Transcript Highlights:

• Child care program to maintain parity across programs.
• “A justification to the federal government for additional federal funding for federal fiscal year 2025
• This is a state- and federally funded child nutrition program designed to provide nutritious meals and
• Program.
• The Vocational Rehabilitation Program, as you may be aware, is 80% funded by the federal government.

Keywords: 988, house, all

Summary: The Assembly Budget Subcommittee on Human Services held a hearing on the Governor’s May Revision, with no votes taken. The first major discussion focused on child care and early education, including proposed reductions tied to federal Child Care and Development Fund and Proposition 64 revenue changes, the shift of reductions from general child care to the California Alternative Payment Program, the end of funding for prospective pay implementation, a 2.01% cost-of-living adjustment, child care infrastructure grants, and a proposal to increase administrative funding for alternative payment agencies. The Legislative Analyst’s Office generally supported removing prospective pay funding and urged caution on the administrative-rate shift, while also recommending more justification for the slot reduction approach and more detail on infrastructure grant alignment. Committee members strongly objected to eliminating about 6,000 child care slots, arguing the Legislature should preserve and expand child care access. The Department of Education supported the preschool QRIS block grant increase and the COLA but raised concerns about rate alignment for three- and four-year-olds and the lack of funding to maintain enrollment growth. The committee then reviewed trailer bill language affecting child care, including codifying age-based reimbursement categories, expanding documentation for enhanced inclusion rates, clarifying CalWORKs child care eligibility, aligning health and safety standards with federal requirements, coordinating disaster-related infrastructure funding, and updating oversight language. Administration officials said the proposals were intended to support the single reimbursement rate structure, improve safety compliance, and coordinate disaster recovery funding. LAO said it had no major initial concerns with the trailer bill language but would continue reviewing it. The hearing then turned to CalFresh and nutrition programs. CDSS described projected caseload declines, a one-time augmentation for county administration to implement federal H.R. 1 changes, a proposed reassessment schedule for county administrative funding, and updated estimates that H.R. 1 could cut CalFresh funding by $2.3 billion to $3.7 billion annually and affect about 500,000 people. Members pressed the administration on the impact of H.R. 1, the “chilling effect” on immigrant households, county workload, and whether the state should backfill federal cuts, especially for families with children subject to new work requirements. The committee also discussed a one-time CalFood augmentation, state administrative expense funding, staffing for H.R. 1 implementation, and a small increase to the CACFP meal reimbursement rate. Finally, the committee began IHSS items, including the impact of reinstating the Medi-Cal asset limit, automatic IHSS termination tied to Medi-Cal loss, and related savings and caseload estimates, with the administration explaining that these proposals would reduce eligibility and that there is no broad substitute for IHSS for many recipients.

Transcript Highlights:

• There was a federal reinsurance program that had expired.
• through a federal program called a 1332 waiver.
• federal government to run the program until 2027.
• federal government to run the program federal government to run the program until until until 2027
• program it's the enhanced Federal program it's the enhanced Federal credits<00:15:15.800> right

Keywords: 1183, house

Transcript Highlights:

• the E-Rate program.
• At the Cambridge Public Library, our digital navigator program has also been impacted by federal budget
• The federal government...
• I can't make those investments if we're not seeing federal dollars coming in to also expand those programs
• . ...those investments if we're not seeing federal dollars coming in to also expand those programs, so

