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Budget flags federal changes to Medi‑Cal and CalFresh; administration assumes $1.4 billion in state costs for 2026‑27
Summary
The Department of Finance told reporters the governor's budget assumes about $1.4 billion in 2026‑27 related to federal HR1 changes (Medi‑Cal redeterminations, lower federal match, and administrative CalFresh costs) and does not propose full state backfill for coverage losses; counties may bear indigent care costs.
The Department of Finance said the governor’s 2026 budget anticipates and partially accommodates recent federal policy changes (referred to in the briefing as "HR1"). Director, Department of Finance, told reporters the administration assumes roughly $1.4 billion in 2026‑27 associated with those federal changes, driven primarily by Medi‑Cal impacts (including six months of redeterminations and lower federal matching for limited‑scope services) and about $300 million tied to CalFresh administrative obligations.
On coverage and caseload effects, the director…
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