encumbrance or expenditure until June 30, 2028.

SEC. 164.

 Item 8570-105-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
8570-105-0001—For local assistance, Department of Food and Agriculture ........................
23,000,000
Schedule:
(1) 6590-General Agricultural Activities ........................ 23,000,000
Provisions:
1. Of the amount appropriated in this item, $23,000,000 shall be available for the Enteric Fermentation Incentive Program, which the Department of Food and Agriculture shall, in consultation with the State Air Resources Board, develop to encourage the voluntary use of products or strategies, such as feed additives, that are scientifically proven and safe for enteric emissions reductions in the state’s livestock sectors. This amount shall be available for encumbrance or expenditure until June 30, 2029, and liquidation until June 30, 2031.

SEC. 165.

 Item 8570-106-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
8570-106-0001—For local assistance, Department of Food and Agriculture ........................
2,500,000
Schedule:
(1) 6590-General Agricultural Activities ........................ 2,500,000
Provisions:
1. The amount appropriated in this item shall be used for the Managed Honeybee Health Program.

SEC. 166.

 Item 8570-490 of Section 2.00 of the Budget Act of 2026 is amended to read:
8570-490—Reappropriation, Department of Food and Agriculture. The balances of the appropriations provided in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure as specified below:
0001—General Fund
(1) Item 8570-002-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021) for the California Underserved and Small Producers Program shall be extended until June 30, 2027.
(2) Item 8570-002-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), as reappropriated by Item 8570-490, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) and Item 8570-491, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025) for Fairs and Expositions Resiliency Support shall be extended until June 30, 2028.
(3) Item 8570-002-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), as reappropriated by Item 8570-490, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) for Animal Blood Banks shall be extended until June 30, 2027.
(4) Item 8570-101-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), as reappropriated by Item 8570-490, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023) and Item 8570-490, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) for the State Water Efficiency and Enhancement Program shall be extended until June 30, 2027.
(5) Provision 2 of Item 8570-101-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), (Technical Item 8570-588-0001), as reappropriated by Item 8570-490, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) for the State Water Efficiency and Enhancement Program shall be extended until June 30, 2027.
(6) Item 8570-102-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021) for the Alternative Manure Management Program and Dairy Digester Research and Development Program shall be extended until June 30, 2028.
(7) Provision 5 of Item 8570-102-0001, Budget Act of 2021 (Chs. 21, 69, and 240, Stats. 2021), (Technical Item 8570-589-0001), for the Alternative Manure Management Program and Dairy Digester Research and Development Program shall be extended until June 30, 2028.
(8) Provision 1 of Item 8570-101-0001, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), (Technical Item 8570-588-0001), for the State Water Efficiency and Enhancement Program shall be extended until June 30, 2027.
(9) Item 8570-102-0001, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), as reappropriated by Item 8570-490, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025) for the California Underserved and Small Producers Program shall be extended to June 30, 2027.
(10) Provision 5 of Item 8570-102-0001, Budget Act of 2022 (Chs. 43, 45, and 249, Stats. 2022), (Technical Item 8570-589-0001), as reappropriated by Item 8570-490, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025) for the Alternative Manure Management Program and Dairy Digester Research and Development Program shall be extended until June 30, 2028.
(11) Paragraph (1) of subdivision (d) of Section 35 of Chapter 574 of the Statutes of 2022, (Technical Item 8570-601-0001), as reappropriated by Item 8570-490, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) for the State Water Efficiency and Enhancement Program shall be extended until June 30, 2027.
(12) Item 8570-001-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023), as reappropriated by Item 8570-490, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) for the Emerging Threats 2 IT Project shall be extended until June 30, 2028.
(13) Item 8570-102-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023) for the California Nutrition Incentive Program shall be extended until June 30, 2028.
(14) Provision 3 of Item 8570-102-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023), (Technical Item 8570-589-0001), for the California Nutrition Incentive Program shall be extended until June 30, 2028.
(15) Item 8570-001-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), as reappropriated by Item 8570-490, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025) for the Emerging Threats 2 IT Project shall be extended until June 30, 2028.
(16) Provision 1 of Item 8570-101-0001, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), (Technical Item 8570-588-0001), for the California Underserved and Small Producers Program shall be extended until June 30, 2028.
(17) Item 8570-001-0001, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025) for the Emerging Threats 2 IT Project shall be extended until June 30, 2028.
(18) Up to $1,500,000 of Provision 5 of Item 8570-001-0001, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. of 2023) for the Enteric Fermentation Incentive Program shall be extended until June 30, 2029.
3228—Greenhouse Gas Reduction Fund
(1) Item 8570-101-3228, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023) for the Healthy Soils Program shall be extended until June 30, 2028.
(2) Item 8570-594-3228, Budget Act of 2023 (Chs. 12, 38, and 189, Stats. 2023) for the Healthy Soils Program shall be extended until June 30, 2028.
(3) Item 8570-101-3228, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024), as reappropriated by the Budget Act of 2025 (Chs. 4 and 5, Stats. 2025) for the Alternative Manure Management Program and Dairy Digester Research and Development Program shall be extended until June 30, 2028.
(4) Item 8570-594-3228, Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) for the Alternative Manure Management Program and Dairy Digester Research and Development Program, shall be extended until June 30, 2028.
3398—California Emergency Relief Fund
(1) Subdivision (d) of Section 35 of Chapter 574 of the Statutes of 2022 for the Water Efficiency Technical Assistance Program shall be extended until June 30, 2027.
(2) Subdivision (d) of Section 35 of Chapter 574 of the Statues of 2022, as transferred to Technical Item 8570-590-3398 for the Water Efficiency Technical Assistance Program shall be extended until June 30, 2028.
(3) Subdivision (g) of Section 35 of Chapter 574 of the Statutes of 2022, as transferred to Technical Item 8570-509-3398, and as reappropriated by Item 8570-490, Budget Act of 2025 (Chs. 4 and 5, Stats. 2025) for the California Underserved and Small Producers Program shall be extended until June 30, 2028.