Keywords: 995, all

Summary: The hearing focused on the impact of recent federal policy and budget actions on Massachusetts libraries, humanities organizations, arts institutions, and tourism. Testimony from library leaders described the loss or jeopardy of Institute of Museum and Library Services funding, including statewide databases, local grants, staff positions, E-rate/hotspot support, and digital equity programs. Witnesses said the cuts have already forced reductions in services, canceled grants and workshops, and in some cases left schools, students, job seekers, and low-income patrons without access to key resources. Members of the committee asked for lists of affected communities and databases, and several witnesses said they would provide additional written detail. Arts and humanities witnesses said federal terminations from the NEA, NEH, and IMLS have hit organizations across the Commonwealth, including Mass Cultural Council, Mass Humanities, Mass MoCA, and local museums and historical societies. They described canceled or rescinded grants, layoffs, reduced programming, and a chilling effect on future applications and on artistic and scholarly work, especially where federal awards had already been matched with local or private funds. Several speakers also raised concerns about executive-branch DEI conditions attached to funding and about book challenges and book banning, saying these trends threaten intellectual freedom and public access to culture and history. Committee members emphasized the economic importance of the sector and the need to publicize the impacts. Tourism officials from Meet Boston and the Massachusetts Office of Travel and Tourism testified that federal cuts and broader geopolitical and tariff issues are hurting international visitation, especially from Canada and Western Europe, and could affect major upcoming events such as the 2026 World Cup and Sail Boston. They said reduced funding for Brand USA and Discover New England will weaken long-term marketing efforts and international partnerships, with downstream effects on hotel tax revenue, jobs, and workforce recruitment. No votes were taken; the hearing was informational, with members mainly asking questions and requesting follow-up written testimony and data.

Transcript Highlights:

• , roles in emergency response, and what we are hearing about federal threats to CSD programs.
• The federal programs CSD administers are not entitlement programs, and the funding California receives
• programs for the 2026 federal fiscal year, and we are monitoring budget developments at the federal level
• CSBG... ...is relatively limited compared to other state and federal programs.
• Ultimately, the federal budget is... CSD's programs like LIHEAP and CSBG.

Summary: The Assembly Budget Subcommittee on Human Services heard an overview of efforts to streamline access to safety net programs and move toward more automatic, person-centered enrollment. CDSS, DHCS, and CalHHS described current cross-enrollment between Medi-Cal, CalFresh, and CalWORKs, including data showing high overlap among programs and a text-message outreach pilot that increased CalWORKs applications and enrollments but reached only a small share of potentially eligible people. Witnesses emphasized barriers such as differing federal eligibility rules, data-sharing limits, privacy concerns, and the need for better technology, consent management, and stakeholder engagement. Members pressed the administration on how to institutionalize these efforts across administrations and asked for concrete budgetary and regulatory steps to support “no wrong door” enrollment and automatic referrals. The committee also reviewed several chair priorities. On the proposed foster care multi-agency office, CDSS said existing coordination structures already address much of the intended work and asked to verify prior fiscal scoring. On the Employment First Office, CalHHS explained that the office’s $1 million budget was eliminated in the 2024-25 budget as part of deficit reductions, while noting that employment for people with intellectual and developmental disabilities remains an administration priority through existing departmental coordination. For the food insecurity proposal, CDSS said it could provide technical assistance but would need new data-sharing agreements, could not separately calculate a CFAP participation rate with current data, and would likely need until July 1, 2027, plus ongoing staffing, to complete the requested report. The mandated reporter proposal drew support for reform, with CDSS estimating low-millions in one-time training costs and ongoing costs in the hundreds of thousands. The subcommittee also discussed a guaranteed income proposal. CalHHS suggested drafting new statutory language and considering a county-administered model rather than a state-run competitive grant process to reduce administrative burden, while members and public commenters urged support for AB 661 and a study of a permanent statewide guaranteed income program. Public testimony also supported automatic enrollment, community-supporting mandated reporting reforms, and cash assistance for fire recovery. In the final items, CSD described how local nonprofit partners helped during the Los Angeles fires with food, housing vouchers, transportation, and emergency energy assistance, and explained that LIHEAP and CSBG remain important but limited tools for disaster response. CSD also said recent federal staffing cuts and possible future federal budget threats could affect LIHEAP and CSBG administration, though no immediate service disruptions had occurred and additional LIHEAP funds were expected to be released soon.

