Funding for homelessness and Medi-Cal costs dominated discussions during the California State Senate session on June 13, 2025, as lawmakers grappled with pressing budgetary challenges.

Senator [Name] emphasized the urgent need for increased funding to combat unsheltered street homelessness, warning that without financial support, cities would face a reduction in shelter beds and outreach programs. "Unsheltered street homelessness will certainly not improve with less financial assistance," the senator stated, calling for a collaborative effort to secure Housing Assistance Program (HAP) dollars and encampment resolution funds.

The conversation shifted to Medi-Cal, where the senator revealed that costs had skyrocketed to nearly $10 billion, far exceeding initial budget estimates. To address this, the proposed budget includes strategic changes aimed at cost containment, such as reinstating an asset limit for eligibility and eliminating coverage for certain nonessential medications. A controversial enrollment freeze for undocumented individuals over 19 was also introduced, although existing enrollees would not be affected immediately.

In a broader context, the senator highlighted the need for California to prepare for potential federal funding cuts, urging the legislature to bolster the state's rainy day fund by increasing the maximum annual deposit from 10% to 25% of surplus revenues. "This is being responsible and preparing for the times of uncertainty," the senator remarked.

However, dissenting voices emerged, with Senator Milo criticizing the budget for failing to address a structural deficit and warning that existing programs were growing faster than revenues. "This budget actually makes the structural deficit worse," he argued, reflecting concerns among some lawmakers about the sustainability of the proposed financial strategies.

As the session concluded, the discussions underscored the critical balancing act facing California legislators as they navigate funding priorities amid rising costs and economic uncertainties.