Governor’s 2025-26 May Revision Proposes Major Cuts to Healthcare and Undermines Medi-Cal Expansion Commitments
On May 14, 2025, Governor Gavin Newsom released the revised 2025-26 state budget to address a projected $12 billion deficit, a sharp contrast to the modest surplus anticipated in January. The reversal is largely driven by declining state revenues, higher-than-expected Medi-Cal expenditures, and economic uncertainty caused by newly imposed federal tariffs.
The May Revision proposes a $321.9 billion budget, which includes $226.4 billion from State General Fund and $15.7 billion in State reserve funds. Given a projected decrease in revenue, the administration is relying heavily on reductions in health care spending, particularly within the Medi-Cal program, and does not include any new investments in the health care workforce.
New Laws Impacting Family Physicians in 2025
In the 2024 session the California Legislature sent a record number of bills to the Governor’s desk — the largest in his six years in office. Out of 2,534 measures introduced (1,730 Assembly Bills and 804 Senate Bills), 1,558 measures reached the Governor’s desk. Of those, 1,369 were signed into law, while 189 were vetoed. As we look ahead to 2025, a range of significant new laws will take effect, shaping the landscape of healthcare in California.
On May 14, 2025, Governor Gavin Newsom released the revised 2025-26 state budget to address a projected $12 billion deficit, a sharp contrast to the modest surplus anticipated in January. The reversal is largely driven by declining state revenues, higher-than-expected Medi-Cal expenditures, and economic uncertainty caused by newly imposed federal tariffs. The May Revision proposes […]
Thursday morning, the Senate voted to confirm Robert F. Kennedy Jr. as Secretary of US Health and Human Services. CAFP will work with our national partner, AAFP, to find opportunities for alignment with the new Secretary, including around the importance of primary care, promoting healthy foods and exercise, and truth in advertising. Through education and […]
At our 2025 All Member Advocacy Meeting (AMAM) you’ll have an opportunity to connect with policy experts, gain hands-on advocacy skills, and network with colleagues and legislators committed to advancing family medicine. In today’s fast-paced media landscape, effectively communicating your message is crucial for amplifying the voice of family medicine and influencing public opinion. Our […]
On Monday, March 17th be part of an empowering day at the State Capitol! Connect with colleagues from across the state and make your voice heard as we advocate for policies that impact you, your patients, and the future of family medicine. This is your chance to gain hands-on lobbying experience by engaging directly with […]
Join Julie Harrison, MPP, Sr. Manager, State Affairs and Member Advocacy, AAFP, for an in-depth review of the latest legislative and regulatory trends at the state level that impact primary care and family medicine. Participants will gain insights into key policy initiatives, emerging legislative priorities, and strategies for engaging in state-level advocacy. Special emphasis will […]
Governor Gavin Newsom released his 2025-2026 Budget Proposal on Friday, January 10, 2025. This year’s budget assumes a stronger fiscal position than in recent years, with a modest surplus. The budget proposal preserves key investments in healthcare, including primary care provider rate increases through the Managed Care Organization tax, and maintains baseline funding for workforce […]
