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AB 195

Budget Act of 2025.

2025-2026 Regular Session Introduced by Jesse Gabriel

California's 2025-26 budget act authorizes state spending and revenue policy, passed Assembly 53-17, now in Senate committee for assignment.

Referred to Com. on B. & F. R.
#budgetactof2025
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Bill Summary · AB 195

Legislative bill overview

AB 195 is California's Budget Act of 2025, a comprehensive fiscal legislation package that authorizes state spending and revenue measures for the 2025-2026 fiscal year. The bill passed the Assembly with 53 votes in favor and 17 opposed, and is currently in the Senate Rules Committee for assignment to policy committees.

Why is this important

Budget acts are fundamental legislation that determine how California allocates approximately $300+ billion in annual spending across education, healthcare, infrastructure, social services, and other state functions. These bills directly affect tax policy, spending priorities, and the state's fiscal trajectory for the coming year, making them among the most consequential legislation passed annually.

Potential points of contention

  • Spending vs. surplus management: Disagreement likely exists over whether to use California's budget position for tax relief, increased spending on specific programs, or fiscal reserves
  • Tax policy changes: Budget acts typically include revenue adjustments that spark debate between those favoring tax increases on high earners/corporations versus those prioritizing tax relief
  • Program priorities: Competing demands for education funding, homelessness/housing initiatives, healthcare expansion, and criminal justice spending create inherent tradeoffs

Compiled from official sources — confirm details with the bill’s official record.

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