SEC. 167.

 Item 8660-002-0461 of Section 2.00 of the Budget Act of 2026 is repealed.

8660-002-0461—For support of Public Utilities Commission, payable from the Public Utilities Commission Transportation Reimbursement Account

54,000
Schedule:
(1)6690046-Transportation Licensing and Enforcement54,000
Provisions:
1.$54,000 is appropriated from the Public Utilities Commission Transportation Reimbursement Account to establish a memorandum of understanding to reimburse the San Diego Police Department for enforcement operations related to combating wildcatting, also known as unregulated transportation services. The Public Utilities Commission shall submit a report to the Legislature by January 10, 2029, on the status and outcomes of these enforcement actions, including number of operations, number of citations or arrests, costs reimbursed by the commission, and any revenue collected by the enforcement action and which entity received the revenue.

SEC. 168.

 Item 8660-101-0471 of Section 2.00 of the Budget Act of 2026 is amended to read:
8660-101-0471—For local assistance, Public Utilities Commission, pursuant to Section 270 of the Public Utilities Code, payable from the Universal Lifeline Telephone Service Trust Administrative Committee Fund ........................

539,243,000
579,871,000
Schedule:
(1)
6685028-Universal Service Telecommunications Programs ........................

539,243,000
579,871,000
Provisions:
1.
Notwithstanding any other law, upon request of the Public Utilities Commission, the Director of Finance may change the amount available for expenditure in this item to pay claims made to the Universal Lifeline Telephone Service Trust Administrative Committee Fund. No later than 10 days after the augmentation is made, notification in writing shall be provided to the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee. The amount of funds augmented pursuant to the authority of this provision shall be consistent with the amount approved by the Department of Finance based on its review of the amount of claims received by the Public Utilities Commission from telecommunications carriers.
2. Notwithstanding any other law, once the Public Utilities Commission notifies the Department of Finance that total Lifeline customers has reached 1,950,000 customers in the 2026-27 fiscal year, the Department of Finance may increase expenditure authority in this item up to $664,930,000. No later than 10 days after the augmentation is made, the Department of Finance shall provide notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee.

SEC. 169.

 Item 8820-001-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
8820-001-0001—For support of Commission on the Status of Women and Girls ........................

2,194,000
3,694,000
Schedule:
(1)
6730-Administration, Legislation, Research, and Information ........................

2,194,000
3,694,000
Provisions:
1. Of the amount appropriated in this item, $1,500,000 shall be available to implement the Women's Wealth Working Group and Gender Equity Summits.

SEC. 170.

 Item 8955-101-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
8955-101-0001—For local assistance, Department of Veterans Affairs, for contribution to counties toward compensation and expenses of county veterans services offices, to be expended in accordance with Section 972 and following of the Military and Veterans Code ........................

32,000,000
17,000,000
Schedule:
(1)
6995019-County Subvention ........................

32,838,000
17,838,000
(2)
Reimbursements to 6995019-County Subvention ........................
−838,000
Provisions:
1. Of the funds appropriated in this item, $7,000,000 shall be available for encumbrance or expenditure until June 30, 2029, for the Veterans Support to Self-Reliance Program.
2. Of the funds appropriated in this item, $2,000,000 shall be available for encumbrance or expenditure until June 30, 2029, for the Transgender Discharged Service Members Program.
3. Of the funds appropriated in this item, $6,000,000 shall be available for encumbrance or expenditure until June 30, 2029, for County Veterans Services Offices.
4. Of the funds appropriated in this item, $6,000,000 shall be available for encumbrance or expenditure until June 30, 2029, for the Southern California Veterans Cemetery.
1. Of the funds appropriated in this item, $6,000,000 shall be available for encumbrance or expenditure until June 30, 2029, for County Veterans Services Offices.

SEC. 171.

 Item 8955-102-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
8955-102-0001—For local assistance, Department of Veterans Affairs ........................
18,000,000
Schedule:
(1) 6995028-Cemetery Operations ........................ 9,000,000
(2) 6995037-Veteran Services Grant Support ........................ 9,000,000
Provisions:
1. Of the funds appropriated in Schedule (1) of this item, $9,000,000 shall be available for Orange County, the Orange County Cemetery District, or other responsible local agency, for the construction of an access road to the Southern California Veterans Cemetery in Orange County. The California Department of Veteran Affairs shall not disburse these funds until the local agency has completed the designs for the road; has obtained all applicable permits; the designs have been reviewed and approved by the California Department of General Services and determined to be necessary and sufficient for the state's design, construction, and use of its own Cemetery; and the amount to be disbursed has been determined by the state to be an equitable share of the costs of the road.
2. Of the funds appropriated in Schedule (2) of this item, $7,000,000 shall be used for grants related to homeless or at-risk veterans for the Support to Self-Reliance for Veterans program. Grants may be used for, but are not limited to, the following activities:
(a) Providing emergency or long-term housing support and medical and psychological evaluation and assistance.
(b) Mental health counseling, peer support services, case management, and vocational assistance.
(c) Technical assistance and research for program support, evaluation, and improvement.
(d) Other uses as identified in Chapter 416 of the Statutes of 2017 (AB 1618).
3. Of the funds appropriated in Schedule (2) of this item, $2,000,000 shall be for grants related to veterans filing discharge upgrade applications in support of the Veterans Military Discharge Upgrade Grant Program. Grants may be used for, but are not limited to, the following activities:
(a) No cost legal services for veterans who are able to demonstrate their less than honorable characterization of service was connected to gender identity, behavioral health condition, traumatic brain injury, sexual assault, sexual harassment, or sexual orientation.
(b) Technical assistance and research for program support, evaluation, and improvement.
4. Up to 5 percent of the funds appropriated in Schedule (2) of this item may be used for administrative support costs.
5. The funds appropriated in this item shall be available for encumbrance or expenditure until June 30, 2029.

