Transcript Highlights:

• H.R. 1 alone is projected to be billions of dollars in added or shifted costs to counties.
• clear and prime opportunity here in light of all the different cuts that we're seeing as a result of H.R
• When policies like H.R. 1 reduce access to these services, the affordable child care services don't shrink

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held a hearing on the Trump administration’s freeze of federal child care and social services funding and its potential impact on California. The chair opened by emphasizing that child care is economic infrastructure and warning that the freeze could destabilize California’s $10 billion child care system. The Legislative Analyst’s Office and the Department of Social Services explained that California child care programs rely on roughly $1.4 billion in federal CCDF and TANF funds, which are blended with state dollars and support hundreds of thousands of children and families. CDSS said the state and four other Democratic-led states quickly sued, obtaining a temporary restraining order that has kept the funds flowing for now. Witnesses including Los Angeles County Supervisor Holly Mitchell, child care provider Amisha Griffin, and parent advocate Mara Linda Bustamante described the practical consequences of a funding interruption: providers could lose reimbursement, close centers, cut enrollment, or lay off staff; parents could lose child care, jobs, or school opportunities; and counties could not backfill the lost federal dollars. Several speakers stressed that child care centers also provide wraparound supports such as nutrition, developmental screening, and referrals, especially in rural and low-income communities. Mitchell and others argued that the freeze would worsen child care deserts and disproportionately harm women, single parents, and communities of color. Members repeatedly challenged the federal rationale of “waste, fraud, and abuse,” asking for oversight details. CDSS said providers face extensive audits, fraud policies, monitoring, and recoupment procedures, and that identified fraud amounts to about $7 million over two years compared with roughly $6.5 billion in annual child care spending. Several members said the fraud rate is under 1 percent and criticized the freeze as politically motivated and illegal. They also discussed the need for a state “bridge plan” to protect families if federal funds remain disrupted, and some members referenced prior legislation to modernize CalWORKs and child care eligibility. During public comment, parents, providers, county representatives, and advocacy groups echoed the same concerns, citing waiting lists, workforce losses, and the risk of families falling back into homelessness or poverty. No formal vote was taken; the hearing concluded with broad bipartisan expressions of support for child care funding and a commitment to continue working on state protections and federal advocacy.

Transcript Highlights:

• In the prior forecast, the baseline for Moody's did include the impacts of H.R. 1, and they assumed A
• And we think that's in a large part because of the federal changes of H.R. 1, but also the slowing of
• the next slide, on slide 21, I brought this up last time to the extent that we miss our estimates for H.R

Committee: Joint Revenue Stabilization & Tax Policy Committee

Transcript Highlights:

• The federal H.R. 1 made three major changes to Medicaid.
• then one risk here is it's possible that the effect of these policies could be pushed back because H.R
• Also, the impact of H.R. 1, or the One Big Beautiful Bill, was impacting some of the ESA programs, Economic

Committee: Senate Ways & Means

Summary: The Ways and Means Committee met for a work session and first heard an economic and revenue forecast update from the Economic and Revenue Forecast Council. The forecast described moderate U.S. growth, elevated near-term inflation, weak Washington employment growth in 2026, continued personal income growth, and slower housing permit activity. Revenues were revised up about $105 million for the current biennium and down about $185 million for the next biennium, with uncertainty tied largely to tariffs, federal policy, and the recent federal shutdown. Members asked about the outlook for February, income inequality, and housing affordability; the presenter said the forecast does not measure income distribution and that housing permit data does not directly address affordability. The committee then received a caseload forecast update. Most forecasts were unchanged or nearly unchanged, but several programs moved: Washington College Grant caseloads rose, TANF and Working Connections changed due to immigration-related assumptions and updated policy timing, and long-term care caseloads increased. The largest change was in Medicaid low-income adults, where federal H.R. 1 was projected to reduce caseloads significantly through narrower non-citizen eligibility, community engagement requirements, and shorter eligibility periods. Members raised concerns about downstream effects such as uncompensated care and higher premiums, and the presenter noted some effects could be delayed depending on federal implementation guidance. A wildfire funding and 2025 fire season update followed. Staff explained the state’s base wildfire suppression funding and estimated a supplemental need of about $139 million in state funds. DNR reported a busy fire year with lower snowpack, drought, more than 1,100 DNR jurisdictional fires, about 76,000 acres burned, 31 aircraft used, 690 DNR firefighters, and 350 out-of-state resources brought in; the agency said its suppression effectiveness improved to 94.1% of fires kept under 10 acres. Questions focused on National Guard use, aircraft counts, and the higher number of residences lost in complex fires. The committee then heard a budget preview showing the near general fund outlook worsening to about a $4.3 billion ending balance by fiscal year 2029 after maintenance-level costs, while noting that policy items such as wildfire costs and liability account decisions were not yet built in. The final major topic was the state’s tort liability and self-insurance account, where the Risk Manager reported a sharp rise in indemnity costs, from $223 million in fiscal year 2023 to nearly $500 million in fiscal year 2025, driven largely by DCYF claims, especially sex abuse cases. Defense costs also rose as the Attorney General’s Office relied more on special assistant attorneys general to handle volume. Members asked about older claims, comparisons with other states, insurance coverage, and whether costs might decline if the AG’s office hires more attorneys. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust about statewide water shortages, declining snowpack, drought, overappropriated basins, and the need for more storage, recharge, conservation, and enforcement. Tribal witnesses emphasized water sovereignty, salmon habitat, and the need for tribes to be involved early in legislation, while Ecology described major projects in the Odessa and Yakima basins and the challenges of climate change and legal constraints. No votes were taken during the work session.

