NextGen California Addresses Final 2026-27 State Budget

For Immediate Release: July 2, 2026
Contact: Tyler Bushnell, tyler.bushnell@nextgenpolicy.org

After weeks of negotiations Governor Newsom and the Legislature reach a final budget deal and pass California’s 2026-27 State Budget

SACRAMENTO – Earlier this week, the California Legislature passed and Governor Newsom signed the 2026-27 State Budget, including AB 109 the Budget Bill and SB 111 which makes additional refinements to the budget. The Governor and the Legislature came to a final budget agreement that is projected to erase the structural deficit for both this year and next, and not only places California on solid financial footing but also provides the fiscal conditions to continue protecting many of the state’s essential social safety net programs in the face of federal cutbacks.

NextGen California, a nonprofit organization fighting and advocating for a more equitable, prosperous, and climate-resilient California for all, overall believes this is a good budget and that it prioritizes and invests in numerous programs that align with and advance their organizational mission and values. The nonprofit is particularly excited by the budget investments that fight food insecurity; increase access to healthy school meals; provide stable funding for the Healthy School Food Pathways (HSFP) and Farm to School programs; improve workforce development opportunities through a new Workforce Pell grant framework, including the ability to stack state aid through a re-envisioned Cal Grant C program; provide supportive services for older veterans through the Veterans Support to Self-Reliance Program (VSSR); increase services and legal protections for the state’s immigrant populations; and foster greater educational and workforce training avenues for justice involved individuals through the Jails to Jobs (J2J) pilot program.

However, NextGen California is sounding the alarm on the complete lack of funding for other important communities, especially the state’s over 4 million student loan borrowers who will see the Student Loan Empowerment Network come to an end at a critical time when federal student loan program changes have created chaos throughout the system. NextGen California would also like to see more support and funding to expand youth apprenticeship and career track opportunities. Finally, the fate of the state’s Cap-and-Invest program and California’s ability to meet its ambitious climate goals as well as generate the funding to reduce regional air pollution, address electricity affordability, improve public transit operations and infrastructure, and transition the state off of fossil fuels all remains in limbo until the Legislature returns in August after their summer recess.

Statement from NextGen California Executive Director, Arnold Sowell Jr.:

“After intense negotiations, California’s final state budget, crafted by Governor Newsom and the Legislature, eliminates the state budget deficit for the next two years and continues our investments in programmatic solutions that address some of the most pressing affordability concerns facing every Californian,” said Arnold Sowell Jr., Executive Director for NextGen California.

“The NextGen team and I celebrate the inclusion of funding for programs and policies which we believe uplift and strengthen the California communities most in need of support, including older veterans, immigrants, school children, older and returning adult learners, low income families and justice involved individuals. That being said, as an equity and justice nonprofit organization, we recognize that no budget will perfectly address every issue we prioritize and recognize that there is still much more work to be done to ensure important policies and programs that focus on climate resilience, student loan borrowers, and other key issues affecting the state’s most vulnerable populations receive their needed funding.”

Investments outlined in the budget that align with NextGen California’s advocacy work include:

Combating Food Insecurity:

Full funding for School Meals for All
Ongoing funding for the Healthy School Food Pathway and Farm to School
Programs
$500 million for the Kitchen Infrastructure and Training Program
$15 million for California Nutrition Incentive Program

Defending Immigrants:

$100 million one time increase for immigration legal services

Higher Education:

Workforce Pell implementation framework with the California Student Aid Commission (CSAC) along with a re-envisioned Cal Grant C program
$70 million one-time for Dreamer Resource Liaisons at Community Colleges

Supporting Veterans:

$7 million for the Veterans Support to Self-Reliance (VSSR) pilot program

Workforce Development:

$5 million for the Jails to Jobs pilot program in Los Angeles County

Investments NextGen California will continue fighting for include:

Climate – More investments are needed to ensure California meets its climate goals, including increased revenues for public transit and ratepayer relief generated by the Cap-and-Invest program;
Student Loan Borrowers – California is home to over 4 million student loan borrowers, whose debt totals over $151 billion. With federal policy changes that completely throw the student loan system into chaos, these Californians need access to the one-on-one counseling and other resources which were provided by the Student Loan Empowerment Network and that has just run out of funding;
Apprenticeships – Providing alternative pathways to family-sustaining careers is needed now more than ever and California should increase investments that will help streamline the state’s cumbersome apprenticeship system.

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NextGen California is a nonprofit advocacy organization that breaks down barriers and rebalances power in the State Capitol on behalf of all Californians.