SEC. 172.

 Item 8955-301-3313 of Section 2.00 of the Budget Act of 2026 is amended to read:
8955-301-3313—For capital outlay, Department of Veterans Affairs, payable from the Southern California Veterans Cemetery Master Development Fund ........................
10,000,000
Schedule:
(1) 0017230-Southern California Veterans Cemetery – Phase 1 ........................ 10,000,000
(a) Preliminary plans ........................ 4,309,000
(b) Working drawings ........................ 5,017,000
(c) Construction ........................ 674,000
Provisions:
1. The project identified in Schedule 1 of this item shall be located at Gypsum Canyon.
2. The funds appropriated in this item shall be available for encumbrance until June 30, 2029.
3. Funding provided in Schedule (1)(c) of this item is limited to the purposes described in Provision 4 of this item.
4. If the Department of Veterans Affairs finds that doing so is in the best interests of the state, notwithstanding any other law, the Department of General Services, on behalf of the Department of Veterans Affairs, may enter into agreements with the Orange County Cemetery District or other local governmental entities to undertake design or construction work on the site of the project identified in Schedule 1 of this item. An agreement described in this provision shall be exempt from Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and from the State Administrative Manual and State Contracting Manual.
5. Notwithstanding the selection process in Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code, the Department of General Services may contract directly with any firm determined to be qualified to provide architectural, landscape architectural, engineering, environmental, construction management, or land surveying services for the development of the project identified in Schedule 1 of this item.
6. Notwithstanding any other law or requirement in the State Administrative Manual to the contrary, the review of the project identified in Schedule (1) of this item under the National Environmental Policy Act may be completed concurrent with the completion of working drawings.

SEC. 173.

 Item 9210-103-0001 is added to Section 2.00 of the Budget Act of 2026, to read:
9210-103-0001—For local assistance, Local Government Financing, to be allocated by the Controller ........................
29,330,000
Schedule:
(1) 7540-Aid to Local Government ........................ 29,330,000
Provisions:
1. Of the amount appropriated in this item, $10,000,000 shall be available to the City and County of San Francisco for street resurfacing. The Department of Finance shall order the Controller to disburse these funds to the City and County of San Francisco upon receipt of a written request from the city and county.
2. Of the amount appropriated in this item, $6,200,000 shall be available to the City and County of San Francisco for the conversion of vacant property at 989 Post Street to a park. The Department of Finance shall order the Controller to disburse these funds to the City and County of San Francisco upon receipt of a written request from the city and county.
3. Of the amount appropriated in this item, $3,000,000 shall be available to the Downtown Sacramento Foundation for student housing tenant improvements. The Department of Finance shall order the Controller to disburse these funds to the Downtown Sacramento Foundation upon receipt of a written request from the Downtown Sacramento Foundation.
4. Of the amount appropriated in this item, $10,000,000 shall be available to the City of Los Angeles for emergency repairs to damaged roadways and street substructures in and around the Pacific Palisades. The Department of Finance shall order the Controller to disburse these funds to the City of Los Angeles upon receipt of a written request from the city.
5. Of the amount appropriated in this item, $130,000 shall be available to the City of Los Angeles for solar-powered mobile surveillance trailers in the Pacific Palisades. The Department of Finance shall order the Controller to disburse these funds to the City of Los Angeles upon receipt of a written request from the city.

SEC. 174.

 Item 9210-110-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
9210-110-0001—For local assistance, Local Government Financing, to be allocated by the Controller ........................
80,000,000
Schedule:
(1) 7540-Aid to Local Government ........................ 80,000,000
Provisions:
1. Upon receipt of an allocation schedule from the Director of Finance or their designee, the Controller shall remit the funds appropriated in this item to city and county governments for local purposes.
2. Of the amount appropriated in this item, $181,000 is to reimburse the County of Alpine for shortfalls incurred in the 2024–25 fiscal year, $2,869,000 is to reimburse the County of Mono for shortfalls incurred in the 2024–25 fiscal year, and $76,950,000 is to reimburse the County of San Mateo for shortfalls incurred in the 2024–25 fiscal year, for purposes related to the countywide adjustment amount authorized by Section 97.68 of the Revenue and Taxation Code and the vehicle license fee adjustment amount authorized by Section 97.70 of the Revenue and Taxation Code.
3. The Director of Finance may augment this item by up to $80,039,744 to reimburse shortfalls for the County of San Mateo that occurred in the 2023–24 and 2024–25 fiscal years. Any augmentation shall be authorized not sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the State Budget, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the chairperson of the joint committee, or the chairperson’s designee, may determine.

SEC. 175.

 Item 9286-101-0001 of Section 2.00 of the Budget Act of 2026 is amended to read:
9286-101-0001—For local assistance, payment to counties for Trial Court Security—​Judgeships, to be allocated by the Controller ........................

7,420,000
7,525,000
Schedule:
(1)
7590-Bailiffs ........................

7,420,000
7,525,000
Provisions:
1.
The amount appropriated in this item is to fund bailiffs for reallocated and newly authorized judgeships and shall be allocated by the Controller according to a schedule provided by the Department of Finance.

SEC. 176.

 Section 4.12 is added to the Budget Act of 2026, to read:

SEC. 4.12.

 Notwithstanding any other law, each item of appropriation provided in this act or other spending authority provided outside of this act, and the associated position authority, shall be adjusted, as appropriate, to reflect the Legislature’s rejection of vacant position eliminations identified pursuant to Section 4.12 of the Budget Act of 2025 (Chs. 4 and 5, Stats. 2025). The Director of Finance shall allocate the necessary adjustments to each item of appropriation or other spending or position authority to reflect the Legislature’s decision, and direct the Controller to make necessary adjustments to each item of appropriation impacted by this decision. The Department of Finance shall make the final determination of the budgetary and accounting transactions to ensure proper implementation of this section.