Transcript Highlights:

• The federal H.R. 1 made three major changes to Medicaid.
• then one risk here is it's possible that the effect of these policies could be pushed back because H.R
• H.R. 1 did give the Centers for Medicare and Medicaid Services the authority to give states an extension

Summary: The Ways and Means Committee held a work session covering the state revenue outlook, caseload forecasts, wildfire costs, budget balance, tort liability, water supply, and pension policy. The Economic and Revenue Forecast Council reported modest near-term U.S. growth, no near-term Washington employment growth in 2026, continued personal income growth, and elevated inflation, with tariffs and federal policy cited as major risks. Revenue forecasts were slightly improved for the current biennium by about $105 million but down about $185 million for the next biennium. Members asked about income inequality and housing permits; staff said personal income is an aggregate measure and housing production remains below long-term needs. The Caseload Forecast Council then reported that most forecasts were unchanged or only slightly changed, but several programs increased, including Washington College Grant, Working Connections, aged/blind/disabled cash grants, nursing homes, home and community services, and developmental disabilities personal care. The largest policy-driven change was in Medicaid low-income adult caseloads, where federal H.R. 1 was projected to reduce coverage substantially through narrower eligibility, community engagement requirements, and shorter eligibility periods. The committee also heard a wildfire funding update and a 2025 fire season review. Staff explained that the state budgets $93 million annually for suppression and uses supplemental appropriations for costs above that level, with an estimated state supplemental need of about $139 million for the current year. Department of Natural Resources officials said 2025 fire activity remained below the 10-year average in acres burned, but fires were more complex and closer to communities, contributing to higher residence loss. They described expanded use of aircraft, firefighters from other states, corrections crews, and the Arcadia 20 hand crew, and said the state did not need National Guard ground support this year. A budget preview then showed that the near general fund outlook had worsened after vetoes, lapses, and forecast changes, and that maintenance-level costs alone would leave a projected negative balance by fiscal year 2027 and about $4.3 billion by fiscal year 2029, before any policy decisions. Jason Seams, the state risk manager, reported a sharp rise in tort claim costs, with indemnity expenses nearly doubling from fiscal year 2023 to 2025 and DCYF accounting for most of the increase. He said the state self-insurance liability account has run deficits for four straight biennia and is now facing nearly $600 million in deficits, driven largely by a surge in DCYF claims, especially juvenile rehabilitation and long-running sex abuse cases. Members asked about the role of old claims, comparisons with other states, excess insurance, and whether more Attorney General staff could reduce special assistant attorney general costs. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust. Tribal witnesses emphasized overappropriation, declining flows, climate impacts, and the need for legislative oversight and tribal participation in water policy. Ecology described major projects in the Odessa sub-area, Yakima Basin, and Dungeness, along with the need for storage, recharge, conservation, and policy changes to support water supply development. The Washington Water Trust argued that climate change is reducing summer flows and that the state needs more funding, enforcement, and long-term commitment to restore instream flows. The final item was a pension update on LEOFF 1 surplus assets; staff reviewed two 2025 bills that would have merged or restructured the plan and used surplus assets, but neither passed, and instead the budget directed the Select Committee on Pension Policy to study the issue and report back.

