California’s public health programs could lose billions of dollars due to recent federal budget cuts, state health officials told lawmakers during a joint committee hearing on March 10.
The hearing, held at the State Capitol, focused on the impacts of reductions to programs such as Medi-Cal, the Affordable Care Act and Covered California. Officials said regulatory changes and funding rollbacks could reduce the quality and availability of health coverage for many Californians.
“The rollback of federal policies risks reversing hard-won progress,” said Assemblymember Mia Bonta (D-Oakland).
“For many Californians, accessibility and affordability were already in question,” Bonta continued. “More than half of Californians are worried about out-of-pocket expenses, long-term care and monthly premiums, concerns that now surpass anxiety about housing, groceries, transportation and utilities.”
Assemblymember Cecilia Aguiar-Curry (D-Winters) expressed frustration over the potential impact on vulnerable populations.
“When I see some of the people who come into our offices, our elderly, our disabled, primary care doctors, we’re all very, very concerned,” she said. “This is not affordable. It’s not taking care of our most vulnerable. I’m just very frustrated.”
Dawn Joyce presented research showing that Medi-Cal alone faces $30 billion in annual cuts. California’s Health and Human Services Agency estimate that federal reductions could result in 2 million residents losing Medi-Cal coverage, costing the state between $2.3 billion and $5.1 billion each year. In fiscal year 2024-25, the federal government paid for 62% of Medi-Cal’s budget, with 22% from the California general fund and 16% from other state and local sources.
“There’s just a broader effort currently to dismantle, remove federal funding that we’ve relied on, and it will lead to vast coverage losses,” Joyce testified.
Sen. Lola Smallwood-Cuevas (D-Los Angeles) also highlighted the human impact of the cuts on social media, writing on Facebook: “Most Medi-Cal recipients already work. More than 1 million Black Californians rely on Medi-Cal and could lose coverage under these harmful federal cuts. Working families should not pay the price when too many communities have already suffered lost lives, lost health, and years of disinvestment.”