SEC. 177.

 Section 4.85 is added to the Budget Act of 2026, to read:

SEC. 4.85.

 The Legislature may, subject to appropriation, authorize the use of up to $1,293,904,000 in the Budget Act of 2027 for the purpose of acquisition, performance criteria, or design-build phases of construction for the new Fresno Courthouse, new Richmond Courthouse, new San Francisco Hall of Justice, new Orange County Collaborative Courthouse, and new Santa Barbara Criminal Courthouse.

SEC. 178.

 Section 5.27 of the Budget Act of 2026 is amended to read:

SEC. 5.27.

 (a) Up to $7,350,000 $3,150,000 of the amount appropriated in paragraph (1) of subdivision (e) of Section 5.25 of the Budget Act of 2024 (Chs. 22, 35, and 994, Stats. 2024) is hereby reappropriated for the purposes provided for in that subdivision, and funds reappropriated pursuant to this subdivision shall be available for encumbrance until June 30, 2027, and expenditure until June 30, 2029.
(b) Notwithstanding any other law, the Department of Finance, upon providing advance notice of at least 10 days to the Joint Legislative Budget Committee, may augment any item of appropriation in Section 2.00 for the purpose of defending the state against enforcement and legal actions taken by the federal government, filing affirmative litigation challenging actions taken by the federal government, and taking administrative action authorized under state law to mitigate the impacts of actions taken by the federal government. Total augmentations authorized by this subdivision shall not exceed the amount reappropriated in subdivision (a).

SEC. 179.

 Section 6.40 of the Budget Act of 2026 is amended to read:

SEC. 6.40.

 (a) Notwithstanding any other law, any funds of the state, including, but not limited to, funds from the General Fund, the Trade Corridor Enhancement Account, or the Greenhouse Gas Reduction Fund, with the exemption of the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund, that are allocated for programs including, but not limited to, state that are allocated to the following programs: the Carl Moyer Memorial Air Quality Standards Attainment Program, the Port and Freight Infrastructure Program, the Solutions for Congested Corridors Program, the Clean Off-Road Equipment program, the Commercial Harbor Craft program, the Clean Truck and Bus Voucher Incentive Project, the Trade Corridor Enhancement Program, and the Clean Transportation Program, shall not be allocated for the purchase of fully automated cargo handling equipment or infrastructure for automation supporting improvements or replacements that is are used to support fully automated cargo handling equipment.
(b) For purposes of this section, “fully automated” means equipment that is remotely operated, remotely controlled, operated or remotely monitored, with or without the exercise of human intervention or control. This section does not prohibit the use of the funds specified in subdivision (a) for a project that includes the purchase of human-operated zero-emission equipment, human-operated near-zero-emission equipment, and infrastructure supporting that human-operated equipment. Furthermore, this section does not prohibit the purchase of devices that support that human-operated equipment, including equipment to evaluate the utilization and environmental benefits of that human-operated equipment.
(c) For purposes of this section, “cargo handling equipment” means any off-road, self-propelled vehicle or equipment used at a port to lift or move container, break bulk, bulk, or liquid cargo carried by ship, train, or another vehicle, or used to perform maintenance and repair activities that are routinely scheduled or that are due to predictable process upsets. Equipment includes, but is not limited to, ship to shore cranes, rubber-tired gantry cranes, rail mounted gantry cranes, yard trucks, top handlers, side handlers, reach stackers, forklifts, loaders, aerial lifts, excavators, and dozers.
(d) (1) For purposes of this section, “automation supporting improvements or replacements” means improvements or replacements that have no independent use other than supporting fully automated cargo handling equipment, including, but not limited to, premises wiring, fueling or charging equipment, cargo handling equipment, guiding equipment, systems, facilities, and other equipment dedicated to supporting fully automated cargo handling equipment.
(2) “Automation supporting improvements or replacements” does not include improvements, replacements, facilities, systems, utilities, or equipment that serve general port operations or have an independent use apart from supporting fully automated cargo handling equipment, including, but not limited to, general-purpose roadways, utility infrastructure, electrical distribution systems, communications infrastructure, buildings, or electric vehicle supply equipment that is not dedicated exclusively to fully automated cargo handling equipment.

SEC. 180.

 Section 12.32 of the Budget Act of 2026 is amended to read:

SEC. 12.32.

 (a) It is the intent of the Legislature that appropriations that are subject to Section 8 of Article XVI of the California Constitution be designated with the wording “Proposition 98.” In the event these appropriations are not so designated, they may be designated as such by the Department of Finance, where that designation is consistent with legislative intent, not less than 30 days after notification in writing of the proposed designation to the chairpersons of the committees in each house of the Legislature that consider appropriations and the Chairperson of the Joint Legislative Budget Committee, or not less than a shorter period after notification that the chairperson of the joint committee, or the chairperson’s designee, determines.
(b) Pursuant to the Proposition 98 funding requirements established in Chapter 2 (commencing with Section 41200) of Part 24 of Division 3 of Title 2 of the Education Code, the total appropriations for Proposition 98 for the 2026–27 fiscal year are $92,834,380,000 or 39.61 $92,931,320 or 39.63 percent of total General Fund revenues, Education Protection Account revenues, and transfers subject to the state appropriations limit. General Fund and Education Protection Account revenues appropriated for school districts are $82,763,159,000 or 35.32 $82,880,393,000 or 35.34 percent of total General Fund revenues, Education Protection Account revenues, and transfers subject to the state appropriations limit. General Fund and Education Protection Account revenues appropriated to school districts and community college districts for adult education and K–12 Career Technical Education Strong Workforce Program are $866,536,000, or 0.37 percent of total General Fund revenues, Education Protection Account revenues, and transfers subject to the state appropriations limit. General Fund and Education Protection Account revenues appropriated for community college districts are $9,104,647,000 or 3.88 $9,084,353,000 or 3.87 percent of total General Fund revenues, Education Protection Account revenues, and transfers subject to the state appropriations limit. General Fund and Education Protection Account revenues appropriated for other state agencies that provide direct elementary and secondary level education, as defined in Section 41302.5 of the Education Code, are $100,038,000, or 0.04 percent of total General Fund revenues, Education Protection Account revenues, and transfers subject to the state appropriations limit. No General Fund and Education Protection Account revenues are scheduled to be transferred to the Public School System Stabilization Account for the 2026–27 fiscal year.
(c) Notwithstanding any preexisting budgetary or accounting requirements to the contrary, the Department of Finance shall make the final determination of the proper budgeting and accounting of the revenues received by, and disbursements from, the Education Protection Account.

