The final agreement reduces harm for thousands of immigrant Californians by delaying some of the most harmful healthcare cuts.
(Sacramento, CA) –Governor Newsom has signed California’s final 2026–27 state budget, making significant delays to proposed cuts announced earlier this year and allowing thousands of immigrant Californians to retain coverage and essential benefits.
The Latino Coalition for a Healthy California commends Governor Newsom and legislative leaders for taking meaningful steps to reduce immediate harm, preserve current access to care, and provide communities with additional time to prepare for significant state and federal changes to Medi-Cal.
“This final budget helps ensure Californians can continue accessing the care they need,” said Dr. Seciah Aquino, Executive Director of the Latino Coalition for a Healthy California. “We commend Governor Newsom and legislative leaders for protecting critical Medi-Cal access. Delaying these cuts gives families much-needed breathing room while giving California the opportunity to chart a path toward fully restoring Medi-Cal access. But delays are not solutions. Lower asset limits, the transition from managed care to fee-for-service, the continued enrollment freeze, and the impending federal H.R. 1 implementation changes will undoubtedly disrupt access, continuity of care, strain our healthcare infrastructure, and deepen health disparities. The next year must be about more than delaying harm, it must be about restoring full access. That means seriously pursuing sustainable revenue solutions alongside policies that protect Medi-Cal coverage, strengthen our healthcare system, and ensure every Californian can access the care they need.”
The final budget includes these delays in cuts:
- A delay in the elimination of adult dental benefits for immigrants until no sooner than July 1, 2027
- An extension of state-funded full-scope Medi-Cal for humanitarian populations, such as asylees and refugees, through June 30, 2027
The final budget outlines additional changes to coverage:
- A transition from managed care to fee-for-service for Medi-Cal members without satisfactory immigration status, accompanied by $39 million for continuity of care and navigator support
- Retains the monthly Medi-Cal premium passed in last year’s budget for certain people with unsatisfactory immigration status beginning July 1, 2027. The 26-27 budget leaves the decision on the exact premium amount between $30 and $50 per month to the next governor to be decided by the May 2027 Revision.
- Lower Medi-Cal asset limits beginning July 1, 2027, including limits of $21,000 for one person, $31,000 for two people, and an additional $1,550 for each additional household member
Although the final agreement provides temporary relief, several provisions will require close monitoring to assess impact. The transition from managed care to fee-for-service could create disruptions in provider relationships, language access, care coordination, and navigation for immigrant communities. In the meantime, advocates, providers, community promotores and decision makers must prepare for implementation, identify gaps, and ensure future decisions are informed by the experiences of the people most affected. We remain committed to partnering with community organizations and healthcare stakeholders to track these impacts and advocate for adjustments that prevent people from losing access to trusted and culturally responsive care.
Temporary delays and transition funding provide needed breathing room, but they are not sustainable long-term solutions. California must begin advancing revenue-generating proposals that strengthen the healthcare safety net and protect access over time. The current system leaves coverage too vulnerable to changing budget conditions and political priorities.
Our future governor and legislature must invest in a stable healthcare system that preserves continuity of care and keeps all people covered regardless of political shifts. Healthcare access should not depend on temporary budget victories. California must pursue lasting solutions.
LCHC will continue working with state leaders and community partners to protect access during implementation, advocate for the full restoration and continued expansion of access to care for every Californian, and advance long-term investments that strengthen California’s healthcare system.
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About LCHC:
Latino Coalition for a Healthy California is the leading statewide policy organization with a specific emphasis on Latine and Indigenous health. For over 33 years, LCHC has worked on transforming systems to achieve health justice. We pride ourselves in translating community solutions into equitable policy and lasting systemic change. Our work focuses on legislative and administrative advocacy, people power, and narrative change.
