Governor Gavin Newsom has criticized a proposal by Congressional Republicans and the Trump Administration, which is currently advancing in the House of Representatives. According to state figures, this proposal could lead to up to 3.4 million Californians losing their health coverage and risk more than $30 billion in federal funding. Governor Newsom expressed his concerns, stating, “If Republicans move this extreme MAGA proposal forward, millions will lose coverage, hospitals will close, and safety nets could collapse under the weight. We must sound the alarm because the stakes couldn’t be higher.”
The proposed changes include eliminating coverage for up to 3.4 million Californians, particularly those covered under the Affordable Care Act expansion. The plan also suggests cutting at least $22 billion in federal Medicaid funding by imposing job loss penalties on low-income adults and reducing federal support by at least $4 billion annually for states like California that use state funds to cover undocumented residents for non-emergency benefits.
Additionally, the proposal would restrict vital funding mechanisms such as provider taxes and other payments that support hospitals across California. This could result in nonprofit providers like Planned Parenthood being cut off from Medicaid funding. Such measures are expected to lead to hospital closures and increased uncompensated care costs while reversing progress made in reducing California’s uninsured rate.
Under Governor Newsom’s leadership, California has been recognized as a national leader in expanding access to health care. The state was the first to offer full-scope Medi-Cal to all eligible low-income adults regardless of immigration status. While adjustments have been proposed in the 2025-26 budget for fiscal stability, California remains committed to maintaining access.
The Newsom Administration has also worked on lowering prescription drug costs and expanding reproductive health access amid federal threats to the Affordable Care Act.
