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Newsom, Legislature Reach Deal on $355.9 Billion Budget That Protects Health Care; Averts Deficits for Two Years

Other major investments include a record $2.4 billion in ongoing funding for special education, $5 billion for TK-12 schools, $500 million in Low-Income Housing Tax Credits, $200 million for affordable multifamily housing, a $100 million Disaster Rebuilding Fund, and new funding to strengthen election security, voter outreach and protections against misinformation. The agreement also preserves free school meals, universal transitional kindergarten, universal preschool, summer school programs and childcare slots. 

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Photo courtesy of Gov. Gavin Newsom’s Facebook page.
Photo courtesy of Gov. Gavin Newsom’s Facebook page.

By Bo Tefu, California Black Media

Gov. Gavin Newsom and Democratic legislative leaders announced a final agreement June 26 on California’s $355.9 billion 2026–27 state budget, saying the spending plan preserves health care and other essential services while eliminating projected deficits through the next two fiscal years.

The agreement between Newsom, Senate President Pro Tempore Monique Limón (D-Santa Barbara), and Assembly Speaker Robert Rivas (D-Hollister) balances the budget while maintaining investments in health care, education, housing, public safety and other priorities despite continued economic uncertainty and federal funding challenges.

“A balanced budget isn’t an end in itself — it’s how we deliver for Californians,” Newsom said. “This budget demonstrates responsible choices that protect our fiscal strength while continuing to invest in what matters most. In California, we support working families, create more opportunity, and build safer, healthier communities.”

The budget includes $300 million to lower health care costs, preserves $0 monthly health plans for many lower-income Californians, and helps offset higher insurance premiums resulting from the expiration of enhanced federal Affordable Care Act subsidies. It also protects funding for behavioral health programs and continues implementation of Proposition 1.

Other major investments include a record $2.4 billion in ongoing funding for special education, $5 billion for TK-12 schools, $500 million in Low-Income Housing Tax Credits, $200 million for affordable multifamily housing, a $100 million Disaster Rebuilding Fund, and new funding to strengthen election security, voter outreach and protections against misinformation. The agreement also preserves free school meals, universal transitional kindergarten, universal preschool, summer school programs and childcare slots.

Limón said lawmakers worked to shield Californians from federal spending reductions while strengthening the state’s finances.

“Today’s budget agreement reflects our commitment to protect core programs and address our short and long-term financial future by building up our rainy-day fund and making responsible budgeting choices,” Limón said. “I am also proud that the Senate was able to secure critical funding for childcare slots, safeguard access to care, and take significant steps toward ensuring large corporations pay their fair share.”

Rivas said the budget “protects health care, preserves food programs, invests in housing at record levels and builds reserves to fight back no matter what Trump and Republicans throw at us.”

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From Disparity Study to Solutions: Oakland Coalition and Mayor Barbara Lee Renew Commitment to Reform City Contracting

She committed to ensuring the coalition has direct access to City leadership by designating Assistant Deputy City Administrator Chuck Baker the primary liaison. Working alongside Deputy City Administrator Sofia Navarro, DWES Director Emylene Aspilla, Race and Equity Director Darlene Flynn, and other City departments, the coalition will continue advancing these priorities while maintaining regular communication with City leadership.

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Present at the recent meeting on implementing recommendations on Oakland’s Disparity Study on city work contracts were (first row, l. to r.):  Chuck Baker, Oakland Mayor Barbara Lee and Darlene Flynn. Second row, l. to r.) Samuel Adams, Erica Astrella, Chadwick Spell, Cathy Adams, Stanley Cooper, Maria Wagner, Len Turner, Derek Barnes, Paul Cobb. Photo courtesy of Oakland Mayor’s Office.
Present at the recent meeting on implementing recommendations on Oakland’s Disparity Study on city work contracts were (first row, l. to r.):  Chuck Baker, Oakland Mayor Barbara Lee and Darlene Flynn. Second row, l. to r.) Samuel Adams, Erica Astrella, Chadwick Spell, Cathy Adams, Stanley Cooper, Maria Wagner, Len Turner, Derek Barnes, Paul Cobb. Photo courtesy of Oakland Mayor’s Office.

Special to The Post

On June 30, a coalition of minority business leaders, contractors and others met with Oakland Mayor Barbara Lee to discuss the City’s commitment to implement recommendations outlined in Oakland’s Disparity Study and eliminate barriers that have historically prevented Black and minority-owned businesses from fully participating in public contracting opportunities.

Representatives of the Oakland African American Chamber of Commerce (OAACC), National Association of Minority Contractors Northern California (NAMC NorCal), Construction Resource Center (CRC), and the East Bay Rental Housing Association (EBRHA) said the meeting represented an important milestone in a process that has been underway for several months.

On April 21, the Oakland City Council’s Life Enrichment Committee received a progress report from the Department of Workplace and Employment Standards (DWES), where Director Emylene Aspilla presented the coalition’s working document and outlined a collaborative implementation plan between the coalition and the City. That report established 30-, 60-, and 90-day objectives focused on five key priorities:

  • Reforming Local and Small Local Business Enterprise (L/SLBE) waiver practices
  • Strengthening prompt payment compliance
  • Improving procurement forecasting and transparency
  • Expanding contractor capacity building and business development
  • Increasing oversight, accountability, and public reporting

A series of working sessions was scheduled between coalition representatives, DWES, and the City Administrator’s Office to begin implementing those priorities but were temporarily delayed by the resignation of former City Administrator Jestin Johnson.

