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June 30, 2026

Undivided updates: CA budget, Olmstead, & “cost-effective” DDS services

Child and caregiver looking at phone

There’s been a lot happening in the disability community lately. This week, we’re breaking a few major updates and developing stories about California’s newly signed budget, a controversial DOJ memo on the Olmstead decision, and how proposed changes to what counts as “cost-effective” could affect Regional Center and SDP budgets (plus how to speak out!).

California budget 2026-2027: what families need to know

  • This year’s legislative session brought wins for California students, educators, and families of children with disabilities. Here are some of the highlights:
  • Legislators approved a historic 43% increase in special education funding.
  • Legislators rejected the governor’s proposal to limit Medi-Cal assets to $2,000 for individuals and also rejected cuts to IHSS.
  • Legislators approved additional funding for DDS services, DOR, HCBA waiver, and more.

Check out our latest article where we break down what these changes mean and how they can help our families.

What California’s proposed ‘cost-effective’ definition means for your SDP budget

If your family receives Regional Center services — especially if you’re in the Self-Determination Program (SDP) — there’s a developing policy change worth knowing about. The Department of Developmental Services (DDS) has been directed by state law to create, for the first time, a statewide definition of what “cost-effective” means.

Why it matters: this definition will shape what services Regional Centers agree to fund, and for SDP families, how much you can pay providers. Advocates worry it could be used to push families toward the cheapest option rather than the right fit. The biggest question right now is what will happen to the flexibility that makes SDP work.

What you can do: the proposal isn’t final yet, and DDS is asking families and community members to weigh in on this feedback survey by July 31, 2026, before issuing the final policy later this summer.

Read more in our new article.

How would the new DDS definition of

The assault on Olmstead & the end of the DOE?

Many parents worry about what their child’s future will look like: will they be able to live in their community, find meaningful work, build relationships, and access the supports they need? For more than 25 years, the Olmstead decision has helped protect those opportunities by affirming the right of people with disabilities to receive services in the most integrated setting appropriate to their needs and supporting access to home and community-based services.

That’s why a new DOJ memo questioning the decision’s long-standing interpretation is drawing concern from disability advocates nationwide. Watch our quick video to hear Undivided Head of Content and Community Lindsay Crain break down what’s at stake and how you can contact your representatives to make your voice heard.

Then, dive into our article for more federal updates, including the Department of Education’s long-anticipated move of OSERS to the Department of Health and Human Services (HHS) and the OCR to the Department of Justice, plus the growing legal fight as families, educators, and lawmakers push back. Is this the end of the Department of Education?

These stories are still developing, and we’ll continue to keep you informed as we learn more. While policies and systems may change, our commitment to families doesn’t. We’re here to help you navigate every step with trusted guidance, practical resources, and tools to help keep your child’s education, services, and public benefits on track. If you have questions, we’re here to help.

 

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