Governor Gavin Newsom signed Assembly Bill 113, the 2026 Budget Bill Jr., on September 18, marking a significant increase in state funding for California’s arts, culture, and creative sector. The final 2026-27 state budget includes more than $80 million in new cross-agency investment, representing the largest single-year expansion of state arts funding since 2021.
This funding package is set to benefit residents throughout Santa Clara County by bolstering local arts infrastructure, supporting artists and cultural workers, expanding access to arts experiences for youth, and advancing a creative economy that contributes to the region’s economic vitality and quality of life. Among the specific programs receiving renewed support, the California Cultural Districts program, which celebrates culture and accelerates economic impact in unique, state-designated neighborhoods, will provide resources for San Jose’s Japantown. The budget also includes increased grants for arts organizations through the California Arts Council, renewed funding for the Performing Arts Equitable Payroll Act to pay artists, and $37.2 million in direct passthroughs to various arts and culture organizations statewide.
The momentum for this increased investment emerged from a persistent grassroots effort. In November 2025, the Coalition of County Arts Agencies, including SVCREATES representing Santa Clara County, joined with California Arts Advocates to submit a budget letter to Governor Newsom. This letter requested an increase in the California Arts Council's budget to $50 million. However, in January, the Governor’s initial budget proposed a flat funding of $24 million for the California Arts Council, an amount that prompted widespread objection from local communities concerned about systemic underinvestment in the sector.
Despite California being a vibrant state, it ranks 35th nationally in per capita arts funding, with the state budget allocating just $0.53 per person to the arts. Arts and cultural production contributes significantly to California’s economy, generating $288.9 billion annually, which accounts for 7.5% of the state economy. This sector also supports over 821,000 jobs, with workers earning $136.2 billion in wages and benefits. Through sustained advocacy by residents across California and the commitment of legislative champions, the message regarding the value of creativity was heard, leading to the revised budget allocation.
Julie Baker, CEO of California for the Arts and California Arts Advocates, emphasized that the budget victory was the direct result of "thousands of Californians who refused to accept the chronic underfunding of arts and culture." While the specific San Jose and Santa Clara County organizations that will benefit will not be known for several months, as much of these new funds will be distributed through competitive state-level grant programs, local arts groups are positioned to utilize these new state funds to serve and uplift residents across the region. Amid a volatile economy, reduced federal funding, and a growing need for the arts to heal and connect communities, this financial support is considered crucial.
