California Bets Big on Literacy: State Budget Proposes Additional $200M in Funding

Key Points:

• Governor Newsom’s May state budget proposed an additional $200M investment in literacy
• This supports a broader $543M initiative to raise reading performance across the state, with a focus on multilingual learners

We surveyed California educators about new universal reading screeners and found that many were concerned about related funding and support systems. In the May revision of the 2025-26 California state budget, Governor Gavin Newsom announced $200M in one-time funds, earmarked for literacy professional development for elementary educators. This is in addition to the $543M already invested in educational initiatives.

Allocation of Funds

The investments are strategically distributed to benefit various key literacy initiatives:

• Early Literacy Instruction. This includes funds to buy instructional materials, hire literacy coaches, and train teachers in literacy instruction that aligns with structured literacy.

• Professional Development. This latest $200M investment is in one-time funds to train elementary educators in evidence-based literacy instruction practices that align with California’s ELA standards.

• Universal Reading Screeners. $10M is designated for the implementation of universal reading screeners to identify and support students who are at risk of reading difficulties. 

These investments are part of a broader push in education funding that includes support for universal transitional kindergarten and the continuation of free school meal programs. 

Distribution of Funds

Much of the budget funds will be distributed to local educational agencies (LEAs), taking into account their needs and the demographics of their students. They can use the funds for the following: 

• Staffing
• Instructional materials
• Profesional development
• Programs for English learners
• Targeted supports for multilingual learners
• Supports for students most impacted by learning loss

State Investments in Literacy Result in Large Gains

There are many examples of states that have invested significant funding into literacy initiatives and seen impressive gains in student reading achievement. Some of these include:

• In 2013, Mississippi rolled out the Literacy-Based Promotion Act and has invested approximately $15M per year in the initiative since 2014. Their state ranking for fourth-grade reading levels rose from the 49th to 21st in the country, according to the National Assessment of Education Progress (NAEP). 
  
  
• Tennessee passed the Literacy Success Act in 2021, which invested in Science of Reading-aligned curriculum and interventions. In the years following the initiative, their 3rd-grade ELA proficiency rates rose to their highest level since 2017. 
  
  
• In Georgia, school districts used federal COVID relief funds for their CARES Act Literacy Initiatives, implementing significant literacy reform and supporting the training of educators, hiring coaches, and buying instructional resources. These school districts successfully closed pandemic learning gaps and even surpassed their pre-pandemic achievement levels in ELA. 

California continues its literacy push with its youngest students and diverse populations in mind. As educators adapt to this shift, early intervention and targeted instruction will ensure that students learn foundational reading skills, which in turn lead to academic success.