California teachers had some big wins in this year’s state budget, including about $700 million for stipends and training, and $218 million to support paid pregnancy leave.

The funding for teacher recruitment and retention builds on the more than $1 billion California has spent since 2018 to end a persistent school staffing shortage that has left many classrooms without a fully credentialed teacher.

The investments appear to be paying off. New preliminary teaching credentials increased 40% between 2022-23 and 2024-25, while the pool of teacher candidates became more racially diverse, according to the Learning Policy Institute, though advocates say more work needs to be done.

Here’s what California teachers won in the state budget.

Paid Pregnancy Leave

The new requirement that school districts pay up to 14 weeks of paid pregnancy disability leave marks a hard-fought victory for teachers. Until now, teachers had to rely on accumulated sick leave or other paid time off during pregnancy.

Members of the California Teachers Association spent at least three years lobbying for the benefit, said California Teachers Association Secretary-Treasurer Erika Jones.

About 22,000 teachers wrote personal testimonies about how the lack of paid pregnancy leave negatively impacted their lives and sent them to state legislators and Gov. Gavin Newsom’s office, Jones said.

Related Reading

Newsom’s final education budget, by the numbers

June 30, 2026

“We had a lot of mothers going back too soon, and who were literally in labor waiting until they were dilated more before they took time off,” Jones said.

The lack of paid maternity leave has impacted teachers at the end of their careers as well. They often have to work longer than their male counterparts, to make up for time lost during pregnancy, to earn enough service credits to qualify for retirement, Jones said.

Both Gov. Jerry Brown and Newsom had vetoed bills to provide paid maternity leave, citing the cost to districts. This year, the Newsom administration changed course, saying the benefit was a way to improve recruitment and retention of employees while prioritizing the health and well-being of school employees.

The budget permanently increases the cost-of-living adjustment given to schools and community colleges by 1.44%, in part, to help pay some of the cost of pregnancy leave. The larger COLA is estimated to cost the state roughly $218 million each year, according to the budget.

The new benefit will go into effect on Jan. 1, 2027, with no required contribution from teachers.

Golden State Teacher Grant

The Golden State Teacher Grant program, which had been at risk of running out of money, had an infusion of funding from three sources — $16.2 million in ongoing federal special education funding, $1.6 million in one-time federal Title II funds and $10 million in state general fund money.

The federal funding in the grant provides one-time payments of up to $20,000 to teacher candidates working toward a special education credential. Prospective teachers in other high-needs fields of study can get a grant of $10,000.

Recipients of the $20,000 grant must work at a priority school or in a California preschool program for four years and complete that service within eight years of finishing a teacher preparation program. Recipients of the $10,000 grant must complete 2 years of service within four years of completing teacher preparation, according to the California Student Aid Commission, which administers the program.

The program, which started with $500 million of state funding, has paid stipends to 28,000 teacher candidates since 2020-21. More than 90% of grantees who completed their commitment plan to continue teaching at a priority school, according to the commission.

It was a challenge for state leaders to find the money for the grant because it is considered a higher education item and can’t be funded with Prop. 98 funding, said Marshall Tuck, CEO of EdVoice, a nonprofit education advocacy organization.

Prop. 98 is the 1988 formula that guarantees schools and community colleges receive about 40% of the revenue from the state’s general fund.

“In the initial budget in January, there were no new dollars for the Golden State Teacher Grant program,” Tuck said. “And I think they did a good job of creatively finding some funding.”

The state should create a new iteration of the Golden State Teacher Grant that can be funded with Prop. 98 dollars, said Tuck, who has lobbied with other education advocates for continued funding for the program.

Student Teacher Stipend

The budget allocates $408 million for the Student Teacher Stipend Program, which was created last year with $300 million after teacher candidates said they couldn’t afford to complete California’s required student teaching while working full time without pay.

The program provides eligible student teachers $10,000 a year while they are completing the state-required 500 hours of student teaching. Beginning the 2027-28 school year, the amount will increase to $15,000 for student teachers who work in a priority school or in a subject area where there is a shortage of teachers.

Student teachers being paid as interns or on emergency-style permits are not eligible for the stipend, according to the state budget.

Educator Residency Programs

The teacher and counselor residency grant programs fund partnerships between school districts and preparation programs that pay residents a stipend of at least $20,000 while they learn alongside veteran classroom teachers and school counselors.

California is adding another $250 million to the $740 million it has already spent on the programs since 2018.

The new budget extends the time residents are allowed to complete the training from five to eight years. It also waives grant repayment for participants who are unable to complete a program because of hardship. Previously, residents were responsible for repaying the grant, adjusted to reflect the service provided.

The 2026-27 budget authorizes the commission to award grants of between $100,000 and $300,000 to institutions that are beginning or expanding residency programs. Before this year, residency grants had been limited to $250,000.

The new money is expected to fund the program through 2029-30.

The state also has set aside $30 million to fund California’s Statewide Residency Technical Assistance Center through 2034. The center operates through five county offices of education.

Classified Staff Credential Program

The budget includes $10 million for the Classified School Employee Teacher Credentialing Program, which helps school districts recruit and prepare classroom aides, food service workers, bus drivers and other classified staff to become teachers.

Participants in the program receive financial assistance for tuition, books, exams and other fees. They are also given academic guidance and individualized support to complete teacher preparation and earn a credential.

Bilingual Teacher Recruitment

The budget also includes $10 million to recruit future bilingual teachers.

The funding allows school districts to partner with community colleges and universities to help high school students begin the process of earning a teaching credential and the bilingual authorization required to teach English learners.

California Teachers Association President David Goldberg called the state investments in teacher grants “fantastic,” but agreed that more should be done to ensure teachers earn a good living and stay in the profession.

“But it’s a good step in the right direction,” he said.