In a critical response to what he describes as an "extreme MAGA proposal," Governor Gavin Newsom warns of dire consequences for California's healthcare system. The Republican bill progressing in the House of Representatives, supported by the Trump Administration, could strip away health coverage for up to 3.4 million Californians. Newsom's office released figures showing the potential loss of federal funding to the tune of more than $30 billion. These dollars presently cement the state's healthcare infrastructure.
Newsom's concern, as elaborated in an official press release, centers on the cuts to the Affordable Care Act (ACA) expansion, which would result in the elimination of coverage for millions. "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," Newsom said. The proposed GOP legislation also aims to cut at least $22 billion in federal Medicaid funding by enacting job loss penalties for low-income adults.
California, known for its healthcare initiatives, risks losing an additional estimated $4 billion annually due to its coverage of undocumented residents for non-emergency benefits, a policy penalized by the proposed legislation's federal support cuts. Additionally, important funding methods for hospitals and providers in the state, like provider taxes, are under threat, potentially leading to a significant loss of funding.
Since Newsom's tenure began, California has expanded Medi-Cal to all eligible low-income adults, including undocumented immigrants, and has taken strides in reducing prescription drug prices and protecting access to reproductive health services. While adjustments for fiscal stability have been proposed for the 2025-26 budget, the state's commitment to broad healthcare access remains central. The current federal proposal undermines this commitment and raises the specter of increased uncompensated care costs, as well as a rollback in uninsured rate reductions, which California has worked diligently to improve over the past years.
