Sacramento, California - Governor Gavin Newsom today slammed the Congressional Republican and Trump Administration proposal that is advancing in the House of Representatives. According to new figures from the state, the Republican proposal could result in up to 3.4 million Californians losing their health coverage and put more than an estimated $30 billion in federal funding at risk — gutting the foundation of California’s health care safety net.

“If Republicans move this extreme MAGA proposal forward, millions will lose coverage, hospitals will close, and safety nets could collapse under the weight. We must sound the alarm because the stakes couldn’t be higher.” - Governor Gavin Newsom

Care at risk

The sweeping changes proposed by House Republicans, combined with newly released federal rules from the Trump Administration, would:

• Eliminate coverage for up to 3.4 million Californians, largely among those covered under the Affordable Care Act (ACA) expansion

• Cut at least $22 billion in federal Medicaid funding by imposing burdensome job loss penalties on low-income adults

• Punish states like California that use state funding to cover undocumented residents for non-emergency benefits by slashing federal support by at least $4 billion annually

• Restrict vital funding mechanisms, such as provider taxes and certain other payments that support hospitals and providers across California, that would result in the loss of billions of dollars

• Shut down nonprofit providers like Planned Parenthood by cutting them off from Medicaid funding

These changes will lead to hospital and clinic closures, increase uncompensated care costs, and roll back the progress California has made in reducing its uninsured rate, threatening the state’s status as a national leader in expanding access to care. 

California’s health care leadership

Since taking office, Governor Newsom has made California a national leader in expanding access to health care. Under his leadership, the state became the first in the nation to offer full-scope Medi-Cal to all eligible low-income adults regardless of immigration status — expanding coverage for young adults in 2020, older adults in 2022, and all remaining adults in 2024. While the Governor’s proposed 2025-26 budget makes adjustments to this expansion to ensure fiscal stability and preserve the long-term viability of Medi-Cal for all Californians, California’s commitment to access remains.

The Newsom Administration has taken action to lower prescription drug costs, expand reproductive health access, and protect coverage for millions of Californians amid federal threats to the Affordable Care Act.