Governor Newsom released the 2026-2027 state budget at the start of January 2026. The budget contains the state's policy priorities for the upcoming year. Many of these priorities affect people with disabilities.

This town hall shared the latest analysis of budget proposals in several areas, including:

• IHSS and other long-term services and supports
• Mental health
• Education
• The regional center system

We shared advocacy opportunities to elevate disability community voices during the budget process.

Watch the Event

• Budget Townhall: How will the Governor's 2026 Budget Affect Californians with Disabilities? (Spanish Version)

Resources:

• Senate Budget Committee
• Assembly Budget Committee
• Trailer Bill Language
• Share your story about disability discrimination in schools
• Government Accountability Office Report on Dismissed Office of Civil Rights Complaints.
• American Association of People with Disabilities Press Release: AAPD Deeply Concerned By GAO Report Finding Education Department Dismissed 90% of Civil Rights Discrimination Complaints Without Review; Wasted $38 Million

Speakers:

Sabrina Epstein, Policy Analyst, Intellectual and Developmental Disabilities Practice Group

Vivian Haun, Senior Attorney, Intellectual and Developmental Disabilities Practice Group

Allegra Cira Fischer, Senior Attorney, Youth Practice Group

Anna Leach-Proffer, Managing Attorney, Health and HCBS Practice Group

Monica Porter Gilbert, Associate Director and Senior Counsel of Public Policy, Legislation and Communications Unit

Impacts of H.R. 1

On February 4th, Disability Rights California held a town hall to cover the Governor’s proposed California State Budget and its impact on people with disabilities. Here is a summary of H.R. 1’s impact on the budget.

How does H.R. 1 impact the state budget?

H.R. 1 may result in a loss of $30 billion per year in federal funding for Medi-Cal. The proposed budget does not backfill any of the funding to ensure continued access to Medi-Cal. Instead, it makes changes to Medi-Cal to implement H.R. 1 that take away health care from immigrant groups. In a $786 million cut, some immigrants (including refugees, asylees, and survivors of trafficking or domestic violence) would lose full-scope Medi-Cal on October 1, 2026. This would leave more than 200,000 people with access to only emergency and pregnancy coverage.

Though not required by H.R. 1, the state budget applies some of H.R. 1’s strict Medi-Cal eligibility rules to immigrants who use state-only Medi-Cal. Starting in January 2027, the proposed budget would require immigrants who receive state-only funded Medi-Cal to report minimum monthly work or school hours to be eligible for Medi-Cal and will also require eligibility renewal every 6 months. This is particularly concerning because immigrants with unsatisfactory immigration status (UIS) cannot newly enroll in Medi-Cal as of January 1, 2026.

How does this impact people with disabilities?

These changes will likely cause millions to lose coverage by 2028, including large numbers of people with disabilities. Without access to preventative care, chronic conditions worsen and can quickly become expensive and life-threatening emergencies for people with disabilities. Asylees and refugees are more likely to be disabled and will lose access to full-scope Medi-Cal. New paperwork requirements mean that many will lose coverage because they didn’t file the right paperwork within tight timelines or for other technical reasons. While the community engagement and more frequent reporting requirements do not apply to disability-based Medi-Cal eligibility programs, there are many people with disabilities who qualify for Medi-Cal through the impacted programs.