Los Angeles, CA – Today, Governor Gavin Newsom released California’s preliminary 2026–2027 state budget. The proposal includes changes to Medi-Cal that will disproportionately impact low-income and underserved Californians, coming at a moment when families and communities are already under strain from sweeping federal funding cuts and broader economic pressures.
“Californians believe deeply in fairness and in a health care system that works for everyone,” said Kim Lewis, Managing Director of California Advocacy at the National Health Law Program. “This budget reflects an incredibly difficult moment for the state. Massive federal cuts, including nearly $1 trillion in Medicaid reductions driven by the so-called “One Big Beautiful Bill” Act, have narrowed California’s options and forced painful tradeoffs. Onerous new requirements and funding cuts under OBBBA threaten the progress towards universal health care coverage, regardless of immigration status, that Californians have been fighting to expand for years. In communities across the state millions of individuals and families will lose access to the care they need. The Trump administration has also targeted policies aimed at making health care more affordable and accessible, further squeezing the state. While we understand the constraints the state is facing, we are deeply concerned about what these proposed health care cuts could mean for people who already face the greatest barriers to care. Now more than ever, California must do everything possible to protect access to health care and prevent further harm to communities who rely on these programs to survive and thrive.”
“The Governor’s proposed budget also threatens a Medi-Cal benefit that’s been proven to help keep people safe by reducing unnecessary and dangerous police interactions during behavioral health crises,” said Héctor Hernández-Delgado, Director of Health Services at the National Health Law Program. “Mobile crisis teams are trained to de-escalate volatile situations and connect people to treatment and support. Making this benefit optional rather than statewide risks shifting costs to counties, weakening 24/7 response systems, and leaving families without a good option when a loved one is experiencing a mental health or substance use disorder crisis, including drug overdoses. Rolling it back would increase pressure on emergency rooms, draw law enforcement back into situations better handled by trained health care responders, and endanger the lives of Californians struggling with behavioral health conditions.”
The National Health Law Program will continue to closely analyze the Governor’s proposal and work with state leaders, advocates, and impacted communities to mitigate harm and protect equitable access to health care across California.
Reporters interested in discussing the budget and its impacts with Kim Lewis or Héctor Hernández-Delgado should contact [email protected] to schedule an interview.
