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California Punts Health Care Cuts to Next Budget

California’s new budget hands millions of Californians a mixed bag: it raises revenue by narrowing corporate loopholes through a cap on business tax credits and delays some of the most severe health care cuts. Meanwhile, it has immediate harmful effects on immigrant families, older adults, and people with disabilities.

Come July 2027, certain immigrants will lose full-scope Medi-Cal coverage altogether while others face new work requirements and 6-month renewal hoops in addition to the enrollment freeze already in effect from last year.

The budget also pushes two million people out of managed care and into a fee-for-service system that means disruptions in care and less services, though a late-added $39 million softens that landing somewhat. Older adults and people with disabilities dodged the worst-case scenario—a $2,000 asset limit—but still face a much stricter cap of $21,000 for an individual effective July 2027, which will ultimately force people to choose between health care and emergency funds.

The wins are real but modest: dental cuts are delayed, acupuncture stays covered, IHSS survives intact, Covered California gets $300 million to make coverage more affordable for people earning up to 200% of the poverty line, and gender-affirming care gets new funding.

But the Legislature’s own proposal to help people leave nursing facilities for community-based care—cheaper and almost always what people actually want—didn’t survive. The bottom line: lawmakers passed modest revenue solutions instead of cutting deeper,  leaving open larger budget discussions, including Employer Fair Share proposal and looming budget cuts that continue to target immigrants and low-income families, to the next budget year.

For a budget comparison, take a look at our Health Care Budget Chart.

Looking closely at the chart, a pattern emerges: nearly every major cut carries a 2027 effective date. Dental cuts, premium hikes, the immigrant coverage phase-out, the asset limit — all pushed past the current fiscal year. That’s not mercy, it’s timing: the pain lands one budget cycle from now, when public attention has moved on and it creates a psychological element of responsibility.

In response, Western Center will continue to fight to prevent these budget cuts from being implemented at all, and reversing those that have been already in effect, with full-scale advocacy to ensure that health care coverage is protected for all Californians, for now and for the future.

A detailed analysis is available on our website.

California Health Budget Summary

Governor Gavin Newsom and state legislative leaders approved a $351.7 billion total ($251.5 billion General Fund) spending plan for the 2026–2027 fiscal year. It features record total reserves of $35.2 billion and delays, but does outright reject, billions of dollars in cuts that impact low-income Californians.

The final three-party budget agreement (SB 111) passed on June 29, with the new fiscal year underway since July 1. The Health Trailer Bill (which sets the legal and administrative rules and updates the actual state codes) is SB 164.  

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The 2026-27 budget (SB 111) passed by the legislature leaned on new corporate and health-industry revenue—over $5 billion ongoing—to protect core Medi-Cal programs and reject the deepest proposed cuts, a mixed-to-positive outcome for low-income Californians’ access to care. Unfortunately, several harms were only delayed rather than rejected, as certain immigrants remain locked out of Medi-Cal or will lose their full-scope coverage next year, underscoring how much of the safety net remains contingent on the next budget cycle.  

We must treat safety net funding as a baseline obligation, not a discretionary line item that disappears the moment the state faces a leaner budget year.  

Revenue Progress

New revenues—projected to raise over $5 billion ongoing—will help delay some of the most severe health care cuts, though not all sources are progressive. Key measures include:  

  • A cap on business tax credits  
  • A sales tax on pre-written software products  
  • A federally compliant Managed Care Organization (MCO) tax  
  • Progress on the Fair Share from Big Corporations Act: SB 177 requires the Administration to present options by April 1, 2027 to hold accountable large corporations whose employees rely on taxpayer-funded Medi-Cal  

Wins for the People, including delays 

  • The Medi-Cal asset limit—originally proposed to drop from $130K to $2K—instead landed at $21K for an individual 
  • Cuts to IHSS were rejected  
  • Covered California state subsidy was funded to provide premium subsidies for enrollees up to 200% FPL  

Medi-Cal dental coverage cut for immigrants with unsatisfactory immigration status (UIS) was originally to take effect July 1, 2026, but is now pushed out to July 2027 . Medi-Cal cuts to immigrants:  

  • The budget cuts full-scope Medi-Cal to humanitarian immigrants losing federal benefits under HR 1 starting Oct 1, 2026 — this population keeps full-scope Medi-Cal benefits until July 1, 2027, then will transition to emergency-only Medi-Cal. 
  • The UIS adult (19–59) monthly premium remains effective July 1, 2027, but the next Governor will decide by the 2027 May Revise whether to increase it from $30 to $50, lower it, or cancel it entirely .

Other Provisions and What’s Next 

California’s Medi-Cal budget shifts all 2 million immigrants with UIS from managed care to fee-for-service (FFS) system. While medical coverage continues, enrollees lose Medi-Cal plan only services, like enhanced care management, housing support services and medically supportive food. The $39M one-time funds will go towards helping patients navigate the new, fragmented system, which will inherently cause confusion and loss of coverage.  

Advocates will continue pushing for stronger implementation protections around patient access, including provider analysis and directory, continuity of care, outreach and noticing requirement, language access, and more!  

Looking ahead 

The Fair Share proposal offers further revenue potential, and a new governor’s administration creates an opening to shape priorities early in the next term.  

The catch for many of these temporary band-aid solutions is that the final decision is being pushed to the next Governor– because Governor Newsom’s term ends before some of these take full effect, or others have time-restricted budget allocations.   

California needs to think long-term about what its priorities and values are. Making true budget commitments to the people of California requires more than temporary fixes timed to outlast one administration. It requires the Legislature—not just the Governor’s office—to build permanence into these programs, to build stability. We need to ensure that the next Governor inherits a mandate.  

For a deeper analysis, please see our advocacy resources:  

Analysis Of Governor Newsom’s May Revision of California’s 2026-2027 Budget

California Cannot Balance Its Budget on Hunger, Poverty, and Immigrant Exclusion

Governor Gavin Newsom’s May Revision acknowledges the devastating impact that federal policy H.R. 1 will have but does little to mitigate that harm for millions of Californians. While the proposal includes limited efforts to respond to the devastating impact of federal policy under H.R. 1, it ultimately fails to meet the scale of the crisis facing millions of Californians.

At a time when the federal government is dismantling critical anti-poverty programs, California has an opportunity to lead differently.

Instead of shielding Californians from H.R. 1’s cruelty, the Governor’s May Revision acquiesces to inhumane federal cuts to SNAP and maintains the cruel health care cuts proposed in January. As a result, it would cement the harm to Californians experiencing hunger and force older adults and people with disabilities to impoverish themselves to access Medi-Cal. Despite additional housing investments, the May Revision continues to treat California’s housing and homelessness crises as limited or optional investments.

While we welcome the inclusion of some progressive revenue measures in the May Revision—including a permanent business tax credit limit—these proposals amount to small concessions in the face of enormous harm. The Governor has acknowledged the crisis but has yet to meet it with the scale of action Californians need. With the Assembly, Senate, and Governor all putting forward progressive revenue solutions, the path is clear. California has the tools to protect families, strengthen critical programs, and lead the nation by investing in people instead of forcing vulnerable communities to absorb devastating cuts.

