The Legislature hit its bill introduction deadline on Friday, February 20. Thus far, hundreds of bills have been introduced on various topics, including education, workforce development, and safety net issues, many of which aim to support Californians as federal actions create new risks to support services, especially in underserved communities. As the second year of the two-year session begins, it is already shaping up to be another busy year at the Capitol.
At the same time, the Senate and Assembly budget committees have held multiple informational hearings to review the Governor’s proposed budget. The proposal avoids major cuts and includes targeted investments tied to the Master Plan for Career Education, and does not add significant new funding, reflecting another challenging budget year. Over the next several weeks, the Legislature is expected to begin making key decisions on major budget issues ahead of the Governor’s May Revision. Read our full state budget summary here.
Beyond budget hearings, the Legislature has also convened informational hearings focused on health care, child care, and small businesses, all of which could influence the state budget. Below are highlights from three recent hearings, along with links to background materials and the full recordings.
As February comes to a close, the EDGE team is reviewing and analyzing legislation and budget proposals tied to our 2026 policy priorities. Stay tuned for advocacy opportunities as we continue to engage in this year’s legislative session.
For more information, contact Anna Alvarado, Chief of Policy & Government Affairs at aalvarado@caedge.org.
Assembly Health Committee
The Devastating Impact of Federal Disinvestment on California’s Health Care System: What We Know and How the State, Health Care Providers, and Communities Are Responding, January 27, 2026
Full hearing recording here.
Highlights include:
- Panelists stated H.R. 1 would cut billions in federal support for California’s health system. They warned these cuts could cause up to 2 million people to lose Medi-Cal, and could also raise premiums and out-of-pocket costs for people who buy coverage on their own.
- Discussions emphasized that Medi-Cal work requirements tend to create administrative hurdles rather than increase employment. As a result, eligible people may lose coverage because of reporting requirements, errors, or difficulty navigating the process.
- Panelists and committee members raised that H.R. 1 and related fiscal pressures could translate into job losses and layoffs across health systems and plans, and that protecting California’s health care workforce pipeline and retention is essential to maintaining access to care, especially in rural and underserved regions.
- The background materials point to steps like maximizing Medi-Cal enrollment and retention, partnering with counties and safety-net providers, investing in health care workforce development/retention, and considering revenue options to prevent further erosion of access. View background materials here.
Assembly Committee on Economic Development, Growth, and Household Impact
Strengthening California’s Small Business Ecosystem: Capital, Innovation & the Role of the SBDC Network (Small Business Development Centers) January 27, 2026
Full hearing recording here.
Highlights include:
- The barriers small businesses face in accessing capital, navigating support programs, and staying afloat through recurring disasters and economic disruptions.
- Panelists pointed to potential solutions that center on sustained, targeted state investment in technical assistance and capital access programs (including the SBDC’s Capital Infusion Program), improving how state resources are deployed when funding is oversubscribed, and using the SBDC network’s statewide footprint to deliver trusted advising, multilingual support, and disaster recovery help as a “second responder” for businesses.
- They also highlighted opportunities to help more small businesses grow by focusing on tech and innovation firms, small manufacturers, and better support to compete for state procurement contracts.
Assembly Budget Sub 7 on Accountability and Oversight
Impacts of 2026 Federal Child Care Funding Withholding, January 28, 2026
Full hearing recording here.
Hearing Agenda: Impacts of 2026 Federal Child Care Funding Withholding
Highlights include:
- Concerns were raised that a federal payment freeze on major child care funding streams could destabilize California’s child care system and, in turn, disrupt the broader workforce by forcing parents out of jobs when care becomes unavailable.
- Child care workforce was described as long, unpaid work hours for providers, and explained that many working parents are in service jobs who depend on stable child care to stay employed, with closures creating a domino effect for families and local economies.
- Potential solutions discussed included quickly complying with new federal requirements to keep funds flowing, creating short-term backstops like access to emergency state funds, and coordinated advocacy with California’s congressional delegation to reverse the federal action. The hearing also noted that California and four other states sought and received a temporary restraining order (TRO), which temporarily blocked the freeze and allowed funding to continue while the case proceeds.