Transcript Highlights:

• File item number 157, H.R. 36, by Assembly Member Garcia. The clerk will read.
• The resolution is adopted. file item number 157, H.R. 36, by Assembly Member Garcia, the clerk will read
• Speaker, I ask for an aye vote on H.R. 41 and that the first roll be open for co-authors.

Summary: The Assembly convened after a quorum call, prayer, and pledge, then moved through a long Daily File with several major policy bills and multiple commemorative resolutions. The most debated measure was AB 379 on human trafficking and child exploitation. The bill was presented as a stronger, more comprehensive version that increases penalties for adults soliciting minors, adds a loitering offense tied to purchasing commercial sex, raises fines for businesses that facilitate trafficking, creates a Survivor Support Fund, and establishes grants for victim services and vertical prosecution. Several members spoke in support, while Assemblymember Sharp-Collins raised concerns that the loitering provision could be vague and disproportionately enforced against Black, Brown, and LGBTQIA+ people. The bill passed after debate, with the clerk reporting 72 noes and the measure still passing. The Assembly also passed AB 1415, which expands the Office of Health Care Affordability’s authority to review more health systems, private equity and hedge fund acquisitions, and managed service organizations in order to better track cost drivers and medical debt. Other policy bills approved included AB 711 on coordinating court reporters for motion hearings, AB 1142 on horse event entry fees, AB 309 on preserving access to sterile syringes for HIV and hepatitis prevention, AB 358 on allowing victims to consent to searches of hidden surveillance devices like AirTags and spy cameras, AB 592 on outdoor dining for restaurants, AB 1341 on clarifying contractor licensing violations, AB 752 on easing child care center siting, AB 1166 on extending debt-settlement rules to commercial financing, AB 806 on mobile home resident cooling rights, AB 972 on explicit sex discrimination protections in higher education, AB 416 on emergency room 5150 authority, AB 632 on expedited collection of penalties for serious local code violations, AB 672 on PERB notification and intervention rights, AB 876 on CRNA scope of practice, and AB 760 on temporary mobile home housing after disasters. Most of these measures passed with broad bipartisan support, though AB 672 drew sharp opposition from Assemblymember DeMaio over concerns about PERB and state bureaucracy. The chamber also adopted several resolutions recognizing May observances and public service groups. These included ACR 63 designating May as California Fairgrounds Appreciation Month, ACR 69 for California Physical Fitness and Mental Well-Being Month, ACR 76 for California Small Business Month, ACR 77 for Drowning Awareness and Prevention Month, HR 36 for Lung Cancer Action Week, HR 39 for National Public Works Week, and HR 41 for National Hospital Week. Members used the resolutions to highlight local institutions, public health, and community services, and each was adopted after co-author rolls and voice votes. The session ended after the Assembly completed the day’s file and moved through a series of routine procedural motions and adjournment-related business.

Transcript Highlights:

• This is a replacement for H.R. 23, so RS 33797.

Committee: House Ways and Means

Transcript Highlights:

• Is there a motion on item number 8, H.R. 111? Assembly Member Zbur. Is there a motion?

Summary: The Rules Committee met briefly and called the meeting to order, with a quorum present. After roll call, the committee took up a consent agenda and approved the remainder of it after item 8 was removed for separate consideration. Item 8, H.R. 111 by Assembly Member Zbur, was then considered separately. A motion and second were made, and the measure passed by roll call vote, with several members voting aye and a few recorded as not voting. After the vote on H.R. 111, the committee adjourned.

Transcript Highlights:

• Is there a motion on item number 8, H.R. 111? Assembly Member Zabur. Is there a motion?

Committee: House Rules

Transcript Highlights:

• Is there a motion on Item No. 11, H.R. 132 by Assembly Member Bauer-Kahan? Second.

Summary: The Rules Committee met and called the roll, establishing a quorum. The committee then took up the consent agenda and approved the remainder of the consent items by roll call vote. The committee also considered two specific resolutions: Item No. 7, HR 127 by Assembly Member Haney, and Item No. 11, HR 132 by Assembly Member Bauer-Kahan. Both items were moved and passed by roll call vote, with the recorded votes showing support from most members and one no vote on HR 127. After handling add-ons to the consent agenda and noting absent members, the committee completed its business and adjourned.

Transcript Highlights:

• Is there a motion on item number 11, H.R. 132 by Assembly Member Bauer-Kahan? Pacheco: Aye.

Committee: House Rules

Transcript Highlights:

• The Clerk: H.R. 5371.

