Health Cuts Announced in Governor Newsom’s May Revise Would Hamper Californians’ Access to Care

  • Due to the state budget deficit, Governor Newsom’s Revised 2024-25 Budget includes proposed health cuts that would prevent Californians from getting needed care.
  • Thousands of Californians with disabilities will have home care services cut off due to their immigration status, resulting in further impoverishment and/or more expensive nursing homes.
  • Millions of Californians on Medi-Cal may find it harder to access services as the cuts pull back on promised provider rate increases.
  • While existing investments in rates, eligibility and benefits are similarly protected, the budget also sweeps funds for affordability and access in Covered California.
  • Hundreds of millions would be cut from public health programs, even in the aftermath of a pandemic.
  • Advocates urge legislators to balance cuts with revenues, to ensure access and affordability to health and other vital services.

SACRAMENTO, CA – Health advocates expressed dismay at the 2024-25 state budget plan announced today by Governor Gavin Newsom, which would cut off key home care services and otherwise pull back on promised improvements in Medi-Cal access and Covered California affordability.

Here is a statement from Anthony Wright, Executive Director of Health Access California, the statewide health care consumer advocacy organization:

“The Legislature should reject the health care cuts that will hamper the ability of Californians to access and afford the care they need. Just one of the proposed eliminations would sacrifice home care for thousands of our most vulnerable Californians, simply due to their immigration status. Removing funding from these services could result in further impoverishment, and increased state spending on expensive nursing home care. This home care cut for immigrant families is not just picking on a particular population, but penny wise and pound foolish.”

“While we appreciate that the proposal protects many other existing investments in eligibility, benefits, and rates, the budget pulls back on promises to improve access and affordability both in Medi-Cal and in Covered California, which are urgently needed for Californians to get the care they need.”

“We need a budget with a better balance of cuts and revenues, to ensure that we protect key health services and proceed with our progress on an improved health care system. These cuts could set our state back years just when Californians need care the most.”

Health cuts proposed of note include:

  • $94 million to eliminate home care services for low-income Californians with disabilities who are undocumented immigrants. This cut will affect thousands of Californians currently receiving IHSS services in Medi-Cal.
  • $62 million from the Health Care Affordability Reserve Fund intended to reduce cost-sharing in Covered California.
  • $52.5 million, and $300 million ongoing, to public health funding.
  • $6.7 billion over multiple years in increases to provider rates intended to improve access to care for the over 15 million Californians with Medi-Cal coverage.


Press inquires can be directed to:
Anthony Wright,, (916) 870-4782