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, asylees, and domestic violence survivors who are losing federal eligibility under H.R. 1.
We look forward to working with our partners, the legislature, and the administration in the coming months to identify ways to address these challenges while maintaining a robust safety net and staying true to our commitment to health care for all.
About the Community Clinic Association of Los Angeles County
Founded in 1994, the Community Clinic Association of Los Angeles County (CCALAC) is the largest regional association of community health centers in California. Health centers in Los Angeles serve more than 2.02 million patients at over 450 sites across the county. The majority of these patients (74%) have low incomes, and 93% are covered by public insurance or uninsured. CCALAC is dedicated to helping health centers remain at the forefront of health care transformation, in support of the patients and communities they serve. For more information about CCALAC, visit www.ccalac.org or call (213) 201-6500.