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SACRAMENTO, CA — A new publication from the California Budget & Policy Center (Budget Center) warns that the reconciliation package passed by House Republicans would have devastating consequences for Californians, particularly people with low incomes, families of color, immigrants, and other vulnerable communities.

The report, Federal Budget Threats: What Californians Should Know About the House Republican Reconciliation Bill, outlines how the bill would slash funding for critical programs, including Medicaid (Medi-Cal in California), nutrition assistance, housing aid, and other essential services. If enacted, this legislation would roll back progress made in recent years to strengthen the economic and social safety net — deepening hardship for millions of Californians.

“This proposal isn’t about fiscal responsibility — it’s about pushing an agenda that cuts vital supports for vulnerable communities to prioritize tax breaks for the wealthy and fund runaway spending on detention centers and militarized immigration enforcement,” said Chris Hoene, executive director of the California Budget & Policy Center. “California leaders should stand firm against these federal threats and defend the programs that help families stay healthy, housed, and fed.”

Key findings from the report include:

  • The bill would impose deep cuts to programs that support health care, food assistance, housing, education, and income security.
  • Medicaid work requirements would threaten coverage for millions, particularly harming Californians with low incomes and communities of color.
  • The House Republican package would dismantle several provisions of the Affordable Care Act, potentially harming health care for everyone. 
  • The legislation would undermine state-level efforts to reduce poverty and expand opportunity by reducing the funding and flexibility needed to protect Californians.
  • The bill would reduce federal investments that help California respond to crises.
  • The bill is part of a broader agenda that slashes support for low-income Californians while preserving and expanding tax breaks for wealthy individuals and corporations.

As Congress continues to debate budget priorities, California leaders must be clear: policies that take food off tables, endanger health coverage, or undercut housing stability are unacceptable. Policymakers should instead focus on advancing people-centered solutions that build a stronger and more inclusive economy.

To read the full report, visit the Budget Center’s website at: www.CalBudgetCenter.org/resources/reconciliation-bill-passed-by-house-republicans-would-be-devastating-for-californians/

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About the California Budget & Policy Center:

The California Budget & Policy Center (Budget Center) is a nonpartisan research and analysis nonprofit advancing public policies that expand opportunities and promote well-being for all Californians.

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Kyra Moeller
Communications Strategist

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