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Senate Weighs Budget Proposal Threatening Medi-Cal Coverage for Millions

The plan offsets extended 2017 tax cuts by cutting Medicaid spending, imposing proof-of-work requirements on enrollees starting in December 2026.

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Overview

  • Last week’s House approval came as part of efforts to finance an extension of President Donald Trump’s 2017 tax cuts through $700 billion in Medicaid spending cuts.
  • Experts estimate proof-of-work mandates could threaten coverage for between 1.2 million and 3.5 million of California’s 15 million Medi-Cal enrollees, many of whom are exempt due to caregiving, schooling or disability.
  • California stands to lose up to $20 billion in federal Medicaid funding annually and as many as 217,000 jobs if the proposed cuts are enacted.
  • All 43 California Democrats opposed the bill while nine GOP members representing 2.5 million Medi-Cal enrollees voted in favor, highlighting deep partisan divisions over the measures.
  • Health policy analyses of similar requirements in New Hampshire and Arkansas show coverage declines without corresponding gains in employment, drawing criticism from experts.