Gov. Gavin Newsom has signed SB 106, a one-time $90 million emergency package to support Planned Parenthood and other reproductive-health clinics in California after federal funding changes threatened their operations. The funding will be distributed as one-time grants to help clinics maintain services like cancer screenings, contraception, and family planning.
In a press release, Newsom said the funding is necessary to “ensures clinics can keep their doors open” and emphasized that the state has already invested over $145 million in reproductive care since last fall. California officials framed the move as a response to federal policies targeting abortion providers and aimed at preventing further clinic closures, according to the Office of the Governor.
How the funding will be used
SB 106 fast-tracks $90 million in one-time grants to clinics that lose federal reimbursements. Sen. John Laird has described the package as an “urgent lifeline” for providers, according to Sen. John Laird. The bill is designed to help cover lost Medi-Cal revenue while clinics stabilize, his office said.
Before the federal cuts, more than 80% of Planned Parenthood’s roughly 1.3 million annual patient visits in California were reimbursed through Medi-Cal, a shortfall this new funding is meant to help plug, the Los Angeles Times found.
The legal backdrop
State lawmakers are reacting to a federal change that bars Medicaid reimbursements for tax-exempt organizations that perform abortions, a provision folded into a broader reconciliation package often nicknamed the “One Big Beautiful Bill.” Enforcement of that provision has been tied up in court: a federal judge issued a preliminary injunction in December, and an appeals court later allowed enforcement in some states, creating a patchwork legal landscape, as reported by the Guardian. Lawmakers and providers say the uncertainty left clinics scrambling for operating cash and made the state’s rapid response feel urgent rather than optional.
Reaction and what’s next
Democratic leaders hailed the signing as an immediate fix. Assembly Speaker Robert Rivas and Senate leaders framed SB 106 as part of a broader push to protect reproductive care, according to statements from legislative offices. Planned Parenthood Affiliates of California praised the move, with Jodi Hicks calling it “a win for all Californians,” the governor’s release said.
Republicans questioned the state’s priorities. Assemblyman David Tangipa asked why hospitals facing closure were not first in line for help, the Los Angeles Times reported.
The Assembly has said the grants will be rushed out through existing state programs so clinics see money quickly, and emphasized that SB 106 is a one-time appropriation while legislators work on longer-term budget fixes during the 2026 process, according to the Assembly Speaker’s office. Advocates warned that if federal policy does not change, California will likely need ongoing funding to fully replace lost Medi-Cal reimbursements beyond this emergency step.
