California’s Final Budget Protects Many Essential Supports for Disability Community, but Work Remains

Governor Gavin Newsom has signed California’s final 2026-27 state budget, concluding months of negotiations over proposals that would have significantly impacted Californians with developmental disabilities and their families. While the final budget preserves many of the state’s core disability services, it also includes several policy changes that will require continued advocacy in the months ahead.

In last week’s Arc Beacon, Jordan Lindsey, Executive Director for The Arc & UCP California Collaboration, provides a high-level overview of the budget’s biggest wins and challenges, including the preservation of regional center services, In-Home Supportive Services (IHSS), Adult Protective Services, and Medi-Cal Dental, along with a historic $2.4 billion investment in special education.

Jordan also discusses one of the budget’s most concerning provisions: the lowering of Medi-Cal asset limits beginning July 1, 2027, which could affect eligibility for Medi-Cal and IHSS for many Californians with disabilities.

The Arc & UCP California Collaborative has also prepared a comprehensive summary of the final budget, outlining the major provisions affecting the developmental disability community. The detailed report includes updates on regional center governance, Medi-Cal, IHSS, special education, housing, immigrant services, employment, Self-Determination, and other key policies that will shape services and supports in the coming year.

Watch the latest Arc Beacon for Jordan’s overview of the final budget, then read the full 2026-27 Budget Summary for an in-depth analysis of the provisions affecting people with intellectual and developmental disabilities, their families, service providers, and advocates across California.

California State Budget Update: Advocacy is Making a Difference

On June 11, the California Legislature released its updated 2026–27 budget proposals, rejecting many of the Governor’s most harmful proposed cuts affecting older adults and people with disabilities. The Legislature will negotiate this updated budget proposal with the Governor.

Most notably, the Legislature rejected the Governor’s proposal to reduce the Medi-Cal asset limit to just $2,000 for an individual and $3,000 for a couple. Instead, the Legislature proposes a significantly higher asset limit of $21,000 beginning July 1, 2027.

The Legislature also rejected proposed cuts to IHSS and included funding for the Be Home Soon California initiative to strengthen home and community-based services. It also proposed to delay cuts to Medi-Cal Dental (Denti-Cal) until July 2027. While the Legislature has released its budget proposals, negotiations with Governor Newsom are underway and the final outcome has not yet been determined.

Today’s Budget Hearings

Advocates can still make their voices heard. Budget hearings will take place today, Monday, June 15 in both the Senate and Assembly.

Senate Budget Committee

Monday, June 15 at 10:00 a.m.

1021 O Street, Room 1200, Sacramento, CA

Assembly Budget Committee

Monday, June 15 following the Senate Budget Committee, and Upon Call of the Chair

1021 O Street, Room 1100, Sacramento, CA

CLICK HERE to Read our full budget update for details on the Legislature’s proposals.