ent numbers. Where the administration does not include it in its calculations, it notes that a 20% correction in the market could have a negative impact of about $20 billion on revenues. Stock market declines, uncertainty about federal policy, and reemerging inflation, along with the subsequent restrictive monetary policy, are additional economic risks that could affect the budget going forward. Alongside key investments in sustain- ability, energy, labor, and tax credits, the budget proposal includes the Governor’s five-year infrastructure plan. Te plan addresses only crucial investments in as- sets supporting the state’s core functions, totaling $58.5 billion. Incorporated in that infrastructure plan, this year’s budget maintains the one-time transportation investments found in the 2025 Budget Act, rounding out to $14.6 billion, allocating the following:
• $7.6 billion for high-priority transit and rail infrastructure projects.
• $4.2 billion from Proposition 1A for the High-Speed Rail Authority to continue building the 119-mile Central Valley Segment from Madera to just north of Bakersfield.
• $1 billion from Cap and Invest for the High-Speed Rail Authority.
• $1.2 billion for projects that improve goods movement on rail and roadways at port terminals, including railyard expansions, new bridges, and zero- emission modernization projects.
• $1.1 billion for Active Transportation Program projects and climate adaptation projects.
• $410 million for the Zero Emission Transit Capital Program.
• $150 million for grade separation projects that support critical safety improvements and expedite the
Felipe Fuentes
movement of traffic and rail by separating the vehicle roadway from the rail tracks.
Te budget is still in its preliminary
stages; it has months to go before finaliza- tion. As of February 1, 2026, the adminis- tration released its proposed budget trailer bills, and the legislature has been in budget hearings since to review. By May 14, 2026, the governor will take the legislature’s feedback and release his revised budget, followed by more hearings. Te legislature must vote on the bud-
get by June 15, and the governor will sign by June 30, just in time for the new fiscal year to begin on July 1, 2026.
FACTORY DIRECT
FACTORY DIRECT • LARGE INVENTORY
LARGE INVENTORY • FAST SHIPPING
FAST SHIPPING • CUSTOMER SERVICE
CUSTOMER SERVICE
CALIFORNIA CONSTRUCTOR MARCH/APRIL 2026
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