Millions for Transformational Workforce Development Reform Secured in State Budget as Middle Class Pipeline Project Advances through Legislature
SACRAMENTO – Today, the California Assembly Committee on Education voted to approve Senate Bill 638, authored by Senator Steve Padilla (D-San Diego). The transformative measure would create the California Middle Class Pipeline Project, tasked with eliminating traditional barriers to career technical education and workforce development programs. The Pipeline Project would work with educational institutions and private industry to reimagine career technical education in the state, bringing it in line with the needs of the 21st century economy. Earlier this week, the California Legislature approved and Governor Newsom signed the 2025/2026 State Budget into law in which Senator Padilla secured $1.5 million to establish the Middle Class Pipeline as well as $150 million for strategic grant for workforce development programs in high-unemployment and low-income regions of the state.
“California is rapidly becoming a tale of two economies - that of the rural poor and that of wealthier coastal regions,” said Senator Padilla. “But, the prosperity of this state must be for everyone’s benefit. We must open paths to the California Dream to everyone who wants to participate in our economy. Senate Bill 638 will finally focus and broaden state efforts to ensure Californians have access to the training and opportunities they need to succeed.”
Senate Bill 638 would establish the California Middle Class Pipeline Project, a groundbreaking new collaboration between K-12 school districts, community colleges, and local industries to expand strong workforce opportunities across the state, including apprenticeship programs. Specifically, the program will focus on regional needs, including the demands of emerging industries such as information technology, artificial intelligence, healthcare, and the green economy. The Pipeline Project would streamline the state’s career education system to ensure that all relevant stakeholders—in both education and local business—work together to help connect Californians with the necessary supports and services they need to enter quality training programs.
A piece of the California State Senate’s Affordability Package, Senate Bill 638 pairs with $1.5 million in the state budget to establish the Pipeline Project and the $150 million secured in the state budget to create grant opportunities in high-unemployment and low-income regions of the state. These grants will provide local educational agencies with funding to expand and develop programs that will provide Californians with the skills they need to access high quality employment.
SB 638 passed the Committee by a vote of 7 to 0. To learn more about the Senate Bill 638, click here.
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Steve Padilla represents the 18th Senate District, which includes the communities of Chula Vista, the Coachella Valley, Imperial Beach, the Imperial Valley, National City, and San Diego. Prior to his election to the Senate in 2022, Senator Padilla was the first person of color ever elected to city office in Chula Vista, the first Latino Mayor, and the first openly LGBT person to serve or be elected to city office. Website of Senator Steve Padilla: https://sd18.senate.ca.gov/