In late June, the Governor and Legislature reached an agreement on the 2025-26 California Budget, and on June 30th, Governor Newsom signed the Budget Act of 2025 (AB 102). 

FY 2025/2026 Budget Impacts on Expanded Learning

We are happy to share that the California Legislature and Governor Newsom have maintained their commitment to Expanded Learning programs. Despite fiscal challenges, funding for Expanded Learning has increased:

• Increases ongoing funding for ELO-P (Expanded Learning Opportunities Program) by $525.5 million. 
• Maintains existing reimbursement rates for ASES and 21st CCLC programs.

Budget Trailer Bill Impacts On Expanded Learning

The signed budget typically requires changes to existing laws to implement the budget changes, which are outlined in “trailer bills: organized by issue areas such as “K-12”, “higher education”, and “housing.” Trailer bills take effect immediately upon the Governor’s signature and typically only require a majority vote.

AB-121 Education finance: education omnibus budget trailer bill was signed into law on June 27, 2027, and has several impacts on Expanded Learning.

Rate Changes for FY 2025-2026

• Beginning in FY 2025-26, Rate I LEAs drop from 75% unduplicated pupil population (UPP) to 55% UPP. Click here for more information on Rate 1 and Rate 2 LEAs.
• Intent is for the Rate 2 rate to be no less than $1,575 (Result of AB 102)

Audit for “New Rate 1” LEAs for FY 2025-2026

• ​Beginning in FY 2025-26, LEA’s receiving funding at the Rate II level in the prior year, and receiving funding at the Rate I level in the current year are subject to audit compliance with Rate II requirements for the current year only. For each fiscal year thereafter, LEAs subject to an audit must comply with the Rate I requirements.  

Minimum Apportionment Amount

• Beginning in FY 2025-26, the minimum apportionment amount is changing from $50,000 to $100,000.

“Offer Access” Definition includes additional language 

• (5) “Offer access” means to recruit, advertise, publicize, or solicit through culturally and linguistically effective and appropriate communication channels, including, but not limited to, publishing program availability information in local educational agency pupil enrollment forms, on the local educational agency website, and posted publicly at each program site in a location accessible to the public.

What’s Next for the Budget?

The Department of Finance has released its annual enacted budget summary.  In addition to bills signed by the Governor in late June, more budget bills are headed for legislative votes this week.

State leaders will return from Summer Recess on August 18th (access the 2025 CA Legislative Calendar and Deadlines). They will revisit the 2025-26 budget package to finalize any ”clean up” needed for the budget through Trailer Bills and “Budget Bill Juniors” (According to the California Budget & Policy Center, Budget Bill Junior is the informal term to describe any budget bill that amends the Budget Act. Multiple Budget Bill Jrs. may be described using Roman numerals (Budget Bill Jr. I, Budget Bill Jr. II, etc.). 

Additional budget-related action is expected in the final weeks of this year’s legislative session in August and September, as states begin to respond to the new federal tax and budget law, H.R.1, enacted by Congressional Republicans. While the full implications of H.R.1 will take time to unfold, states can anticipate developing both budgetary and policy responses in the coming years as its impact becomes clearer.

Helpful Resources

Policy and advocacy opportunities are year-round! Here are some resources to help you stay engaged:

• California Budget & Policy Center Glossary of State Budget Terms
• California Budget & Policy Center Budget Academy
• 2025 CA Legislative Calendar and Deadlines