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October 8, 2026

The 2026-27 California Spending Plan

Human Services

In-Home Supportive Services (IHSS)

The 2026-27 spending plan provides a total of $33.9 billion (all funds) for IHSS, which is $3.4 billion (11.2 percent) above estimated 2025-26 expenditures. Of this total, the spending plan includes $12.9 billion from the General Fund for support of IHSS in 2026-27, which is a net increase of $1.5 billion (12.7 percent) relative to estimated 2025-26 levels. The primary reason for the year-over-year General Fund cost increase is the continued growth of the three primary IHSS cost drivers: caseload (8.5 percent), cost per hour (3.5 percent), and hours per case (0.7 percent). In this section we describe additional budget-related spending changes in more detail.

Further, Partial Reinstatement of Medi-Cal Asset Limit. In an effort to assist in addressing the state’s budget problem, as part of the May Revision, the administration proposed to fully reinstate an asset limit of $2,000 for individuals and $3,000 for couples to be eligible for Medi-Cal. This asset limit was first raised to $130,000 for individuals and $195,000 for couples on July 1, 2022 and was fully phased out starting January 1, 2024. Beginning January 1, 2026, the asset limits were partially reinstated to be $130,000 for individuals and $195,000 for couples. The proposal to fully reinstate the asset limit was expected to result in fewer people being eligible to receive IHSS and, at the time of May Revision, estimated to save $62.6 million General Fund in IHSS in 2026-27. Ultimately, the 2026-27 spending plan modified the Governor’s May Revision proposal, partially restoring the asset limit to $21,000 for individuals and $31,000 for couples beginning July 1, 2027. This will result in no savings in fiscal year 2026-27, and an estimated savings of $112.9 million in 2027-28 (increasing to $152.7 million in the out-years).

Conform IHSS With Medi-Cal Immigrant Eligibility. As a part of the new federal requirements under H.R. 1, effective October 1, 2026, federal policy will exclude individuals with certain immigration statuses, including many refugees and asylees, from being federally funded for full-scope Medi-Cal. However, under the 2026-27 spending plan, California will continue providing full-scope Medi-Cal to this population using state-only funding, before transitioning them to restricted-scope Medi-Cal beginning July 2027. To conform IHSS eligibility with this delayed transition to restricted-scope Medi-Cal, the spending plan includes $25.5 million General Fund to continue providing state-funded IHSS for affected individuals until July 2027.

Proposed Solutions Not Adopted in Spending Plan. Several other IHSS budget solutions were proposed as part of the Governor’s January budget proposal but ultimately were not adopted as part of the final budget package. These proposals include:

  • Proposal to Eliminate the Permanent Back-Up Provider Program. At the time of the Governor’s January budget, the administration proposed to eliminate the Permanent Back-Up Provider Program. At the time of May Revision, the administration estimated this proposal to save $3.2 million in 2026-27. This proposal was ultimately not adopted as part of the final 2026-27 budget package.

  • Proposal to Conform IHSS Residual Program With Medi-Cal Coverage. At the time of the Governor’s January budget, the administration proposed to conform the IHSS Residual program with the timing of Medi-Cal Coverage. As a result, under this proposal, all IHSS recipients who became ineligible for Medi-Cal would be automatically terminated from the IHSS program. At the time of May Revision, the administration estimated this proposal to save $56.3 million in 2026-27 (growing to $215.3 million in 2029-30). This proposal was ultimately not adopted as part of the final 2026-27 budget package.

  • Proposal to Remove State’s Share of Cost in IHSS Hours Per Case Growth. At the time of the Governor’s January budget, the administration proposed to remove the state’s share of cost in IHSS hours per case growth, beginning in fiscal year 2027-28. As a result, under this proposal, the costs associated with any growth in average hours per case—above what would be considered natural growth in hours per case—would be shifted from the state to the counties. At the time of May Revision, the administration estimated this proposal to save no money in 2026-27 and save $360.6 million in 2027-28. This proposal was ultimately not adopted as part of the final 2026-27 budget package.

For more information on the Governor’s January IHSS budget proposals, please refer to our previous report titled: The 2026-27 Budget: In-Home Supportive Services.

