On June 30, Governor Newsom finalized California’s budget based on negotiations with the Legislature. While the final budget substantially improves upon the Governor’s initial May Revise budget proposal it still makes harmful cuts to the state’s Medi-Cal program. The National Health Law Program (NHeLP) is disappointed that many of the proposed cuts in the May Revise were maintained in the final budget. While NHeLP appreciates the tough decisions the Governor and Legislature had to make, targeting Medi-Cal coverage is a step back from the progress our state has accomplished as a leader and champion of health equity.
The budget discontinues health coverage for some immigrant families beginning January 1, 2026, by imposing a Medi-Cal enrollment lock out for undocumented individuals 19 and older. Those who are already covered will have to pay a $30 monthly premium starting in July 2027; this is unaffordable for individuals with low incomes.
“While we are relieved that the final budget preserves long-term care services and In Home Supportive Services for our immigrant population, the bill eliminates dental services for individuals with UIS beginning July 2026. These cuts are a retreat from the hard-fought wins of California’s Health4All program, which brought the state closer to achieving near universal health coverage,” said Skyler Rosellini, Assistant Director of California Policy.
In the midst of federal efforts to block Planned Parenthood from Medicaid, we appreciate the state’s commitment to reproductive health services. We are also pleased that California’s final budget rejected the proposed $2,000 asset limit, instead landing on a much more reasonable amount at $130,000. Still, reinstating an assets test will harm older adults and people with disabilities who are subject to the asset test in order to access Medi-Cal coverage.
