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State update: Covered California enrollment, Medi‑Cal commission and lawsuits over HUD and USDA rules
Summary
State briefing to the county highlighted Covered California enrollment (~1.9M), a new Future of Medi‑Cal commission, and Attorney General Rob Bonta’s lawsuits challenging HUD changes to Continuum of Care funding and USDA guidance on SNAP eligibility, with county staff estimating potential losses to some programs.
A state legislative analyst from "4 1 strategies" briefed Alameda County’s PAL Committee on state developments that could affect county services and funding.
The analyst said Covered California reported about 1,900,000 enrollees after last year’s open enrollment and noted California has seen the largest drop in the uninsured since the ACA. The analyst also described a newly formed Future of Medi‑Cal commission — a 29‑member group funded by foundations and led by former state officials — charged with developing a 10‑year plan to stabilize Medi‑Cal coverage for nearly 15,000,000 low‑income Californians, with recommendations expected in early 2027.
On federal rule changes, the analyst recapped recent Department of Housing and Urban Development (HUD) guidance that caps Continuums of Care (CoC) at using 30% of funds for permanent supportive housing and rapid rehousing. The analyst said the governor and Attorney General Rob Bonta joined a multi‑state lawsuit filed Nov. 25 challenging the change as an unlawful alteration of funding eligibility without congressional authorization, and estimated the change could reduce permanent supportive housing and rapid rehousing funding in California by roughly $250–300 million annually.
The analyst also said Attorney General Bonta and 21 other states filed a lawsuit against the U.S. Department of Agriculture over guidance the states say restricts SNAP (CalFresh) eligibility for certain lawful permanent residents. The analyst described the USDA challenge as a continuation of state efforts to preserve prior eligibility interpretations.
Committee members asked the analyst to share more materials and a table summarizing proposed state revenue measures and initiatives; the analyst said staff would circulate those materials and that some proposals are being discussed publicly and in initiative filings. A supervisor noted Bay Area delegation support for some revenue measures and said opposition has surfaced from other regions.
No formal action or vote was taken on the state update. The committee adjourned after roll call and participant introductions.