Western Center looks forward to working with the Legislature and Governor on a final budget that promotes and protects the well-being of all Californians, not just the wealthiest.

HEALTH CARE 

The May Revision maintains the cruel health care cuts proposed in January and expands upon it by drastically reducing the Medi-Cal asset limit back to $2,000, which forces older adults and people with disabilities to impoverish themselves to access Medi-Cal. Under the guise of “structural balance,” the May Revision delays but maintains Medi-Cal cuts to humanitarian immigrants, increases already unaffordable premiums for certain immigrants, and introduces other Medi-Cal cuts.

Drastically reduce Medi-Cal asset test limit: The Governor proposes to drastically reduce the asset limit, which only impacts older adults and persons with disabilities, to $2,000 for an individual or $3,000 for a couple, effective January 1, 2027. This is expected to “save” $278.3 million in 2026-27 (including $62.6 million from loss in IHSS) and is based on 25,000 older adults and persons with disabilities losing coverage in first year and 37,000 in second year for a total of 62,000 people losing coverage in first two years. Last year’s budget action to reinstate the asset test was a step back but reasonable. The Governor’s proposal to return to $2,000 is punitive for those who manage to save minimal resources and is more draconian than some red states, including Nebraska, North Dakota, and South Carolina.

Delays but maintains cuts to 200,000 immigrants: Effective October 1, 2026, H.R. 1 excludes several categories of immigrants from federally funded full-scope Medi-Cal. Instead of using state funds as California has long done for other immigrants, Governor Newsom maintains his proposal to limit Medi-Cal coverage for refugees, asylees, certain domestic violence and trafficking survivors, Special Immigrant Visa holders from Afghan and Iraq, and more, effective July 1, 2027 (instead of 9 months earlier as originally proposed). The proposed budget would move these people to restricted-scope Medi-Cal, which forces people to wait until their health becomes a life-threatening emergency to get care.

Increases premiums to $50/month for certain immigrants (aged 19-59): The Governor proposes to increase last year’s budget action to impose $30 premium effective July 1, 2027 to $50 for a reduction of $427.3 million GF in 2027-28 and $314.3 million annually in 2029-30. This would make Medi-Cal even more unaffordable for low-income residents who are expected to pay more for less services.

Move all state-funded immigrants to fee-for-service: The May Revision proposes to move all immigrants eligible for state-funded Medi-Cal from managed care to fee-for-service to comply with federal guidance, impacting an estimated 2 million Californians. The move will “save” $583.8 million ($471.6 million GF) in 2026-27 and $1.5 billion ($1.2 billion GF) ongoing due to reduced administrative cost, utilization, and services, including community supports.

H.R. 1 implementation: The May Revision reflects higher cost associated with H.R. 1 implementation due to lower disenrollment, specifically a decrease of 478,000 in 2026-27 and 446,000 by 2029-30 compared to January estimates due to streamlining work requirement exemptions and updated federal guidance on 6-month renewals.

County Administration: The May Revision includes a one-time augmentation of $262 million ($74 million GF) in 2026-27, $33 million ($16.7 million GF) in each of 2027-28 and 2028-29 to support county workload for H.R. 1 implementation, which counties argue is only a third of what they need.

CalAIM reductions in Enhanced Care Management (ECM) and Community Supports (CS): The Governor proposes a reduction of $68.3 million GF in 2026-27 and more ongoing to refine eligibility criteria, service definitions, utilization management criteria, and payment adjustments for both ECM and certain CS services effective January 1, 2027.

Eliminate Medi-Cal Acupuncture Benefit: The Governor proposes to eliminate acupuncture benefit for adults effective January 1, 2027, for a reduction of approximately $5.4 million GF in 2026-27 and $13.1 million ongoing.

Medi-Cal “Efficiencies”: The May Revision includes a reduction of $68 million GF in 2026-27 increasing to $552 million in 2029-30 to establish utilization management for applied behavioral analysis and transportation, cutting some Medi-Cal plan quality incentives, and potentially more to come.

Covered CA funding: The May Revision increases funding from the Health Care Affordability Reserve Fund to expand the state premium subsidy program to enrollees up to 200% FPL, $300 million compared to $190 million in the Governor’s January budget.

HOUSING

At a time when families are struggling to remain housed, California must expand not scale back investments in the programs that keep people housed and help people exit homelessness permanently.

The Governor’s May Revision maintains January proposal’s investments in the Homeless Housing, Assistance and Prevention (HHAP) program, including $1 billion in flexible funding for local jurisdictions and a planned seventh round of HHAP funding totaling $500 million. These investments are critical, but funding alone is not enough without strong commitments to expanding affordable housing opportunities statewide.

The May Revision includes the following proposals:

Civil Rights Department Investment: The six positions would strengthen enforcement of housing discrimination laws and reduce delays for Californias seeking relief from discriminatory housing practices. Fair housing enforcement remains essential to advancing equitable housing opportunities and combating systemic discrimination in the housing market.

Infill Infrastructure Grant Program: This program would reappropriate $7 million previously awarded but uncommitted to the Infill Infrastructure Grant Program to support additional affordable housing and infrastructure projects.

Impact Fees: The Governor’s proposal would prohibit cities and counties from charging impact fees on affordable housing developments to reduce development costs with the goal of accelerating the construction of affordable homes.

Despite these additional housing investments, the May Revision should have gone further. We cannot continue to treat California’s housing and homelessness crises as limited or optional investments, especially as the cost of living keeps increasing. These crises demand sustained investments for equitable housing.

PUBLIC BENEFITS AND ACCESS TO JUSTICE 

Governor Newsom’s May Revision acknowledges the devastating harm H.R. 1 will inflict on California families, but fails to make the investments necessary to prevent that harm from becoming reality. Most critically, the proposal refuses to expand the California Food Assistance Program to protect the hundreds of thousands of Californians losing access to CalFresh, effectively accepting widespread hunger and instability as the new status quo. While the budget includes limited one-time investments and modest increases in a handful of programs, those measures fall dramatically short of the scale of the crisis — leaving children, seniors, veterans, former foster youth, immigrants, and unhoused Californians to absorb the consequences of deep federal cuts and a worsening affordability emergency.

Failure to Invest in California Food Assistance Program: Critically, this proposed budget fails to invest in expanding the California Food Assistance Program to protect the hundreds of thousands of Californians losing access to CalFresh. This proposal fails to provide any assistance to the 72,000 humanitarian immigrants already losing assistance, or the 665,000 additional Californians who will start to lose aid in June when time limits are implemented.

This proposed budget, as written, accepts hunger as the new reality for an estimated 100,000 children. It accepts the loss of food and stability for thousands of veterans, former foster youth, seniors, and people already experiencing homelessness. And it accepts an estimated 4,000 avoidable deaths among California parents and older adults by 2040.

