
Days after President Donald Trump signed his sweeping budget bill into law last week, a federal judge on Monday issued a temporary injunction to block one of the bill’s provisions to ban Planned Parenthood clinics from receiving federal Medicaid payments.
With 115 clinics across the state and a million Californians using Planned Parenthood each year, the administration’s plan to defund the organization is just one of the many ways its cuts to Medicaid and Medi-Cal — the state’s version of the health insurance program — are anticipated to deeply affect Californians.
As CalMatters’ Ana B. Ibarra and Kristen Hwang explain, Trump’s new budget guts Medicaid spending by $1 trillion over the next 10 years. Most of that figure takes the form of new requirements that will kick people off coverage, leaving more people uninsured. With less federal funding for Medi-Cal, the state is expected to lose $28.4 billion and 3.4 million Californians could lose coverage.
Besides California Planned Parenthood clinics standing to lose more than $300 million, new work requirements for Medicaid are expected to take effect by the end of 2026. Adults will be required to report at least 80 hours a month of employment, school or volunteer work.
This mandate is anticipated to force up to 1.4 million Californians off Medi-Cal within the first year, in part because filing paperwork would be difficult for certain jobs that don’t have regular paychecks or proof-of-employment documentation.
The 5.5 million children on Medi-Cal are also likely to feel the cuts. The new budget restricts eligibility for the Children’s Health Insurance Program to legal permanent residents — rendering those with temporary legal status, such as visas or refugee status, ineligible. Similar immigration limitations and additional new work requirements imposed on the Supplemental Nutrition Assistance Program could also lead to 3.1 million California families losing food stamp assistance.
These cuts were made by Congress and the Trump administration in order to finance permanent tax cuts for the wealthiest Americans and give Immigrations and Customs Enforcement more money than most militaries.
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Other Stories You Should Know
Problem with a State Farm check

A check from State Farm failed to clear for an Altadena resident who lost her home and ranch in the Eaton Fire, and nobody — not even the insurer — knows exactly why, writes CalMatters’ Levi Sumagaysay.
On Tuesday Amelia McDonald called her bank, Chase, to ask why the funds from the $876,354.07 check she deposited on June 30 were still not available. The bank, McDonald said, told her it was because State Farm had insufficient funds.
The incident added to what McDonald describes as “a horrible experience” trying to get her claims paid by State Farm. The state’s largest property insurer is currently facing lawsuits related to its handling of smoke-damage claims, prompting the state to open a formal investigation in June.
In an emailed response, a spokesperson for State Farm said that after reviewing the incident, “we see no indication why the bank would not release the funds to our customer.”
- McDonald: “I’m an insurance defense attorney. I’ve been working for insurance companies for more than 20 years. I’ve never had a check bounce to a claimant in 25 years of practice.”
Assembly GOP leader passes the torch

From CalMatters politics reporter Yue Stella Yu:
The next leader of the Assembly Republicans vows to put public policy above politics.
Assemblymember Heath Flora, a Ripon agricultural business owner who drew fire from fellow Republicans for working across the aisle, will take the baton from Assembly Republican leader James Gallagher in September. Gallagher, a Chico Republican, will term out in 2026.
Flora, co-chair of the bipartisan legislative “Problem Solvers Caucus,” is a more moderate voice in his caucus who says bipartisan collaboration is necessary to advance GOP goals. He is one of six GOP lawmakers urging Trump to target criminals instead of undocumented workers in immigration raids. As the incoming minority leader, Flora wants the caucus to hone in on affordability issues, instead of cultural fights over issues like transgender rights.
- Flora, in an interview with CalMatters: “Building that relationship with our Democratic colleagues, moving good policy forward, is certainly where we are going to stay focused.”
And lastly: Sex abuse claims in CA schools

A 2019 state law that temporarily dropped the statute of limitations for victims to file claims of childhood sexual abuse is driving some school districts to the brink of financial insolvency due to settlements. As victims push for their fair compensation, the Legislature is considering bills that would curb the law. Find out more from CalMatters’ Carolyn Jones.
California Voices
CalMatters columnist Dan Walters: Marin County has a tradition of saying no to housing, but the pressure from the state to develop housing is relentless and the county can’t resist it forever.
CalMatters contributor Jim Newton: The presence of federal troops in Los Angeles has largely been a series of orchestrated appearances and theatrical pronouncements — put on for imagery and political advantage.
Other things worth your time:
Trump administration sues CA over transgender athlete policies // AP News
CA farmers say Medicaid recipients can’t replace their immigrant workers // Los Angeles Times
UCs could get even more expensive as regents review tuition hike scenarios // San Francisco Chronicle
Life expectancy in CA has not rebounded after COVID-19 // The New York Times
The GavTracker: Our non-scientific Newsom presidential forecaster // The San Francisco Standard
Search warrant served on SF house connected to Esparto fireworks blast // The Sacramento Bee
Federal arrests in LA approach 2,800 since raids began, DHS says // Los Angeles Times
She was a rising CA senior on the honor roll. ICE just upended her life // The 19th
Leader of LA County’s first homelessness department says ‘accountability’ is a priority // LAist
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