Transcript Highlights:

• We have House Bill 1, an act implementing the federal education opportunity program in Kentucky.
• This federal program was established by Congress in 2025 under HR 1.
• <00:04:16.560> This<00:04:16.880> federal freedom tax credit program.
• This federal freedom tax credit program.
• <00:19:40.880> program take advantage of the federal program take advantage of the federal

Keywords: Call to Order and Roll Call: 0:03 Bills for Consideration: 3:10 Adjournment: 56:19, 958, all

Summary: The Senate Education Committee heard House Bill 1, which would have Kentucky opt into a federal education freedom tax credit program allowing donations to scholarship-granting organizations (SGOs) for K-12 educational expenses. The bill sponsors said it would not use Kentucky general funds, would be administered through the Secretary of State, and would let donors claim up to a $1,700 federal tax credit for contributions to SGOs. They argued the program could support public, private, religious, and homeschool-related educational needs, including tutoring, transportation, technology, special needs services, and other school expenses. Several senators raised concerns about whether the bill would favor larger districts with more school-choice options over rural counties with only one public school, creating a two-tier system. The sponsors responded that public school districts could also create SGOs and that the federal rules limit eligibility to families at or below 300% of area median gross income. They also said the program would not reduce existing state or federal school funding, but would instead redirect federal tax credit dollars that Kentucky donors might otherwise send to other states or back to the federal government. Members asked about the structure and oversight of SGOs, including whether they must be nonprofits, how broad their missions could be, and whether funds could be earmarked for specific purposes. The sponsors said SGOs must be certified, serve at least two schools and 10 students, spend at least 90% of receipts on scholarships, and cannot be directed to a specific student, though they can be targeted to categories such as elementary students or special needs services. They also said homeschool families would need to organize through a co-op or existing approved SGO. No vote was taken during the portion of the meeting provided.

Transcript Highlights:

• It's funded with general revenue, federal funds, and various program support.
• It's funded with general revenue, federal funds, and various program support for a total appropriation
• It's funded with general revenues, federal funds, and various program support.
• It's funded with general revenue, federal funds, and various program support.
• the RIF program, and also the close-out program with the federal side.

Keywords: 1204, all

Transcript Highlights:

• It's a $50 million, 100% federally funded program, with an additional $15 million supplemental in the
• So, you know, 75% of our Challenge Academy programs are funded by the federal government.
• So, given that these are federal benefits programs, what can California do?
• The federal government is cutting these programs.
• Non-veterans accessing federal VHA programs times.

Summary: The Assembly Committee on Military and Veteran Affairs held an informational hearing focused on the effects of federal budget cuts and policy changes on veterans, military readiness, and California’s veteran support systems. The chair and members emphasized that federal reductions to the VA, Medicaid/Medi-Cal, SNAP, and the federal workforce are disproportionately harming veterans by threatening health care, employment, housing, crisis lines, and suicide prevention services. The chair also highlighted California’s progress on veteran homelessness and the importance of preserving state programs that leverage federal dollars. Major General Matthew Beavers of the California Military Department described the department’s structure, its response to the Los Angeles fire emergency, and concerns that federal cuts could reduce readiness through less training, older equipment, and fewer resources. He also discussed state programs such as Work for Warriors, STARBASE, youth and community schools, and the counterdrug task force, saying they are valuable but vulnerable if funding is redirected away from readiness. Members asked about the impact of federal changes on the Guard and how the Legislature could help, and Beavers said the state should advocate for recapitalized equipment and continued support for key programs. A second panel focused on veterans’ benefits and claims support. CalVet, Los Angeles County, and Swords to Plowshares testified that county veteran service officers, legal aid, and community-based partnerships are essential to helping veterans access VA benefits, especially after the PACT Act expanded eligibility and increased claims volume. Witnesses said these services bring substantial federal dollars back to California, but county offices and legal providers are underfunded and overburdened. Members discussed data sharing, staffing shortages, and the need for more resources to reach veterans who are not connected to VA care. In the final panel on mental health and suicide prevention, CalVet and nonprofit providers described state-funded programs such as the Veterans Support Self-Reliance program and the California Veterans Health Initiative, which place services in permanent supportive housing and provide no-cost counseling statewide. Witnesses said these programs are showing measurable improvements in health, medication adherence, and emergency room use, but they depend on sustained funding and are vulnerable to step-down grants and federal instability. Committee members expressed support for the programs and raised questions about access, staffing, and the role of non-veteran family members in Vet Center services.