Failure to Invest in CalFresh Outreach: The proposal also fails to invest in the CalFresh Outreach Network, which keeps Californians connected to CalFresh food assistance. CalFresh Outreach allows California to maximize participation in CalFresh, which in turn maximizes both our federal drawdown and the CalFresh economic multiplier effect.

Insufficient Support for County Eligibility Workforce: The May Revision includes $30 million in one-time funding to support county administration workload in 2026-27, which counties argue is just a fraction of the funding required to meet the expected need to empower workers to minimize cuts and maximize the federal drawdown.

Insufficient Support for Food Banks: The May Revision includes $30 million for food banks; This investment is necessary but falls dramatically short of the $110 million in need that the food banks anticipate as they prepare for the next wave of federal cuts.

Maintains Cuts to In Home Supportive Services (IHSS): The May Revision maintains the proposed cuts to IHSS from the Governor’s January budget, which would eliminate the state’s share of IHSS Growth in assessed hours starting in 2027–28, shifting $233.6 million in costs to counties. With county budgets already under pressure, this cost shift would exacerbate fiscal instability at the local level and potentially limit care for IHSS recipients with growing care needs as they age or their conditions worsen. In addition, the May Revision continues the proposal to eliminate the IHSS Backup Provider System beginning in 2026-27. This system ensures that IHSS recipients with urgent care needs can get immediate support from a qualified provider, so their health and safety is not endangered.

Insufficient investments in Childcare: The May Revision provides no new funding for childcare slots, which breaks a promise to provide 77,000 additional spaces for families this year.

The May Revision also dials back the cost-of-living adjustment (COLA) that was in the Governor’s January budget for DSS administered childcare programs. While the proposal does maintain some funding for a COLA, it is reduced by 30% compared to the January proposal.

Reductions to Adult Protective Services (APS): The May Revision claws back expansions to APS that were adopted in 2021-22. This includes reverting the eligibility for the program back to age 65 and older from 60 and older and cutting $70 million General Fund in 2026-27 and ongoing.

One-time Funding for Immigration Legal Services: The May Revision provides $20 million in one-time funding over two years to support immigration legal services. This is less than the $50 million requested by advocates for deportation defense and is subject to existing restrictions that prohibit the use of these funds for those with specified legal histories.

Increases funding for CalWORKs grants: Included in the May Revision is a 1.8 percent increase for CalWORKs Maximum Aid Payments effective October 1, 2026.

Revenues

Business Tax Credit Cap – A First Step: We applaud the Governor for pursuing a permanent cap on business tax credits, and we urge him to go further. This is just one step in the right direction. $850 million in year one is a drop in the bucket for California’s largest corporations, and we can do better to ensure they begin to pay their fair share.

California’s corporations make their profits by relying on our educated workforce, our roads, and our ports, and they pay wages so low that their own workers depend on CalFresh and Medi-Cal to survive. These same corporations just received a massive windfall of federal tax giveaways from H.R. 1, paid for with cuts to federal food assistance and healthcare. They can afford to pay their fair share in California, and to contribute to the programs their workers rely on.

We urge Governor Newsom to be bolder and braver in fighting to make California a state where we all benefit from the prosperity we create together. It is long past time to stand up against outdated, backward-facing budget cuts and instead invest in people and communities.

Other Proposed Revenue Solutions: The California Assembly is considering AB 1790, which would close the Water’s Edge tax loophole, and bring an expected $3.5 billion back into California. Instead of letting our most profitable corporations hide money in offshore accounts to avoid contributing their fair share, we can invest taxpayer dollars in things that generate real returns for our local economies: food security, healthcare, and housing stability.

The California Senate is advancing a budget proposal that protects access to healthcare by requiring large corporations to start contributing to the Medi-Cal costs of their workers. The Fair Share Contribution proposal is expected to generate $5 to $8 billion annually.

Budgeting for a Brighter Future

We urge the Governor, Assembly, and Senate to combine efforts to adopt a bold and progressive revenue package. At a time of deep economic inequality, our State Budget must reflect a clear commitment to safeguarding the systems Californians rely on. Adopting a comprehensive package of progressive revenue solutions and investing to protect our safety net from cuts would make California a more affordable, equitable state.

At a time when Californians are struggling to afford groceries, gas, rent, and healthcare, this budget worsens the affordability crisis by accepting cuts that will close grocery stores, eliminate jobs, and raise prices for everyone.

We look forward to working with the Assembly, Senate, and Governor to protect and strengthen California’s safety net programs through critical investments and revenue solutions that close the record-level wealth gap.

Our analysis and recommendations focus on stabilizing and investing in a state where everyone prospers, where all communities and individuals are given the support needed to not just survive but thrive. We are the most prosperous state in the nation. It is well past time that all Californians get a share of that prosperity.

For questions, contact:

General:
Brandon Greene, Director of Policy Advocacy – bgreene[at]wclp.org
Linda Nguy, Associate Director of Policy Advocacy – lnguy[at]wclp.org

Health:
Linda Nguy, Associate Director of Policy Advocacy – lnguy[at]wclp.org
Whitney Francis, Policy Advocate – wfrancis[at]wclp.org
Sandra Poole, Policy Advocate – spoole[at]wclp.org

Housing and Homelessness:
Benjamin Henderson, Policy Advocate – bhenderson [at]wclp.org
Brandon Greene, Director of Policy Advocacy – bgreene[at]wclp.org

Public Benefits/ Access to Justice:
Rebecca Gonzales, Policy Advocate – rgonzales[at]wclp.org
Keely O’Brien, Policy Advocate – kobrien[at]wclp.org
Whitney Francis, Policy Advocate – wfrancis[at]wclp.org
Brandon Greene, Director of Policy Advocacy – bgreene[at]wclp.org

MEDIA ALERT: Assemblymembers and Senators Join Advocates to Demand Medi-Cal Coverage for Californians

FOR IMMEDIATE RELEASE

Contact: Annel Lopez Hailey
(916) 319-3571
[email protected]

WHO:     Assemblymember Tasha Boerner, D – Encinitas
Senator Maria Elena Durazo, D – Los Angeles
Senator Lola Smallwood-Cuevas, D – Los Angeles
Assemblymember Patrick Ahrens, D – Silicon Valley
Assemblymember Mark González, D – Los Angeles
Assemblymember Dr. LaShae Sharp-Collins, D – San Diego
Dr. Seciah Aquino, Executive Director for Latino Coalition for a Healthy California
Alexis Robles-Fradet, Policy Analyst for National Health Law Program
Whitney Francis, Policy Advocate for Western Center on Law and Poverty

WHAT:            With the federal government’s approval of HR 1, California is at risk of leaving millions of Californians uninsured. According to the California Budget and Policy Center, HR 1 is expected to cut $30 billion a year in federal funding from Medi-Cal and cut coverage for 3.4 million residents. Join State Senators, Assemblymembers, and advocates as they demand Medi-Cal coverage for Californians and share the harmful effects of defunding Medi-Cal on the state’s health care system.

