State Budget: Healthcare Cuts & Advocate Response
California’s new health budget brings both wins and losses,particularly impacting immigrant communities. While lawmakers restored Medi-Cal asset limits and rejected cuts to LGBTQ+ health programs, concerns remain regarding immigrant access to care. The budget expands enrollment freezes for some, implements premiums for others, and delays dental benefit cuts, sparking apprehension among advocates. Health Access California and other groups are calling for equitable solutions, highlighting the mixed impact of the legislature’s proposal. News Directory 3 provides up-to-date coverage on this complex issue.this legislative decision sparks debate about prioritizing justice and equity in healthcare.Discover what’s next as the budget heads for a final vote.
California Legislature’s Health Budget: Mixed Impact on Immigrant Communities
Updated June 11,2025
California’s legislative leaders have announced a budget agreement addressing Governor Newsom’s May revision. While the proposal rolls back some health care cuts impacting senior citizens and the LGBTQ+ community, concerns remain about its effect on immigrant families. health advocates are praising some aspects of the plan while expressing disappointment over others, notably regarding immigrant health care.
The legislature’s proposal restores the medi-Cal asset limit to $130,000, preventing a return to the 1980s-era level of $2,000. It also rejects the governor’s plan to cancel nearly $60 million in public health funding for LGBTQ+ organizations. Furthermore, the Health Care Affordability Reserve Fund will be increased to $284 million to assist Covered California enrollees. The plan also rejects removing In-Home Supportive Services (IHSS) and long-term care benefits for undocumented Californians in Medi-Cal.
However, health advocates are concerned about the continued plan to balance the budget on the backs of immigrant communities. The legislative budget proposal expands the governor’s proposed enrollment freeze to all UIS immigrants, set to begin on Jan. 1, 2027. It also includes premiums that could cause immigrant families to lose health care if they miss a single $30 monthly payment and delays the cut to dental benefits for undocumented enrollees by onyl six months.
“The budget proposal from state legislative leaders is a mixed bag for California health care consumers,” said Amanda McAllister-Wallner, executive director of Health Access California. “Many will be relieved to see the legislature say no to reinstating an inhumane $2,000 asset test in Medi-Cal that would force our seniors to impoverish themselves to access care and continue to prioritize affordability for many Covered California enrollees.”
McAllister-Wallner added that the protection of health equity programs for LGBTQ+ communities is another positive aspect. She expressed gratitude to state legislators for their continued investment in transgender communities, especially in light of federal attacks on their care.
“the legislative budget proposal continues to single out immigrants in Medi-Cal with premiums, an enrollment freeze, and benefit cuts,” McAllister-Wallner continued. “Thousands of people have spoken out – from Sacramento, to Salinas, to San Diego, and throughout the state – against a proposal like this that balances the budget with deep cuts to our health care system and abandons the state’s commitments to immigrant communities.”
Budget committees will hear the joint legislative budget proposal this week, with a vote expected by june 15.
What’s next
Lawmakers will need to finalize a budget that prioritizes justice, equity, and compassion, and reject any future proposals that would divide Californians into separate and unequal systems of care.