CAARO Update Issue #2026-11

The purpose of the California Department of Education (CDE) CAARO updates is to provide local educational agencies (LEAs) and other interested parties with timely information related to programs administered by CAARO.

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New State Categorical Programs in 2026–27

Categorical Programs - Allocations & Apportionments
Estimated Cash Flow for State and Federal Programs (Updated Aug-2026)

Please note that the allocation and apportionment timelines listed below are estimates and subject to change. Future CAARO updates will reflect any changes to the timelines.

Student Support & Professional Development Discretionary Block Grant (SSPDBG)

• California Education Code (EC) Section 44475, as added by Section 76 of Assembly Bill (AB) 126 (Chapter 65, 2026), along with Schedule (1) of Item 6100-485 and Provision 1 of Item 6100-488 of the Budget Act, AB 109 (Chapter 19, 2026), as amended by Section 137 of Senate Bill (SB) 111 (Chapter 21, 2026), appropriates one-time funding in the amount of $5 billion to LEAs for discretionary purposes, including, but not limited to professional development for teachers on the English Language Arts and English Language Development Framework, Literacy Roadmap, and Mathematics Framework; professional development on developmentally appropriate instruction; teacher recruitment and retention efforts; career pathways and dual enrollment; community school and Promising Neighborhood partnerships; deferred maintenance of school facilities; and to address rising costs.
• Funding is calculated at a per-pupil rate based on fiscal year (FY) 2025–26 average daily attendance (ADA) for transitional kindergarten through grade 12 as the Second Principal (P-2) Apportionment. The estimated per-ADA rate is approximately $930.
• The CDE will post the allocations and per-ADA rate on the SSPDBG web page in late August 2026. A first apportionment reflecting 75 percent of the allocation for each LEA will be released in early October 2026, with the remaining 25 percent of the allocation to be released in February 2027.
• Funds are available for expenditure through June 30, 2032.
• LEAs must report final expenditures to the CDE by September 30, 2032. Charter schools that cease to operate before June 30, 2032, must report final expenditures within 60 days of the effective date of closure.
• New in 2026–27: Pursuant to EC Section 44475(d), an LEA with existing declining enrollment in the next 5 years must hold a public hearing on their plans to address declining enrollment’s impacts on the LEA, including school site closures and consolidations. Furthermore, an LEA must ensure that none of their employees are charged a fee for professional services, including, but not limited to, beginning teacher induction program and professional development costs, during the grant period.
• For program questions, please contact the Professional Learning Support Division at PLSD@cde.ca.gov.

Learning Recovery Emergency Block Grant (LREBG)

• Section 37 of AB 126 (Chapter 65, 2026) amended EC Section 32526 to restore the remaining $757.3 million in one-time LREBG funding. The funds are to be used to continue learning recovery initiatives through the 2027–28 school year.
• Funding is calculated at a per-pupil rate based on an LEA’s 2021–22 P-2 ADA for grades K–12 multiplied by the LEA’s 2021–22 unduplicated pupil percentage (UPP). The estimated per-pupil rate based on 2021–22 ADA and UPP is approximately $228.
• The CDE will post the allocations and per-pupil rate on the LREBG web page in late September 2026. An apportionment reflecting 100 percent of the allocation for each LEA will be released in late October 2026.
• Funds are available for expenditure through June 30, 2028.
• Reminder: LEAs must develop a needs assessment regarding the use and expenditure of funds received in FY 2026–27, pursuant to EC Section 32526(d)(1). In addition, LEAs must include their LREBG funds in their Local Control and Accountability Plan (LCAP), or annual update to the plan, pursuant to EC Section 52064.4.
• Information regarding the allowable uses of funds and reporting requirements is available on the LREBG Program Information web page. For program questions, please contact the School Improvement and Support Office at LREBG@cde.ca.gov.

