The governor’s 2025 budget includes protections and supports for California children and families. CCRC and fellow advocacy groups fought for funding of these critical services, which were previously considered in the governor’s budget cuts.
Thanks to a strong economy, the 2025 California budget is larger than the previous year’s. The $322 Billion budget introduces no cuts to core programs, and maintains initiatives to fully implement Universal Transitional Kindergarten, expand after school and summer school programs, and Universal school meals.
“CCRC appreciates the Governor’s proposed budget investments to provide California’s children and families most in need with essential safety nets and timely family well-being supports,” said CCRC Government Relations Director LaWanda Wesley. “This budget reflects both values and action.”

Overall, the California Budget Act 2025 focuses on education, economic growth, public safety, and accountability. Highlights include:
- Child care access: Though the Governor’s budget proposal does not outline specific spending for child care slots, the Administration is expected to maintain all existing commitments to child care slots. The 2024-25 final budget agreement commits to fund 200,000 total slots by the 2027-28 fiscal year and outlines intentions to fund 12,000 slots in the 26-27 fiscal year and 17,000 additional slots in the 27-28 fiscal year.
- Reimbursement rate: The California budget stipulates a plan to move toward a single rate structure that utilizes an alternative methodology for calculating the true cost of providing care.
- Cost of Care Plus Rate payments: The budget maintains funding to continue the Cost of Care Plus Rate monthly payments adopted for state-subsidized child care providers.
- Child Care Providers Union (CCPU) negotiations: The state will continue to negotiate a successor agreement with CCPU when the current contract expires June 30, 2025.
- Temporary Assistance for Needy Families (TANF): The agreement proposes $9.5 Billion in funds for TANF expenditures with an assumed case load of 361,834 families.
- An increase to the CalWORKs Grant Maximum Aid Payments.
- CalWORKs and Family Well-Being Pilot: California was selected last November as one of five states to test alternative performance measures for TANF. The vision for California’s pilot is to further develop the state’s supportive and barrier removal services to facilitate employment and well-being.
- Funding for the California State Preschool Program and Transitional Kindergarten, including means to reduce the ratio of students to teachers.
- School Facilities Program: Funding is provided to modernize facilities, new construction, career technical education projects, and charter schools.
- Children and Youth Behavioral Health Initiative Fee Schedule Program: With the inclusion of Local Educational Agencies in youth behavioral health, reimbursements through Medi-Cal will be available for supporting behavioral health services provided to all students under the age of 26.
- Funding for the Expanded Learning Opportunities Program.
- Funding to maintain support of Homeless Education Technical Assistance Centers.
- Health and Human Services (HHS): Funds to support activities and services administered by the programs administered by DHCS, DSS, and the Department of Health Care Access and Information.
- Diaper Initiative: An effort to provide a three-month supply of diapers at no cost to California families with newborn babies via hospital systems to improve maternal and newborn health outcomes.
- Department of Health Care Services (DHCS): Provisions for the state’s Medi-Cal budget.
- Department of Developmental Services (DDS): An increase in the number of children needing developmental services, which is attributed to the pandemic, will be met with bolstered funding for evaluations and referrals.
- Increased funding for California Highway Patrol (CHP) Child Sexual Abuse Investigations and maintained funding for California Highway Patrol (CHP) Child Sexual Abuse Investigations.
CCRC’s Government Relations team works closely with lawmakers, fighting at the state capitol for increased supports for children and families. Contact the team for more information at [email protected].