Skip to content

key takeaway

Without renewed support for the Emergency Housing Voucher program, thousands of Californians could lose stable housing. Policymakers have the power and responsibility to stop harmful cuts and protect everyone’s fundamental right to a stable home.

The federal Emergency Housing Voucher (EHV) program currently helps over 15,000 Californians afford a safe place to live in their community. Federal funding will begin to run out in parts of the state by the end of the year if Congress doesn’t act. And with California leaders still failing to fill the gap, thousands of Californians are at risk of losing their homes.

EHV was created during the height of the COVID-19 pandemic, meant to provide immediate housing to people experiencing or at risk of homelessness and survivors of domestic violence in crisis. The federal funding for the program had until 2030 to be fully expended. However, with rents rising far faster than incomes, especially for low-wage workers, funding is being depleted faster than expected.

The program has been a lifeline for thousands in California and nationwide, offering rapid access to stable housing for some of the state’s most vulnerable residents. But now, as federal funding dries up, families and individuals are beginning to receive notices that their housing vouchers will expire, forcing them into impossible choices: return to homelessness, leave their communities, or forgo other basic needs to keep a roof over their heads.

Without renewed funding, Californians who are currently safely housed will be pushed back onto the streets to face the cruel and costly reality of homelessness once again. These cuts to essential housing supports come at a time when people living with disabilities and survivors of domestic violence are already facing multiple federal and state cuts to vital funding that supports their health and safety.

Trade-Offs Families Face Without a Voucher

On average, a standard housing choice voucher covers roughly $1,550 per month in California. This does not account for the full rent but does cover a critical share, with recipients still typically paying 30% of their income. Losing this support means choosing between rent, food, child care, transportation, or education.

For example, the following table quantifies the trade-offs that a single mom with a 3-year old and a 6-year old who live in San Bernardino County would have to face if they lose their housing voucher. The example uses the average cost per housing unit for the Housing Authority of the County of San Bernardino for simplicity.

Californians who have already faced the devastating impact of homelessness or domestic violence should not have their homes threatened to help millionaires and large corporations receive another round of tax cuts. The threat to not renew EHV funding is part of a broader federal push to cut and defund critical housing and safety net programs to finance tax breaks for the wealthy. As federal leaders work to destroy programs like EHV that help keep people housed, state leaders must secure the revenues needed to keep their constituents housed and stop deeper potential cuts to other vital housing programs.

Forcing Californians out of their homes is not inevitable — just as ending homelessness is possible. Policymakers have the power and responsibility to stop harmful cuts and protect everyone’s fundamental right to a stable home.

Stay in the know.

Join our email list!

key takeaway

Cuts to Medi-Cal, IHSS, and other essential programs threaten the health, independence, and well-being of Californians with disabilities.

Programs like Medi-Cal (California’s Medicaid program), In-Home Supportive Services (IHSS), and regional center programs are vital lifelines for people with disabilities in California. They provide essential health care, support, and community-based services that help people live safely and independently in their communities. Reliable funding for these programs ensures that people with disabilities can access the health care and resources they need to be healthy and thrive. 

About 2 in 5 Californians with a disability (43%) received vital health care coverage through Medi-Cal in 2023, according to an analysis of American Community Survey data. This 43% is significantly higher than the 25% of Californians without a disability that had Medi-Cal health care coverage.1The difference in proportions between people with a disability and people without a disability with Medi-Cal coverage is statistically significant at the 95% confidence level. Because people with disabilities are more likely to depend on Medi-Cal compared to the general population, any cuts to this funding would disproportionately harm this community.

Other supports, like IHSS and regional center services, are essential for helping people with disabilities live safely and independently in their communities. Almost 2 in 3 IHSS recipients in California were blind or disabled in April 2025 (about 541,700 people), highlighting the importance of this program in keeping people in their homes and avoiding institutional care. Regional centers provide assessments, case management, and connections to services and community resources, supporting people with developmental disabilities to thrive in their daily lives.

What Are in-home supportive services?

The In-Home Supportive Services (IHSS) program provides in-home assistance to seniors, individuals who are blind, and people with disabilities who qualify. Examples of IHSS include personal care (e.g., bathing, dressing, and grooming) and help with meal preparation. By providing this care, IHSS allows participants to continue living safely and independently in their own homes instead of moving to out-of-home facilities.

Whether through Republican-led proposals in Congress or in the governor’s revised state budget proposal, cuts to Medi-Cal, IHSS, and other supports threaten the health and well-being of people with disabilities. Even if some programs, like regional centers, aren’t directly cut, funding shifts and other pressures can destabilize the broader system of support.

Instead of scaling back these essential services, policymakers should protect and strengthen them to ensure that all Californians, including those with disabilities, have access to the services and supports they need to be healthy and thrive.

  • 1
    The difference in proportions between people with a disability and people without a disability with Medi-Cal coverage is statistically significant at the 95% confidence level.

Stay in the know.

Join our email list!

California’s Constitution establishes rules for a wide range of legislative actions, from passing the state budget to increasing taxes to placing constitutional amendments on the ballot.