SEC. 181.

 Section 12.33 is added to the Budget Act of 2026, to read:

SEC. 12.33.

 (a) Pursuant to subdivision (b) of Section 21 of Article XVI of the California Constitution, the following estimated amounts are identified for transfer to the Public School System Stabilization Account. The actual amounts transferred by the Controller shall be the amounts identified in a schedule provided by the Director of Finance.
(1) The amount of transfer to the Public School System Stabilization Account in the 2026–27 fiscal year, as reflected in Section 12.32, is $0.
(2) The first true-up of the transfer to the Public School System Stabilization Account for the 2025–26 fiscal year is $3,370,962,000.
(3) The second true-up of the transfer to the Public School System Stabilization Account for the 2024-25 fiscal year is $4,869,004,000.
(b) The funds transferred to the Public School System Stabilization Account in subdivision (a) shall be deemed, for purposes of Section 8 of Article XVI of the California Constitution, to be moneys applied by the State for the support of school districts and community college districts in the fiscal year for which the transfer is made, and not in the fiscal year in which funds are appropriated from the account.

SEC. 182.

 Section 13.40 of the Budget Act of 2026 is repealed.
SEC. 13.40.

The Director of Finance shall collectively transfer from various special funds or any other state borrowable funds to the General Fund any amount necessary to ensure that the balance of the Special Fund for Economic Uncertainties is at least $0 at the conclusion of the 2026–27 fiscal year. The specific funds to borrow from will only be from idle resources not required for currently projected operational or programmatic purposes. These transfers shall be budgetary loans during the 2026–27 fiscal year and shall be repaid in the 2026–27 fiscal year or a future fiscal year when the fund or account from which the loan was made has a need for the money or there is no longer a need for the money in the General Fund.

SEC. 183.

 Section 15.02 of the Budget Act of 2026 is repealed.
SEC. 15.02.

$2,631,000,000 is appropriated from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024. No amount of the funding appropriated in this section shall be encumbered or expended until it has been allocated for specific purposes in the appropriate budget items in a future budget bill.

SEC. 184.

 Section 24.20 is added to the Budget Act of 2026, to read:

SEC. 24.20.

 (a) On and after January 1, 2027, all authority to encumber or expend funds or take any other action related thereto that is vested by this act in the Superintendent of Public Instruction shall instead be vested in the Education Commissioner.
(b) This section does not apply to Item 6051-001-0001.
(c) This section shall become operative only if a statute that takes effect on or before January 1, 2027, establishes the Education Commissioner.

SEC. 185.

 Section 35.50 of the Budget Act of 2026 is amended to read:

SEC. 35.50.

 (a) For purposes of paragraph (1) of subdivision (f) of Section 10 of, and subdivision (g) of Section 12 of, Article IV of the California Constitution, “General Fund revenues” means the total resources available to the General Fund for a fiscal year before any transfer to or withdrawal from the Budget Stabilization Account.
(b) For purposes of subdivision (g) of Section 12 of Article IV of the California Constitution, the estimate of General Fund revenues for the 2026–27 fiscal year pursuant to this act, as passed by the Legislature, is $287,205,000,000. $287,549,000,000.
(c) For purposes of paragraph (2) of subdivision (a) of Section 20 of Article XVI of the California Constitution, “General Fund revenues” shall be defined as revenues and transfers before any transfer to or withdrawal from the Budget Stabilization Account.
(d) Pursuant to subdivision (h) of Section 20 of Article XVI of the California Constitution, the following estimates are provided:
(1) For purposes of paragraph (2) of subdivision (a) of Section 20 of Article XVI of the California Constitution, the sum equal to 1.5 percent of General Fund revenues for the 2026–27 fiscal year is $3,538,000,000. $3,540,000,000.
(2) For purposes of clause (ii) of subparagraph (B) of paragraph (1) of subdivision (b) of Section 20 of Article XVI of the California Constitution, capital gains revenues that exceed 8 percent of General Fund proceeds of taxes for the 2026–27 fiscal year is $5,954,000,000. $5,942,000,000.
(3) For purposes of clause (ii) of subparagraph (B) of paragraph (1) of subdivision (c) of Section 20 of Article XVI of the California Constitution, the amount for debt payments in the 2026–27 fiscal year is $3,577,000,000. $3,574,000,000.
(4) (A) For purposes of subparagraph (F) of paragraph (1) of subdivision (b) of Section 20 of Article XVI of the California Constitution, the amount of transfer to the Budget Stabilization Account in the 2026–27 fiscal year is $3,577,000,000. $3,574,000,000.
(5) For purposes of clause (ii) of subparagraph (B) of paragraph (2) of subdivision (b) of Section 20 of Article XVI of the California Constitution, the updated estimate of capital gains revenues that exceeds 8 percent of General Fund proceeds of taxes for the 2025–26 fiscal year is $10,894,000,000. $8,764,000,000.
(6) For purposes of subparagraph (G) of paragraph (2) of subdivision (b) of Section 20 of Article XVI of the California Constitution, the first true up of the transfer to the Budget Stabilization Account for the 2025–26 fiscal year is $0.
(7) For purposes of clause (ii) of subparagraph (B) of paragraph (2) of subdivision (b) of Section 20 of Article XVI of the California Constitution, the updated capital gains revenues that exceed 8 percent of General Fund proceeds of taxes for the 2024–25 fiscal year is $5,652,000,000.
(8) For purposes of subparagraph (G) of paragraph (2) of subdivision (b) of Section 20 of Article XVI of the California Constitution, the second true up of the transfer to the Budget Stabilization Account for the 2024–25 fiscal year is $305,000,000.

