Here’s How California’s New State Budget Supports Immigrant Families and Fights Back Against Trump

As Washington takes away the essential benefits and programs California immigrant families rely on most, state Democrats delivered a new budget that invests in legal services, safeguards health care access and strengthens the safety net.

SACRAMENTO - Since day one, the Trump administration has directly targeted California'simmigrants and communities of color - draconian cuts to health care and public benefits, indiscriminate and deadly ICE raids. This full-scale attack not only instills fear across the state and tears apart families, it also hurts California's economy, upending workers and businesses in all corners of the state.

Assembly Democrats continue to lead the nation in fighting-back against Trump and Republicans: This summer, lawmakers voted to deliver a 2026-27 state budget that makes significant, strategic investments to ensure California's immigrants will continue to access health care, legal aid, and also buy a home and stay safe in their communities.

The 2026-27 state budget:

• Invests $257 million to support immigrant communities, including legal services and DREAM Resource Centers - The Assembly and Senate fought to include $80 million more for legal aid than was proposed in the May Revision. This funding helps workers, parents, students and families access legal representation, navigate the immigration system and connect with critical resources in their communities.
• Prevents health insurance premium increases for many immigrant Californians for an entire year - including DACA recipients, students, workers and undocumented individuals. The new budget sustains health access for thousands of families.
• Preserves access to Medi-Cal coverage for asylees and other qualified immigrants by delaying proposed restrictions due to Trump's agenda. The budget also extends full-scope Medi-Cal coverage for refugees and asylees through the current fiscal year.
• Defends access to care by delaying proposed dental benefit cuts and clinic payment reductions, ensuring immigrant families can continue receiving preventive and routine health services.

What Assembly Leaders Say About Standing-Up For California's Immigrants

"Working families and immigrants deserve a budget that has their back - and that's exactly what California is delivering. We're protecting health care, preserving food programs, investing in housing at record levels and building reserves to fight back no matter what Trump and Republicans throw at us. While Washington's agenda drives up prices and guts critical programs, California is focused on what matters: Real solutions that put affordability first."

-Speaker of the Assembly Robert Rivas

"As Vice Chair of the Latino Caucus, I am proud that this budget reflects a clear commitment to action. We are investing in legal services so families can access representation, protecting health care coverage for vulnerable Californians, and safeguarding critical programs that immigrant communities rely on every day. At a time when uncertainty is being driven at the federal level, California is stepping up with practical support that keeps families stable and communities strong."

- Assemblymember Juan Carrillo, Vice Chair of the Latino Caucus

"Trump wants to make this about 'us' and 'them'-but that's a false choice. This budget says all Californians deserve to have their rights respected and to see a doctor when they're sick."

- Assemblymember Liz Ortega, Vice Chair of the Latino Caucus

By the Numbers: Immigrants Drive California's Economy

Immigrants are the backbone of California's economy - contributing $715 billion to our state's GDP alone.

Immigrant workers and businesses power the industries that keep our state running, including agriculture, health care, hospitality and transportation. More than one-quarter of Californians are immigrants, and one-third of the state's prime working-age adults were born outside the United States.

The economic impact is enormous. Immigrants contribute nearly $1 trillion in total economic impact each year through their labor, entrepreneurship, spending power and state and federal tax contributions. They help produce the food that fills grocery store shelves, build the housing California desperately needs, care for children and seniors, and support the tourism industry that welcomes millions of visitors each year.

Trump and Republican attacks on the public services, programs and benefits that immigrant communities rely on threaten more than individual families - they jeopardize the economic foundation of the state itself.

California's strength has always come from the contributions of people who come here seeking opportunity, and our future depends on ensuring they can continue to live and work with dignity and security.

Lawmakers are Fighting Back Alongside California's Immigrants

The Trump administration's actions are creating real consequences for communities across California.

Under H.R. 1, approximately 200,000 legal immigrants - including refugees, asylees and survivors of human trafficking - could lose federal health care assistance.

Unlawful and dangerous ICE enforcement actions, including the indiscriminate targeting of workers and business owners, have also created fear, economic harm and uncertainty for families, workers, students and community organizations across the state.

California Democrats are leading the nation in holding Trump and ICE accountable, passing and advancing legislation that keeps ICE out of our schools, hospitals, vote centers and day cares; empowers state law enforcement to investigate ICE killings, and mandates that Border Patrol and Homeland Security officers show their ID and badges.

