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california Budget proposal Faces Criticism for Healthcare Cuts and Inaction on Federal threats
California health advocates are expressing concern over Governor Newsom’s January budget proposal for 2026-27,citing continued cuts to healthcare and a lack of proactive measures to address potential coverage losses stemming from federal actions. These concerns arise as Californians already experience rising healthcare premiums due to changes initiated during the Trump Management,with further impacts anticipated from federal legislation like H.R.1.
Advocates emphasize the urgency of addressing these issues to prevent irreversible damage to the state’s healthcare system.
Key Concerns with the Proposed Budget
1) Cuts Targeting Immigrant Communities Persist and Expand
Rather than reversing previous reductions, the Governor’s proposal maintains and expands cuts impacting immigrant communities. These include:
- A continued freeze on Medi-Cal enrollment for undocumented Californians, wich began January 1, 2026.
- The planned elimination of dental coverage for this population, scheduled for July 1, 2026.
- A new $30/month Medi-Cal premium, set to take effect july 1, 2027.
The budget also introduces new barriers to care, such as California-specific work reporting requirements – not mandated by federal law – that may be difficult for many immigrants to fulfill.
Furthermore, the proposal would roll back comprehensive Medi-Cal coverage for approximately 200,000 legally present immigrants who are being transitioned off of federal healthcare programs. These individuals would be limited to ”restricted scope” care, covering only emergency services and excluding preventative and chronic care management. california Health Care Foundation provides more information on the impact of these changes.
2) rising Costs for Covered California Enrollees
Californians enrolled in Covered California are already experiencing increased premiums due to a lack of action from Congress. While the budget allocates $190 million in affordability assistance,advocates argue this will be insufficient to offset the billions in federal funding losses anticipated. Covered California reports a 3
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