SEC. 186.

 Section 35.55 of the Budget Act of 2026 is amended to read:

SEC. 35.55.

 (a) Upon order of the Department of Finance, the Controller shall transfer in one or more transactions a total amount of $7,413,100,000 $6,388,100,000 from the General Fund to the Projected Surplus Temporary Holding Account in the 2026–27 fiscal year.
(b) Pursuant to subdivision (b) of Section 16418.7 of the Government Code, a transfer to the Projected Surplus Temporary Holding Account is included in the annual Budget Act.
(c) (1) Pursuant to subdivision (c) of Section 16418.7 of the Government Code, funds transferred to the Projected Surplus Temporary Holding Account shall remain in that account for no more than one year from the date of deposit.
(2) Upon order of the Department of Finance, the Controller shall transfer the amount transferred in subdivision (a) from the Projected Surplus Temporary Holding Account to the General Fund in the 2027–28 fiscal year to comply with subdivision (c) of Section 16418.7 of the Government Code.

SEC. 187.

 Section 39.00 of the Budget Act of 2026 is amended to read:

SEC. 39.00.

 The Legislature hereby finds and declares that the following bills are other bills providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution: AB 122, AB 125, AB 176, SB 122, SB 125, and SB 176. SB 126, SB 133, SB 135, SB 150, SB 152, SB 153, SB 163, SB 164, SB 165, SB 166, SB 168, SB 169, SB 170, SB 171, SB 172, SB 174, SB 177, SB 179, SB 180, AB 126, AB 133, AB 135, AB 150, AB 152, AB 153, AB 163, AB 164, AB 165, AB 166, AB 168, AB 169, AB 170, AB 171, AB 172, AB 174, AB 177, AB 179, and AB 180.

SEC. 188.

 Section 99.00 of the Budget Act of 2026 is amended to read:

INDEX BY BUDGET TITLE

SEC. 99.00.

 The following provides an index to the appropriations and related provisions of this act, by organization in alphabetical order, with the code number of the affected organization. The organization code is the first four numbers of any item number in this act. For ease of reference, the appropriation items in this act are organized in numerical order, and all of the appropriation items for any one organization are adjacent to one another.
Department Organization Code
 
“A”
 
ABLE Act Board, California ........................
0981
Administrative Law, Office of ........................
7910
Aging, California Commission on ........................
4180
Aging, California Department of ........................
4170
Agricultural Labor Relations Board ........................
7300
Air Resources Board, State ........................
3900
Alcoholic Beverage Control, Department of ........................
2100
Alcoholic Beverage Control Appeals Board ........................
2120
Alternative Energy and Advanced Transportation Financing Authority, California ........................
0971
Arts Council, California ........................
8260
Asian and Pacific Islander American Affairs, California Commission on ........................
8825
Assembly ........................
0120
Auditor’s Office, California State ........................
8855
 
“B”
 
Baldwin Hills and Urban Watersheds Conservancy ........................
3835
Boards.See subject (e.g., Air Resources, etc.)
Behavioral Health Services Oversight and Accountability Commission ........................
4560
Business and Consumer Services Agency, Secretary of ........................
0515
 
“C”
 
Cannabis Control, Department of ........................
1115
Cannabis Control Appeals Panel ........................
1045
Cash Management and Budgetary Loans ........................
9620
Child Support Services, Department of ........................
5175
Citizens Compensation Commission, California ........................
8385
Citizens Redistricting Commission ........................
0911
Civil Rights Department ........................
1700
Coachella Valley Mountains Conservancy ........................
3850
Coastal Commission, California ........................
3720
Coastal Conservancy, State ........................
3760
College of Law, San Francisco ........................
6600
Colorado River Board of California ........................
3460
Community Colleges, Board of Governors of the California ........................
6870
Community Services and Development, Department of ........................
4700
Conservation, Department of ........................
3480
Conservation Corps, California ........................
3340
Consumer Affairs, Department of ........................
1111
Contingencies or Emergencies, Augmentation for ........................
9840
Contingencies or Emergencies (Loans), Augmentation for ........................
9850
Contributions to.See subject (e.g., Judges’ Retirement, Teachers’ Retirement, etc.)
Controller ........................
0840
Corrections and Rehabilitation, Department of ........................
5225
Councils.See subject (e.g., Arts, etc.)
 
