State Budget Update

Read CPEHN’s analysis of the 2025-2026 State Budget. From January to July, the Governor, Legislature, advocates, and community partners debated how California’s historic surplus should be used.


Budget Protects Critical Health Investments & California’s Values in Face of Unprecedented Federal Threats

With core safety net programs largely spared from cuts, CA leaders can do more to advance health equity in final budget

SACRAMENTO, CA – The California Pan-Ethnic Health Network (CPEHN) applauded Gov. Newsom’s budget proposal to maintain critical investments in the state’s health care safety net at a time when the incoming Trump administration threatens care for 15 million Californians, the majority children and people of color. 

CPEHN Executive Director Kiran Savage-Sangwan said: 

Gov. Newsom’s budget is a strong statement that California will stand by our values and our commitment to ensure every person has the opportunity to be healthy. Our state’s leadership is vital now as the Trump Administration aims to decimate the Medi-Cal program one in three Californians count on for their care. The deep cuts in Medicaid and Affordable Care Act funding Trump’s allies demand to protect billionaire tax cuts would jeopardize access to care and worsen health disparities across the state. The devastating impacts of the Trump-backed proposals would not spare the constituents of GOP congressional districts, and CPEHN and our allies will work hard to ensure these representatives understand the consequences for our communities’ health. 

“The Governor’s budget makes a strong commitment to Medi-Cal for the 2025-26 fiscal year; the Legislature can make it even stronger by restoring the investments in community health workers lawmakers prioritized last year, but were unwound by the passage of Prop. 35. 

“We are encouraged to see Future of Public Health funding protected; the Avian Flu harming agricultural workers in the Central Valley and climate-change fueled fires devastating our state today make evident the need to stay prepared for threats to communities’ health. 

“California can well afford to continue our progress on health equity. State revenues are stronger today because the wealthiest Californians are doing better than ever, a clear sign that they can contribute more to ensuring no one goes without the care they need to thrive.” 

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