LEGISLATION COMMITTEE
Meeting Date: August 8, 2025
Subject: Health, Medicaid (Medi-Cal), and impacts from H.R. 1 and the state budget package
Submitted For: Legislation Committee
Contact: E. Struthers, 925-655-2045
Referral History:
The social safety net describes a variety of programs and assistance designed to improve the lives of vulnerable families and individuals by addressing poverty, reducing food insecurity, and other harms. Historically, federal programs such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP) have provided the backbone of the social safety net. However, major changes are underway as a result of federal reconciliation and the recently-enacted state budget.
On July 4, 2025, the federal reconciliation package (H.R. 1) was signed into law. H.R. 1 includes major fiscal and policy changes taking place over a ten-year period. The tax cuts included in the bill are largely financed through reductions to federal social safety net programs. As noted in the Health discussion items, H.R. 1 includes a $1 trillion cut to Medicaid (Medi-Cal, in California). It also includes nearly $300 million in reductions to SNAP (Cal-Fresh, in California), representing a nearly 30% reduction in federal SNAP funding. These social safety net reductions are made through a variety of policy mechanisms, including changes to eligibility, reduction in benefit amounts, and shifting of costs to states/local governments.
While the federal reconciliation bill makes large changes to social safety net programs, the FY25-26 State Budget package also includes numerous targeted changes. Taken together with the major federal changes in H.R. 1, the policy landscape of the social safety net is shifting. These changes pose challenges for both the County and for the vulnerable families and individuals that we serve.
Referral Update:
Invited panelists include:
* Anissa Basoco-Villarreal, Chief Deputy Director, Employment and Human Services Department (EHSD)
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