California faces potential $880B federal cuts to Medi-Cal funding and healthcare system

In a pivotal Assembly Budget Committee meeting on April 10, 2025, California lawmakers voiced urgent concerns over potential federal cuts to Medicaid funding, which could drastically impact the state's Medi-Cal program. The proposed $880 billion reduction in federal Medicaid funding has raised alarms about the financial stability of California's healthcare system, with significant implications for low-income residents.

Assemblymember Sciaba highlighted that the cuts could lead to a loss of billions in funding for California, stressing the importance of maintaining coverage for vulnerable populations, especially seniors and disabled individuals. "We kept them safe and healthy during a global pandemic," Sciaba noted, emphasizing the state's commitment to ensuring access to care without forcing requalifications during the crisis.

The discussion also touched on the rising demand for electric vehicles among low-income Californians, with more individuals subscribing to programs aimed at increasing access to used electric vehicles. However, concerns were raised about the sustainability of funding for these initiatives, as the program may face oversubscription due to increased interest.

Lawmakers underscored the interconnectedness of healthcare funding and hospital operations, warning that cuts to Medi-Cal could lead to higher insurance rates for all Californians. "It's much more expensive to bear it through higher insurance rates than through primary care and preventative care," Sciaba cautioned, highlighting the potential ripple effects of budget decisions on the state's economy and public health.

As the committee navigates these complex issues, the urgency for a comprehensive approach to healthcare funding remains clear, with the potential for significant consequences for California's most vulnerable populations.