What you need to know: The federal Republicans' “Big, Beautiful bill” would eliminate health coverage for up to 3.4 million Californians, cut at least $28.4 billion in federal Medicaid funding, and put food assistance at risk for the hundreds of thousands of Californians who rely on it.
June 27, 2025 - SACRAMENTO – Governor Gavin Newsom today slammed federal Republicans over their proposed cuts to the federal Medicaid program and the Supplemental Nutrition Assistance Program (SNAP) in their “Big, Beautiful bill.” The proposed Medicaid changes and proposed federal rules regarding health care taxes would put an estimated over $28 billion dollars of federal funding at risk for California and could result in a loss of coverage for up to 3.4 million Californians.
Taken together, these changes will lead to hospital and clinic closures, increase uncompensated care costs, and roll back the progress California has made in reducing its uninsured rate to a recent historical low of 6.4%, threatening the state’s status as a national leader in expanding access to care.
The bill would also cut federal funding for SNAP in California to $2.8 to $5.4 billion annually. Hundreds of thousands of Californians who need food assistance will be at risk of losing it, and it will punish working people by ending their eligibility.
“The so-called ‘Big, Beautiful bill’ is not cost-saving. It is not smart. It is cruel, costly, and a significant encroachment on states’ rights – the opposite of what Republican leadership claims to stand for. Big government is getting bigger under Trump and Speaker Johnson, as they attempt to dictate every move states make and micromanage Americans through even greater bureaucracy. It’s dangerous, and anyone with common sense should oppose it.”
Governor Gavin Newsom
Impact of Medicaid cuts on California
Beginning January 2027, states would be required to conduct eligibility determinations for Affordable Care Act expansion adults every six months instead of every twelve months, leading to an estimated loss of $2.4 Billion in federal funds and approximately 400,000 enrollees in California. The bill would also require states to implement work requirements beginning in 2027, which would result in an estimated loss of up to $22.3 billion in federal funds and up to 3 million California enrollees. Additional federal fund losses and health care safety net impacts would occur from restrictions on provider fees and local government payments that draw down federal funds to support local health systems.
According to Planned Parenthood, provisions in the bill would also put nearly 200 Planned Parenthood health centers at risk of closing, block 1.1 million patients from essential care like birth control and cancer screenings, and decimate abortion care access in all 50 states.
Risks to SNAP
The billions of dollars in SNAP cuts in California are composed of a reduction of at least $1.25 billion in federal funds due to changes in eligibility rules and the loss of an additional at least $178 million in nutrition education grants. Cost shifts in the range of $1.35 billion to $4 billion annually to the State and counties. This cost shift is due to a mandatory shift of 5 percent of food benefits cost to the state, and a mandatory 25 percent shift in program administrative costs to the state and county effective immediately. At least 735,000 recipients would be at risk of losing their CalFresh -- as SNAP is known in California -- benefits.
Source: Office of the Governor