Transcript Highlights:

• This also is a forecasted program which is paid for with a combination of state and federal funds.
• This also is a forecasted program which is paid for with a combination of state and federal funds.
• This also is a forecasted program which is paid for with a combination of state and federal funds.
• Adhering to state and federal regulations governing programs and funding.
• Adhering to state and federal regulations governing programs and funding.

Keywords: 1187, senate, all

Transcript Highlights:

• One, in the MIP program, a greater share of people projected to receive state-funded versus federally
• MinnesotaCare receives a lot of federal funding to run that program through our BHP funding, and I'll
• We also have a significant amount of federal funds through that program.
• um a lot of federal funding to run<00:14:07.760> that<00:14:08.000> program<00:14:08.240
• . program. program.

Keywords: 1187, senate, all

Transcript Highlights:

• There are 44 distinct federal grant programs from USDVA, and the acting secretary at the time said that
• We're just in the pipeline. ...so there are 44 distinct federal grant programs from USDVA, and the acting
• freezes to any of the programs or funding that you receive from the federal government, Mr.
• the federal infrastructure iig programs the federal infrastructure investment<00:25:32.000> and
• Rudine said they submitted a federal-state partnership program grant request in December.

Keywords: 1183, house

Transcript Highlights:

• and our Congress are proposing to do us harm via historic cuts to federally funded health care programs
• And thanks to our robust school vaccination requirements and federal programs like Vaccines for Children
• For the WIC program, it's primarily from federal WIC grant funds, and this represents a $31.5 million
• Half of our funding for our programs is state-funded when federal funding is at risk.
• This is what the initial federal dollars in the federal Ryan White program are intended for.

Keywords: 988, house, all

Transcript Highlights:

• entitlement programs, some specific cancellations of federal grants to the state of Minnesota or to
• Historically, the SNAP program benefits have been 100% federally funded, and now there is a non-federal
• Do you know how much is overall federal funding into these state-administered programs changing?
• I think, as we have highlighted, medical assistance is growing as a program over time, and as federal
• government for state from the federal government for state Medicaid<00:25:47.679> program.

Keywords: 918, senate, all

Summary: The Senate Rules and Administration Select Subcommittee on Federal Impacts on Minnesotans and Economic Stability met on February 20, 2026, to hear from Minnesota Management and Budget State Budget Director Anna Mingi about federal funding changes affecting the state budget. Before testimony began, Senator Rasmusson objected to a draft committee report that had been prepared in advance of the hearing, arguing it was inappropriate to summarize testimony before it occurred. The chair responded that nonpartisan staff had prepared the draft from Mingi’s submitted presentation and could revise it after the hearing if needed. Director Mingi explained that federal dollars make up more than one-third of state spending and support about 650 federal awards totaling over $23 billion this year, with more than $15 billion supporting state entitlement programs. She said the federal funding environment had changed significantly since January 2025 through executive orders, pauses, terminations, new grant conditions, delayed awards, and the July 2025 passage of H.R. 1, the federal reconciliation bill. Her main focus was H.R. 1’s effects on health care and food assistance, including work requirements for some adults, changes to eligibility for legal non-citizens, limits on retroactive Medicaid coverage and directed payments, new limits on provider taxes, and SNAP changes that shift some benefit and administrative costs to the state and counties. She estimated H.R. 1 would reduce federal funds to state-administered programs by about $327 million in the current biennium and $1.6 billion in the next, with additional costs to hospitals, counties, and other partners beyond the budget horizon. Members asked follow-up questions about whether the estimates were relative to the forecast and whether federal Medicaid funding would still rise over time. Mingi said the estimates were based on the November forecast baseline and that Medicaid federal dollars would likely continue growing overall, though the law still creates significant losses relative to prior projections. Senator Rasmusson emphasized that point in remarks to the committee. The discussion then shifted to federal grant pauses and cancellations: MMB’s tracker showed about six awards on hold totaling roughly $491 million, 13 confirmed cancellations across areas including clean energy, education, food assistance, and public health, and additional threatened or litigated cuts not included in those totals. Mingi identified two canceled violence-prevention-related grants, including a FEMA public safety grant and a justice reinvestment grant, and noted that CDC had recently moved to cancel or seek cancellation of several Minnesota public health grants, including a $65 million public health infrastructure award.

