SANTA CLARA COUNTY officials are exhaling as the state spending plan for fiscal year 2026-27 pares back steep cuts initially proposed by Gov. Gavin Newsom.

The state budget signed Monday last week includes $900 million for homeless services, nearly double what Newsom had initially suggested. The budget also keeps funding intact for in-home care and mobile mental health crisis teams, increases funding for food banks to $100 million, provides loans and grants to public hospitals and delays some Medi-Cal cuts for immigrants.

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