A wide-view of lawmakers standing and talking to each other in the middle of a legislative floor filled with desks. A white chandeliers hangs above the room and the room is decorated with beige and green fixtures.
Lawmakers chat during an Assembly floor session at the state Capitol in Sacramento on Feb. 23, 2026. Photo by Fred Greaves for CalMatters

State lawmakers are returning to Sacramento today for the final month of session, which ends on Aug. 31. In the next few weeks, Democratic legislative leaders will attempt to hammer out deals between themselves, Gov. Gavin Newsom and other stakeholders on bills related to climate policy, speeding up urban development, wildfires and more, write CalMatters’ Yue Stella Yu and Maya C. Miller.

Major deals we’re keeping tabs on include:

  • Climate funding: By the June state budget deadline, legislators and Newsom failed to agree on how to spend the state’s main climate fund. The parties last year reauthorized the state’s carbon market, which finances climate programs by charging companies that pollute. But that money, which was estimated to generate $4 billion a year, could shrink by half under new rules the Newsom administration adopted this year — putting money for various legislative priorities at risk.
  • California Forever: The real estate development group, backed by tech billionaires, wants to turn large parts of Solano County farmland into a new Bay Area city. It is seeking a carveout on environmental rules to speed up this project, but no legislation materialized to help it do so. After a shipyard company chose Texas instead of California Forever’s site for its newest location, the group — which Newsom appears to support — is growing impatient with lawmakers.
  • Utilities’ liability: Newsom’s latest proposal to address wildfire risks has consumer advocates, wildfire survivors and insurance companies accusing the governor of trying to reduce utilities’ liability for wildfires they cause. They all allege that the legislative proposal, which doesn’t have a lot of details because there is no bill language yet, would limit compensation for fire victims and eliminate insurers’ right to recover wildfire costs from utilities. Meanwhile, lawmakers have remained mum on the governor’s proposal.

Read more.


CalMatters events: Join us Wednesday in Riverside for a free conversation about how California will educate its future workforce. CalMatters’ Adam Echelman will moderate a discussion with health, education and workforce leaders. Register here.

CalMatters and inewsource are also hosting a conversation on Aug. 13 in San Ysidro about the Tijuana River contamination crisis, an environmental emergency affecting millions on both sides of the U.S.-Mexico border. Register.



The nonprofit that would gain billions in CA ballot measure

A person in a blue jacket, wearing a medical mask and blue latex gloves, uses medical equipment to place a blood sample into a beaker behind protective glass in a laboratory.
An immunology professor works in a lab at UC Irvine in Irvine on Feb. 3, 2021. Photo by Leonard Ortiz, Orange County Register via Getty Images

Proposition 38 on the November ballot would provide $8.4 billion for immunology research that could help find cures for heart disease, cancer and Alzheimer’s. But upon closer analysis, the measure appears to be written in a way that enables only one institute in California to receive half the money, reports CalMatters’ Mikhail Zinshteyn.

As written, the bond proposal would mete over $4 billion to select nonprofit and public university researchers who apply for competitive grants. But the other $4 billion would be allocated to one unnamed institute that must meet very specific criteria, including being founded before 2025, meeting a minimum square footage requirement and being affiliated with a University of California campus with a medical center that serves a minimum number of patients that currently only UCLA meets.

These criteria seem to leave only the California Institute for Immunology and Immunotherapy eligible for the bond money. The nonprofit institute was co-founded by billionaire Gary Michelson, who has donated more than $100 million to the institute and is also one of the top wealthy backers of Prop. 38. Michelson and a nonprofit that he founded has donated at least $8.2 million to the Yes on Proposition 38 campaign, while Meyer Luskin, another institute co-founder, donated at least $5 million.

Read more.

Push to regulate license plate readers

A close-up view shows a surveillance camera mounted to a metal pole beside a solar panel. The camera points outward against a bright sky, with mounting hardware and wiring visible.
An automatic license plate reader camera is attached to a pole along Olive Avenue in Fresno on Feb. 19, 2026. Photo by Larry Valenzuela, CalMatters

Proponents of a bill that would limit California law enforcement’s use of automated license plate readers say the proposal would protect people’s privacy from police overreach. But police agencies and officers’ unions argue that the bill would impede their ability to fight crime, writes CalMatters’ Ryan Sabalow.

Thousands of cameras from at least 230 police and sheriffs’ departments are posted along roadways or installed on patrol cars. The bill would cap the time agencies can keep license plate data to 30 days, with some exceptions, and also limit who can access the data. 

The bill would also prohibit law enforcement departments from entering into contracts with camera companies that give federal and out-of-state police default access to plate databases.

But in defense of the plate readers, police agencies say the technology has helped solve murders, recover stolen vehicles and investigate serious crimes including robberies, kidnappings, retail thefts and DUIs. 

Read more.

And lastly: Special report coming Tuesday

A person walks on the sidewalk in front of a red, white, dark blue, and light blue Covered California health insurance sign on a large window in Chula Vista.
A Covered California enrollment center in Chula Vista on April 29, 2024. Photo by Adriana Heldiz, CalMatters

By some estimates California’s uninsured rate is expected to double in the next four years to 15% as a combination of federal and state healthcare cuts take hold. We’re launching a special project and documentary Tuesday to explore what that trend means both for people who will lose insurance and for Californians who may find less access to care even if they’re covered.



Other things worth your time:

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How San Diego is preparing for a winter of extreme weather under El Niño // CalMatters (free)

More than 25K children lose previous legal protections, as federal contract ends // NPR (free)

CA announces minimum wage increase as governor taunts Trump // The Guardian (free) 

What CA families need to know about Trump accounts for babies, kids // EdSource (free)

How a few hundred dollars could manipulate election prediction markets // Bloomberg (gift link)

This year’s tech layoffs have already surpassed all of 2025. CA is at the epicenter // San Francisco Chronicle (gift link)

SF’s Asian Women’s Shelter was told it no longer aligns with the Trump administration’s priorities // The 19th (free)

2 dozen OC parents could face criminal charges if children rode e-bikes, e-motorcycles illegally // The Orange County Register (gift link)

Could smart homes make electrification more affordable for Californians? // KQED (free)

Lynn La is the newsletter writer for CalMatters, focusing on California’s top political, policy and Capitol stories every weekday. She produces and curates WhatMatters, CalMatters’ flagship daily newsletter...