Governor Newsom’s May Revision of his proposed 2026–27 state budget, unveiled yesterday morning, trumpets bold claims while quietly making devastating cuts. Disability Rights California (DRC) calls out the difference between what the Governor proclaims and what his policies reflect, and urges state leaders to fight to protect critical investments for the health and safety of Californians with disabilities.

The May Revision carries over all of the Governor’s initial budget proposals, which we summarized in January, unless it explicitly says otherwise. Most alarming for DRC and Californians with disabilities in this May Revision is that it maintains and expands upon significant proposed healthcare cuts. Many of the programs impacted by the Governor's proposed cuts in the May Revision disproportionately serve disabled people and older adults who are Black, Indigenous and people of color. Additionally, the vast majority of the workforce in programs like In-Home Support Services (IHSS) are also Black, Indigenous and people of color. The Governor knows these proposed cuts are unpopular – advocates from throughout the state have filled hearing rooms and rallied at the Capitol to say NO to healthcare cuts. In his hour-long May Revision presentation, he spent only a couple of minutes on healthcare. 

Cuts to Medi-Cal: As a result of H.R. 1, California could lose up to $30 billion in funding for Medi-Cal each year, with as many as 3.4 million people losing coverage. Another consequence of H.R. 1 is that premiums for Californians purchasing health coverage through Covered California (California’s Affordable Care Act marketplace) are expected to increase by an average of 97%. The Governor’s proposed budget does not account for these substantial cuts, backfill these services, or intervene on skyrocketing premiums.

Bringing Back Restrictive Asset Limits: The May Revision proposes reinstating extremely low Medi-Cal asset limits for disabled adults and seniors. Capping assets at $2,000 for an individual or $3,000 for a couple forces people to stay in deep poverty in order to continue receiving critical health care. This is a critical economic justice issue. DRC and many others fought tirelessly for years to get this restrictive asset limit eliminated. It must not be brought back. 

Cuts to In-Home Support Services (IHSS): The May Revision does not undo any of the three proposed cuts from the January proposed budget, including cutting the Permanent Backup Provider Program, cutting the IHSS Residual program, and shifting IHSS costs to counties. IHSS is far less expensive than institutional care. More importantly, IHSS helps people with disabilities continue to live in their communities. In his press conference, Governor Newsom himself acknowledged the value of this program.

Higher Premiums and Cuts to Healthcare for Immigrants: While cutting healthcare, the May Revision adds insult to injury by increasing premiums for adults with UIS (Unsatisfactory Immigration Status). For immigrants, the May Revision maintains cuts from the January proposed budget that add federal work reporting requirements for immigrants accessing state-only Medi-Cal, a program not impacted by H.R. 1. At a time when immigrants’ lives and wellbeing continue to be endangered by ICE and the federal government, Governor Newsom’s proposal will remove their access to healthcare.

Cuts to Community Mental Health Services: Despite broad opposition, Governor Newsom continues to propose defunding mobile crisis response services, which enable communities to provide the right response at the right time for people experiencing a mental health crisis. By eliminating state funding for mobile crisis services, Governor Newsom abandons Californians with mental health disabilities – and their families – to harmful, ineffective, and inappropriate responses from police that funnel people to jails, emergency rooms, and expensive institutions.

Cuts to Community Advocacy, Engagement, and Service Innovation: The May Revision proposes eliminating the Commission for Behavioral Health's Community Advocacy Program, which supports advocacy and engagement for consumers, families, veterans, and other impacted communities. The Governor also proposes cutting behavioral health innovation funding in half. Together, these cuts would silence community input and limit the state’s ability to test and scale community-based, peer-led, and culturally responsive behavioral health solutions. 

Ongoing Investment in Education: In other areas, including education, we are pleased that the May Revision includes an increase in special education funding from $509 million in the January Budget to $1.8 billion in May, which in total will increase state funds to school districts from $999 to $1,340 per student. This vital investment is responsive to growth in the number of students with disabilities served by California's public schools.

California can maintain all of these critical programs with proper revenue. While we are pleased to see some revenue solutions in this proposal, the additional cuts are evidence that these solutions do not go far enough. Once again, the Governor is choosing to balance the budget on the backs of disabled Californians rather than drawing on the immense resources of the largest corporations and the wealthiest few. The governor says he believes in universal healthcare, which would benefit disabled people in California significantly. At the helm of the fourth largest economy in the world, the state can use this budget to start turning that belief into action by ending the cuts to Medi-Cal and IHSS. 

Disability Rights California remains steadfast in our work to amplify the needs of Californians with disabilities, and in our advocacy to finalize a budget that values the lives of all Californians. We appreciate that this proposal is from the Governor alone and does not reflect the values and work of the Legislature. We urge the Legislature to reject these harmful cuts and look forward to working with state leaders to realize a healthy future for all Californians.

Media Contact

Sam Mickens
Director of Communications
(646) 945-0918
Sam.Mickens@disabilityrightsca.org

Disability Rights California (DRC) – Is the agency designated under federal law to protect and advocate for the rights of Californians with disabilities. The mission of DRC is to defend, advance, and strengthen the rights and opportunities of people with disabilities.