Transcript Highlights:

• All states except for Alaska use provider taxes to fund the non-federal share of their Medicaid programs
• And with the one-year ban on federal funding for programs like Planned Parenthood, what is the first
• A new federal directive to restrict undocumented children from Head Start will further disable programs
• When combined with other looming federal cuts and state budget cuts to programs serving undocumented
• Second, H.R. 1 caps federal student loans for professional programs, including medicine, at $200,000

Summary: The joint informational hearing focused on the impacts of H.R. 1 on California’s Medi-Cal program and on community health effects from recent immigration enforcement actions. Committee leaders said H.R. 1 would sharply reduce federal funding, increase administrative burdens, and worsen access to care, especially for Medi-Cal enrollees, immigrant families, rural communities, and reproductive health patients. The second half of the hearing examined how ICE raids and related federal actions are creating fear, reducing clinic and emergency department use, and disrupting children’s access to schools and early childhood education. Department of Health Care Services Director Michelle Bass outlined the main H.R. 1 provisions affecting Medi-Cal: work requirements, semiannual eligibility redeterminations, shorter retroactive coverage, new cost-sharing, limits on provider taxes and state-directed payments, reduced federal support for emergency and lawful immigrant coverage, and a one-year ban on Medicaid funding for prohibited abortion providers. She estimated millions could lose coverage, with tens of billions of dollars in federal funding at risk. Planned Parenthood Affiliates of California warned the defunding provision could force clinic closures, service reductions, and loss of access to family planning, STI testing, and cancer screenings. The California Hospital Association said the financing changes could cut hospital revenue by tens of billions over 10 years and threaten access, especially for rural and safety-net hospitals. The Western Center on Law and Poverty argued the law would increase churn, paperwork, and uninsured rates, disproportionately harming working adults and people experiencing homelessness. Committee members asked about implementation timelines, notification systems, administrative costs, the effect on immigrant eligibility, and whether California could delay or mitigate some provisions. Bass said the state was still assessing federal guidance, planning county and provider outreach, and exploring a possible delay for work requirements and a transition period for provider-tax changes. Members also discussed how state budget actions may need to be revisited in light of H.R. 1, and how California might preserve access through state-only funding or other policy changes. In the second panel, CHIRLA, Los Angeles County Department of Health Services, and the Children’s Partnership described the health consequences of immigration enforcement. Speakers said raids and data-sharing fears are causing anxiety, trauma, and avoidance of care, with Los Angeles County reporting declines in emergency, urgent care, and clinic visits after enforcement actions. The Children’s Partnership said school and early childhood absences are rising in some communities and that enforcement is undermining children’s emotional well-being and access to education. Members asked for more data and discussed possible state protections, telehealth, mobile care, and legal and policy responses to reduce fear and preserve access to health and education services.

Transcript Highlights:

• It's funded with general revenue, federal funds, and various program support.
• It's funded with general revenue, federal funds, and various program support for a total appropriation
• It's funded with general revenues, federal funds, and various program support.
• is funded through general revenues, federal funds, and various program support at $12.7 million.
• revenues, federal funds, and various programs support at $12.7 million.

