California’s 2025-26 Education Budget: What Families and PTA Leaders Need to Know

Posted on by CAPTA IT

By: Legislation Advocacy Team 

California schools are beginning the 2025-26 school year with stable funding despite economic uncertainties and devastating wildfires. The state budget, passed in June, allocates $114.6 billion in Proposition 98 funding to TK-12 schools and community colleges, representing a modest decrease from the previous year but maintaining essential educational services.

Key Budget Highlights

  • Early Literacy Priority: $462.5 million for reading instruction, teacher training, and literacy coaches—nearly half a billion invested during a tight budget year.
  • Expanding Early Education: $2.1 billion completes transitional kindergarten expansion to all 4-year-olds with smaller class sizes (10:1 ratios). $89.3 million for increases in child care subsidies.
  • Supporting Working Families: $526 million expands after-school and summer programs to more school districts (eligibility drops from 75% to 55% disadvantaged students). Free meals continue for all students, with $160 million for kitchen improvements.
  • Teacher Support: $464 million for recruitment and training, including new $10,000 stipends for student teachers.

What Didn’t Make the Cut

  • Ethnic Studies: No funding provided despite legislative mandate, leaving implementation to individual districts.
  • Adequate Cost Increases: A 2.3% cost-of-living adjustment won’t cover districts’ actual 4.5-5% annual cost increases.

Financial Risks and Federal Threats

State Budget Concerns:

  • The education rainy day fund is completely depleted ($405 million used)
  • $1.88 billion in payments to districts delayed
  • Heavy reliance on temporary funding for permanent programs

Federal Disruption: Since taking office in January 2025, the Trump administration has withheld $800 million in California education funding and canceled $148 million in teacher training grants. This has already forced the cancellation of 2025 summer programs and professional development events. Additionally, special education services face disruption as the Individuals with Disabilities Education Act (IDEA) oversight shifts to other agencies, potentially affecting California’s 851,000 students with disabilities who rely on these federally mandated services.

Impact on Families

What You’ll See:

  • Continued free meals
  • Better reading instruction
  • Expanded after-school programs (if federal funding stabilizes)
  • Smaller TK classes

What to Watch:

  • Program sustainability as one-time funding expires
  • Federal funding disruptions affecting special education and Title I programs
  • Potential teacher shortage worsening

PTA Leader Action Items

  • Monitor literacy program implementation
  • Advocate locally for ethnic studies
  • Support teacher recruitment amid federal grant cuts
  • Engage with districts on dual budget pressures (state and federal)
  • Contact representatives about restoring federal education funding (note: plan to attend the California State PTA and National PTA Legislation Conferences in 2026, where you can advocate in person!)

Program Expansion: Many districts will now qualify for expanded learning programs that previously weren’t eligible, creating new opportunities for family engagement and student support.

Long-term Planning: PTA leaders should prepare for potential budget challenges in future years as temporary funding expires, federal funding is uncertain and reserves remain depleted.

Looking Ahead

While California crafted a protective budget during difficult times, federal actions have added significant uncertainty. Education expert Kevin Gordon called it “a remarkable budget in a remarkably bad budget year,” noting that schools fared much better than other state programs.

The combination of depleted state reserves and federal funding threats creates a more challenging environment than anticipated when this budget was passed. The budget’s success will depend on economic recovery and avoiding deeper cuts to federal education funding. Families and PTA leaders should stay engaged with their local districts to ensure new programs are implemented effectively while preparing for potential future challenges.

Resources for additional learning: