July 2026

Proposition 98 Overview

2025-26 Changes in Proposition 98 Spending

(In Millions)

2025-26 Budget Act Spending $114,558
Technical Adjustments  
Transitional kindergarten expansiona -$1,248
Various K-14 adjustments 491
LCFF adjustments -98
Subtotal (-$855)
Proposition 98 Reserve  
Mandatory deposit $3,371
Discretionary deposit 500
Subtotal ($3,871)
K-12 Education  
Discretionary block grant $1,777b
Student teacher stipends 408
Literacy coaches 350
Kitchen infrastructure and training 300c
Universal Pre-Kindergarten Planning and Implementation Grant 250
California’s New Americans in Schools 100
Dream Resource Center Grant Program 75
Students experiencing homelessness 70d
Mathematics Professional Learning Partnership 50
Reading difficulties screening 40
Supporting Inclusive Practices Project 30
Pathways to Bilingual Teaching Program 10
Classified school employee teacher credentialing 10
Holocaust and Genocide Education Grant Program 10
Science performance tasks 1
Wildfire-related support for schools —e
Subtotal ($3,481)
California Community Colleges  
Higher 2025-26 apportionments costs $103f
Student support block grant 100g
Dreamer Resource Liaisons 36h
LGBTQ+ resource centers 15i
Pierce College Family Resource Centers 5
Deferred maintenance 3j
Cal-Bridge First Academic Scholar Training 1
Subtotal ($263)
Total Changes $6,761
Unallocated funds (settle up) $3,940
2025-26 Revised Spending $125,260
a Reflects additional LCFF costs associated with serving more students in transitional kindergarten, including costs of lower transitional kindergarten staffing ratios.
b The budget also provides $1.6 billion in 2026-27, $1 billion in 2024-25, and $634 million in reappropriated Proposition 98 funding for this purpose.
c The budget also provides $100 million in 2026-27 and $100 million in reappropriated Proposition 98 funds for this purpose.
d The budget also provides $46 million in reappropriated Proposition 98 funds for this purpose.
e Less than $500,000
f The budget also provides $38 million in 2024-25 for this purpose. 
g The budget also provides $47 million in 2026-27 for this purpose.
h The budget also provides $35 million in 2026-27 for this purpose.
i The budget also provides $15 million in 2026-27 for this purpose.
j The budget also provides $117 million in reappropriated Proposition 98 funds for this purpose.
LCFF = Local Control Funding Formula, LGBTQ = lesbian, gay, bisexual, transgender, and queer.