SACRAMENTO, CA — A new publication from the California Budget & Policy Center (Budget Center) outlines the severe and far-reaching harm that President Trump’s recently signed federal budget will inflict on Californians with low and moderate incomes. The Budget Center urges state leaders to take bold and immediate action to protect communities, mitigate harm, and uphold California’s values — actions that are not currently reflected in the 2025–26 state budget.
The report, State Leaders Must Respond Boldly to the Devastating Cuts in President Trump’s Budget Bill, shows how the federal budget slashes funding for vital public services and threatens critical supports that millions of Californians rely on — including nutrition assistance, health care, housing, and education. The analysis highlights that these cuts disproportionately hurt vulnerable Californians who are already struggling to make ends meet, particularly communities of color, immigrants, women, and children.
“These cuts are not abstract numbers — they represent real harm and suffering to real people,” said Chris Hoene, executive director of the California Budget & Policy Center. “California’s leaders must act quickly and decisively to ensure our state continues to stand for inclusion and economic opportunity for all, not just billionaires and large corporations.”
The report details how the federal budget includes deep reductions across a range of essential programs, including a $1 trillion cut to Medicaid (Medi-Cal), deep reductions to SNAP (CalFresh in California), and rollbacks to housing assistance and student aid. Meanwhile, the budget heavily favors high-income tax cuts that overwhelmingly benefit the wealthiest Americans — with the richest 5% receiving more than 40% of total tax savings ($1 trillion over 10 years), while the bottom 20% see less than 1%. This signals a drastic shift away from programs that lift families out of poverty and toward policies that widen inequality.
In response, the Budget Center calls on California leaders to:
- End costly tax breaks for large, profitable corporations that limit the state’s ability to invest in essential services,
- Protect and expand funding for core health and human services programs,
- Advance policies that reduce poverty and support economic opportunity for all, and
- Use all tools available — including legislative and budgetary options — to defend the well-being of Californians.
If the state fails to act, the consequences for families will be severe. Millions of people could lose access to health coverage, affordable housing, and food assistance. The state’s progress in alleviating poverty and expanding opportunity would be undermined, and disparities faced by historically marginalized communities would deepen.
Click below to read the full report:
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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.
