Dangerous and Short-Sighted: Governor Newsom Ramps Up Harmful Medi-Cal Cuts in Revised State Budget
Governor Newsom refuses to protect Medi-Cal access, while advocates urge the Legislature to continue to restore Medi-Cal access for ALL Californians.
(Sacramento, CA) –Today, Governor Gavin Newsom released his revised 2026–2027 California state budget and declined to delay harmful Medi-Cal freezes and safety-net reductions impacting immigrant Californians. Governor Newsom endangers the health of California’s most vulnerable communities while destroying his legacy as a health champion. We urge the Legislature to lead by rejecting these proposals that simply defer responsibility and leave California in a deeper crisis. The time is NOW, to fight boldly and demonstrate what true leadership looks like.
The Governor’s revised budget maintains and doubles down on several deeply concerning proposals that continue to place immigrant Californians at risk, reinstates a $2,000 means asset test for Medi-Cal eligibility, advances harmful work requirements for state-funded populations, and increases premiums from $30 to $50 for undocumented Californians to continue accessing Medi-Cal. These policies not only lock many Californians out of preventative and ongoing care but also create additional barriers for individuals who have already faced disenrollment or coverage disruptions.
Additionally, the Governor proposes moving undocumented state-funded Medi-Cal beneficiaries to a fee-for-service model that has historically had challenges with providing care equitably for Latines, communities of color, and individuals with limited English proficiency. Any savings from the transition to fee-for-service should be invested back into restoring full access to Medi-Cal, regardless of immigration status, and addressing equity issues in the fee-for-service coverage model.
“Governor Newsom has used his final state budget revision to undo his legacy as a champion for health equity. Medi-Cal access is a Latine issue, and with this budget proposal, Governor Newsom leaves our communities more vulnerable than ever,” said Dr. Seciah Aquino, Executive Director of the Latino Coalition for a Healthy California. “At a moment when Latine communities are facing escalating federal attacks, economic instability, and fear around accessing services, California should be expanding protections, not creating additional barriers to care. We cannot claim concern about California’s future while harming one of its greatest drivers of growth and prosperity. The consequences of these decisions will impact the state for generations. Restricting healthcare access today will deepen health inequities, increase preventable health crises, increase healthcare costs, and ultimately hurt our economy. These decisions will cost the state its standing as the fourth-largest economy in the world. We call on legislative leaders to push back against these devastating proposals and advance solutions that actually protect the health, dignity, and future of all Californians.”
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About LCHC:
Latino Coalition for a Healthy California (LCHC) is the leading statewide policy organization with a specific emphasis on Latine & 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.
