Newsom’s 2026 Budget Preserves Harmful Health Cuts and Turns a Blind Eye to H.R. 1 Threats

Breaking: california Budget Contends With Cuts That Could Undermine Health Coverage

The January budget proposal for the 2026–27 fiscal year has sparked swift pushback from health advocates who warn that it preserves harmful cuts and overlooks a coming wave of coverage losses tied to federal policy. With the federal H.R. 1 overhaul still looming, critics say California must act now to protect healthcare access for millions.

What the plan means for immigrant communities

Advocates argue the proposal does not roll back last year’s cuts and, in some areas, tightens access to care.Key elements affecting immigrant residents include:

• An enrollment freeze for undocumented residents under Medi-Cal that began January 1
• The planned removal of dental coverage scheduled for July 1, 2026
• A new Medi-Cal premium set at $30 per month starting July 1, 2027

Additionally, the plan introduces state-specific work reporting requirements—requirements not mandated by federal law—that could create new barriers to care for many immigrants. The proposal also shifts 200,000 legally present immigrants away from full Medi-Cal coverage toward more limited services, risking gaps in chronic condition management and preventive care.

Costs for Covered California enrollees

As Congress stalls on broader action, California’s residents are facing rising health costs. The budget allocates $190 million to assist with affordability for Covered California participants, but supporters say this falls short of offsetting looming federal reductions. Enrollment in Covered California has already fallen roughly a third compared with the same period last year.

Why the revenue question matters

A central concern is the absence of new revenue proposals to backfill a growing budget gap caused by federal health program cuts. Medi-Cal remains a cornerstone for about 15 million Californians—roughly one in three residents—meaning any disruption could ripple across the state’s entire health system. Critics point to H.R. 1 as a driver of higher costs for many families and call for corporate accountability to protect essential care.

Bottom line and what comes next

Experts warn that delaying decisive action could push millions toward uninsured status and shift costs onto the broader system. Lawmakers are urged to consider measures that ensure coverage persists and that health services remain affordable for all Californians.

Decision-makers must shield health care from further cuts and secure protections against looming H.R. 1 impacts.

Expect continued advocacy and engagement as advocates plan to carry these concerns to the State Capitol and beyond.

At a glance: key facts

Item	Current Status / Planned Change	Timeline

evergreen context for readers

Healthcare funding in California hinges on balancing state resources with federal policy. Even as state leaders consider reforms, the stability of Medi-Cal and the affordability of insurance remain central to household budgets and overall public health. Persistent attention to coverage continuity,especially for vulnerable populations,helps safeguard long-term health outcomes and system resilience. Communities should monitor legislative debates, advocate for protections, and seek guidance from official health departments on eligibility and benefits as rules evolve.

What to watch next

Expect debates over whether the state should raise additional revenue to stabilize health programs, including possible changes to taxes or contributions from employers and high-income earners. Public input and coalition pressure could shape amendments that restore or expand benefits and preserve access to essential services for immigrant residents and Covered California enrollees alike.

Two questions for readers: How should California balance budget needs with the imperative to protect health coverage for vulnerable groups? What concrete policy steps would you support to prevent coverage losses while addressing federal funding shifts?

Share your thoughts and experiences below. Your insights can inform lawmakers as they shape the next steps in safeguarding health care for millions of Californians.

Disclaimer: This article summarizes policy proposals and advocacy positions. For official eligibility rules and benefits, consult state health authorities and Covered California.

Have you been affected by changes in Medi-Cal or Covered California? Tell us your story and join the conversation.

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