Santa Clara officials warn HR1 cuts would threaten county hospitals; $5.08¢ sales tax proposed

Santa Clara County Supervisor Otto Lee and Santa Clara Valley Health Care officials told the Milpitas City Council on Sept. 16 that federal changes grouped under “HR 1” would sharply reduce Medicaid (Medi‑Cal) and nutrition program funding, potentially forcing deep cuts to county health services.

“HR 1 really has punched a huge hole in our county's social safety net and poses a great fiscal threat,” Supervisor Otto Lee said during a presentation to the council. County leaders described a multi‑pronged response that includes placing a temporary 5.08¢ general sales tax on the November ballot, referred to in materials and public comments as Measure A.

County and hospital officials said the federal law would reduce reimbursements to providers and impose new eligibility and reporting rules that could push hundreds of thousands of Californians — including many county residents — off coverage. Paul Llorens, chief executive officer for Santa Clara Valley Health Care, told the council the county’s Medicaid funding is roughly $2.3 billion and that the county could lose about $1 billion of revenue to the health system if HR 1’s…