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Newsom’s parting gift: A budget that delays California’s deep cuts to 2027
By Yue Stella Yu | CalMatters at LAist (KPCC / Southern California Public Radio)
· June 29, 2026
· 8 min read
Following weeks of negotiations, Gov. Gavin Newsom and Democratic legislative leaders have agreed on a $351.7 billion budget next year that raises some taxes, sets aside $6.4 billion for the year after and softens or delays billions of dollars in planned social service cuts.The budget, Newsom’s l...
Key takeaway Gavin Newsom and Democratic legislative leaders have agreed on a $351.
Why this matters in The Los Angeles
The newly agreed upon budget will have a direct impact on Los Angeles , where many residents rely on Medi-Cal and other social services. The delay of cuts to Medi-Cal services and preservation of funding for in-home care will be a relief to low-income Californians in the city. Additionally, the allocation of $900 million in homelessness funding to counties will be crucial in addressing the city's ongoing homelessness crisis. Los Angeles has been at the forefront of this issue, with many organizations and initiatives working to provide services and housing to those in need. The increased funding will likely be welcomed by these groups, but it remains to be seen how effectively it will be utilized to make a meaningful difference. As the city continues to grapple with the complexities of homelessness, the success of this funding will be closely watched by residents and advocates alike.
About this story
Original reporting by LAist (KPCC / Southern California Public Radio) . The Los Angeles surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
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Category: local ·
Published: June 29, 2026 ·
Source: LAist (KPCC / Southern California Public Radio) ·
Reading time: 8 min
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Frequently asked about this story
What is this story about? Following weeks of negotiations, Gov. Gavin Newsom and Democratic legislative leaders have agreed on a $351.7 billion budget next year that raises some taxes, sets aside $6.4 billion for the year after and softens or delays billions of dollars in planned social service cuts.The budget, Newsom’s l...
When was this published? This article was first published on June 29, 2026 by LAist (KPCC / Southern California Public Radio) and curated for The Los Angeles readers.
Who reported this story? This story was reported by Yue Stella Yu | CalMatters at LAist (KPCC / Southern California Public Radio). To learn more about how The Los Angeles selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more local coverage from The Los Angeles, or browse our daily briefing and topic hubs .
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