Governor Newsom Sends 2025-26 Budget Plan to Legislature

Governor Gavin Newsom released the 2025-2026 state budget proposal on January 10. Legislators will review and consider the plan as they begin budget hearings soon.

In the announcement, the governor said the state budget is balanced at $322.2 billion and provides for $228.9 billion in general fund spending and $16.9 billion in total reserves.

The budget proposal contains agriculture and water related funding allocations deriving from the voter-approved climate bond, Prop 4, including the following:

• $19.8 million - Invasive Species Projects as recommended by the Invasive Species Council
• $37.8 million - State Water Efficiency and Enhancement Program (SWEEP) for on-farm irrigation system improvements
• $35.9 million - Healthy Soils Program to sequester carbon and lower emissions on farms through soil health practices
• $173.1 million - flood control projects to repair, reconstruct, expand, or replace levees, weirs, bypasses, and facilities
• $183.2 million - water quality and safe drinking water grants and loans to improve water quality and provide clean, safe, and reliable drinking water
• $231.5 million - grants to support reservoir operations and dam safety, including repairs and enhancements

Funding in the governor’s plan must be considered by the Assembly and State Senate Budget Committees and then approved by the State Legislature.

Notably, the budget was released prior to the devastating fires in Southern California, and legislators will be taking into account the massive needs of the disaster. On January 13, Governor Newsom proposed adding $2.5 billion in initial emergency response funding for cleanup and recovery needs, as well as wildfire preparedness.

Republican leaders responded to the release of the governor’s budget plan by saying it is balanced because over $7 billion is being used from the rainy-day fund. The State Senate Republican response to the governor’s budget proposal is available HERE and the Assembly Republican response is HERE.

For the governor’s budget overview, click here.

Source: Agricultural Council of California