2024-25 CA Budget Agreement Rejects Most Harmful Health Care Cuts

  • The 2024-2025 state budget agreement announced between the State Legislature and Governor Gavin Newsom rejects most harmful health care cuts proposed in the May Revision.
  • Agreement will ensure that thousands of undocumented Californians continue to receive their IHSS benefits, funding is preserved for the Indian Health Program, Medi-Cal benefits will be maintained at their current levels, and access will be improved through increased reimbursement rates for a variety of services.
  • Consumer advocates applaud this budget, which matches closely to the budget passed by the CA Legislature earlier this month.

SACRAMENTO, CA – The State Legislature and Governor Gavin Newsom have reached an agreement on the 2024-25 state budget which rejects the most harmful proposed cuts and continues vital investments for health care consumers.

The deal matches closely to the budget passed by the state legislature earlier this week which preserves funding for in-home supportive services for all Californians, rejecting a proposal that unfairly targeted undocumented recipients. Other priorities of health care consumer advocates were also included, such as the continued funding of Indian Health Services, and public health investments that were made during the pandemic.

The deal also includes increased funding for services in Medi-Cal, as a result of the updated Managed Care Organization (MCO) tax amendment. These revenues will support increased access to vital health care services for millions of Californians.

“We commend the State Legislature and Governor for coming to an agreement that ensures the strength of our health care system by preserving key health care investments.” said Diana Douglas, Director of Policy & Advocacy for Health Access California. “The Governor’s proposal placed too much of the burden to balance the state budget on those with the least, including immigrant and low-income communities. This agreement rightly protects funding for programs like home care, Medi-Cal benefits and rates, public health initiatives, and recognizes the importance of continuing to invest in our safety net systems” said Douglas.


Press inquires can be directed to:
Anthony Wright, awright@health-access.org, 916-870-4782 (M)