Summary: The committee heard a series of Arkansas Department of Human Services budget presentations and questions, beginning with the Secretary’s Office and then the Division of Aging, Adult and Behavioral Health Services. Staff described the divisions’ appropriations, funding sources, and major programs, including senior centers, Meals on Wheels, mental health grants, substance abuse treatment, community alcohol safety, the Medicaid tobacco settlement program, and crisis stabilization units. Members raised concerns about flat or limited funding for senior services, the use and tracing of federal block grants, the lack of a funding source for the veterans’ mental health grant, and the mechanics of the community alcohol safety and treatment programs. The committee also discussed patient benefits funds at state facilities, transportation for senior center clients, and whether some special-language appropriations or fund balances should be revisited. Executive recommendations were adopted for the divisions considered. The committee then reviewed the Division of Children and Family Services and the Division of County Operations. Questions focused on foster care growth, adoption subsidies, professional fees tied to staff training and onboarding, vacancies, the Children’s Trust Fund, and TANF subgrants. Members asked about the reduction or elimination of TANF funding to child advocacy centers and other subgrantees, and DHS explained that prior reserves had been spent down and that the department was now trying to live within the annual TANF block grant and rebuild reserves. County operations questions also covered summer EBT, SNAP employment and training, the farmers’ market program, and the expected impact of a federal SNAP administrative match change, which DHS estimated would increase state costs by about $24 million annually, with roughly $18 million affecting the current year because the change begins October 1. Executive recommendations were again adopted. Finally, the committee heard from the Division of Developmental Disability Services and the Division of Medical Services. DDS testimony covered vacancies, staffing shortages, human development center construction and repairs, the reopening of the Boonville work training program, and funding for infant infirmary and child/family life programs. Medical Services testimony covered the Medicaid program, the current FMAP rate, the Our Kids B CHIP program, Medicaid payments to schools, nursing home distress funding, and large appropriation lines used to provide flexibility for claims and potential facility closures. Members asked for more detail on school Medicaid payments, reserve balances, and why some appropriations were much larger than actual spending. In each division, the committee moved and adopted Executive REC after questions concluded.

Transcript Highlights:

• The more significant termination was our TRIO McNair Scholars Program, a federally funded initiative
• ,<00:04:58.080> a TRIO McNair scholars program, a TRIO McNair scholars program, a federally
• Our success in securing these federal awards is because the programs we...
• And so we've designed programs and we've gone after federal funds as well as state and philanthropic
• <01:30:13.679> not<01:30:13.840> able federal loan program if they're not able federal

Keywords: 1187, senate, all

Transcript Highlights:

• And the current maintenance level for the current program is $600 less than half of the federal poverty
• Program.
• The tax on Medi-Cal enrollment is primarily paid by the federal government as part of the Medi-Cal program
• programs.
• Essential Access administers the Title X Federal Family Planning Program in California.

Keywords: 988, house, all

Transcript Highlights:

• We also—one of the federal programs that we worked on, that our state was able to get with the USDA in
• We also—one of the federal programs that we worked on, that our state was able to get with the USDA in
• We also—one of the federal programs that we worked on, that our state was able to get with the USDA in
• Instead, the federal programs that have benefited me have often been those promoting local and regional
• federal programs on our food bank so very<01:32:08.960> briefly<01:32:09.480> food<01:

Keywords: 1187, senate, all

Transcript Highlights:

• All program income received by the VR program is to report it as federal program income earned.
• Program income must also follow the same regulations as our federal funds.
• WIOA governs how federal funds are allocated and expended for workforce development programs.
• Yeah, the same like with Medicaid and some of the other federal programs. Right.
• Due to federal regulations, we must offset our federal drawdown by the amount of program income we have

