LOS ANGELES – January 12, 2026 – Governor Newsom kicked off California’s 2026-27 budget process with the release of his budget proposal. The main takeaway: the real budget news will come in May. At that time, California will need to address the negative impact of H.R. 1 and other federal policies, along with the State’s significant structural deficit. In the meantime, the proposed budget only assumes a $2.9 billion shortfall for the fiscal year, compared to the Legislative Analyst’s Office projection of an $18 billion deficit.
While the Governor’s budget proposal doesn’t make drastic new cuts to Medi-Cal, it does continue last year’s unfair changes to Medi-Cal eligibility and benefits for immigrants, along with reduced payments to health centers for serving them. We are disheartened by the Governor’s proposal to eliminate full scope Medi-Cal coverage for certain immigrants, including refugees, ...