Governor Newsom criticizes proposed cuts affecting millions' health coverage

Governor Gavin Newsom has criticized federal Republicans for their proposed "Big, Beautiful bill," which aims to cut federal Medicaid and Supplemental Nutrition Assistance Program (SNAP) funding. The proposed changes could result in a loss of health coverage for up to 3.4 million Californians and put at risk $28 billion in federal Medicaid funding for the state.

Newsom expressed concerns that these cuts would lead to hospital and clinic closures, increase uncompensated care costs, and reverse California's progress in reducing its uninsured rate. The state's uninsured rate currently stands at a historical low of 6.4%.

The bill also proposes significant reductions in SNAP funding, potentially affecting hundreds of thousands of Californians who rely on food assistance. Federal funding for SNAP in California could be reduced by $2.8 to $5.4 billion annually.

Governor Newsom stated, “The so-called ‘Big, Beautiful bill’ is not cost-saving. It is not smart. It is cruel, costly, and a significant encroachment on states’ rights – the opposite of what Republican leadership claims to stand for."

Beginning January 2027, the bill would require states to conduct eligibility determinations for Affordable Care Act expansion adults every six months instead of annually. This change could lead to an estimated loss of $2.4 billion in federal funds and affect approximately 400,000 enrollees in California.

The bill also mandates work requirements starting in 2027, which could result in a loss of up to $22.3 billion in federal funds and impact up to 3 million California enrollees.

Planned Parenthood has raised concerns about the potential closure of nearly 200 health centers due to provisions within the bill that could block access to essential care such as birth control and cancer screenings.

In terms of SNAP impacts, the proposed changes include a reduction of at least $1.25 billion in federal funds due to altered eligibility rules and a loss of at least $178 million in nutrition education grants. Additionally, there will be cost shifts ranging from $1.35 billion to $4 billion annually to the state and counties.

At least 735,000 recipients may lose their CalFresh benefits—California's version of SNAP—due to these changes.

Footage from today's press conference with California Health and Human Services Agency Secretary Kim Johnson and California Department of Health Care Services Director Michelle Baass is available online.