Keywords: 977, all

Summary: The committee met to receive a detailed financial operations presentation from the South Carolina Vocational Rehabilitation (VR) agency, with staff walking members through funding sources, budgeting, accounts receivable, accounts payable, and grants management. Sabrina Walker explained VR’s blended funding structure, including federal grants, state appropriations, program income, and interagency contracts, and emphasized that state funds are essential to meeting the federal match and maintenance-of-effort requirements. Members asked repeatedly about transparency, audit controls, and the risk that state cuts could reduce federal drawdowns; staff responded that all reports reconcile back to the SCEIS accounting system, are subject to state audits and internal reviews, and that even modest state reductions could significantly reduce total available funding. The committee also discussed pre-employment transition services for students with disabilities, with staff confirming services are offered through school districts, charters, and private schools, and that contracts are monitored for performance and compliance. The presentation then shifted to budgeting and internal controls. Walker described a zero-based departmental budgeting process, monthly monitoring reports, contingency reserves for unexpected expenses, and a formal annual cycle that culminates in board approval. Members asked about facilities tracking, culture, and how the agency maintains accountability; staff said facilities staff inspect buildings and equipment, supervisors justify line-item requests, and the process has become smoother over time as departments learned the system. Cynthia Johnson followed with an accounts receivable overview, describing invoicing, receipting, aging, customer verification, year-end reporting, and the use of cross-training, shared email inboxes, and spreadsheets as checks and balances. She also explained work training center billing, interdepartmental transfers, and the revolving fund used to issue consumer checks more quickly than standard vendor payments. Olivia Perez presented accounts payable operations, including invoice processing through SCEIS and OnBase, the three-way match, travel reimbursements, revolving fund checks, State Treasury Office interactions, and handling of reversals, rejections, and levy notices. She reported that AP processed 67,723 SCEIS payments, 13,670 case management system invoices, 3,379 travel reimbursements, and 15,693 revolving fund checks in fiscal year 2025, with only 70 payment rejections. The final portion of the meeting covered Grants and Funds Management, where Walker explained federal reporting, drawdowns, payroll allocation, asset tracking, lease and IT contract reviews, cost allocation, and closing packages. She noted upcoming system changes such as S/4HANA, Workiva, and SC Pro, but said the agency is receiving training and feedback opportunities. No formal votes or legislative actions were taken during the presentation portion beyond approval of the prior minutes and a brief recess.

Transcript Highlights:

• The program, which is our largest program that we oversee at DOR, is 80% funded by the federal government
• federally.
• In federal fiscal year 2026, we do also project that we will exceed the federal target again.
• Issue 12 relates to CDSS's adult programs. Issue. Issue 12 relates to CDSS as adult programs.
• efficient programs that exists.

Keywords: 987, senate, all

Summary: The hearing opened with Department of Finance and Legislative Analyst’s Office remarks on the May Revision, which both described efforts to reduce large out-year operating deficits through a mix of revenue increases, spending reductions, and reserve use. Finance said the May Revision more than halves projected deficits in later years, while LAO stressed that revenues are at unprecedented levels yet the state still faces a significant structural deficit and is drawing down reserves; LAO urged maintaining at least the administration’s level of budget solutions and adding to reserves rather than new ongoing commitments. The chair echoed concern about cuts to vulnerable populations and noted the tension between service reductions and requests for additional administrative positions. The committee then heard a series of California Health and Human Services and HCAI proposals, including additional legal support for CalHHS to respond to federal HR1 changes; a net-zero transfer of positions for a centralized eligibility/data-sharing platform; 988 crisis line implementation funding and continued work with the Trevor Project to train crisis centers to better serve LGBTQ youth; EMS data system maintenance funding; HCAI implementation of AB 1312 hospital charity care screening; SB 660 data exchange framework funding; CalRx biosimilar insulin reappropriation; and a diaper access initiative that would provide free diapers to newborns in participating hospitals and support a future direct-to-consumer purchasing option. Members questioned the diaper program’s universal design, the use of a Public Contract Code exemption, and the selection of Baby2Baby, with the chair expressing concern about optics and the lack of an income threshold. The committee also discussed distressed hospital funding, with HCAI requesting up to $50 million for another round of grants to hospitals in immediate financial distress. HCAI said it receives annual and quarterly financial reports but the data lag limits real-time monitoring, and the LAO recommended stronger program parameters and turnaround plans. Members argued the repeated need for distressed hospital aid reflects a structural problem, not a short-term gap, and raised broader concerns about hospital reimbursement and patient flow. Other items included reverting $19.6 million in unused opioid settlement funds from HCAI to DHCS for General Fund offset, and a Rural Health Transformation Program request to increase HCAI spending authority to cover the full federal award. Later, DMHC presented funding requests to implement PBM licensing and financial review requirements under AB 116, modernize the managed care complaint system, and build an electronic claims settlement data system under AB 3275. The final major discussion focused on the Behavioral Health Services Oversight and Accountability Commission, which opposed the May Revision’s proposed reduction of its Innovation Partnership Fund from $20 million to $10 million and a $6.7 million cut to community advocacy grants. The Commission argued these programs are core to Proposition 1’s goals of statewide innovation and community accountability, while Finance said the proposal is consistent with Proposition 1’s maximum funding levels and reflects a broader effort to prioritize direct services and use unspent prior-year funds; members pressed for more information and questioned whether the cuts would undermine the new behavioral health framework.

