CA Alliance Response to May Budget Revise

Sacramento, Calif —The following statement may be attributed to California Alliance of Child and Family Services’ CEO Pete Weldy, in response to Gov. Newsom’s 2026-27 May Revision budget proposal:

“The final budget of his governorship is Gov. Newsom’s opportunity to cement his legacy as a champion for our youth and families, particularly at a time when Washington has turned its back on our most vulnerable. The California Alliance and our 200 member organizations are disappointed that the May Revision fails to rise to this moment.

“At a time of nationwide youth mental health crisis, this budget would reverse progress California has led in connecting youth and adults with support that keeps them safe and off our streets. Eliminating state funding for mobile crisis response teams, including those provided by Alliance members, and reducing support for 988 call centers means: more crisis calls involving escalation rather than compassion; fewer people in crisis connected to care in their community and more experiencing crises in our streets and hospitals; more lives lost to suicide.

“Restricting humanitarian immigrant communities to emergency-only health care ignores the deep impact of trauma on mental and physical health on entire families, and retreats from California’s values.

“And even with an unexpected $16.5 billion revenue surge, this budget does not include support to keep vulnerable youth from being displaced from their foster homes as a deepening insurance crisis leads to more Foster Family Agencies (FFAs) closing forever. While the temporary relief provided in 2025 was a critically important first step, we are seeing more of these community-based nonprofits close, a situation that will leave youth without appropriate, safe placements, stall family reunifications, and miss adoption opportunities.

“We call on state leaders to stand with the California Alliance and the kids and families our members serve. Fight for foster youth, families on the edge, and immigrants who represent the California dream. Reject a budget that falls far short of our values — and invest in the community-based organizations who put California’s values into action.”

The CA Alliance calls for legislators to reject the following proposals:

• Elimination of 24/7 mobile crisis response as a statewide Medi-Cal funded service. Making this effective program an “optional” benefit and shifting the cost of this program to counties would effectively eliminate the program in many parts of the state.
• Reduction in funding to California’s 988 system crisis lifeline
• Restricting 200,000 immigrants including, refugees, asylees, domestic violence survivors, and holders of visas for crime victims, to emergency-only Medi-Cal.