Governor Gavin Newsom addressed 14 policy topics in the 2026 State of the State address.
Governor Newsom announced the most significant investments in public education in California history, with a record $27,418 per student backed by a $248.3 billion General Fund. He highlighted fully funding universal TK, nearly one billion school meals served, plans to eliminate ultra-processed foods from cafeterias, and expanding community schools with an additional $1 billion. He also proposed unifying education policy-making under the State Superintendent and celebrated the cell phone ban signed the previous year.
Governor Newsom touted California's 6.4% uninsured rate as one of the lowest in the nation and the state's CalRX program launching insulin at $11 a pen. He warned that the federal 'Big Beautiful Bill' puts 1.8 million Californians at risk of losing health insurance and 2 million facing premium increases. He also cited the largest health care expansion in America and subsidies for 370,000 people through Covered California.
Governor Newsom highlighted California as the world's fourth-largest economy at over $4 trillion, with revenues $42.3 billion higher than forecasted. He touted the Jobs First economic blueprint with 13 regional strategies, CalCompetes tax credits, and the Film and Television Tax Credit Program. He noted half of the nation's billion-dollar startups are headquartered in California and that the state is making landmark AI regulations as a template for the nation.
Governor Newsom highlighted $109 billion in infrastructure projects currently underway — more than 28,000 separate projects employing over 200,000 people — calling it the most since Governor Pat Brown. He cited environmental restoration, energy projects, roads and bridges, water and power, rail and ports, and broadband for rural communities. He emphasized progress on High-Speed Rail with 60 miles of guideway completed in the Central Valley, Sites Reservoir as the first above-ground water storage in 50 years, and full electrification of 51 miles of Caltrain track.
Governor Newsom reported double-digit decreases across crime categories: property crime, aggravated assault, car theft, burglary, robbery, and violent crime are all down. He highlighted record-low homicide rates in Oakland (lowest since 1967), LA (lowest since 1966), and San Francisco (lowest since 1954). He cited $267 million in grants to police departments and prosecutors to combat organized crime and retail theft, the addition of over 1,000 new CHP officers, and Crime Suppression Teams deployed in multiple cities.
Governor Newsom highlighted California's clean energy leadership, noting the state ended all coal-fired power use, ran on 100% clean energy for part of 9 out of 10 days, and that two-thirds of energy comes from clean sources. He celebrated extending the Cap-and-Invest program for 20 more years providing $60 billion in energy bill rebates, enabling a new regional energy market, and working on insurance reform for wildfire resilience. He positioned clean energy as an economic competitiveness issue against China, noting California has seven times as many clean energy jobs as fossil fuel jobs.
Governor Newsom called housing "California's original sin" and noted signing 61 housing reform bills in the past year alone, clearing regulatory thickets and modernizing environmental review. He targeted institutional investors buying homes by the thousands, calling it "shameful that we allow private equity firms in Manhattan to become the biggest landlords in many of our cities," and pledged to work with the Legislature to combat monopolistic behavior and potentially change the state tax code. He also proposed updating environmental review processes that haven't changed in 50 years.
Governor Newsom announced a General Fund of $248.3 billion with revenues $42.3 billion higher than forecasted, driven by economic growth. He proposed rebuilding reserves by adding $7.3 billion and paying down $11.8 billion in long-term pension obligations. He highlighted record per-student spending of $27,418 and defended California's progressive tax system, noting 11 states tax their middle class more than California does. He also proposed reauthorizing the CalCompetes tax credit program for five years.
Governor Newsom positioned California as the global leader in AI, robotics, fusion, space, and quantum computing. He highlighted California's landmark AI legislation creating the nation's first rules for responsible, ethical, and safe AI use, noting New York adopted California's approach. He warned about AI's risks to jobs while celebrating clean energy tech achievements, including running the fourth-largest economy on 100% clean energy for part of 9 out of 10 days.
Governor Newsom highlighted California as having the most productive agricultural economy in America. He referenced regional economic plans including agriculture in the Central San Joaquin and ag-tech on the Central Coast, and noted the state's efforts to eliminate ultra-processed foods from school cafeterias.
Governor Newsom proposed unifying policy-making by the State Board of Education and Department of Education to streamline education governance, and called for reauthorizing the CalCompetes tax credit program for five more years. He highlighted updating environmental review to allow faster permitting for housing and clean energy projects, using the state's new fast-track permitting authority for major infrastructure.
Governor Newsom highlighted extensive social service investments including a record $27,418 per student in education, nearly one billion school meals served, and support for 487,000 children in child care programs. He noted the state's low 6.4% uninsured rate, the CalRX program launching insulin at $11 a pen, and Homekey/Project Roomkey taking more than 72,000 people off the streets. He reported a 9% drop in unsheltered homelessness in 2025 and announced $1 billion to expand community schools.
Governor Newsom addressed affordability as a "stacking of many issues" with housing as California's "original sin." He signed 61 housing reform bills, highlighted the $60 billion Cap-and-Invest rebate program for energy bills, and touted record per-student education spending of $27,418. He noted California's progressive tax system taxes the middle class less than 11 other states. He announced plans to combat institutional investors buying homes and highlighted $7.6 billion returned to working families through the tripled Earned Income Tax Credit since 2019.
Governor Newsom strongly condemned federal immigration actions, describing "secret police, businesses raided, windows smashed, citizens detained, masked men snatching people in broad daylight, using American cities as training grounds for the US military." He positioned California as proving that "legal immigration works" and filed 52 lawsuits against federal overreach.