WHEN:            Tuesday, May 12, 2026

10:00 – 10:45 AM

WHERE:          Speaker’s Press Room

              1315 10th Street, Room 317

              Sacramento, CA 95814

Assemblymember Tasha Boerner represents the 77th District, which encompasses Carlsbad, Encinitas, Solana Beach, Del Mar, and the coastal communities of La Jolla south to Coronado. You can learn more about Assemblymember Boerner at a77.asmdc.org, Facebook, Instagram, or Bluesky.

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Western Center and its partners are co-sponsoring a four-bill strategy to protect Medi-Cal.
These legislative proposals respond by strengthening state systems, limiting unnecessary terminations, and ensuring Medi-Cal members can stay covered and access affordable health care.

*** AB 2161 (Bonta)     Protecting Medi-Cal Coverage from H.R. 1’s Disproven Work Requirements
Prevents California from unnecessarily extending H.R. 1 work requirements to state-funded Medi-Cal populations, automates verification to reduce administrative burden, and requires federal work requirements be implemented in the least harmful way.

*** AB 2201 (Boerner)     Reducing Administrative Burden of Medi-Cal Renewal Processing
Reinstates proven eligibility and renewal strategies to streamline Medi-Cal processing to reduce wrongful terminations. Reduces administrative burden to focus on complex cases and urgent H.R. 1 implementation demands.

*** AB 2208 (Stefani)     Limited Cost Sharing, Accessibility Improvements, and Retroactive Coverage
Caps cost-sharing for Medi-Cal members impacted by H.R. 1 to one cent, protects families from medical debt and cost-related barriers to care, and requires user-testing and accessibility improvements for system changes.

*** SB 1202 (Weber-Pierson)     Medi-Cal Transparency and Outreach
Requires the state and health plans to proactively reach out to Medi-Cal patients and track coverage losses so people don’t fall through the cracks due to new eligibility rules due to changes imposed by H.R.1.

The bills are co-sponsored by Western Center on Law & Poverty, Justice in Aging, the National Health Law Program, and Health Access California, joined by the Latino Coalition for a Healthy California and The Children’s Partnership on AB 2201. These organizations have decades of experience protecting Medi-Cal and advancing equitable health care policy.

CONTACT

For more information or to RSVP, please call the Capitol Office at (916) 319-3571 or email Annel Lopez Hailey at [email protected].

Or contact Western Center on Law & Poverty
Whitney Francis, Policy Advocate
[email protected]

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Health Consumer Organizations Release Principles for “Medi-Cal 2030: Person-Centered, Accountable, Sustainable”

For Immediate Release
Contact: Madison Torres, [email protected]

CA Budget Decisions Made in Next 45 Days Will Shape Medi-Cal for Years:
Will they make 15 million Californians healthier or sicker?
Improve or worsen inequitable health outcomes? 

Interview Opportunities: Ahead of the May Revision, experts available to provide insight on what’s at stake for Medi-Cal in the coming budget year

Sacramento, CA – A coalition of advocates for health consumers, communities of color, children, and older adults today released a set of principles to guide policymakers’ decisions over the future of Medi-Cal. Their joint call to transform the program into a safety net that is person-centered, accountable, and sustainable comes as Governor Newsom and lawmakers will soon confront the sweeping impacts of the federal H.R.1 on the design and financing of California’s largest health care program. 

Critical decisions about the future of the program will be made in the coming weeks as Governor Newsom updates his FY 2026-27 budget proposal by May 14, and lawmakers must adopt a budget by June 15. At this juncture, the Governor and lawmakers will face a critical choice: will they raise revenues to make care sustainable for those whose lives depend on Medi-Cal, or undermine the program’s core mission with cuts that exclude people from care, deny critical services, and deepen inequities.  The principles provide a clear answer – and offer leaders a plan to transform Medi-Cal into a program that improves experience, equity, and outcomes for families, children, seniors, people with disabilities and immigrant communities who count on the health program.    

“Medi-Cal 2030 principles are grounded in the conviction that health is a human right and that Medi-Cal, properly designed and fully funded, is one of California’s most powerful tools for realizing it. In a moment when federal commitments to Medicaid are under significant threat, these principles are not aspirational, they are essential,” the groups wrote. 

Background: 

  • Medi-Cal is California’s single largest health care program, covering 15 million people – 1 in 3 Californians and 3 in 7 children –  and is one of the state’s most consequential investments. 
  • Despite its size and powerful role in health care, Medi-Cal has never fully lived up to its promise of equitable care for all. Persistent disparities exist in coverage, access, quality, and health outcomes along lines of race, ethnicity, language, immigration status, disability, and geography. 
  • Several forces are sparking overdue conversations about the future of Medi-Cal now. Among them are H.R.1, federal legislation that aims to terminate coverage for millions of Californians and otherwise destabilize funding for the health care safety net to pay for nearly $1 trillion in federal corporate tax breaks; the increasing role of artificial intelligence in health care, and cost pressures driven by a corporatized health care system that extracts profit at every turn.

The Medi-Cal 2030 principles provide a roadmap for transforming Medi-Cal into a program that fully honors its potential as a vehicle to advance health equity. They also provide a standard against which changes to Medi-Cal, such as the adoption of new technology, must be measured in order to realize Medi-Cal’s purpose.    

What Experts are Saying:

“The Medi-Cal program is an essential health care safety net and a work in progress, with its mission to drive equitable health outcomes still unfulfilled. Now, Medi-Cal is confronting serious new challenges, from federal financing threats to soaring costs driven by hospitals and other corporations. California leaders must take the opportunity to transform Medi-Cal now in a way that strengthens its purpose and commitment to the people it serves – the majority of whom are people of color. The Medi-Cal: 2030 principles are a framework for making the program easier for consumers to navigate, improving the care delivered, and making progress toward equitable outcomes for Californians.” – Kiran Savage-Sangwan, Executive Director, California Pan-Ethnic Health Network 

“At this pivotal moment, California has an opportunity to prove that the promise of Medi-Cal is not just an ideal but a blueprint the rest of the nation can follow.  The Children’s Partnership is proud to have helped shape these principles that offer a concrete framework for closing the gap between what Medi-Cal promises and what families actually experience. When we build Medi-Cal around the real-life experiences of children and families, we build a healthier, more just California and a stronger nation.” – Mayra Alvarez, President, The Children’s Partnership

“The past year has been defined by deliberate policy choices to dismantle the programs families rely on, while corporations and the wealthy extract record profits. California must reject that agenda by putting people first in its policy decisions and strengthening Medi-Cal as a non-negotiable foundation to lasting stability.” – Cori Racela, Executive Director, Western Center on Law and Poverty

“Access to quality health and long-term care shouldn’t depend on a person’s health insurance, age, race, gender, immigration status or any other characteristic. Medi-Cal is already a vital and integral part of the state’s health care system. These principles provide a road map to creating a comprehensive program that will support Californians through every stage of their lives and advance health equity for all.” – Kevin Prindiville, Executive Director, Justice in Aging

“California can and must meet this moment with vision and courage. Medi-Cal has changed lives for generations, but we know too many people still face barriers to care. These principles chart a path toward a system that is more equitable, more accountable, and easier to access, one that reflects the dignity and needs of every Californian. We are proud to help shape this vision and committed to turning it into reality.”  – Kim Lewis, Managing Director of California Advocacy, National Health Law Program.