Transcript Highlights:

• H.R. 43, Ward. Lackey, there I go, not voting on that. Lackey, not voting. Thank you.

Summary: The Rules Committee was called to order, a quorum was established, and the committee took up a consent agenda along with item number five, HR 43 by Assemblymember Ward. Members voted on the consent agenda first, and the motion passed. The committee then separately considered HR 43, which also passed by roll call vote. Several members were recorded as voting aye on the consent items and on HR 43, while some members were noted as not voting on one or both items. The chair left the roll open briefly for late-arriving members before closing the vote. After the votes were completed, the committee adjourned.

Transcript Highlights:

• H.R. 43, Ward. Lackey, there I go, not voting on that. Lackey, not voting. Thank you.

Committee: House Rules

Summary: The Rules Committee met briefly and called the meeting to order with a quorum present. Members considered the consent agenda and approved it by roll call vote, with one member noted as not voting. The committee then took up item number five, HR 43 by Assembly Member Ward, and approved it by roll call vote as well, again with one member not voting. The chair announced that the roll would remain open for several minutes to allow additional members to record their votes, and a few late votes were entered on both the consent agenda and HR 43. After the remaining votes were noted, the committee adjourned. No substantive debate or testimony was presented in the transcript.

Transcript Highlights:

• I rise in support of H.R. 77, the Midnight Rules Relief Act.
• I rise in support of H.R. 77, the Midnight Rules Relief Act.
• Speaker, I rise in strong opposition to H.R. 7, the so-called Midnight Rules Relief Act.
• Speaker, I rise in strong opposition to H.R. 7, the so-called Midnight Rules Relief Act.
• Goldman, as a co-sponsor of H.R. 789? Sorry, I'm dis...

Bills: HR77

Keywords: Fred Korematsu, civil liberties, constitutional rights, Japanese internment, historical education, national reflection, personal justice

Transcript Highlights:

• The Chair lays before the House the following enrolled bill: H.R. 4323, an act to provide for the vacating

Transcript Highlights:

• .: that the Senate passed Senate 503, Senate 1872, and that the Senate passed without amendment H.R.

Transcript Highlights:

• The Clerk: H.R. 1, to provide for reconciliation pursuant to title II of House Concurrent Resolution

Transcript Highlights:

• Speaker, I move that the House take up, out of order, H.R. 74, found on page 12 of today's calendar.
• is celebrating the 125th anniversary of its founding, and we recognized that earlier in session with H.R

Transcript Highlights:

• D.C. or that have contacts in D.C. say this will be suspended again, but PAYGO has been triggered by H.R
• And the deficit spending that's triggered by H.R. 1 is.

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• H.R. 1 reduces the availability of our H.R. 1 reduces the availability of our two largest safety net

Summary: The Senate and Assembly Human Services Committees held a special oversight hearing on California’s 2026-27 Community Services Block Grant (CSBG) state plan, focusing on how the federal anti-poverty funds are administered and used by local community action agencies. Department of Community Services and Development Director Jason Wimbley explained that CSBG is a flexible funding stream used to address housing, employment, education, food insecurity, health, transportation, and disaster response needs, with 60 organizations serving all 58 counties. He noted California received $68.4 million in federal fiscal year 2025 CSBG funds and that the program served about 1.5 million low-income Californians in 2023. He also described how CSBG helped with wildfire response and emphasized the risk posed by proposed federal elimination of the program, though he said federal staffing and program operations were currently stable. Representatives from CalCAPA and several funded agencies described CSBG as essential “braid” funding that supports staffing, leverages other grants, and fills gaps for people who do not qualify for other safety net programs. CalCAPA leaders stressed local flexibility, workforce development, partnerships, and the ROMA performance system, while agency witnesses from Contra Costa County, Northern California Indian Development Council, Proteus, and Sacred Heart Community Service gave examples of housing assistance, food distribution, employment training, utility aid, rural service delivery, tribal services, and disaster or emergency support. Several witnesses warned that federal cuts or elimination of CSBG would force service reductions, layoffs, and loss of leverage for other funding sources. The hearing also included discussion of CalAIM coordination, contingency planning for possible funding losses, and the limits of county ability to backfill federal reductions. During public comment, one speaker raised concerns about compliance and transparency issues involving community action agencies and asked the committees to ensure agencies follow California law. The chair thanked the witnesses and public commenters, reiterated the importance of CSBG in addressing poverty and homelessness, and adjourned the hearing after noting the need to sustain the investment and adapt services to changing statewide needs.