Governor Releases May Revise State Budget Proposal

Yesterday morning, Governor Newsom released his May Revise budget proposal for the 2025-26 State Budget, which projects a significant State budget deficit of $12 billion. 

The Californians and Their Economic Well-Being survey conducted by PPIC earlier this year confirms the still shocking levels of financial hardship throughout our state: Based on their current financial situation, about 1 in 5 adults say it would be very difficult or nearly impossible to pay for a $1,000 emergency expense.

As grocery prices continue to rise and strain household budgets, today a staggering 1 in 4 adults are taking on debt to pay for food at the grocery store. Food banks remain a lifeline in helping families to put food on the table: for the second year in a row, food banks across the state are collectively serving 6 million Californians each month. And while food banks are reporting serving record demand, over $100M in federally funded food that was planned in 2025 has been permanently canceled, and Congress is considering budget reconciliation legislation that would enact devastating cuts and structural changes to SNAP (CalFresh) that will permanently worsen hunger in California.

We underscore the urgent need for California to prioritize ending hunger in the final 2025-26 State Budget. Specifically, we are grateful for $8M in CalFood funding to sustain the current annual baseline – however this falls significantly short of funding that is desperately needed for food banks to continue serving their communities. In fact, CalFood represented 37% of food purchases by California’s food banks last year. The consequences for food banks are clear: without $60M annually in CalFood funding, they will have to make difficult decisions about how to serve more people with less food. 

Governor Newsom has led with bold policy and budget investments, staving off what could have been catastrophic levels of food insecurity across the state over the past five years. Under his leadership, California was the first state in the country to pass School Meals for All, SUN Bucks (Summer EBT) reached over 5 million kids in its first year of implementation, and the CalFresh Minimum Nutrition Benefit Pilot Program was established. 

We applaud the Governor for protecting investments in these programs so that they can continue to nourish children and families across California, including:

• School Meals for All: $90.7M in additional funding to fully fund universal school meals
• SUN Bucks: $21.9M in additional administrative funding to implement SUN Bucks and ensure eligible children receive benefits
• CalWORKs: Modest but important reforms to streamline the program which will help remove barriers and improve families’ ability to engage in education and work

However, we are also deeply concerned about significant cuts in the following health and human services areas:

• CFAP (Food for All): Implements a trigger that could delay CFAP expansion beyond 2027
• Diaper Banks: Does not include funding for diaper banks to continue operating
• Medi-Cal: Caps enrollment for the expansion population and creates new co-pays

While food banks all over California are reporting record-level demand, we urge the Governor and Legislature to ensure that California’s poorest households are centered in the State Budget and not left behind.