It has been a long fight, and today we are celebrating a real win.

California's final 2026–27 state budget, approved through AB/SB 113, a Budget Bill Jr. awaiting the Governor's signature, includes more than $80 million in new cross-agency investment in the arts. This is the largest single-year expansion of state arts funding since COVID, and it provides meaningful support to artists, cultural workers, performing arts organizations, and communities across California.

Here is what the final budget delivers for our creative communities:

The California Arts Council receives a landmark funding increase.

CAC local assistance funding increases from $26 million to $38.55 million, a direct result of our “$50 in 50” campaign, which thousands of advocates rallied around all year. This is not the $50 million we fought for, but it is a genuine, significant step forward and state investments that will reach real organizations in every corner of California.

California Cultural Districts Program receives  $4 million, continuing the program as it grows.

The California Cultural Districts program has expanded from 14 to 24 state-designated districts. This investment ensures ongoing funding for a program that has lacked a stable, dedicated budget. It also clearly demonstrates California's genuine commitment to supporting cultural districts.

A fierce coalition at the Capitol advocating for Senator Smallwood Cuevas’s proposal to increase the California Arts Council’s grantmaking appropriation from $24 million to $50 million in May. In frame (Left to Right): Tiranjini (Tiru) Pillai; Faith McKinnie, Black Artists Foundry; Amanda Sanchez, Capitol Creative Alliance ; Jaya King; Julie Baker, CA Arts Advocates; Colton Dennis, Merced County Arts Council; Diana Arbex, Nevada County; Dominique Johnson, Stanislaus Arts Council ⁠

The Performing Arts Equitable Payroll Fund receives $12 million.

When the PAEPF launched its first round, 413 organizations applied, requesting more than $40 million. The portal closed within days because demand was nearly four times the available funding. This $12 million investment will provide direct payroll support to small nonprofit theaters, orchestras, dance companies, and live performance organizations with annual budgets under $2 million. These are the organizations that have been hanging on through pandemic recovery, rising costs, and federal funding cuts. 

Additional investments across agencies bring the total to over $80 million.

The budget also includes:

• $5 million for building improvements and program support at the Watts Tower Cultural Center.
• $5 million for programming highlighting California artists and local communities at the LA 28 Olympic and Paralympic Games.
• $5 million to Protagonist Black to increase book access in underserved communities.
• $37.2 million in pass-throughs to various arts and culture organizations.
• $2 million to Visit Sacramento for creative economy opportunities.
• $1 million for California Fringe.
• Additional millions for cultural venues and projects through the Natural Resources Agency and California State Parks.

Arts Advocacy Day 2026. Left to Right:  Griselda Suarez, Cultural Affairs Officer, City of Long Beach; Sean Fenton, Board President, CA Arts Advocates and Executive Director of Theatre Bay Area; Julie Baker, CEO of CA Arts Advocates/CA for the Arts; Karen Mack, Executive Director, LA Commons; and Anne Huang, Chief Executive Officer, World Arts West.

How We Got Here

In January 2026, the Governor's budget proposed flat funding of $24 million for the California Arts Council, which was below the agency's funding level from 25 years ago, even as the state budget had doubled over the past decade. The May Revise brought no improvement. Our two flagship asks — $50 million for the CAC and $40 million for the PAEPF — were absent from both the Senate and Assembly budget plans introduced in June.

We did not accept that.

Through sustained direct lobbying by CA Arts Advocates, persistent grassroots mobilization, and the commitment of legislative champions in both chambers, we kept the pressure on during the final weeks of budget negotiations. The result: CAC local assistance funds are more than $14 million higher than at the start of the year, a funded PAEPF, and the largest single-year arts funding expansion since COVID.

As Julie Baker, CEO of California for the Arts and California Arts Advocates, said: "Today's budget victory is the direct result of thousands of Californians who refused to accept the chronic underfunding of arts and culture. This includes artists, cultural workers, educators, creative businesses, mayors, and community members who showed up, made calls, and demanded that their Legislature recognize the arts as essential public infrastructure."

Sacramento budget committee hearing in May. Photo: Theatre Bay Area

Special Thanks to Our Legislative Champions

This victory would not have been possible without people who chose to lead. We extend our deepest gratitude to:

• Senator Lola Smallwood-Cuevas, lead champion for arts investment throughout the budget process.
• Assemblymember Chris Rogers and Assemblymember Christopher Ward, steadfast champions in the Assembly.
• Senator John Laird and Assemblymember Jesse Gabriel, budget chairs who kept arts funding at the table.
• Senator Melissa Hurtado and Assemblymember Sharon Quirk-Silva, subcommittee chairs who advanced the investments.
• Senate Pro Tem Monique Limón and Assembly Speaker Robert Rivas, leadership whose commitment made the difference.
• Assemblymember Matt Haney and Senator Susan Rubio, champions for the Performing Arts Equitable Payroll Fund.
• Senator Ben Allen, Chair of the Joint Committee on the Arts, for his persistent focus on increasing arts funding.

And to the thousands of arts advocates across California who made calls, wrote letters, showed up to hearings, and refused to be ignored: you made this happen.

East Bay Advocates gather in preparation for lawmaker meetings during Arts Advocacy Day 2026. Photo by Tri.Angle Media.

What Comes Next

Arts Advocacy Works, but it’s a long game, not a sprint.

The CAC still operates well below the funding level that California's $289 billion creative economy deserves. CA Cultural Districts need sustained, growing investment. The PAEPF was oversubscribed by nearly 4:1 in its first round; $12 million will not meet the full need. And the federal funding crisis continues to put pressure on the community-based organizations California depends on.

As Sean Fenton, Board President of California Arts Advocates, noted: "This budget changes that trajectory. It may not be everything we fought for, but it marks a genuine turning point and reminds us that organized, persistent advocacy works."

We will be back. And we'll be bringing you with us.

In the meantime, share the news. Celebrate this moment. And stay connected because Arts is Work is Real Work, and the work is never done.