“D”
 
Data and Innovation, Office of ........................
7504
Debt and Investment Advisory Commission, California ........................
0956
Debt Limit Allocation Committee, California ........................
0959
Delta Protection Commission ........................
3840
Delta Stewardship Council ........................
3885
Department of.See subject (e.g., Corrections and Rehabilitation, Food and Agriculture, etc.)
Developmental Disabilities, State Council on ........................
4100
Developmental Services, State Department of ........................
4300
 
“E”
 
Education Audit Appeals Panel ........................
6125
Education, State Department of ........................
6100
Educational Facilities Authority, California ........................
0989
Emergency Services, Office of ........................
0690
Emergency Medical Services Authority ........................
4120
Employee Compensation, Augmentation for ........................
9800
Employment Development Department ........................
7100
Energy Infrastructure Safety, Office of ........................
3355
Energy Resources Conservation and Development Commission, State ........................
3360
Enhanced Tobacco Settlement Asset-Backed Bonds ........................
9612
Environmental Health Hazard Assessment, Office of ........................
3980
Environmental Protection, Secretary for ........................
0555
Equalization, State Board of ........................
0860
Equity Claims and Settlements and Judgments ........................
9670
Exposition Park ........................
3100
 
“F”
 
Fair Political Practices Commission ........................
8620
Finance, Department of ........................
8860
Financial Information System for California ........................
8880
Financial Protection and Innovation, Department of ........................
1701
Fish and Wildlife, Department of ........................
3600
Food and Agriculture, Department of ........................
8570
Forestry and Fire Protection, Department of ........................
3540
Franchise Tax Board ........................
7730
 
“G”
 
Gambling Control Commission, California ........................
0855
General Services, Department of ........................
7760
Government Operations, Secretary of ........................
0511
Governor Elect and Outgoing Governor ........................
0730
Governor’s Office ........................
0500
Governor’s Office of Business and Economic Development (GO-Biz) ........................
0509
Governor’s Office of Land Use and Climate Innovation ........................
0650
Governor’s Office of Service and Community Engagement ........................
0680
Governor’s Portrait ........................
0720
 
“H”
 
Health Care Access and Information, Department of ........................
4140
Health Facilities Financing Authority, California ........................
0977
Health and Human Services, Secretary of California ........................
0530
Health and Dental Benefits for Annuitants ........................
9650
Health Benefit Exchange, California ........................
4800
Health Care Services, State Department of ........................
4260
High-Speed Rail Authority ........................
2665
High-Speed Rail Authority Office of the Inspector General ........................
2667
Highway Patrol, Department of the California ........................
2720
Historic State Capitol Commission ........................
8270
Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Program Board, California ........................
0957
Horse Racing Board, California ........................
1750
Housing and Community Development, Department of ........................
2240
Housing and Homelessness Agency, Secretary of California ........................
0516
Human Resources, Department of ........................
7501
 
“I”
 
Independent Living Council, State ........................
5170
Industrial Relations, Department of ........................
7350
Institutions (See Department of Corrections and Rehabilitation, State Department of Health Care Services, etc.)
Inspector General, Office of the ........................
0552
Institute for Regenerative Medicine, California ........................
6445
Insurance, Department of ........................
0845
Interagency Council on Homelessness, California ........................
2255
Interest Payments to the Federal Government ........................
9625
 
“J”
 
Joint Expenses (Legislature) ........................
0130
Judges’ Retirement Fund ........................
0390
Judicial Performance, Commission on ........................
0280
Judicial Branch ........................
0250
Justice, Department of ........................
0820
 
“L”
 
Lands Commission, State ........................
3560
Labor and Workforce Development Agency, Secretary of ........................
0559
Law Revision Commission, California ........................
8830
Legislative Analyst’s Office ........................
0130
Legislative Counsel Bureau ........................
0160
Legislature (See Assembly, Senate, or Joint Expenses)
Library, California State ........................
6120
Lieutenant Governor, Office of the ........................
0750
Local Government Financing ........................
9210
 
“M”
 
Managed Health Care, Department of ........................
4150
Military Department ........................
8940
Milton Marks “Little Hoover” Commission on California State Government Organization and Economy ........................
8780
Motor Vehicles, Department of ........................
2740
 
“N”
 
Native American Heritage Commission ........................
3780
Natural Resources Agency, Secretary of the ........................
0540
 
“O”
 
Office of.See subject (e.g., Emergency Services, Planning and Research, etc.)
 
“P”
 
Parks and Recreation, Department of ........................
3790
Payment to Counties for Costs of Homicide Trials ........................
9300
Peace Officer Standards and Training, Commission on ........................
8120
Personnel Board, State ........................
7503
Pesticide Regulation, Department of ........................
3930
Pilot Commissioners for the Bays of San Francisco, San Pablo, and Suisun, Board of ........................
2670
Political Reform Act of 1974 ........................
8640
Privacy Protection Agency, California ........................
8615
Public Defender, State ........................
8140
Public Employees’ Retirement System, Board of Administration of the ........................
7900
Public Employment Relations Board ........................
7320
Public Health, State Department of ........................
4265
Public Utilities Commission ........................
8660
 
“R”
 
Real Estate, Department of ........................
2320
Resources Recycling and Recovery, Department of ........................
3970
Rehabilitation, Department of ........................
5160
 
“S”
 
Sacramento-San Joaquin Delta Conservancy ........................
3875
San Diego River Conservancy ........................
3845
San Francisco Bay Conservation and Development Commission ........................
3820
San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy ........................
3825
San Joaquin River Conservancy ........................
3830
Santa Monica Mountains Conservancy ........................
3810
ScholarShare Investment Board ........................
0954
School Finance Authority, California ........................
0985
Secretary of State ........................
0890
Senate ........................
0110
Senior Legislature, California ........................
4185
Sierra Nevada Conservancy ........................
3855
Social Services, State Department of ........................
5180
Special Resources Program ........................
3110
State.See subject (e.g., Controller, Treasurer, etc.)
State and Community Corrections, Board of ........................
5227
State Hospitals, State Department of ........................
4440
State Mandates, Commission on ........................
8885
Status of Women and Girls, Commission on the ........................
8820
Student Aid Commission ........................
6980
Summer School for the Arts, California State ........................
6255
Superintendent of Public Instruction, Office of the ........................
6051
 
“T”
 
