California Reaches $351.7 Billion Budget Deal; Separate Connecticut Budget Unrelated

California Governor Gavin Newsom and state legislative leaders announced a $351.7 billion budget agreement for fiscal year 2026-27 on June 26, 2026, in Newsom's final year as governor. The deal reportedly avoids a deficit by using a state tax revenue windfall, and administration and legislative sources say it prioritizes healthcare funding, building reserves, and reducing long-term liabilities. As part of the agreement, lawmakers approved the Veterans and Affordable Housing Bond Act of 2026, an $11.25 billion measure that will appear on the November ballot to fund affordable housing construction, preservation, and homeownership programs, including for veterans and lower-income households. The budget also includes $900 million for Homeless Housing, Assistance, and Prevention grants. Separately, Connecticut's legislative session ended on May 7, 2026, with passage of a budget just over $28 billion that doubles municipal aid and directs funds toward paying down pension debt; lawmakers also passed bills addressing Glock-style firearm bans, homeschooling regulations, and limits on ICE activity. Governor Ned Lamont praised the Connecticut budget as a bipartisan achievement, while critics contend it relies on one-time funding fixes and does not adequately address rising healthcare costs; the specifics of this criticism, including which lawmakers raised it, are not detailed in available reporting. The Connecticut session marked the final one for Senate President Martin Looney after 46 years in the legislature. Final passage and implementation timelines for both the California and Connecticut budgets, as well as the outcome of California's November ballot measure, remain pending and unconfirmed in current reporting.