  • Some actions need only a simple majority vote of each house of the Legislature — 41 votes in the 80-member Assembly and 21 votes in the 40-member state Senate.
  • Other actions require a two-thirds vote of each house of the Legislature — 54 votes in the Assembly and 27 votes in the Senate.
  • Most legislative actions require the governor’s signature, and some need voter approval.

This table summarizes the requirements for approving key legislative actions in California.

The Budget Center’s essential resources for understanding and navigating the California state budget — all in one place.

Stay in the know.

Join our email list!

Congressional Republicans and the Trump administration are pushing for proposals to cut Medicaid funding in favor of extended tax breaks for the wealthy. These cuts threaten critical health care for millions of people across the state, including children, pregnant individuals, seniors, and people with disabilities. Without access to health coverage, Californians would face impossible choices that put their health and economic security at risk while also driving up long-term costs for the state.

This Fact Sheet outlines several of the strategies Congressional Republicans have suggested they could use to cut Medicaid funding and shows how Californians would be impacted. No matter the method, a cut is a cut. Reduced federal funding would lead to a significant budget shortfall, leaving state leaders with critical decisions about how to protect Medi-Cal and the Californians who depend on it.

State policymakers should strive to prevent or mitigate the impact of harmful federal funding reductions. Cuts to Medi-Cal — like reducing benefits, limiting provider payments, or restricting eligibility — should be a last resort rather than a first response. Instead, state leaders should prioritize identifying new, sustainable sources of revenue to safeguard health care access for millions. They can start by closing tax loopholes that benefit corporations and the wealthy.

The Budget Center’s essential resources for understanding and navigating the California state budget — all in one place.

Stay in the know.

Join our email list!

The Supplemental Nutrition Assistance Program (SNAP) — known as CalFresh in California — is the state’s most powerful tool to fight hunger. CalFresh provides modest monthly assistance to over 5 million Californians with low incomes to purchase food.  While CalFresh participation varies across the state, in nearly three-quarters of congressional districts, over 1 in 10 constituents rely on this program to put food on their tables.

Research shows that SNAP is one of the strongest anti-poverty programs in the United States and provides significant economic returns. The U.S. Department of Agriculture estimates that every dollar in SNAP benefits increases economic activity by $1.54 or more. Additionally, according to recent data from the Public Policy Institute of California, CalFresh kept over a million Californians across the state out of poverty in early 2023. With the support of expanded food assistance as part of post-pandemic relief, CalFresh reduced the poverty rate by 3.0 percentage points statewide, with reductions of over 5.0 percentage points in nine districts.

Republican proposals to cut food assistance funding to pay for tax breaks for the wealthy would take food away from Californians living in poverty. Harmful policies that would reduce benefits and implement harsh work requirements would make it harder for millions of people with low incomes to put food on the table. At a time when half of lower-income Californians have reported having to cut back on food to save money, these policies would severely undermine one of California’s most important tools to mitigate poverty.

The Budget Center’s essential resources for understanding and navigating the California state budget — all in one place.

Stay in the know.

Join our email list!

California residents and businesses contribute $83 billion more than the state receives in federal spending. Why is there a gap?

On the spending side:

  • States with higher poverty rates, a large population of older adults, major federal facilities (such as military bases), a large volume of federal contracts, and/or a substantial federal employee presence are likely to receive a disproportionate share of federal funds. These factors contribute to relatively higher federal spending in many other states (on a per capita basis) compared to California.

On the revenue side:

  • States, like California, with more wealthy residents and high per capita incomes account for a disproportionate share of federal revenue due to the progressive federal tax system. In fact, California ranks in the top 10 among all states in terms of federal taxes paid on a per capita basis.

These points help to illustrate why the $83 billion gap exists in California. However, with devastating funding cuts on the policy agenda in Washington, DC, it’s worth taking a closer look at where California’s tax contributions could be going.

If Congress adopts the enormous funding reductions proposed, the gap between what Californians pay in federal taxes and what California receives in federal spending would likely grow larger.

This is because Californians would continue to disproportionately contribute to federal revenues — even with an extension of expiring tax cuts — whereas our state would get back even less of those dollars after deep cuts to health care, food assistance, and other vital services took effect (to help pay for the cost of the tax cuts).

As a result, state policymakers would be forced to cut support for Medi-Cal and other essential state programs, since a deep federal funding hole would be nearly impossible to backfill with state dollars.

California contributes much to the nation thanks to the creativity, vitality, and hard work of the nearly 40 million people of diverse backgrounds who call the Golden State their home.

Federal tax dollars — including those paid by Californians — should be used to strengthen vital public services and help all people make ends meet, rather than helping corporations and the wealthy avoid paying their fair share of federal taxes.

The Budget Center’s essential resources for understanding and navigating the California state budget — all in one place.

Stay in the know.

Join our email list!

Over the last sixteen years, California’s early care and education (ECE) system has gone through numerous milestones that have been reflected in state funding. California’s families and child care and preschool providers depend on this funding for access to affordable care and wages to sustain their businesses. Looking back at funding trends over time reveals both key wins and setbacks for the ECE field as well as opportunities for state leaders to continue investing in ECE programs.

