The federal government plays a major role in shaping California’s budget, economy, and the well-being of its people. Federal decisions on funding, regulations, and policy changes directly affect vital programs that millions of Californians rely on — including health care, education, housing, food assistance, and more.
While federal policies have significant implications, California policymakers have choices in how to respond. From raising revenues to offset some federal cuts to enacting state-level protections, state leaders can take steps to support Californians and uphold California values in the face of harmful federal policies.
This page provides insights, analysis, and research on key federal policies that impact California. The Budget Center and our partners are tracking how federal budget decisions, tax policies, and Trump administration actions influence the state’s ability to invest in services that support economic security and expand opportunities for Californians with low and middle incomes.
Partner Resources on Federal Policy
- Center on Budget and Policy Priorities
- California Association of Food Banks
- California Health Care Foundation
- Economic Policy Institute
- Health Access
- Institute on Taxation and Economic Policy
- UC Berkeley Labor Center
- Urban Institute
What's New
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Issue Brief
Two California Families, Two Futures: The Real Cost of Federal Budget Cuts
key takeaway Republican federal budget proposals threaten critical programs for California families — like Head Start and afterschool care — while offering tax breaks to the wealthiest 1%, putting children’s well-being and working parents’ economic security at risk. The federal government funds critical programs and services for California’s families that benefit children across the state, …Child Care & PreschoolFederal Policy -
Report
Inequality Is Already Extreme in California — Republican Cuts Could Worsen It
key takeaway Republican federal budget proposals would significantly widen California’s already extreme income inequality by slashing essential programs like Medi-Cal and CalFresh while delivering massive tax breaks to the wealthy. State leaders must take action to protect Californians by preventing harmful cuts. The gap between the rich and poor in California is vast, and the …Federal PolicyPoverty & Inequality -
Issue Brief
Republican-Proposed CalFresh Cuts Put Millions of Californians at Risk of Hunger
key takeaway Republican-proposed federal cuts to CalFresh would put millions of Californians at risk of hunger by shifting billions in food assistance costs to the state. These cost-shift proposals could force California to reduce already too-low CalFresh benefits or take assistance away from over a million participants, disproportionately harming children, seniors, veterans, and people with …Federal PolicyHealth & Safety Net -
Report
Paperwork Over People: Why Republican “Work Requirements” Fail Families
key takeaway Republican budget proposals would impose harsh and ineffective “work requirements” that restrict access to health care, food, and other necessities for millions of Americans. These “work requirements” are just paperwork barriers, not solutions. Federal policymakers should reject them. All Californians, no matter their race, gender, or zip code, deserve to have affordable health …Federal PolicyHealth & Safety Net -
Fact Sheet
Republicans Are Pushing Medicaid Cuts — Here’s How They’d Affect California
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 …Federal PolicyHealth & Safety Net
