The Overview

If you work in a California school or send a child to one, a sweeping trailer bill just rewrote the rules across at least 20 areas of school policy, from preschool grants and teacher credentialing to school meals and homeless student support. California's Education finance: education omnibus trailer bill, SB 133, became law when Gov. Gavin Newsom (D) signed it Sept. 18. ​

California public school enrollment fell by 74,961 students, according to an April 2026 EdSource report, adding pressure to district budgets because state funding is tied largely to attendance. The Learning Policy Institute reported in June 2026 that the state's teacher shortage had tripled the number of teachers working on substandard credentials since 2012-13.

What the Law Does

Key changes include:

  • Preschool grants: A $200 million appropriation for the California Prekindergarten Planning and Implementation Grant Program continues, with new rules requiring agencies that lack a local plan to develop one and present it at a public meeting.
  • Inclusive practices funding: Under the bill, a $30 million appropriation previously split equally between Riverside County Office of Education and El Dorado County Office of Education goes only to El Dorado County Office of Education, or is allocated under other legislation.
  • Golden State Pathways Program: The deadline for an independent evaluation of the $500 million program shifts two years, from June 30, 2028, to June 30, 2030.
  • School meals: Local educational agencies may now use state meal reimbursement funds for kitchen infrastructure upgrades, with prior department approval.
  • Homeless students: A $70 million appropriation supports identification of and improved outcomes for homeless children and youth; nearly 300,000 California students were identified as experiencing homelessness in the 2024-25 school year, according to EdSource.
  • Bilingual teacher pipeline: The Pathways to Bilingual Teaching Program is delayed until Jan. 1, 2027, and individual districts and county offices of education become eligible for grants, not just consortia.

Legislative Status

The bill is classified as an education omnibus trailer bill. The Senate passed it 28-10 on March 20, 2025. The bill sat in the Assembly Budget Committee for more than 17 months before being amended Aug. 28, 2026.

The full Assembly passed it 66-9 on Aug. 31, and the Senate concurred in Assembly amendments 30-9 the same day. Most provisions take effect with the 2026-27 fiscal year or school year.

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