“For years, the California Immigrant Policy Center has joined with other advocates to fight for a simple truth: health care is a human right, not a privilege tied to where you were born. The Medi-Cal 2030 Coalition gives us a powerful new vehicle to make that vision real.

“As the Trump administration works to strip health coverage from immigrant communities through H.R. 1, California must lead — and lead boldly. That means passing the Health4All budget proposal to protect humanitarian immigrants who will lose federal eligibility, ending the enrollment freeze that is leaving income-eligible undocumented Californians without care, and passing SB 1422 to restore the full-scope Medi-Cal access that was cut last year.

“The Medi-Cal 2030 Principles make clear: immigration status must never be a barrier to health coverage. Gov. Newsom and California’s next governor have both the opportunity and the responsibility to transform Medi-Cal into a program that truly works for every Californian by 2030. That legacy begins now — with the choices they make this year to protect and expand access for the communities who need it most.

“We are proud to be part of this coalition and to fight for a Medi-Cal that serves every Californian — no exclusions, no exceptions.” – Masih Fouladi, Executive Director, California Immigrant Policy Center 

“Medi-Cal can be complex, and as we face a shifting landscape on many fronts, the focus of any reform must be the person receiving care. Proposed changes must improve quality and equity for the patients Medi-Cal serves.  In order to do that, it means holding the health care providers and insurers who operate in Medi-Cal responsible for meeting these goals for patients. Providers must put the needs of patients over their profit margins to ensure a system that actually works for those it serves.” – Rachel Linn Gish, Interim Deputy Director, Health Access California

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Families File Lawsuit to Stop California’s Rady Children’s Health from Cutting off Health Care for Transgender Youth

** FOR IMMEDIATE RELEASE **

New lawsuit follows the temporary restraining order secured by Attorney General Rob Bonta to keep care in place and protect transgender youth from discriminatory denial of medically necessary care

SAN DIEGO, CA — Today, California families publicly filed a lawsuit against Rady Children’s Health, the nonprofit parent organization overseeing Rady Children’s Hospital San Diego and Children’s Hospital of Orange County (CHOC), to stop the hospital system from unlawfully cutting off medical care for transgender adolescents and young adults. The families are represented by Western Center on Law & Poverty, together with Impact Fund and the National Center for LGBTQ Rights.

The lawsuit challenges the hospital system’s January 20, 2026, announcement that it would stop providing healthcare to treat transgender youth —care that every major medical organization recognizes as well-established and medically necessary. The hospital’s announcement followed the Federal Administration’s December 16 proposed rule that would bar facilities that provide this healthcare from receiving any funding from the federal Medicare or Medicaid programs. The proposed rule has not yet gone into law.

Rady Children’s Health planned to halt services on February 6, placing an estimated 1,900 patients at risk of losing access to ongoing treatment. However, California Attorney General Rob Bonta filed a temporary restraining order (TRO) which temporarily prevented the hospital system from ending care.

While the Attorney General’s case raises administrative compliance concerns, the families’ lawsuit alleges that the hospital’s decision violates California’s anti-discrimination law.

“No hospital in California has the right to single out transgender youth and deny them critical healthcare,” said Amy Whelan, National Center for LGBTQ Rights Senior Staff Attorney. “That is discrimination, plain and simple, and it violates California law. We filed this lawsuit to ensure that these young people receive the health care their doctors have prescribed and that the law guarantees them.”

“Transgender youth and their families should not have to fear that hospitals will end essential medical care overnight,” said Lori Rifkin, Impact Fund Litigation Director. “Hospitals have a responsibility to follow the law and provide equal access to healthcare. Discrimination has no place in medicine.”

“Medical care–and especially critically important care–should be decided by patients and their doctors. But if the hospitals refuse to protect their patients, our clients have no choice but to protect themselves,” said Helen Tran, Senior Attorney at Western Center on Law & Poverty.

The complaint seeks injunctive relief to prevent Rady Children’s Health from ending transgender healthcare, and to ensure transgender youth continue receiving treatment without disruption, discrimination, or unlawful denial of services.

About Western Center on Law & Poverty

Western Center on Law & Poverty is California’s leading legal organization working to end poverty and advance racial and economic justice. For nearly 60 years, Western Center has fought for policies and legal protections that ensure low-income communities can access healthcare, housing, food security, and fundamental civil rights.

About Impact Fund

Impact Fund is a legal services nonprofit that provides funding, training, and strategic support, including co-counseling, to advocates pursuing impact litigation to advance economic, environmental, racial, and social justice.

About National Center for LGBTQ Rights

National Center for LGBTQ Rights is a nonprofit legal organization that advances civil and human rights for LGBTQ people and their families through litigation, legislation, policy, and public education.

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CONTACTS:

Lauren Gray, [email protected]
Maria Sundeen, [email protected]
Teddy Basham-Witherington, [email protected]

 

A.A. et al., by and through their Guardians ad Litem v. Rady Children’s Health et al.
See the case summary and related files here.

New Bills and Budget Requests to Restore #Health4All and Prevent Further Cuts 

** FOR IMMEDIATE RELEASE **

Sacramento, CA — Today state legislative leaders joined health and immigrant rights advocates of the #Health4All campaign to announce their plan to push back on Governor Newsom’s proposed 2026-2027 state budget which included many new and continued cuts to immigrant communities. They unveiled two bills, SB 1422 by Senator Durazo which would end the currently imposed freeze on Medi-Cal enrollment for undocumented Californians, and AB 2161 by Assemblymember Bonta which would prevent Trump-style work requirements from being imposed on lawfully residing and undocumented Californians. 

Advocates also called on lawmakers to reject the Governor’s proposed plan to move hundreds of thousands of lawfully residing immigrants that are not eligible for federal programs from full-scope to restricted-scope Medi-Cal. These are often refugees, asylees — those fleeing persecution, human trafficking or domestic violence — who would be stripped of their comprehensive coverage and left with no other option than bare minimum emergency coverage.

The coalition also announced its intention to ask for a full rollback of all cuts made to immigrant communities that were enacted in last year’s state budget, which in addition to the freeze that is already in effect, would eliminate dental coverage for all legally-residing and undocumented Californians on July 1, 2026 and implement $30 per month premiums to the same group starting July 1, 2027

State lawmakers joining the event, in addition to Senator Durazo and Assemblymember Bonta, included Senator Lola Smallwood Cuevas and Assemblymember Liz Ortega. Legislators were joined by leaders of the the #Health4All campaign including Health Access California, the California Immigrant Policy Center, the Latino Coalition for a Healthy California, the California Pan-Ethnic Health Network, and the Western Center for Law on Poverty.

