California will continue expanding subsidized childcare and make public school employees automatically eligible for state-funded preschools under a $352-billion budget signed by Gov. Gavin Newsom this week.
The budget for the 2026-27 fiscal year, which begins Wednesday, includes nearly $1.9 billion in funding to relieve the high cost of childcare for low-income families. Most of that funding will be allocated for childcare vouchers, and the state determined there’s enough existing funds to offer school employees access to the California State Preschool Program, which provides free early education in a variety of settings for families who earn up to the state median income.
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Providers were disappointed by some elements of the budget that they said don’t reflect the actual cost of providing care, but parents who have been waiting for a subsidy to help with childcare were encouraged by the news.
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