What We’re Watching in California Education: July 2026 Edition
Welcome to the July 2026 edition of What We’re Watching in California Education, where we share updates and analysis on key public education developments at the state Capitol.
Governor Newsom recently signed the 2026-27 state budget and related trailer bills– the final budget of his administration. Meanwhile, other key education bills GO is supporting continue to move through the Legislature. This year’s state budget includes several meaningful investments in California students and schools. The next step will be ensuring these investments translate into stronger outcomes, particularly for students who have historically been underserved.
Here are the top line takeaways:
- TK-12 Investments (AB 126): The budget makes significant investments in special education, community schools, literacy, and support for immigrant students.
- Higher Education (SB 135): The budget increases funding for community colleges, the UC and CSU systems, and expands targeted financial aid.
- GO Statewide Advocacy: GO continues to support legislation that would expand opportunity for historically marginalized students through multilingual learner, financial aid, and dual enrollment policies.
TK-12 Funding
The 2026-27 budget invests a record-breaking $128.1 billion Proposition 98 guarantee for TK-14 education. It includes major investments in special education, community schools, and other policies aligned with GO’s policy, advocacy, and program work.
- Special Education: The budget provides a nearly $2.4 billion ongoing increase for special education – a 43% increase from the 2025 Budget Act. It also raises the statewide special education base funding rate from $999 to $1,340 per student with disabilities. This investment can help school districts respond to rising costs and strengthen services. Continued local accountability will be important to ensure the additional funding results in timely, high-quality support for students. Learn more in GO’s A Parent’s Guide to Special Education.
- Community Schools: The budget provides $1 billion in ongoing support for California’s Community Schools Partnership Program to sustain and expand California’s community schools. GO joined partners across the state in advocating for stable, ongoing funding for this work.
- Supporting Immigrant and Newcomer Students: The budget invests $100 million in one-time funding to establish the California New Americans in Schools program and $75 million in one-time funding to establish Dream Resource Centers at high schools. Together, these investments will expand academic, social, legal, and family supports for newcomer students, English learners, and immigrant families. GO advocated for investing in this work in coalition letters this year.
- Literacy: The budget includes $350 million in one-time funding for literacy coaches and reading specialists along with $40 million for continued implementation of the Reading Difficulties Risk Screener. In West Contra Costa, GO’s Literacy Community-Led Committee has spent the past two years using family experience and district data to advocate for clearer public reporting, understandable screening results, and timely follow-up supports for students.
- Differentiated Assistance (DA): The budget trailer bill makes important changes to California’s system for identifying and supporting school districts that need additional assistance. Beginning with the 2026 California School Dashboard, districts will generally be identified every three years and receive assistance for at least three years. GO and other equity partners successfully advocated to ensure that student subgroup data remains central to identifying districts for DA support– an important guardrail for addressing persistent opportunity gaps. Look out for GO’s updated Differentiated Assistance resource later this year.
Higher Education Funding
The budget provides $50.1 billion across California’s higher education systems and the California Student Aid Commission. It strengthens public colleges and universities while making targeted investments in affordability, college access, and support for students who face additional barriers.
- Community Colleges: The budget increases funding for community-college operations and enrollment growth. It also provides a $147.2 million Student Support Block Grant and $10 million for community-college financial aid offices. GO joined the Californians for College Affordability coalition in advocating for these investments so colleges can better help students complete financial aid applications, access available aid, and navigate complex requirements.
- Dual Enrollment: The budget provides $100 million in one-time funding to expand college and career pathways for high school students, including dual enrollment and dual-credit opportunities. GO joined statewide education and college-access partners in strongly supporting this investment and associated policy changes. The coalition advocated for funding to prioritize schools serving higher shares of low-income students, English learners, and youth in foster care; reach schools without existing College and Career Access Pathways programs; ensure students receive both high school and college credit; and expand access for justice-involved youth. Earlier this year, GO released A Parent’s Guide to Earning College Credit in High School to help Fresno families understand dual enrollment and other ways students can begin earning college credit before graduating.
- University of California and California State University: The budget includes a 7% increase, approximately $716 million, in combined ongoing base funding increases for UC and CSU. GO and other members of the Californians for College Affordability coalition supported additional funding for California’s three public higher-education systems to protect student access and success. Some portions of previously promised UC and CSU funding remain deferred until 2027–28.
- Financial Aid and Student Support: The budget expands Cal Grant eligibility by increasing the age limit for transfer students and provides one-time funding to implement the new federal Workforce Pell grant. The budget also continues funding for the Middle Class Scholarship, although at a lower level than last year. It maintains support for Dreamer Resource Liaisons at community colleges and provides additional one-time funding for community-college Dreamer Resource Centers. These investments can help more students, including students from undocumented and mixed-status families, navigate financial aid and other college supports. For bilingual guidance on navigating the financial aid landscape, check out GO’s A Parent’s Guide to Financial Aid | Guía Para Padres Sobre Ayuda Financiera.
GO Statewide Advocacy Updates
GO continues to support legislation that expands educational opportunity and removes barriers for California students. Several priority bills are advancing through the Legislature.
- Bilingual Teacher Pathways: The final budget established the Pathways to Bilingual Teaching Program – an approach GO supported through AB 2325 – and provides $10 million to launch it. The program will fund partnerships among school districts, four-year institutions, and community colleges to help bilingual candidates earn teaching credentials and bilingual authorizations. GO continues to support AB 2325, which is scheduled to be heard by the Senate Appropriations Committee on August 3. Learn more about bilingual education in GO’s new A Parent’s Guide to Multilingual Programs.
- English Learner Reclassification: GO also supports AB 2555, which would create a more standardized, transparent, and timely statewide process for reclassifying English learners as English proficient. The bill would reduce inconsistent local requirements, strengthen communication with families, and establish additional support for English learners with disabilities. AB 2555 is scheduled to be heard by the Senate Appropriations Committee on August 3. Learn more about the current process in GO’s Forward Together: A Parent’s Guide to Reclassification.
- Dual Enrollment Pathways: Alongside the budget’s $100 million investment, GO supports AB 1871. Building on last year’s AB 731, the bill would remove student-level barriers in College and Career Access Pathways partnerships by eliminating the principal-recommendation requirement, allowing students to complete one application for the duration of their participation, and removing the four-course-per-term limit while retaining the existing 15-unit cap. The Senate Education Committee advanced AB 1871 on a 7–0 vote with a recommendation for the Consent Calendar, and the bill is now on the Senate Appropriations Suspense File awaiting further action.
Track all of these and other bills through the legislative process on the state’s Legislative Information website.
What’s Next?
The Legislature returns from Summer Recess in early August. Bills must pass the Legislature by August 31, and be signed or vetoed by the Governor by September 30. We’ll continue tracking these developments as the legislative session concludes.
For additional analysis of the 2026-27 state budget, explore these resources from our partners:
- California Opportunity Youth Network: California 2026-27 State Budget Finalized
- Education Trust West: ETW Responds to Governor Newsom’s 2026-27 Budget: CA Must Turn Education Investments into Student Results
- EdVoice: Statement from EdVoice CEO on CA’s Significant Investments in Education
- Partnership for the Future of Learning: California Makes History: Annual $1 Billion Won for Life-Changing Community Schools
Looking for a deeper understanding of California education budgets? Explore GO’s growing School Finance Resource Library, with family-friendly resources available in both English and Spanish.
In community,
Darcel Sanders, Chief Executive Officer
