The January budget proposal keeps harmful cuts in place and ignores looming H.R. 1 threats. 2026 is already in full swing for California health advocates working to protect our health coverage. Last week, Governor Newsom released his January budget proposal for 2026–27 which unfortunately continues harmful cuts to our care and fails to offer real […] The post Newsom’s budget delays action — our health coverage is at risk appeared first on Health Access.
The January budget proposal keeps harmful cuts in place and ignores looming H.R. 1 threats.
2026 is already in full swing for California health advocates working to protect our health coverage. Last week, Governor Newsom released his January budget proposal for 2026–27 which unfortunately continues harmful cuts to our care and fails to offer real solutions to prevent looming coverage losses. That matters because the attacks on our care from the Trump Administration are already hitting Californians with skyrocketing health care premiums, and the worst impacts of the federal H.R. 1 “Big Ugly Bill” are still ahead.
We can’t afford to wait. California lawmakers must act now to protect coverage and stabilize our health system before the damage becomes irreversible.
Here’s what we’re watching closely:
1) The budget proposal continues to unfairly target immigrant communities
Instead of reversing course on harmful cuts from last year, the Governor’s proposal doubles down on them and goes even further. The cuts maintained to immigrant communities include:
- The Medi-Cal enrollment freeze for undocumented Californians (started January 1)
- The planned elimination of dental coverage (July 1, 2026)
- A new $30/month Medi-Cal premium (starting July 1, 2027)
The Governor’s budget further put this population at risk by adding new barriers to care like California-specific work reporting requirements – not required by any federal law – that would be impossible for many immigrants to meet.
Newsom’s budget also rolls back years of precedent ensuring comprehensive Medi-Cal coverage for 200,000 legally present immigrants being kicked off of federal health care programs. Under the current state plan, these Californians would now only be eligible for “restricted scope” care – bare-bones emergency coverage, stripping them of the ability to manage chronic conditions or get preventative care.
2) Covered California enrollees are still facing higher costs
With leaders in Congress failing to act, millions of Californians are already feeling the squeeze on their family budgets from rising health care premiums. The budget proposal includes $190 million for some affordability help for Covered California enrollees, but that will pale in comparison to the billions that we will lose at the federal level. In fact, new enrollment in Covered California is already down 30% from this time last year. We will continue to push for ways to support Californians staying covered through our state’s health care marketplace.
3) Governor Newsom is refusing to pursue new revenue solutions — even with billions in losses coming
This is one of the biggest takeaways. The Governor’s budget proposal does not include any new revenue to backfill the looming multi-billion-dollar budget gap created by federal health care cuts and other losses.
That’s dangerous. Medi-Cal covers 15 million Californians – a third of our state – and federal cuts seek to upend this key pillar of our health care system. This will lead to millions more uninsured Californians, raising costs for us all.
Meanwhile, the Trump Administration’s H.R. 1 gave massive tax breaks to the wealthiest corporations and individuals at the expense of health care for the rest of us.
California has many choices ahead. But our lawmakers need to show the boldness this moment demands by asking corporations to pay their fair share to protect the health care of millions of Californians.
Bottom line
This budget continues to put immigrant communities, Covered California enrollees, and our whole health care system at risk by delaying action.
California lawmakers must act now to prevent coverage losses and shore up our health care system from H.R. 1 cuts.
Look forward to more from us as we take the #FightForOurHealth to the State Capitol!
The post Newsom’s budget delays action — our health coverage is at risk appeared first on Health Access.
