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.
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