“California’s hospitals and clinics are on the precipice. Federal cuts are already hitting hard, and our own state budget decisions are adding to that pressure. The Medi-Cal enrollment freeze does not save money in the long run. It shifts costs onto counties, onto hospitals, and ultimately onto all of us. SB 1422 ends that cost shift and keeps California on the right side of history,” said Senator María Elena Durazo, author of SB 1422. 

“Donald Trump is weaponizing work requirements to strip health care from hard working Californians, not to help them find jobs, but to bury them in paperwork until they lose their health care coverage. It’s a cruel trick that serves no one and only burdens families already struggling to get by. California won’t play along. AB 2161 fights back by using data the state already has, cutting the red tape, and keeping families covered. We’re not going to let Californians be casualties in Washington’s war on working people,” said Assemblymember Mia Bonta, author of AB 2161.

“While Trump and the Republicans who control Congress seem hellbent on destroying our health care safety net, California can and must take a different path, one that reflects our values — a California where everyone has access to health care to prevent illness and get life-saving care — no matter where they were born,” said Amanda McAllister-Wallner, Executive Director of Health Access California. “We saw who the politicians in Washington prioritized: cutting health care to the tune of $1 trillion only to hand that money to the biggest and wealthiest corporations, whose profits are growing while more of their employees are relying on taxpayer-funded Medi-Cal. We need our leaders in Sacramento to even the playing field and show that they stand with the millions of Californians whose health care is on the line. It’s time for these corporations to pay their fair share and ensure that our state can build a health system that ensures equitable access to care for all who work and live in our state.”

“At a time when the Trump administration is slashing health care and terrorizing immigrant communities, our state should be a shield, not another weapon aimed at the people who built this state. CIPC along with our legislative champions and coalition partners is demanding a full rollback of cuts to immigrant communities. Undocumented Californians pay their taxes, they do the work that keeps California running, and they deserve the dignity of health care coverage,” said Masih Fouladi, Executive Director, California Immigrant Policy Center. “When corporations refuse to pay living wages or provide health insurance, taxpayers foot the bill. It’s time for big business to pay their fair share — so Medi-Cal can remain a lifeline for the working families. We will not accept a two-tiered health care system where your birthplace determines whether you get critical care. California has led before, and with the full restoration of Medi-Cal access, we can lead again.”

“California’s world-leading economy is built on the labor and contributions of immigrant and Latino communities. When we demand the restoration of Health4All, we are not asking for charity, we are demanding respect and the care our communities help sustain,” said Dr. Seciah Aquino, Executive Director of the Latino Coalition for a Healthy California. “When people lose access to preventive care, they delay treatment, emergency rooms fill up, and local health systems are left carrying the cost. SB 1422 restores full access to Medi-Cal and uphold California’s commitment to health equity.”

“Federal attacks on our health care and our immigrant communities must be a moment of moral clarity for California leaders: its time to stop protecting tax breaks for corporations and the rich who are amassing record wealth under Trump, rather than forcing farmworkers, janitors and fast food workers to get sicker and die sooner,” said Kiran Savage-Sangwan, Executive Director of the California Pan-Ethnic Health Network. “ CPEHN joins the Health4All coalition and lawmakers courageously standing up to cruel cuts proposed in the state budget. The real problem in our health care system isn’t the number of people who need care, but the rising costs charged by hospitals and other corporations. We call for rejecting Gov. Newsom’s proposal to deny care to 200,000 refugees, asylees, domestic violence survivors, and holders of visas for crime victims.”

“At a moment when immigrant communities are already under relentless federal attack, California should be standing firm as a state that defends the dignity, health, and safety of every family who calls this place home,” said Linda Nguy, Associate Director of Policy Advocacy with Western Center on Law & Poverty. “Instead, this budget goes further, and elevates the worst elements of HR 1 by imposing unnecessary work reporting requirements that federal law doesn’t even require.”

Coalition members also read a story of an impacted Californian. Diego from the San Fernando Valley is sick with chronic rheumatoid arthritis, cartilage disease, suffers knee pain, has difficulty walking, and has diabetes. He currently only has access to emergency Medi-Cal coverage which means he cannot have regular follow-up visits for his illness. He now must pay for his medications out-of-pocket and is worried that between his job as a street vendor and his wife’s job cleaning houses, they can barely make enough for rent, much less health care. He asks Governor Newsom to advocate for medical coverage for him and for more undocumented families who need it and have contributed to the state’s economy through their hard work and taxes.

Advocates will be providing public comment in support of #Health4All in today’s Assembly Budget Subcommittee #1 on Health and Human Services. 

Background:

Factsheet: Health4All Coalition: 2026 Budget and Legislative Priorities

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Media Contacts:

Rachel Linn Gish, Health Access California Communications Director, [email protected] 

Ed Sifuentes, CIPC Communications Director, [email protected] 

Jonathan Loc, Press Secretary, Office of Senator Elena Maria Durazo, [email protected]

Resistance, Legacy, and the Ongoing Fight for Justice

Honoring Black Leadership, Past and Present


“Resistance is a powerful motivator precisely because it enables us to fulfill our longing to achieve our goals while letting us boldly recognize and name the obstacles to those achievements.”
— Derrick Bell, Co-Founder, Western Center on Law & Poverty

Black History Month is a time to honor the visionaries whose courage shaped the America we know, and to recommit ourselves to fighting for and building the America we all deserve. At Western Center on Law & Poverty, that commitment is not abstract. It lives in our founding, in our mission, our work, and in the people who show up every day to fight for Californians experiencing poverty.

Derrick Bell, one of our co-founders and critical race theory pioneer, understood that resistance is not merely opposition; it is a creative force. His insight still guides us today as we confront persistent inequities in our legal, health, and economic systems.


A Legacy of Racial Justice

For nearly 60 years, Western center has secured transformative victories that have improved the lives of Black Californians. Poverty is a systemic issue that disproportionately impacts Black communities and communities of color. Through legislative reform, advocacy, and coalition building, Western Center fights each day to protect necessary safety nets and dismantle harmful structures so all Californians can thrive.

1970 – 1973 The honorable Terry Hatter, Jr served as executive director for Western Center. A cofounder of the organization, Judge Hatter was the first Black executive Director at Western Center.

1990 Juanita Tate, a champion for environmental justice and community developer who organized and developed affordable housing and economic opportunities for South Central Los Angeles residents was honored at the 1990 Garden Party.

2015 Western Center successfully challenged racially discriminatory traffic fines and fees practices, leading to an amnesty plan, the right to challenge tickets, and the restoration of nearly 200,000 licenses.

2019 Western Center and partners worked to pass the first CROWN Act (SB 188) in the country, prohibiting discrimination based on hair style and texture by extending protection under the FEHA and the California Education Code.

2020-2024 Crystal Crawford joined Western Center as the first Black woman Executive director at Western Center. She led the organization for four years and emphasized the importance of racial justice as a focal point of our work.

