LOS ANGELES – May 15, 2026 – Despite higher-than-projected tax revenue, Governor Gavin Newsom’s May Revision again seeks to solve California’s budget problems on the backs of the most vulnerable, including immigrants, older adults, and people with disabilities. The revised budget proposal leverages higher tax revenue while maintaining reserves over the next two fiscal years, yet fails to reverse harmful Medi-Cal cuts.
The budget maintains damaging Medi-Cal cuts from FY2025-26 that impact immigrants, including the elimination of health centers’ prospective payment system (PPS) reimbursement for state-only funded services, effective July 1, 2026. This cut will cost Los Angeles health centers roughly $400 million a year — combined with H.R. 1 coverage losses and rising uncompensated care, this change threatens to push safety net clinics to the breaking point.
Further, the budget proposes raising monthly premiums from $30 to $50 for adults with unsatisfactory immigration status, reinstating Medi-Cal asset limits for seniors and people with disabilities, and narrowing eligibility for Enhanced Care Management (ECM) and Community Supports ...