This year alone, the Assembly has voted to pass 22 new bills that hold ICE agents accountable for violence and chaos, and reject Trump's failed immigration policies.

These new protections continue to be essential for immigrant communities. Two fatal ICE shootings in Maine and Houston this month demonstrate again that the Trump administration must be held accountable; these policies are not immigration enforcement, they are indiscriminate and deadly attacks on communities of color. New laws, legislation and this year's budget protections will lead to more transparency, accountability and justice.

The Legislature's budget passed on Monday includes significant and essential investments to improve affordability and safety for immigrants in California:

Health

• Rejects Medi-Cal asset limit cuts: There is no change to the asset test in 2026-27.
• Delays immediate Medi-Cal dental cuts: Delays dental supplemental payment cuts and UIS dental cuts by 12 months.
• Prevents an automatic UIS premium increase next year: Gives the next Governor authority to decide whether UIS premiums should increase next year, rather than locking in the increase now.
• Delays restricted-scope Medi-Cal changes for asylees and other qualified immigrants: Adopts the Governor's May Revision proposal to shift asylees and other impacted qualified immigrants to restricted-scope Medi-Cal, but not until 2027-28.
• Funds Medi-Cal eligibility workload: The agreement provides additional funding for county eligibility workload tied to H.R. 1.
• Delays most clinic cuts: Delays most clinic cuts by 12 months, giving providers and patients additional time.
• Supports distressed hospitals: Authorizes up to $190 million in distressed hospital loans.
• Invests in public hospitals: Provides $250 million to support California's public hospital system.
• Lowers Covered California premiums: Provides $110 million to lower premiums for low-income Covered California enrollees, for a total of $300 million.
• Protects reproductive health care and gender-affirming care: Adds $40 million for reproductive health care and $26 million for gender-affirming care.

Human Services & Safety Net

• Rejects IHSS cuts: The budget fully rejects IHSS cuts, protecting seniors and people with disabilities who rely on in-home care.
• Supports food banks: $108 million to help keep food banks stocked.
• Funds CalFresh eligibility workload: The budget provides additional funding for county eligibility workload tied to H.R. 1.
• Protects vulnerable communities: Provides $275 million in legal assistance for immigrant communities and other vulnerable Californians, including veterans, people with disabilities, seniors, those facing eviction, and victims of domestic violence and wage theft.
• Supports diaper banks: $16.5 million for diaper banks.

Housing & Homelessness

• Invests in homelessness solutions: Provides $900 million for HHAP, the state's local homelessness program.
• Builds affordable housing: Provides $500 million for the Low-Income Housing Tax Credit.
• Supports multifamily housing: Provides $200 million for the Multifamily Housing Program.
• Creates historic housing bond: Puts an $11.25 billion 2026 housing bond on the ballot to build more affordable homes faster and improve housing opportunity.
• Keeps families housed: $100 million for housing stability programs.

Schools & Child Care

• Provides landmark per-pupil funding: Provides $21,148 per student from Proposition 98 resources and an estimated $28,207 per student from all state and federal sources.
• Delivers a historic LCFF increase: Invests $2.2 billion more in local schools, including a 4.31% "super COLA" to help districts support students and meet rising costs.
• Prioritizes repayment to schools and community colleges: Sets aside a share of higher-than-expected state revenues to begin paying down the estimated $3.9 billion Proposition 98 obligation.
• Invests in special education: Increases special education base rates and cost pools by $1.8 billion ongoing.
• Expands community schools: Expands the Community Schools Partnership Program with $1 billion ongoing, including partnerships with Promise Neighborhoods.
• Invests in career technical education: $300 million one-time for career technical education.
• Supports teacher recruitment and retention: $750 million for teacher recruitment and retention strategies.
• Supports paid pregnancy leave for educators: Funds and requires up to 14 weeks of paid pregnancy leave for educators through LCFF.
• Supports community colleges: Ensures more ongoing funding for community college enrollment growth through a fair share of Prop. 98.
• Protects UC and CSU: Protects funding for the University of California and California State University.
• Expands Cal Grant access: Increases the Cal Grant age limit to 30.
• Expands child care access: Creates 25,000 new child care opportunities, with a focus on children under age three.
• Supports child care providers: Provides a 2 percent COLA for all child care programs.
• Protects preschool access: Maintains access growth for 3-year-olds to preschool.