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Committee hears concerns about HR 1's state costs: CalFresh, Medi-Cal and IHSS among top worries

California State Assembly Budget Committee · January 20, 2026
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Summary

Department of Finance said HR 1 drives roughly $1.4 billion in added state costs for health and human services (about $1.1 billion in Medi-Cal). Members and many public commenters urged the Assembly to protect food assistance, Medi-Cal coverage for humanitarian immigrants and IHSS services, warning of county cost shifts and service disruptions.

SACRAMENTO — Committee members and public stakeholders pressed the Department of Finance and the LAO about the budgetary consequences of HR 1, with officials confirming an initial estimate of roughly $1.4 billion in added state costs affecting Medi-Cal and CalFresh.

Erica Lee and Department of Finance staff said HR 1 increases state costs through reduced federal matches and administrative changes; DoF identified about $1.4 billion in the budget year…

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