California Governor Signs Budget Protecting Access to Medi-Cal and In-Home Care

Strategic Insights -

California Governor Gavin Newsom has signed the 2025-26 state budget into law, delivering on his promise to protect access to Medi-Cal and in-home care. The budget, negotiated with the State Legislature, reinstates a higher Medi-Cal asset limit of $130,000 for individuals, rather than the original proposal of $2,000. Additionally, the final budget does not include the proposed cap on overtime hours for In-Home Supportive Services (IHSS) providers. Congresswoman Nanette Barragan and 16 members of the California Democratic Congressional Delegation had urged Governor Newsom and State Legislators to reject the proposed cuts to Medi-Cal and IHSS programs.

Key Takeaways:

  • The Governor's original May Budget Revision proposed cutting access to state and federally funded Medi-Cal and Medi-Cal's IHSS program by reinstating a low $2,000 Medi-Cal asset limit for seniors and adults with disabilities.
  • The final budget reinstates a higher Medi-Cal asset limit of $130,000 for individuals.
  • The proposal to cap overtime hours for IHSS providers was not included in the final budget.
  • Congresswoman Nanette Barragan and 16 members of the California Democratic Congressional Delegation opposed the proposed cuts to Medi-Cal and IHSS programs.
  • The final budget was signed into law by Governor Newsom, protecting access to Medi-Cal and in-home care for seniors, children, adults with disabilities, and home care workers throughout California.
  • The budget protects the financial stability of Californians who rely on Medi-Cal and IHSS services.
  • Congresswoman Barragan expressed appreciation for the Governor and State Legislature's efforts to protect access to essential services.

Statistics:

  • The proposed Medi-Cal asset limit was reduced from $2,000 to $130,000 in the final budget.
  • 16 members of the California Democratic Congressional Delegation signed a letter urging Governor Newsom and State Legislators to reject reinstating the $2,000 Medi-Cal asset limit and capping overtime hours for IHSS providers.
  • The final budget protects access to in-home care for seniors and people with disabilities as an alternative to out-of-home care.

Sources:

  • Office of California Rep. Nanette DiazáBarraganá
  • California Governor's Office
  • California State Legislature