Transcript Highlights:

• These one-time federal funds support the Golden State Teacher Grant Program for the 2026-27 academic
• and the Federal Workforce Pell Grant Program.
• expands upon the federal Pell Grant program but has some key differences.
• career-focused training programs, and the program expands upon the federal Pell Grant program, but has
• Processes for approving programs based on the federal requirements.

Keywords: 987, senate, all

Summary: The Senate Budget Subcommittee on Education heard May Revision proposals covering higher education, including the Bureau for Private Postsecondary Education, the University of California, California Community Colleges, the California Student Aid Commission, UC College of the Law, San Francisco, and trailer bill reporting changes. For the Bureau for Private Postsecondary Education, the administration proposed a one-time $10 million General Fund backfill to repay a special fund loan taken to cover litigation costs, plus provisional language to adjust for a pending legal expense and to repay the loan without interest. The LAO opposed shifting costs to the General Fund and raised legal concerns about an interest-free loan under Proposition 26. Senators asked about whether the $10 million would cover the litigation and about the estimated $245,000 in interest savings. For UC, the May Revision maintained the Governor’s ongoing support and included budget language requiring campuses to grow by 2,968 California undergraduates in 2026-27. UC also sought $1.5 million in one-time General Fund support for the First Star foster youth program. UC described strong outcomes for the UCLA program, while the LAO recommended rejecting the new spending because UC already has overlapping outreach programs, including the Early Academic Outreach Program, and because the need for new state funding was not clear. Senators debated whether the proposal duplicated existing services and discussed the program’s reported college-going and completion rates. The committee also heard a request for $1 million ongoing General Fund for UC College of the Law, San Francisco, to maintain campus safety services; the college described its shared-campus model and public-interest mission, while the LAO noted the college was also raising tuition and that the proposal would maintain, rather than expand, current security spending. The committee then reviewed community college proposals. Finance outlined a larger May Revision package centered on a 4.31% SCFF COLA, enrollment growth funding, categorical COLAs, a one-time Adult Learner Demonstration Project allocation, deferred maintenance, and other ongoing and one-time items. The Chancellor’s Office supported the package but asked for more enrollment growth funding, a higher growth rate, and additional policy changes. The LAO recommended at least funding the statutory 2.87% COLA, then considering whether to redirect remaining funds to enrollment growth, categorical COLAs, or one-time priorities; it recommended rejecting the Adult Learner Demonstration Project. Senators questioned the use of the discretionary COLA to cover paid pregnancy disability leave, the impact on hold harmless and basic aid districts, and whether the state should instead create a separate categorical. The Chancellor’s Office and Finance said the COLA approach was intended to provide flexibility, though Finance said it was open to further discussion about districts that would not receive direct funding. For student aid, Finance described May Revision changes to Cal Grant and the Middle Class Scholarship, including a one-time reduction tied to lower estimated costs and a later true-up, as well as proposals for the Golden State Teacher Grant Program and implementation of the federal Workforce Pell program. CSAC supported the financial aid investments but urged more time and clearer implementation planning for Workforce Pell, noting the need for state approval processes, data linkages, and likely ongoing administrative workload. The LAO recommended rejecting additional Golden State Teacher Grant funding and cautioned that the Workforce Pell trailer bill and one-time funding were premature given the new federal rules and unclear workload. Senators also raised concerns about the Middle Class Scholarship reduction, the need to support students facing higher living costs, and the decline in CADA/DREAM Act applications, with CSAC saying the drop did not reflect reduced need and that outreach should be strengthened. The final item was a set of technical trailer bill changes to shift some UC, CSU, and community college reporting from annual to biennial and consolidate reports; Finance said there were no programmatic changes.