Federal Medi-Cal cuts expected to affect millions of Californians


Antionette Martinez and her son Caden, 5, do their bi-weekly grocery shop at FoodMaxx on July 26, 2019. Photo by Anne Wernikoff for CalMatters
A mother shops for groceries with her 5-year-old son at FoodMaxx in Watsonville on July 26, 2019. Photo by Anne Wernikoff for CalMatters

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. 

Read more here.


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Problem with a State Farm check

Flames from a wildfire devour the inside of a home as the air fills with fire smog and darkens the sky.
The Eaton Fire burns in the community of Altadena on Jan. 8, 2025. Photo by Ted Soqui for CalMatters

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.”

Read more here.

Assembly GOP leader passes the torch

A lawmaker, wearing a navy blue suit and tie, sits on a desk chair while talking to other lawmakers around them in a legislative room of the state Capitol.
Assemblymember Heath Flora during a floor session at the state Capitol in Sacramento on April 24, 2025. Photo by Fred Greaves for CalMatters

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 dimly lit elementary school classroom with a whiteboard displaying vocabulary and grammar lessons written in marker. Above the board, an alphabet banner with illustrated objects runs across the wall. A “MASK REQUIRED” sign is prominently posted. In the foreground, children wearing face masks are partially visible and out of focus, seated at desks. A projector and children's book are seen on a cart near the board, contributing to the classroom setting.
A classroom at an elementary school in Richmond on Feb. 6, 2023. Photo by Shelby Knowles for CalMatters

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.



Other things worth your time:

Some stories may require a subscription to read.


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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Lynn La is the newsletter writer for CalMatters, focusing on California’s top political, policy and Capitol stories every weekday. She produces and curates WhatMatters, CalMatters’ flagship daily newsletter… More by Lynn La



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