January Legislative Updates

Picture of Anika Kimme

Anika Kimme

Government Affairs Assistant

Governor Newsom released his $322 billion proposal for California’s 2025-2026 budget on January 10. Thanks to improved fiscal conditions – and as a result of some difficult budget cuts last year – the state does not project a deficit for the upcoming fiscal year and in fact anticipates additional revenue over the original projections.

One focus of the upcoming focal year will be the initial rollout of climate bond funding, approved by voters on the November ballot. The budget proposes $2.6 billion in Prop 4 funding, including:

  • $325 million for wildfire and forest resilience
  • $286 for biodiversity and nature-based solutions
  • $286 for outdoor access, including:
    • $275 for clean air and energy
    • $102 for extreme heat mitigation

The Sierra Nevada fared reasonably well in this initial Prop 4 offering, with meaningful funding allocated to the Sierra Nevada Conservancy, the California Tahoe Conservancy, and the Wildlife Conservation Board. However, we do anticipate significant changes before the budget is finalized in June. Most notably, state support for fire recovery in LA may force delays in other types of spending.

The bottom line is this budget is a first draft, and it will likely be heavily revised. The SBC Government Affairs Team will be monitoring the budget process closely to ensure that our region’s Sierra Nevada priorities are heard and reflected in Sacramento.

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2026 Legislative Session: What It Means for Wildfire & Climate Resilience

California’s 2026-27 legislative session wrapped up September 1 after a turbulent final week of negotiations over wildfire policy, funding, and the state budget. While a last-minute proposal on wildfire liability ultimately stalled, the Legislature did restore and increase funding for climate resilience through Proposition 4 and the Greenhouse Gas Reduction Fund (GGRF)—a meaningful outcome for Sierra communities amid a challenging state budget year.

The final plan includes $329.5 million for wildfire and forest resilience through Prop 4 and $118 million for wildfire prevention through GGRF. While these investments are an improvement over the June budget, wildfire resilience funding remains near historic lows, with no clear plan for sustained investment in future years.

Read more about the final budget, Prop 4 and GGRF allocations, and what’s next for wildfire and climate resilience in the Sierra.