Rather than allowing that momentum to stall, OAACC President and CEO Cathy Adams requested a meeting with Lee to gain clarity on the City’s direction and reaffirm its commitment to implementing the recommendations contained within the Disparity Study.

Coalition leaders described the meeting as productive, candid, collaborative, and encouraging.

During the meeting, Lee spoke not only from her role as mayor but also from her experience as an 8(a) contractor and business owner, sharing that she understands firsthand what it takes to build and grow a successful company, employ a substantial workforce, compete for public work, and navigate the complexities of municipal contracting.

She committed to ensuring the coalition has direct access to City leadership by designating Assistant Deputy City Administrator Chuck Baker the primary liaison. Working alongside Deputy City Administrator Sofia Navarro, DWES Director Emylene Aspilla, Race and Equity Director Darlene Flynn, and other City departments, the coalition will continue advancing these priorities while maintaining regular communication with City leadership.

Mayor Lee also expressed her commitment to personally participate in future working meetings with the coalition.

“This meeting represents a renewed commitment to partnership,” said Adams. “Mayor Lee listened, engaged, and demonstrated that she wants to move beyond conversation and into implementation.”

CRC’s Len Turner said the roadmap is already in place. ““The City already has the evidence. What’s been missing is execution. …Now it’s time to deliver results.”

Mario Wagner, president of NAMC NorCal agreed that the next phase must focus on implementation, funding, and accountability.

“The coalition is ready to get to work. …The next step is ensuring these initiatives receive meaningful funding in the upcoming fiscal budget cycle. Just as important, the City must establish transparent reporting mechanisms that keep the public informed through regular progress reports, measurable benchmarks, and accountability.”

Coalition leaders also acknowledged that while City leadership has indicated it is reviewing Local and Small Local Business Enterprise waiver practices, the community continues to seek a formal response regarding existing long-term waivers, including waivers extending 10 and 25 years. The coalition believes those waivers should be comprehensively reviewed and, where appropriate, rolled back as part of the City’s broader contracting reforms.

The coalition is also calling on the City to include meaningful funding in the upcoming fiscal budget cycle to support implementation of the Disparity Study recommendations and establish better methods and mechanisms to keep the public informed through regular progress reports, measurable benchmarks, and transparent accountability.

The coalition’s immediate next step is to schedule a working meeting with Baker, Aspilla, Lee, and the appropriate City staff to review what has already been accomplished under the implementation framework.

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Oakland Post: Week of July 8 – 14, 2026

The printed Weekly Edition of the Oakland Post: Week of July 8 – 14, 2026

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Kamala Harris Says State and Local Leadership Matters as Much as Washington 

The discussion was moderated by Daniel Squadron, co-founder of The States Project and author of The Fourth Branch: How State Government Can Save Our Union. The organization supports state legislative candidates in competitive states and advocates for greater investment in state legislative races.  

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Courtesy photo States Project.
Courtesy photo States Project.

By Joe W. Bowers Jr., California Black Media  

Former Vice President Kamala Harris said that traveling the country since the 2024 Presidential election, during her book tour, gave her an opportunity to hear directly from Americans about the challenges they face every day, reinforcing her belief that many people feel unheard by Washington and increasingly look to state elected officials for solutions.

Speaking at UCLA on June 23 during a discussion hosted by The States Project, Harris said she deliberately used her travels to spend time listening to people rather than simply talking to them.

“After the election I needed to take a minute, but when that minute was over, I needed to listen,” said Harris.

One conversation that stayed with her was with a single mother of three in Jackson, Mississippi, who was attending cosmetology school while raising her children on a $150 weekly grocery budget. Harris said the woman also told her the tap water was sometimes too contaminated to bathe her children.

When Harris asked what she wanted others to understand about families like hers, the woman replied, “Don’t they see me?”

“There are a lot of people who feel that they are not interested, and that their everyday fears and worries and hopes aren’t being heard,” Harris said.

“People are done with the status quo,” Harris added. “They’re done. It’s not working for them.”

She said political leaders must focus on solving everyday problems while presenting a broader vision for the country’s future.

“It’s about having affordable housing, affordable healthcare. It is about having a tax code that works for working people,” Harris said.

Harris said those conversations reinforced her belief that state elected officials are often better positioned than Washington to understand the everyday challenges facing their constituents.

“I support The States Project because the folks here and the folks we are supporting — state elected officials — are on the ground seeing and hearing these stories every day,” Harris said.

The discussion was moderated by Daniel Squadron, co-founder of The States Project and author of The Fourth Branch: How State Government Can Save Our Union. The organization supports state legislative candidates in competitive states and advocates for greater investment in state legislative races.

Harris said protecting voting rights remains central to the broader civil rights movement.

“The fight for civil rights in America, born out of the struggle of Black Americans, has benefited so many groups,” she said. “But when we look at what’s happening across the country, the fight for justice, for equality, lives on.”

Looking beyond the current administration, Harris said Democrats must present voters with more than opposition to President Donald Trump.

“We’ve got to have a mindset and a purpose that is about the day after this administration leaves the White House,” Harris said. “The question is going to be, what are you going to do with the power if you get it?”

Harris closed by encouraging Americans to remain engaged in their communities and state government.

“I strongly believe nobody should be made to fight alone,” Harris said. “Especially at this moment in time.”

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