2021 In partnership with a coalition of advocates, Western Center passed Senate Bill 65, the California Momnibus Act to address persistent racial disparities in birthing outcomes. The new law will expand the state’s Pregnancy-Associated Mortality Review Committee to include midwives, doulas, community advocates, and a tribal representative.

Sandra Poole, a Health Policy Advocate at Western Center has been a steadfast advocate and educator for Black Maternal health, hosting birth center listening sessions and advocating for policy changes such as the recent passing of AB 55, the Freedom to Birth Act which Western Center cosponsored.

“Addressing Black birthing disparities is not optional — it is a moral, medical, and societal imperative. When we commit to equitable care, we affirm that every birthing person’s life is valuable, every birth deserves safety, and every family deserves the chance to thrive. Progress demands persistence, accountability, and the unwavering belief that preventable loss is unacceptable.”
— Sandra Poole, Western Center on Law & Poverty

2025 Brandon Greene, Director of Policy Advocacy, testified before the Senate Judiciary Committee in support of AB 7, a Black reparations bill targeting college admissions.

“As a directly impacted person and son of a mother who attended segregated schools to become the first person in my family to graduate college, my work as an attorney and Director of Policy Advocacy is important to me because I get to be a voice and advocate for issues directly relevant to communities like the one I come from. Most importantly I get to amplify and influence the direction of our advocacy efforts including Reparations and racialized wealth extraction.”
— Brandon Greene, Western Center on Law & Poverty



The Work Continues

Black History Month is a time to celebrate our achievements, but also a reminder that this crucial work continues all year – especially now. From Derrick Bell’s founding vision to Sandra Poole’s advocacy in Black maternal health, from the CROWN Act to the Momnibus Act, Western Center’s story is inseparable from the story of Black liberation in California.

We are proud of what we have achieved. We know there is much more to be done. Poverty cannot be addressed without confronting racial injustices and the systems that uphold them. We are grateful to the staff, partners, and communities who make this fight possible.

California Lawmakers Introduce Legislative Bills to Lessen Harmful Impact of H.R. 1 for Medi-Cal Applicants and Enrollees

FOR IMMEDIATE RELEASE

Bills would limit coverage terminations, reduce administrative burdens, expand outreach, and prevent cost spikes for low-income Californians

SACRAMENTO, CA — As California grapples with the implementation of H.R. 1 and its sweeping changes to Medicaid, including new work requirements and more frequent renewals, state lawmakers today announced four bills aimed at mitigating the impact to Medi-Cal enrollees and applicants.

The bills—authored by Senator Weber-Pierson and Assemblymembers Bonta, Stefani, and Boerner—will strengthen state safeguards to ensure Californians do not lose access to health care simply because of paperwork, bureaucratic delays, or federal policy decisions designed to restrict coverage and access to care.

Together, the four bills advance a clear message: California will undertake all efforts to protect Californians even while Washington continues to dismantle Medicaid.

A Four-Bill Strategy to Protect Medi-Cal
California’s Medi-Cal program currently provides coverage to nearly 15 million Californians, including children, seniors, people with disabilities, and working families. H.R. 1 threatens that coverage by imposing new eligibility restrictions, increased renewal frequency, and burdensome work and reporting requirements that will inevitably push eligible people off health care.

These legislative proposals respond by strengthening state systems, limiting unnecessary terminations, and ensuring Medi-Cal members can stay covered and access affordable health care.

SB 1202 (Weber-Pierson): Medi-Cal Transparency and Outreach
This bill requires the Department of Health Care Services (DHCS) to create a public-facing dashboard tracking Medi-Cal enrollment losses resulting from H.R. 1 eligibility changes. It also strengthens outreach requirements for DHCS, counties, and Medi-Cal managed care plans to prevent eligible Californians from losing coverage due to avoidable paperwork barriers.

“H.R. 1 jeopardizes the health care coverage of millions of Medi-Cal members by adding additional paperwork and eligibility requirements,” said Senator Weber-Pierson. “SB 1202 requires an all-hands-on deck approach from the state, counties, and Medi-Cal plans to reach out to these members so they know what they need to do to keep their coverage. SB 1202 also requires the Department of Health Care Services to track who is losing their Medi-Cal as a result of these policies so we can document the harm.”

AB 2161 (Bonta): Protecting Medi-Cal Coverage from H.R. 1’s Disproven Work Requirements
This bill prevents California from amplifying H.R. 1’s harmful work requirements by extending them unnecessarily to state-funded Medi-Cal populations. It minimizes administrative burden by automating verification using available data sources and requires that any federal work requirement implementation be applied in the least harmful way possible for Medi-Cal members.

“Donald Trump is weaponizing work requirements to strip health care from hard working Californians, not to help them find jobs, but to bury them in paperwork until they lose their health care coverage,” said Assemblymember Bonta. “It’s a cruel trick that serves no one and only burdens families already struggling to get by. California won’t play along. AB 2161 fights back by using data the state already has, cutting the red tape, and keeping families covered. We’re not going to let Californians be casualties in Washington’s war on working people.”

AB 2208 (Stefani): Limited Cost Sharing, Accessibility Improvements, and Retroactive Coverage
This bill caps cost-sharing for Medi-Cal members impacted by H.R. 1 to one cent for all services, protecting families from medical debt and cost-related barriers to care. It also requires user-testing and accessibility improvements for BenefitsCal, CalSAWS, and CalHEERS, including mobile reporting functionality and text message notifications. Finally, the bill preserves three months of state-funded retroactive Medi-Cal coverage, preventing gaps in care created by H.R. 1’s restrictive federal policies.

“As Washington threatens to rip health care away from over three million Californians, our state must act,” said Assemblymember Stefani. “I’m proud to author legislation that ensures that no one has to choose between lifesaving care and crushing medical debt by capping costs for low-income Medi-Cal patients at a penny, protecting retroactive Medi-Cal coverage, and requiring clear communication about benefits. When the federal government turns its back on patients, California will step in to protect them.”

AB 2201 (Boerner): Reducing Administrative Burden of Medi-Cal Renewal Processing
This bill reinstates proven eligibility and renewal strategies to streamline Medi-Cal processing and reduce wrongful terminations. By reducing unnecessary administrative workload, it frees county staff to focus on complex cases and urgent H.R. 1 implementation demands.

“Asm. Boerner is proud to author AB 2201, a bill that will help minimize the negative impacts of the Trump Administration’s attack on Medi-Cal,” said Assemblymember Boerner. “This bill will help to streamline the Medi-Cal verification process, removing administrative barriers that threaten Medi-Cal health coverage. Currently, 14 million Californians rely on Medi-Cal coverage, of which 1.3 million are children. Work requirements for Medi-Cal participation and increased frequency of renewals from annual to every 6 months means county offices will be stretched thin by the sheer volume of additional paperwork and ultimately put Californians at risk of losing access to Medi-Cal. California needs to protect healthcare services, especially for children. We cannot stand idly by and let the Trump Administration destroy lifeline programs for our most vulnerable population.”

