Press Statements

California Budget Delays Worst Medi-Cal Cuts for Immigrants  — But Gaps Remain and the Fight Continues

Los Angeles, Calif. (June 30, 2026) — Today, the California Immigrant Policy Center (CIPC) issued the following statement after Governor Gavin Newsom signed the 2026-27 state budget:

“Governor Newsom signed a budget that protects critical supports for immigrant Californians at a moment when the federal government is targeting our communities. These protections matter, and they reflect the power of sustained advocacy across the state. But serious gaps remain, and CIPC will keep fighting until California fully protects the health, safety, and economic mobility of all immigrant families.

“On health care, the signed budget delays some of the worst cuts facing immigrant Californians. It extends full-scope Medi-Cal for asylees, refugees, and survivors through this fiscal year, pushes dental benefit eliminations and clinic payment reductions to July 2027, and holds premium increases until next year’s May Revise. These protections are real, and immigrant communities fought hard to secure them.

“Still, serious gaps remain. The Medi-Cal enrollment freeze continues to lock tens of thousands of undocumented Californians out of coverage. The shift from managed care to fee-for-service remains a major concern, and the delayed asset test offers only partial protection. California must recommit to health care for all and ensure that every Californian, regardless of immigration status, can get the care they need.”

“On immigration legal services, California delivered a historic win. The signed budget adds $100 million for immigration legal services, bringing the state’s total investment to $175 million, the largest state commitment in the country. These funds will help immigrant families fight deportation, expand due process, and bring critical legal support to rural and underserved communities. We thank the Assembly for championing this increase, and the Senate and Governor for adopting it, and look forward to working with the administration and the California Department of Social Services to ensure these services reach impacted communities across the state.”

“We are encouraged that the final budget includes $10.8 million for the Social Entrepreneurs for Economic Development (SEED) initiative — a proven program that provides training, technical assistance, and micro-grants to help individuals start businesses or form worker cooperatives. This is a meaningful down payment, and CIPC will continue to advocate for the economic mobility immigrant communities need to start businesses, build worker power, and thrive.  

“On food security, the budget includes welcome investments in California’s food safety net — including $108 million for CalFood to support food banks facing surging demand — but these investments leave unaddressed a critical gap: funding to update the state’s food benefit system to extend assistance to humanitarian immigrants losing long-time eligibility for food assistance under H.R. 1. We will continue advocating for this funding and urge the administration and Legislature to act before this legislative cycle closes. 

“Governor Newsom’s signature today is an important step — but it is not the end of this fight. The delays in this budget must become permanent protections. The Medi-Cal enrollment freeze must be lifted. And California must stop asking immigrant communities to bear the burden every time the state faces a difficult budget year. There is no health care for all when birthplace determines who gets care — and we will keep pushing until that changes.

“We thank our legislative champions, coalition partners, and community members across California whose tireless advocacy made these protections possible. Our advocacy will continue in the coming months as we prepare for a new gubernatorial administration.”

Masih Fouladi, Executive Director, California Immigrant Policy Center

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