Supplemental Security Income/State Supplementary Payment (SSI/SSP)

The 2026-27 spending plan provides a total of $11.6 billion (all funds) for SSI/SSP in 2026-27, which is approximately $197 million more than estimated 2025-26 expenditures. This increase is primarily due to the full-year impact of the federal SSI grant cost-of-living adjustment (COLA) (2.8 percent) and the half-year impact of the federal SSI COLA estimated to be 3.8 percent, effective January 1, 2027. The amount of General Fund for SSI/SSP is expected to remain flat at $3.6 million from 2025-26 to 2026-27. The state SSP portion of the grant did not receive an increase in 2026 and the spending plan does not include an SSP grant increase for January 1, 2027. The total funding for this program also includes costs associated with two other state-funded grant programs: (1) the Cash Assistance Program for Immigrants, which provides grants to individuals ineligible for SSI/SSP solely due to immigrant status, and (2) the California Veterans Cash Benefit program, which provides a supplemental grant payment to veterans receiving payments from the federal Special Veterans Benefit program.

Figure 1

SSI/SSP Monthly Maximum Grant Levelsa

January 2026
(Actual)

January 2027
(Projected)

Changes From
January 2026

Maximum Grant—Individuals

SSI

$994.00

$1,031.00

$37.00

SSP

239.94

239.94

—

Totals

$1,233.94

$1,270.94

$37.00

Percent of federal poverty levelb

92.78%

91.46%

Maximum Grant—Couples

SSI

$1,491.00

$1,547.00

$56.00

SSP

607.83

607.83

—

Totals

$2,098.83

$2,154.83

$56.00

Percent of federal poverty levelb

116.39%

114.37%

aThe maximum monthly grants displayed refer to those for aged and disabled individuals and couples living in their own households, effective as of January 1 of the respective calendar year.

bCompares grant level to federal poverty guidelines from the U.S. Department of Health and Human Services for 2026 and 2027. Estimates of federal poverty guidelines for 2027 are based on the LAO Consumer Price Index for All Urban Consumers (CPI‑U) projection. The 2027 federal poverty guidelines will not be finalized until fall 2026.

In this section, we discuss additional key budget actions, outside of IHSS and SSI/SSP, that primarily impact older adults.

Provides Additional One-Time Funding for Home Safe. The 2026-27 spending plan includes $50 million in one-time General Fund to continue supporting the Home Safe program. This funding is available for encumbrance or expenditure until June 30, 2028, and will support the safety and housing stability of older adults and adults with disabilities served by Adult Protective Services.

Provides Additional One-Time Funding for the Housing and Disability Advocacy Program (HDAP). The 2026-27 spending plan includes $25 million in one-time General Fund to continue supporting HDAP. These one-time funds are available for encumbrance or expenditure until June 30, 2028, and are in addition to the $25 million of ongoing annual base funding for HDAP which supports individuals with disabilities who are experiencing or at risk of homelessness.

Provides Additional Funding for the Holocaust Survivors Assistance Fund. The 2026-27 spending plan includes $12 million in 2026-27, $12 million in 2027-28, and $12 million in 2028-29 to continue supporting Holocaust survivors residing in California. These funds are available for encumbrance or expenditure until June 30, 2028. Without this funding the Holocaust Survivors Assistance fund would have ended at some point in 2026-27.

The 2026-27 Spending Plan Provides Additional One-Time Funding to the Department of Aging to Continue Supporting Older Adult Programs…

  • $20 million in one-time General Fund to provide additional resources for disadvantaged seniors.

  • $1 million in one-time General Fund to support a no cost senior transportation program in San Diego.

  • $900,000 in one-time General Fund for the Department of Aging to collaborate with Community-Based Adult Services (CBAS) providers, the Department of Health Care Services, and applicable Medi-Cal managed care plans to address options for mitigating CBAS center closures including administrative efficiencies and improvements for eligibility and claims issues.

    …Including Additional Funding for Senior Nutrition.

  • $710,000 in one-time General Fund to support Meals on Wheels San Diego.

  • $550,000 in one-time General Fund to support Meals on Wheels throughout Santa Cruz County.

  • $250,000 in one-time General Fund to support the Delano Senior Nutrition Program.


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