The bills are co-sponsored by Western Center on Law & Poverty, Justice in Aging, the National Health Law Program, and Health Access California, organizations with decades of experience protecting Medi-Cal and advancing equitable health care policy.

“H.R. 1 is a cruel and calculated giveaway to billionaires and corporations—paid for by ripping health care away from low-income Californians,” said Linda Nguy, Associate Director of Policy Advocacy at the Western Center on Law and Poverty. “This isn’t budget policy. It’s a betrayal of what our tax dollars are supposed to do: protect people, keep families healthy, and build strong communities—not bankroll tax breaks for the wealthy. The result will be more uninsured Californians, more medical debt, and deeper health inequities, with immigrant and unhoused communities hit first and hardest. California must act with urgency to defend Medi-Cal, and we’re proud to co-sponsor bills that meet this moment.”

“Medi-Cal remains a lifeline for nearly 15 million Californians,” said Kim Lewis, Managing Director of California Advocacy at the National Health Law Program. “Too many people are struggling to make ends meet and California must do everything in its power to protect and strengthen health coverage for people who depend on it. These bills reflect a responsible way to implement the federal law while protecting access to health care.”

“California must do everything we can to mitigate the harm of the Trump Administration’s H.R. 1 to our state’s health care system. Health consumer advocates are proud to support these critical bills which use innovative approaches to preserve health care access for as many Medi-Cal enrollees as possible,” said Christine Smith, Policy and Legislative Advocate for Health Access California. “Bills like AB 2208 will limit cost-charing for Medi-Cal enrollees and provide retroactive access to Medi-Cal to ensure continuous coverage, all important steps to keeping Californians covered.”

“With the federal administration eroding Medi-Cal’s role as a social safety net, California can fight to protect coverage for the 15 million Californians that rely on Medi-Cal,” said Tiffany Huyenh-Cho, Director of California Medicare and Medicaid Advocacy. “California has a critical role in reducing the harms of H.R.1 and limiting disruptions to Medi-Cal coverage as much as possible. Justice in Aging is proud to support bills that achieve those goals and defends coverage for all.”

While federal leaders advance policies that threaten to strip health coverage from millions of Americans, California lawmakers are taking proactive steps to protect Medi-Cal and keep families connected to care.
These bills are expected to be heard in policy committees in the coming weeks.

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About Western Center on Law & Poverty
Western Center on Law & Poverty is California’s premier nonprofit public interest social justice law organization. Founded in 1967, we provide comprehensive advocacy and legal services to prevent poverty, redress systemic racism, and foster policies ensuring equitable healthcare, affordable housing, and fair access to public programs. Through litigation and policy advocacy in and beyond California, we advance racial and economic justice—dismantling and transforming systems so all communities in California can thrive.

About Justice in Aging
Justice in Aging is a national organization that uses the power of law to fight senior poverty by securing access to affordable health care, economic security, and the courts for older adults with limited resources. Since 1972 we’ve focused our efforts primarily on fighting for people who have been marginalized and excluded from justice, such as women, people of color, LGBTQ individuals, and people with limited English proficiency.

About National Health Law Program
The National Health Law Program (NHeLP) protects and improves access to health care for low-income and underserved people and works to advance health equity. We believe that everyone should have access to high quality, equitable health care and be able to achieve their own highest attainable standard of health. We enforce health care and civil rights laws; advocate for better federal and state laws and policies; train, support and partner with national, state and local health and civil rights advocates; and use strategic communications to achieve these goals.

About Health Access California
Health Access is the statewide health care consumer advocacy coalition of organizations representing seniors, children, people with disabilities, immigrants, communities of color, health care professionals, people of faith, labor, and working families. For nearly 40 years, Health Access has focused on breaking down barriers to care, improving Medi-Cal, Covered California, and our safety net, and extending access and affordability help to all Californians.

 

MEDIA CONTACTS:

Maria Sundeen | Western Center on Law & Poverty
[email protected]  / 213-235-2639

Andy DiAntonio | National Health Law Program
[email protected]

Rachel Linn Gish | Health Access California
[email protected] 

Medical Records of Over 3,000 Transgender Youth Protected from Overreaching Federal Subpoena After Legal Challenge

FOR IMMEDIATE RELEASE: Friday, January 23, 2026

MEDIA CONTACTS:
Jordan Wilhelmi | [email protected]
Maria Sundeen | [email protected]

DOJ Settlement Marks Unprecedented Win for Health Privacy and Constitutional Rights

January 23, 2026, Washington, D.C.— The Department of Justice has withdrawn its subpoena demanding the medical records of over 3,000 transgender youth at Children’s Hospital Los Angeles and entered into a settlement agreement with a group of patients and their families, represented by Lawyers for Good Government (L4GG), Western Center on Law and Poverty, and Impact Fund.

The subpoena, served this summer to Children’s Hospital Los Angeles, sought sweeping access to minors’ most sensitive medical records—including mental health treatment notes,  prescribing information, and other deeply personal details—related to gender-affirming care. L4GG and co-counsel filed a motion to quash the subpoena on behalf of a putative class of affected patients and families in federal court in the Central District of California, arguing it violated patients’ constitutional right to privacy and exceeded the government’s legal authority.

“This is a massive victory for every family that refused to be intimidated into backing down,” said Khadijah Silver, Director of Gender Justice & Health Equity at Lawyers for Good Government. “The government’s attempt to rifle through children’s medical records was unconstitutional from the start. Today’s settlement affirms what we’ve said all along: these families have done nothing wrong, and their children’s privacy deserves protection.”

“This settlement is a crucial affirmation that health care decisions belong in exam rooms, not government subpoenas. Youth, families, and medical providers have constitutional rights to privacy and dignity,” said Cori Racela, Executive Director for Western Center on Law & Poverty. “No one’s private health records should be turned into political ammunition–especially children. This ruling protects sensitive medical records, upholds the professional integrity of providers, and reinforces that families seeking lawful care are not suspects—they’re entitled to safety and confidentiality.”

The settlement agreement protects the anonymity of the affected youth and families while securing the withdrawal of the government’s demands for their medical records — and those of their fellow patients.

“We are so proud to represent our clients who stepped up to protect their families and thousands of others by being plaintiffs in this lawsuit,” said Lori Rifkin, Litigation Director at Impact Fund. “Their bravery helps protect all of us from unlawful and discriminatory government intrusion into private health care decisions between patients, families, and doctors.” 

Gender-affirming care remains legal in many states and is endorsed by every major medical association, including the American Medical Association, the American Academy of Pediatrics, and the Endocrine Society. The investigation’s underlying premise—that lawful medical treatment becomes fraudulent based solely on the identity of the patient receiving it—has been widely rejected by legal experts and medical professionals.

“Parents who follow medical advice and seek evidence-based treatment for their children should never be subjected to government harassment,” said Amy Powell, Litigation Director at Lawyers for Good Government. “This settlement sends a clear message: constitutional rights matter, and families seeking legal medical care for their children are entitled to privacy and dignity.”

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Attachment:  Notice of Dismissal