Early Edge Resources
Fact Sheet
2026-27 California State Budget: Final Clean-up Trailer Bills
September 15, 2026
Below are key takeaways for Transitional Kindergarten, State Preschool, and Childcare from “clean-up” trailer bills at the end of the 2026 Legislative session.
TK-12 Education Omnibus (SB 133)
- Full-day Transitional Kindergarten Clarification. Clarifies that full-day transitional kindergarten (TK) programs include part-day TK programs wrapped with expanded learning or part-day State Preschool for purposes of the California Prekindergarten Planning and Implementation Grant.
- Prekindergarten Planning and Implementation Grant Program. In order to be eligible for funds requires:
- a local education agency (LEA) to offer full day TK on any site offering kindergarten or develop a plan for consideration by the governing board to consider how the LEA will begin to offer full day TK by June 30, 2028
- a LEA who has received a grant but has not yet developed a local plan, to develop that plan for consideration by the governing board and make the plan available to CDE.
- Unspent funds of the program by 2035 will revert back to the General Fund
- California Universal Preschool Planning Grant Program. Specifies that each county shall have one lead agency that is an LEA, with first preference for county offices of education. Details allowable costs which include assessing parent preferences, strengthening mixed delivery partnerships, community-level coordination, special education inclusion partnerships, regional workforce development coordination, coordinated mixed-delivery systems, enrollment services, Prekindergarten Planning and Implementation Grant interactions, tribal community partnerships and data reporting.
- Bilingual Teacher Pathway Program. Delays its implementation until January 1, 2027 and makes technical and clarifying changes which include defining an LEA to include school districts, county offices of education, charter schools, or regional occupational centers or programs operated by a joint powers authority or county office of education, and revises reporting requirements.
- Education Commissioner and the State Department of Education. Updates technical provisions for the Commissioner and Department, consistent with AB 181 (Alvarez).
State Preschool (AB 190)
- Definition of Attendance in State Preschool. Amends the definition of “attendance” for purposes of reimbursement to additionally include excused absences for expulsion or suspension.
- Recovery of Unused State Preschool Funds. Beginning in 2027-28, authorizes the Department of Education (CDE) to recover CSPP unspent set-aside funds.
- State Preschool Eligibility Clarifications. Clarifies that 3- and 4-year-olds of LEA employees are the fourth priority. Clarifies that after all otherwise prioritized children have been enrolled, eligible children from the lowest income and longest time on the waiting list will be prioritized.
- Family Fees for State Preschool. By January 1, 2027, CSPP contractors will reimburse care providers for the full amount of the certificate or voucher without deducting family fees, and to collect family fees.
- Childcare Health and Safety Training. Postpones until October 1, 2027, revised requirements on staff who provide childcare at specified facilities, to complete care to complete at least 15 hours of specified health and safety training that includes pediatric first aid, pediatric CPR, and preventive health practices, and revised requirements that staff complete a minimum of 12 hours of continuing education annually.
- Temporary Absences for Family Childcare Homes. Removes the reporting requirement for FCCH licensees to report temporary absences and retains requirements that a written notice be provided to parents and guardians of any temporary absence of the license.
- Rate Reform Reporting Extension. Extends the required quarterly reporting by CDSS and CDE to the Legislature through July 1, 2028, on the implementation of a child care reimbursement rate system plan, including integration of cost of care plus rates into the reimbursement rate contract systems.
- Rate Reform Parameters. Establishes Legislative intent for the alternative methodology parameters, to be based on the cost of care in California, to include specific age groupings, inclusion rates, and statutory and regulatory program requirements. This includes an infant rate for children under age 2, a toddler rate for children ages 2-3, a preschool rate for children ages 3-6 who are not yet enrolled in first grade, and a school age rate for children age 5 and older who are enrolled in first grade or higher.
- Rate Reform Foundational Policy. Requires CDSS to identify the foundational policy changes necessary for the child care single rate structure no later than January 10, 2028.
Other Notable Changes
- Reappropriation of 2025 funds. Reappropriates $1,000,000 in funds from the Budget Act of 2025 to the State Department of Social Services for activities related to the safety and regulation of children’s camps.
- Prospective Pay Change . Removes legislative reporting requirements regarding implementation of prospective payment for child care programs, as that policy is not being implemented and instead requires reporting on progress on implementation of paying based on enrollment.
- Allowable uses for Professional Development in State Preschool. Expands and specifies the allowable uses for a CSPP provider’s authority to schedule paid staff training days on five days per contract period, and a means for calculating a total of five contract days.
- Rate Reform and State Preschool. Clarifies that the child care single rate structure, based on the Alternative Methodology, will include rates for the California State Preschool Program.
- CDE Authority. Authorizes CDE to implement California’s preschool eligibility and enrollment rules through management bulletins that carry regulatory force and bypass standard rulemaking until formal regulations are adopted.
- Authority for Cost of Care Plus Rates. Clarifies Budget appropriations and ongoing statutory authority for the Cost of Care Plus Rates in CSPP.