“One Big Beautiful Bill” Blows Hole in California’s Budget; Threatens State’s Health and Climate Plans

July 15, 2025

President Trump's "One Big Beautiful Bill," signed on July 4, will significantly impact California's 2025-26 state budget by cutting $1. 6-2 trillion in federal spending over the next decade. The law reduces funding for critical safety net programs including Medicaid, food assistance, housing, transportation, education, and clean energy initiatives that many Californians rely on.

Who is affected

15 million Medi-Cal recipients (nearly one-third of all state residents)
Black Californians, with 61% of Black children and youth and almost half of all Black residents relying on Medi-Cal
3.5 million Californians potentially losing Medi-Cal coverage
250,000 people who may lose Covered California plans
3.1 million Californians who could lose food assistance or see benefit reductions
Low-income communities in areas like South L.A., Richmond, and Oakland previously benefiting from clean energy and transit projects
Schools serving Black and low-income students that receive LCFF allocations tied to CalFresh enrollment

What action is being taken

California is increasing General Fund spending on Medi-Cal to $39 billion (about $1.2 billion higher than the previous year)
The state has frozen Medi-Cal enrollment for undocumented adults
California plans to impose $30 monthly premiums for Medi-Cal enrollees aged 19-59 starting in 2027
Lawmakers are seeking federal waivers to preserve CalAIM services before the current authorization expires in December 2026

Why it matters

The cuts threaten healthcare access for vulnerable populations, potentially forcing "low-income seniors to choose between medicine and rent"
Over 25 hospitals and 15 nursing homes, mostly in rural and underserved areas, are at risk of closing
The expanded work requirements for CalFresh create barriers for low-income Californians struggling to find consistent employment
Declining CalFresh enrollment could reduce funding for schools serving Black and low-income students
The repeal of clean energy provisions threatens weatherization efforts, zero-emission bus deployment, and air-quality improvements in underserved communities
Transit agencies face delayed projects and potential layoffs as funding evaporates
Critics argue the cuts target program recipients rather than fraud and are designed to fund tax breaks for the wealthy

What's next

No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint