California Assembly Democrats Pass Budget That Protects Opportunity, Improves Affordability, Fast Tracks Housing Construction

SACRAMENTO—  Today, the California State Assembly passed the 2025-26 budget, ensuring Democrats will continue to protect opportunity and increase affordability in the face of unprecedented attacks and threats from Trump and Washington Republicans.

What Assembly Speaker Robert Rivas Says

“This is an incredibly difficult time for Californians. Trump is undermining our economy with reckless tariffs, harsh cuts, and ICE agents terrorizing our communities. At a moment when so many are already struggling, he’s adding fear and instability. In contrast, Assembly Democrats have delivered a budget that protects California. It cuts red tape to build more housing faster-  because housing is the foundation of affordability and opportunity. It preserves critical investments in health care, women’s health, education, and public safety. And it honors our commitment not to raise taxes on families, workers, or small businesses. In unprecedented times, under painful circumstances, Assembly Democrats are delivering for Californians.”

What Assembly Budget Chair Jesse Gabriel Says

“While President Trump is sowing chaos and attacking our communities, the Assembly is doubling down on leading responsibly and uplifting our California values. Our budget prioritizes housing, education, wildfire resilience, public safety, and critical safety net programs while also putting our state on a stronger path to fiscal resilience. I want to thank Speaker Rivas, our talented budget subcommittee chairs, and the budget committee staff for their tireless work in helping to craft this budget.”

How Democrats’ Budget Protects Opportunity and Increases Affordability

The 2025 state budget comes at a deeply challenging moment. 

President Trump’s fiscal policies and attacks are harming all Californians, and especially our most vulnerable workers, business owners, and families. 

At a time when taxpayers are facing pressure fueled by reckless Republican policies, the Assembly is standing firm in protecting California’s economy and values. Assembly Democrats fought for a budget that not only resists devastating cuts, but also invests in real solutions: more housing, stronger schools, safer communities, and sustainable health care.

In the face of these mounting challenges, the Assembly delivered a budget that defends core programs, invests in California families, and reinforces the state’s long-term economic resilience. 

This budget includes solutions that will accelerate housing construction, maintain access to key health and safety net programs, and uphold the state’s commitment to equity, inclusion, and economic strength, all without placing additional tax burdens on working families.

Key Assembly wins include:

• Rejecting deep cuts to In-Home Supportive Services (IHSS) and long-term care
• Blocking the elimination of Proposition 56 payments that support Planned Parenthood and other reproductive and women’s health providers
• Preserving Medi-Cal access for undocumented adults by reducing and delaying premiums, maintaining dental benefits, and rejecting harsh asset test proposals
• Investing $52 million in food banks and securing a cost-of-living adjustment (COLA) for child care providers, while transitioning to prospective pay based on enrollment
• Protecting and expanding housing investments, including $500 million in Low-Income Housing Tax Credits and $120 million for the Multifamily Housing Program
• Allocating $209 million for housing and homelessness prevention, and securing a new $500 million “Round 7” of Homeless Housing, Assistance and Prevention (HHAP) funding
• Ensuring continued funding for public schools, with per-pupil spending rising above $25,000 and a 2.3% COLA for K–12 education
• Avoiding ongoing cuts to UC and CSU, while allowing some deferred payments
• Making key public safety investments, including $100 million to backfill federal VOCA victim services funding, and Prop. 36 implementation funding for behavioral health diversion, pre-trial services, and public defenders
• Maintaining a commitment to fire protection, with increased staffing at CalFire and steps toward better pay for incarcerated firefighters
• Protecting California’s fiscal stability, using rainy day and special fund reserves strategically without raising taxes

The budget will now go to Governor Gavin Newsom for his signature. The Legislature will vote on additional budget legislation in the coming week.

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Follow Speaker Robert Rivas at the following social media channels:

Instagram: @caspeakerrivas

Facebook: www.facebook.com/CASpeakerRivas/

For additional information, please contact:

Speaker Robert Rivas Press Secretary, Cynthia.Moreno@asm.ca.gov 

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