Cap-and-Invest: November 2025 Auction Update and 2026-27 Budget Context

Dec 9, 2025 - This was the first auction since the passage of Chapter  117 of 2025 (AB  1207, Irwin) and Chapter  121 of 2025 (SB  840, Lim ón), which extended and made various changes to the program. According to the information provided by CARB, the state expects to receive $844  million in revenue from the auction, which will be deposited into the Greenhouse Gas Reduction Fund (GGRF).
https://lao.ca.gov/Publications/Report/5096

Overview of New Updates to the Cap-and-Invest Program

Dec 9, 2025 - In September 2025, CARB issued a notice that it plans to begin updating the regulations governing the program to reflect the requirements of AB 1207, as well as make other modifications to the program.
https://lao.ca.gov/Publications/Report/5097

Cannabis Tax Revenue Update (2025 Q3) [EconTax Blog]

Dec 2, 2025 - On September 22, the Governor signed Chapter 127 of 2025 (AB 564, Haney), which cut the retail excise tax rate from 19 percent to 15 percent on October 1. Preliminary Total for Third Quarter of 2025: $177 Million.
https://lao.ca.gov/LAOEconTax/Article/Detail/844

The 2025-26 California Spending Plan: Human Services

Nov 21, 2025 - In previous legislation (Chapter  47 of 2024 [AB  162, Committee on Budget]), the Legislature codified its intent that the Master Plan should strengthen accessibility, quality, and equity for all consumers of the developmental services system and their families.
https://lao.ca.gov/Publications/Report/5086/1

The 2025-26 California Spending Plan: Human Services

Nov 21, 2025 - These changes (described further below) result in net savings of about $21  million total funds in 2025-26 and about $32  million total funds in 2026-27 and ongoing. Of these savings, the spending plan reinvests about $4.6  million in 2025-26 and $14  million in 2025-26 and ongoing into the CalWORKs single allocation, resulting in General Fund savings of about $16  million in 2025-26 and $18  million in 2026-27 and ongoing.
https://lao.ca.gov/Publications/Report/5086/2

The 2025-26 California Spending Plan: Human Services

Nov 21, 2025 - The Home Safe program was established by Chapter  35 of 2018 (AB  1811, Committee on Budget) to serve Adult Protective Services (APS) clients who are experiencing or at risk of homelessness due to elder or dependent adult abuse, neglect, or financial exploitation.
https://lao.ca.gov/Publications/Report/5086/7

Sales Tax Exemption for Bunker Fuel

Nov 19, 2025 - Chapter  442 of 2023 (AB  543, Gipson) extended a longstanding sales tax exemption for certain purchases of bunker fuel, also known as maritime fuel. The exemption applies to fuel that water common carriers buy in California and use after they reach their first out-of-state destination.
https://lao.ca.gov/Publications/Report/5094

Firearms and Ammunition Revenue Update (2025 Q3) [EconTax Blog]

Nov 18, 2025 - Firearms and Ammunition Revenue Update (2025 Q3) [EconTax Blog] Firearms and Ammunition Revenue Update (2025 Q3) November 18, 2025 Seth Kerstein Beginning July 2024, Chapter 231 of 2023 (AB 28, Gabriel) imposed an 11 percent excise tax on retail sales of firearms, firearm precursor parts, and ammunition, with some exemptions.
https://lao.ca.gov/LAOEconTax/Article/Detail/842

The 2025-26 California Spending Plan: Higher Education

Nov 14, 2025 - Chapter  622 of 2024 (AB  2508, McCarty) authorizes accounts for all foster youth in first through twelfth grade, whereas accounts previously were authorized only for foster youth in first grade. Deposits for foster youth remain set at $1,000.
https://lao.ca.gov/Publications/Report/5089

The 2025-26 California Spending Plan: Judiciary and Criminal Justice

Oct 24, 2025 - In addition, the budget provides $5  million one time to support initial implementation of Chapter  576 of 2022 (AB  778, E. Garcia), which requires CDCR to ensure that at least 60  percent of the agricultural food products that it purchases are grown or produced in California.
https://lao.ca.gov/Publications/Report/5085