California Community Schools Partnership Program

• Section 19 of AB 126 (Chapter 65, 2026) added EC Section 8903 appropriates $1 billion to the California Community Schools Partnership Program to support a network of eligible school sites to implement new, and provide ongoing support for existing, community schools.
• Funding is available to existing community schools and new eligible school sites with at least 65 percent or greater unduplicated pupils and 10 or more students enrolled based on prior year Fall 1 Census Day pupil data submitted through the California Longitudinal Pupil Achievement Data System (CALPADS).
• Funding is determined by the number of students enrolled at each eligible school site, with statutory cost-of-living adjustment (COLA) added starting in FY 2027–28. The allocation for existing grantees will be the greater of their existing amount or the new funding level below.
  • 10 to 24: $75,000
  • 25 to 150: $115,000
  • 151 to 400: $190,000
  • 401 to 1,000: $230,000
  • 1,001 to 2,000: $305,000
  • 2,000+: $400,000
  The annual payments will be the same amount, not including COLA, and may be adjusted when eligibility is redetermined as part of the seven-year recertification process.
• LEAs with eligible school sites must opt in by November 1, 2026, to receive funds in FY 2026–27, or by June 1 each year to receive funds in the following fiscal year.
• New community schools may use the first two years of the grant period for planning and developing the required implementation plan.
• LEAs must submit an annual progress report, including an attestation that their community schools are providing wraparound supports and implementing community schools in accordance with the California Community Schools Framework, as described in EC Section 8901.5. LEAs must also provide program and expenditure data as required by the CDE and participate in program evaluation and improvement efforts.
• Starting in FY 2031–32, an LEA’s community school sites must participate in a seven-year certification process to ensure quality community schools models are implemented with fidelity. Only school sites that are certified through this process will be eligible to receive ongoing community schools funding.
• For program questions, please contact the Community Schools Office at CCSPP@cde.ca.gov.

Literacy Coaches & Reading Specialists (LCRS) Grant Program

• Section 118 of AB 126 (Chapter 65, 2026) added EC Section 53009.1 appropriating $350 million to supplement existing recipient funding appropriated in FYs 2022–23, 2023–24, and 2025–26. Funds are to be used to develop and sustain literacy programs, including English language development and dual language immersion programs, and other programs for multilingual learners. In addition, AB 126 (Chapter 65, 2026) codified the FY 2022–23 cohort in EC Section 53008.5 and the FY 2023–24 cohort in EC Section 53008.7 (see new changes to existing LCRS grants below).
• Funding is calculated proportionally based on the grant amounts received by each eligible school site.
• LEAs with eligible school sites have until September 30, 2026, to opt-out of participating in the grant extension.
• The CDE will post the allocations on the LCRS web page in late August 2026. An apportionment reflecting 100 percent of the allocation for each LEA will be released in early December 2026.
• Funds are available for encumbrance through June 30, 2031.
• LEAs must submit a report to the CDE by June 30, 2031, detailing how it used the funds received and other metrics as determined by the CDE.
• New changes to existing LCRS grants:
  • FY 2022–23 cohort [EC Section 53008.5]:
    • Section 115 of AB 126 extended the encumbrance period through June 30, 2031.
    • LEAs must submit an additional interim report by June 30, 2027, and a final report by June 30, 2031.
  • FY 2023–24 cohort [EC Section 53008.7]:
    • Section 116 of AB 126 extended the encumbrance period through June 30, 2031.
    • LEAs must submit an additional interim report by June 30, 2028, and a final report by June 30, 2031.
  • FY 2025–26 cohort [EC Section 53009]:
    • Section 117 of AB 126 extended the encumbrance period through June 30, 2031.
• LEAs have until June 30, 2031, to submit the final report.
• Information regarding the allowable uses of funds and reporting requirements for the prior cohorts and supplemental funding will be made available on the LCRS Program Information web page. For program questions, please contact the Professional Learning Innovations Office at PLIO@cde.ca.gov.

Literacy Screenings Professional Development

• Section 119 of AB 126 (Chapter 65, 2026) added EC Section 53009.5 appropriating $40 million in one-time funding to support implementation of the requirements in EC Section 53008.
• Funding is calculated at a per-pupil rate based on an LEA’s K–2 enrollment data as of prior year CALPADS Fall 1 Certification.
• The CDE will post the allocations on the Literacy Screenings Professional Development web page in November 2026. An apportionment reflecting 100 percent of the allocation for each LEA will be released in late January 2027.
• Statute does not provide a deadline to expend or encumber the funds.
• There are no reporting requirements for these funds.
• For program questions, please contact the Professional Learning Innovations Office at PLIO@cde.ca.gov.