Senate budget committee advances AB 105 and 16 trailer bills; SB 158 cleanup held after objections

The Senate Committee on Budget and Fiscal Review on Aug. 20 advanced AB 105, the budget bill-junior that amends the 2025 Budget Act, and most of the companion trailer bills; one high-profile trailer (SB 158, the follow-up "cleanup" to SB 131 / advanced manufacturing language) was removed from consideration after objections from several senators.

AB 105 and the trailer package add a net general‑fund increase “just under $70,000,000,” committee members were told, and appropriate initial allocations tied to voter-approved Proposition 4 (the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024). The Department of Finance summarized remaining details the administration says are needed to implement June budget agreements and to respond to recent federal policy changes (identified in the hearing as “HR 1”).

Why it matters: The package moves substantial bond and grant money into implementation and contains policy changes that members said should have seen more legislative vetting. Senators from both parties voiced concern about the speed of the process and the absence of promised changes to the advanced manufacturing exemption created by SB 131. Committee action advances appropriations and regulatory authority that will determine how billions in climate and resilience funding are deployed statewide.

Key facts and allocations

- General fund net change above the June budget: just under $70,000,000 (Department of Finance presentation). - Proposition 4 (bond act) initial appropriations in the package: roughly $3,200,000,000 for bond‑eligible purposes (water, wildfire resilience, coastal resilience, nature‑based solutions, parks and outdoor access, and clean air projects). - Greenhouse Gas Reduction Fund (GGRF) amounts called out: $540,000,000 for 2025–26, including $368,000,000 for transit and intercity rail capital and $100,000,000 for implementation of the Community Air Protection Program (AB 617). - Transit assistance direction: AB 105 requires the Department of Finance, in consultation with the California State Transportation Agency, to examine loans or other financing options to support Bay Area local transit agencies and separately to examine options for Los Angeles entities. Committee members stressed urgency, saying Bay Area operators may be forced to cut service without timely action.

Major trailer bills and policy points discussed

- AB 144 (Health): Adjusts statewide immunization policy to preserve state options if federal guidance changes; creates an Abortion Access Fund and authorizes support for gender‑affirming care coverage; includes an exemption for certain medical providers to support the 2028 Olympic and Paralympic Games in Los Angeles.

- AB 146 (CalFresh/HR 1 response): Gives the Department of Social…