Welcome to the May 18-22 edition of the Main Street Minute from your small-business-advocacy team in Sacramento.

State Budget Revise

Most of the news coming out of Sacramento last week was about Gov. Gavin Newsom’s revise of the 2026-2027 State Budget he introduced in January. The third part of the annual budget dance comes June 15 when the Legislature must pass the budget, but like aging Hollywood actors, it will have plenty of nips and tucks here and there after that deadline has passed.

NFIB was under no illusion that the one thing it would have loved to have seen would be included in the budget revise, and that is the complete pay off or significant pay down of the state’s $20 billion loan it still has outstanding with the federal government for the money it borrowed to keep its unemployment insurance trust fund solvent. Not a word about it. Maybe in some progressive corners of the State Capitol, they find it cool that we’re the only state that still hasn’t paid Uncle Sam back.

Small businesses did come in for a mention on Page 97 in the Revenue Estimates section of the May Revise, which touted, “Reduce the $800 Annual Tax for New Businesses by Half—To encourage the formation of new small businesses, which are a major engine of economic growth in California, the May Revision proposes to reduce the $800 annual tax paid by limited liability companies, limited partnerships, and limited liability partnerships in their first year to $400 during the 2027, 2028, and 2029 tax years. This proposal will benefit approximately 250,000 new businesses each year and is expected to provide $100 million in tax relief per year.”

Whoever can benefit from that, great … but for an even greater number, NFIB will direct all its energies at loosening the stranglehold California’s legal and regulatory job-killers have around the necks of Main Street enterprises. We are currently tracking 70 bills in the Legislature for supporting, opposing, and monitoring. From the 70, we have highlighted 12 that are particularly good, bad, and ugly. Click here for the one-page document.

This is the Season

This is the time of the legislative session in which we really need the help of members. Please keep an eye on your inboxes for our Action Alerts asking you, at just the push of a few buttons, to reach out to your legislators and let them know what you think about a piece of legislation. Collectively, The Power of the Small Business Voice, is the most effective and respected in the nation.

Regulatory World

From Nielsen Merksamer’s weekly report

May 13, the California Air Resources Board launched a $1 billion rebate program for electric trucks ($250 million available this year).The rebates range from $7,500 to $120,000 and can be applied toward the purchase of new electric medium‑ and heavy‑duty commercial vehicles. Rebates will be available as early as June 26. Public fleets will also be eligible to purchase pickup trucks.

Natural Resources Agency 2026 Wildfire Outlook – May 19 12:00 pm (virtual only). The Secretary and state leaders will discuss the latest on conditions and hear what California has been doing to prepare for peak fire season, protect communities, and accelerate wildfire safety projects.

Calendar

— May 18: Last day to register for the June 2 Primary Election

— May 29: Last day for bills to pass their house of origin

— June 2: Primary Election for eight state constitutional offices, four Board of Equalization seats, all 52 congressional seats, all 80 assembly seats, and 20 (even-numbered districts) state senate seats.

— June 2: All ballots returned by mail must be postmarked on or before June 2 and received by county elections offices no later than June 9

— June 15: Deadline (by midnight) to pass new state budget

— July 2-August 3: Legislature on Summer Recess

— August 31: Legislature adjourns its 2026 session

— September 30: Last day for governor to sign or veto bills sent to him.

National

Highlights from Federal Government Relations Principal Louis Bertolotti’s weekly report

— This week, the USDA Agricultural Marketing Service announced that it formally changed the spelling of “catsup” to “ketchup.” Revision of U.S. Grade Standards for Canned Tomato Products, 91 Fed. Reg. 26985 (May 13, 2026).

— NFIB submitted testimony for the record to the U.S. House Committee on Education and the Workforce Subcommittee on Workforce Protections in opposition to a proposed Heat Standard rule. Principal of Federal Government Relations Dylan Rosnick said, “Small businesses care about their employees and take precautions to prevent any injuries or illnesses.”

— NFIB sent a press release in response to President Trump’s support for suspending the federal fuel tax, highlighting Principal of Federal Government Relations Louis Bertolotti’s recent comments to the Washington Examiner: “We applaud the Trump Administration for thinking of small business owners who are unable to absorb rapid prices changes as easily.”

— The 87th episode of the “Small Business Rundown” podcast was released, discussing rising credit card swipe fees. Rosemary Elebash and Beth Milito discussed recent activity on the issue in state legislatures, the courts, and Congress.

Next Main Street Minute: May 25. All Main Street Minutes can be found on the NFIB website here. Pull down the California tab in the upper-right-hand corner, or, to get right to it here, www.nfib.com/california.