California health care advocates, labor unions and progressive lawmakers urged Gov. Gavin Newsom and the Legislature on Wednesday to find new money to backfill cuts to Medi-Cal, the state’s nearly $200 billion Medicaid program.
Their coalition, “Fight for Our Health,” demanded action to replace billions of dollars in federal funding reductions President Donald Trump and Republicans approved last year. The group said the stakes are high for millions of low-income and disabled Californians as California and lawmakers confront how to respond to the cuts.
Judy Mark, president of Disability Voices United, spoke from the Capitol steps and said, “We know that you are not responsible for these awful cuts, but now the responsibility does lie in your hands. You have the power to protect us.” Mark’s remarks were part of the push for the state to protect coverage as legislative and political fights loom.
The advocates have criticized Newsom for not including money to backfill coverage when he released his state budget proposal. The proposal, according to the advocacy coalition, acknowledges tens of thousands would lose coverage and counts fewer services among projected revenue savings.
Separately, the state has begun freezing new Medi-Cal enrollment for undocumented immigrant adults over rising costs in the program, a move progressives and health advocates have opposed. Newsom’s administration has said the state lacks the money to pay for coverage for people who would be removed from Medi-Cal due to new federal laws.
Newsom’s analysts expect about 522,000 Californians to lose Medi-Cal coverage in the 2026-2027 fiscal year, with the total rising in the future to 1.8 million. The coalition’s pressure campaign is aimed at ensuring the Legislature and Newsom do not let those losses stand without state replacement funding.
One proposed path gaining attention is a ballot measure backed by a union. Service Employees International Union–United Healthcare Workers West has proposed a ballot initiative that would impose a one-time 5% wealth tax on California billionaires, to help cover an estimated $30 billion the state would lose annually from Trump’s tax-and-spending law. Proponents of the measure said the levy would generate about $100 billion for California’s health care system, with about 10% reserved for public schools.
The measure has also drawn opposition that activists describe as politically charged. The article said Newsom is fighting the measure even though it has not yet qualified for the ballot, and it reported that Democratic strategists close to Newsom are running a campaign committee to defeat it as the union collects nearly 900,000 signatures needed to qualify the measure for the November ballot.
The dispute has also touched major tech donors. The article reported that Google founders Larry Page and Sergey Brin have reportedly moved to shift some business entities out of California while others are threatening to leave. Newsom has also faced pressure from his own political position, with the article saying he told Politico he had personally pushed proponents of the measure to drop it over concerns it could drive the targeted demographic—and their incomes—out of California.
Assembly Health Chair Mia Bonta, an Oakland Democrat, suggested the state look at imposing new taxes on corporations that employ workers paid so little they qualify for public health care assistance. She said, “We cannot let these corporations keep getting a free ride. California has a responsibility to act decisively, and we will.” The report said she has not introduced a bill yet, and advocates said they are still hoping to have more options on the table.
Newsom’s spokesperson, Izzy Gardon, declined to comment on whether Newsom would consider alternative tax proposals as the debate over Medi-Cal funding intensifies.