Michelson Center for Public Policy Applauds Initial Investment in “Jails to Jobs” in FY 2026-27 California State Budget
SACRAMENTO, CA – Last night, lawmakers passed the three party final budget deal for the 2026-27 State Budget. The Governor and the California Legislature came to a final budget agreement late last week and details of the budget have come out over the weekend.
For the first time, the budget includes an investment in Jails to Jobs, a pilot program that will support people on a path to employment shortly after an arrest, giving them a chance to build the financial stability that keeps them from cycling in and out of jail. The Jails to Jobs pilot has been championed by the Vera Institute of Justice, NextGen California, and Michelson Center for Public Policy.
"For too long, we've been far more willing to pay for incarceration than invest in opportunity, even though we know stable jobs are one of the strongest predictors of safer communities. This $5 million investment represents a better path forward. Jails to Jobs is about meeting people with real support when it matters most, creating pathways to family-sustaining work instead of revolving doors back into the justice system," said Senator Lola Smallwood-Cuevas. "I'm proud to help bring this program to Los Angeles County because every person deserves the chance to build a future that's bigger than their worst mistake."
“This year's legislative budget includes $5 million for a Jails to Jobs pilot program in Los Angeles—an important step forward in providing people coming out of jail with stability,” said Insha Rahman, president and director of the Vera Institute of Justice. “When people lack access to work, their risk of arrest rises. When we promote people’s financial well-being, we break the cycle of crime. We’ve seen that already in Los Angeles with reentry workforce development programs like SECTOR, where almost nine out of ten participants are successful in the community because of having a meaningful job and income. We commend Assemblymember McKinnor and Senator Smallwood-Cuevas for prioritizing public safety and a stronger economy. We, at Vera, look forward to continued partnership in the fight for the full vision, in which California pilots a robust pretrial workforce development program across multiple counties.”
“Economic opportunity and justice involvement are negatively intertwined; your economic opportunities significantly decrease if you become justice involved. But we also know that investments in career readiness, job training, and supportive services pre and post incarceration pay lasting dividends,” said Ken Spence, Senior Policy Advisor for NextGen California. “This funding marks the beginning of a program that will enable time and resources to be spent on guiding individuals along pathways to quality careers, rather than on costly cycles of incarceration. We appreciate the Legislature and Governor for supporting the initial phase of this program, and look forward to future funding for full implementation.”
“This investment will help communities strengthen the education, training, and local partnerships that prepare people for lasting workforce success,” said Mayra Lombera, Chief Policy Officer at Michelson Center for Public Policy. “By supporting education, skills development, and local capacity building, Jails to Jobs can help ensure people are not just connected to opportunity, but equipped to succeed.”
About Jails to Jobs
Each year, thousands of people enter the justice system at a moment when the right support can make a lasting difference. The Jails to Jobs (J2J) pilot program envisions connecting people charged with low-level, nonviolent offenses to job training and employment pathways shortly after an arrest, helping build stability and reducing system involvement while strengthening California’s workforce and economy. The proposal would build on successful reentry models by moving these resources to an earlier stage in the court process, and J2J would run as a pilot in four counties.
This year, the legislature allocated an initial investment in the budget bill (AB 109) and retained it in the final three party budget deal in the Budget Bill Jr. (AB/SB 111), to build the foundation for Jails to Jobs in Los Angeles, specifically through passthrough grants to the Los Angeles County Department of Economic Opportunity and the Los Angeles County Justice, Care, and Opportunities Department. In the “Legislative Version of the Budget” published on June 11, 2026, it included: “$5 million one-time Labor and Workforce Development Fund to support a Jail to Jobs pilot program at the Department of Industrial Relations. This pilot is intended to engage in activities to educate employers and workers about labor laws, workplace rights, and employment requirements related to pre-trial employment.”
A $5 million one-time investment would allow Los Angeles County to begin building the workforce education infrastructure, employer partnerships, and technical assistance capacity necessary to support workers with pending criminal cases and the employers who hire them. This investment will improve understanding of California labor laws, increase employer compliance, reduce barriers to workforce participation, strengthen connections between employers and qualified workers, and create the educational infrastructure needed to support long-term workforce success for people navigating pending criminal cases.
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