Key policy and historical moments underscore how the child care system in California has expanded, contracted, and evolved amid changes in funding levels, as reflected in the following themes.

  • The Great Recession resulted in severe cuts to the ECE system. California, like the rest of the nation, experienced an economic downturn at the onset of the Great Recession in 2007. In the aftermath of the economic downturn, state leaders cut annual funding by 30%, eliminating 110,000 child care slots, lowering family income eligibility limits, and cutting payment rates for certain providers.
  • Subsidized slots and provider rates were incrementally restored over time. Beginning in 2013, the cuts made during and after the Great Recession were slowly re-established. Over the next decade, subsidized child care slots were funded at pre-Great Recession levels, provider rates increased, income and income eligibility limits increased, and family fees were reduced. These changes addressed many of the tremendous setbacks prompted by the Great Recession. Child Care Providers United (CCPU) formed in 2019 and supported several improvements for ECE providers, including increased rates, a health care fund, and a retirement fund.
  • The COVID-19 pandemic amplified the importance of child care and resulted in an influx of one-time federal funding. The COVID-19 public health crisis put child care in the national spotlight. Additionally, the federal CARES Act, Coronavirus Response and Relief Supplemental Appropriations Act, and American Rescue Plan Act brought over $5 billion in one-time child care funding to California. These one-time funds were used to boost provider rates, expand subsidized child care slots, and generally support the early care and education sector. 
  • As federal relief dollars have sunsetted, the state has had to backfill those resources in order to sustain progress. The majority of federal relief dollars expired on September 30, 2023, prompting what many deemed the “child care funding cliff.” California managed to avoid the detrimental effects of several aspects of this “cliff” through using state dollars to reform family fees, provide temporary increases to reimbursement rates, and commit to funding 200,000 new subsidized child care slots.

California’s ECE system weathered severe cuts as a result of the Great Recession. Over the past sixteen years — in response to tireless advocacy — state leaders have restored funding to this system, providing additional access for families and more support for providers. In the current fiscal year, dollars for subsidized child care and preschool slots are 50% higher than prior to the Great Recession.

This chart highlights additional key points:

  • Increases in funding on subsidized child care were bolstered by one-time federal pandemic relief dollars. The spike in funding in FY 2021-22 was largely due to pandemic-related support provided by the federal government (as highlighted in the timeline). The state received over $5 billion in one-time federal dollars to support child care during the health crisis. 
  • Recent spending on subsidized child care slots reflects the administration’s commitment to 200,000 new slots by 2027. In 2021-22, the governor committed to adding approximately 200,000 new child care slots by 2026-27. As of 2023-24, approximately 146,000 new slots were funded. Expansion was paused in 2023-24 and the state is still in the process of rolling out all intended new slots.
  • Increases in spending were not even across all ECE programs. Spending for the California State Preschool Program (CSPP) experienced a significant increase due to state leaders’ focus on California preschool programs. This resulted in spending levels higher than the Alternative Payment Program, CalWORKs programs, and General Child Care Program.

While the ECE system in California has experienced an increase in funding, more is needed to fulfill the administration’s intention to foster equitable learning for all children. Total funding for the state’s subsidized child care and development system is at $7.2 billion in the 2024-25 fiscal year. Yet, even with increased funding, resources still fall far short of the billions in additional support necessary to provide fair and just wages to providers and to increase access to ECE programs for families with low and moderate incomes in California.

Stay in the know.

Join our email list!

Child care and development programs administered by the California Department of Social Services are critical for supporting California’s families with affording child care that meets their needs. Funding for child care programs has increased since the Great Recession. Given this increase, a greater proportion of children eligible for subsidized child care are being served. In 2023,14% of eligible children were enrolled in subsidized child care programs, up from 11% in 2022.

Although state investments in child care have increased enrollment in subsidized programs, the data in this chart highlights a persistent gap between supply and demand. As a result, many families still struggle to find the care they need — underscoring the urgency for state leaders to continue working to expand child care access.

  • Only one in seven children eligible for subsidized care receive services. The gap between the number of children eligible for subsidized care and the number enrolled remains far too large. Given the high cost of child care, this gap means that thousands of families unable to access affordable care struggle even more to make ends meet. 
  • The lack of supply disproportionately impacts families of color. Namely, 55% of Black children and 48% of Latinx children in California are eligible for subsidized child care. Therefore, when there is an inadequate supply of subsidized child care, California’s families of color are disproportionately impacted. 
  • The demand for subsidized child care spans age groups. Namely, only ten percent of school-age children (ages 6-12) eligible for subsidized child care are enrolled. And, only 19 percent of eligible infants, toddlers, and preschool-age children are enrolled. While enrollment varies across age groups, the tremendous need for more subsidized child care slots spans ages zero to twelve.

Throughout the next several years, the administration has committed to adding approximately 77,000 more slots to fulfill his commitment of 200,000 new slots by 2027-28. However, 77,000 is insufficient for addressing the demand for subsidized child care in California, leaving families in impossible situations. Additional state and federal dollars will be necessary to fully meet the child care needs of families with low incomes.

Stay in the know.

Join our email list!