Tahoe Conservancy, California ........................
3125
Tax and Fee Administration, California Department of ........................
7600
Tax Appeals, Office of ........................
0870
Tax Credit Allocation Committee, California ........................
0968
Tax Relief ........................
9100
Teacher Credentialing, Commission on ........................
6360
Teachers’ Retirement System, State ........................
7920
Technology, Department of ........................
7502
Toxic Substances Control, Department of ........................
3960
Transportation, Department of ........................
2660
Transportation, Secretary of ........................
0521
Transportation Commission, California ........................
2600
Treasurer ........................
0950
Trial Court Security—​Court Construction ........................
9285
Trial Court Security—​Judgeships ........................
9286
 
“U”
 
University, California State ........................
6610
University, California State, Health Benefits for Annuitants ........................
6645
University of California ........................
6440
 
“V”
 
Veterans Affairs, Department of ........................
8955
Victim Compensation Board, California ........................
7870
 
“W”
 
Water Resources, Department of ........................
3860
Water Resources Control Board, State ........................
3940
Wildlife Conservation Board ........................
3640
Workforce Development Board, California ........................
7120

SEC. 189.

 Section 99.50 of the Budget Act of 2026 is amended to read:

INDEX FOR CONTROL SECTIONS

SEC. 99.50.

 The following is an index to the general sections of this act. These sections serve to define terms and identify restrictions concerning the appropriations contained in this act.
 1.00
 Budget Act Citation
 1.50
 Intent and Format
 1.51
 Citations to Prior Budget Acts
 1.80
 Availability of Appropriations
 2.00
 Items of Appropriation
 3.00
 Defines Purposes of Appropriations
 3.10
 Subschedule Transfers for Capital Projects
 3.50
 Benefit Charges Against Salaries and Wages
 3.60
 Contribution to Public Employees’ Retirement Benefits
 3.61
 Contribution to Prefund Other Postemployment Benefits
 4.05
 Budget Adjustment Authority
 4.11
 Position Vacancy Report
 4.12
 Vacant Position Elimination
 4.13
 AB 85 Repayments to Counties
 4.20
 Contribution to Public Employees’ Contingency Reserve Fund
 4.30
 Lease-Revenue Payment Adjustments
 4.72
 Electric Vehicle Charging Infrastructure
 4.75
 Statewide Surcharge
 4.80
 State Public Works Board Interim Financing
 4.85
 Judicial Council Courthouse Infrastructure Plan
 4.90
 Architectural Revolving Fund Transfer
 4.95
 Inmate and Ward Construction Revolving Account Transfer
 5.25
 Attorney’s Fees
 5.27
 Federal Accountability Litigation
 6.00
 Project Alterations Limits
 6.40
 Automated Cargo Handling Equipment
 8.00
 Antiterrorism Federal Reimbursements
 8.50
 Federal Funds Receipts
 8.51
 Federal Funds Accounts
 8.52
 Federal Reimbursements
 8.53
 Notice of Federal Audits
 8.54
 Enforce Recovery of Federal Funds for Statewide Indirect Costs
 8.75
 Infrastructure Investment and Jobs Act
 9.30
 Federal Levy of State Funds
 9.50
 Minor Capital Outlay Projects
 11.00
 Information Technology Reporting Requirements
 11.10
 Reporting of Statewide Software License Agreements
 11.11
 Privacy of Information in Pay Stubs
 11.94
 Coronavirus Capital Projects Fund
 11.96
 Coronavirus Fiscal Relief
 11.97
 State Appropriation Limit Excludable Federal Fund Appropriations for Capital Outlay
 12.00
 State Appropriations Limit (SAL)
 12.30
 Special Fund for Economic Uncertainties
 12.32
 Proposition 98-Funding Guarantee
 12.35
 Financial Aid Policy Change Requirements
 12.45
 June to July Payroll Deferral
 13.00
 Legislative Counsel Bureau
 14.00
 Special Fund Loans Between Boards of the Department of Consumer Affairs
15.02

Appropriation of Climate Bond (Proposition 4) Funding for 2026–27

 15.04
 Climate Bond (Proposition 4) Operational Efficiencies
 15.14
 Allocation of Greenhouse Gas Reduction Fund
 15.25
 Data Center Rate Adjustment
 15.45
 Trial Court Funding Offsets
 20.00
 Reappropriations and Reversions
 24.00
 State School Fund Allocations
 24.20
 Updates to Superintendent of Public Instruction Reference
 24.30
 Transfer School Building Rental Income to the General Fund
 24.60
 Report of Lottery Funds Received
 24.70
 Local Educational Agency Fiscal Accountability
 25.40
 Contracted Fiscal Services Costs
 25.50
 SCO Apportionment Payment System Assessments
 26.00
 Intraschedule Transfers
 28.00
 Program Change Notification
 28.30
 Federal Funds Realignment
 28.31
 Short-Term Cash Loans Due to Delay in Federal Funds
 28.50
 Agency Reimbursement Payments
 29.00
 Position Estimates of Governor’s Budget, May Revision, and Final Change Book
 30.00
 Continuous Appropriations
 31.00
 Budget Act Administrative Procedures for Salaries and Wages
 32.00
 Prohibits Excess Expenditures
 33.00
 Item Veto Severability
 34.00
 Constitutional Severability
 35.21
 Application of Net Final Payment Accrual Methodology
 35.35
 FI$Cal—​Short-Term Cash Loans
 35.50
 Estimated General Fund Revenues and Various Estimates Related to the Budget Stabilization Account
 35.55
 Surplus Temporary Holding Account Transfer
 38.00
 Provides That This Bill Is a Budget Bill
 39.00
 Identification of Bills Related to the Budget Bill
 99.00
 Alphabetical Organization Index
 99.50
 Numerical Control Section Index

SEC. 190.

 This act is a Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution and shall take effect immediately.
SECTION 1.

It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025.

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