Newsom’s “Balanced Budget” Has a Blind Spot — And It’s the Disability Community

On May 14, Governor Gavin Newsom announced a revised 2026-27 budget that, for the first time in years, is balanced. Revenues are stronger than expected, with positive year-end balances—news that lets a governor claim fiscal responsibility at the podium.

Disability Rights California didn’t see it that way.

The advocacy organization called out what it described as a sharp disconnect between the governor’s public claims and what the budget actually does for Californians with disabilities. And they were right to. Because while the top-line numbers look cleaner than they have in years, the May Revision is still absorbing billions in federal funding losses triggered by H.R. 1 — the federal budget reconciliation bill that cut billions from programs California had counted on. The state didn’t create those losses. But it didn’t fully plug them either.

For organizations serving blind and visually impaired adults—especially those dependent on contracts with the California Department of Rehabilitation—these budgetary decisions have very tangible impacts. The Older Individuals who are Blind (OIB) program, which supports independent living for older adults who are blind, has seen months-long reimbursement delays at some providers. These delays disrupt cash flow, making it difficult for nonprofits to cover staff salaries, rent, and service costs in a timely manner. The process for receiving payments remains slow and is burdened by bureaucratic steps, leaving organizations unable to absorb uncertainties or deficits as larger governmental agencies can.

The January budget proposal included an additional $60 million in federal funds for vocational rehabilitation capacity — acknowledging that demand for employment services among people with disabilities is growing. But additional capacity means nothing if the nonprofit infrastructure that delivers those services is financially unstable going into the next fiscal year. More funding at the top of the pipeline doesn’t help if the providers at the end of it are burning through reserves waiting on reimbursements.

What Newsom’s budget doesn’t address is the fundamental instability faced by small and mid-sized nonprofits—the entities that serve as California’s primary disability service providers. Many of these organizations operate with very limited reserves and face a reimbursement system that pays slowly, increases administrative requirements, and adds pressure to ensure timely, detailed documentation. This environment can lead to financial distress, making it difficult to retain staff or maintain service levels. The May Revision did not propose solutions to these day-to-day operational and financial problems.

The budget process isn’t done. The Legislature has until the end of June to finalize the 2026-27 spending plan, and there are still opportunities to push for provisions that protect the nonprofits doing this work. But time is short, the advocacy window is closing, and the communities most affected — older adults, blind individuals, people with physical and developmental disabilities — are not the loudest voices in Sacramento.

Raise your voices. Demand legislative action now—insist on real support for the nonprofits and communities who need it most. Be the advocate they cannot afford to lose.