Governor’s 2025 May Revise Leaves Much Room for Improvement on Child Health Equity
TCP Response to Gov. Newsom’s 2025-2026 Revised Budget
Wednesday, May 14, 2025
The revised budget proposal Gov. Gavin Newsom released today reflects the immense uncertainty in our current political environment and an economic downturn resulting from newly imposed tariffs and other federal policies.
But in the face of that uncertainty, this May Revise misses California’s opportunity to lead the nation and stand firm in its values. As the federal government continues to scapegoat immigrant communities at every turn and plans to cut funding to the vital programs millions of children and families in California rely on, including and especially Medicaid (known as Medi-Cal in California), we need our state leaders to protect the investments in our state’s future.
With a projected $12 billion shortfall in California’s 2025-26 budget, there is no better time than now to seriously consider raising revenues by eliminating billions of dollars in existing tax breaks that benefit the wealthy and profitable corporations, drawing down reserves that exist for times like this, and scaling back spending in more appropriate places such as the state’s bloated prison budget.
“Now is not the time to pull back, when our shared values of dignity, freedom and the chance at a brighter future demand more. Failing to fund protections for people who depend on them for their health and well-being will lead to losses of health care coverage, missed medical appointments vital to healthy development, and increased health inequities among children and families of color in our state. And cynically discriminating against our state’s immigrant communities by rolling back Medi-Cal eligibility is unconscionable and will not solve the state’s budget problems,” said Mayra E. Alvarez, president of The Children’s Partnership.
“More than half of California’s children rely on Medi-Cal for their health insurance, and 3 out of 4 of them are children of color. Nearly 1 in 5 of California’s children lives in a mixed-status family. As a state, we should be doing everything we can to support and protect all our children, their families, and the communities that care for them.”
The Children’s Partnership is especially concerned about the following investments:
Rolling Back Health4All: We are outraged that the May Revise proposes to balance the budget on the backs of immigrants who contribute extensively to our state by freezing Medi-Cal enrollment for undocumented Californians ages 19+ starting next year; instituting a $100 monthly premium for undocumented adults in 2027; and eliminating in-home supportive services, long-term care and dental benefits for this population. When a parent or family member is sick and unable to work or provide care, kids suffer as a result. Ripping away these family members’ health care while they are also under threat of cruel immigration enforcement policies in turn puts the well-being of our children at risk. Furthermore, it will not result in needed savings. We know that when people are left uninsured, costs are shifted to hospital uncompensated care and elsewhere—as was the case before implementation of the Affordable Care Act and subsequent state-funded expansions.
Continuous Medi-Cal Coverage for Children Ages 0-5: We are deeply disappointed that the state has once again failed to include funding for continuous Medi-Cal eligibility for young children, despite clear evidence that such a policy supports early childhood health and would prevent unnecessary coverage loss, as most young children with Medi-Cal remain eligible throughout their first five years of life. California previously had the opportunity to join over a dozen other states in protecting children from coverage gaps with a continuous eligibility policy.
Permanent Extension of Unwinding Flexibilities for Medi-Cal Eligibility: The Governor’s January budget proposal maintained funding for federal unwinding flexibilities through June 30, 2025. Today’s revision of that budget proposal eliminates these important tools that help people keep their Medi-Cal coverage. The flexibilities, which allow auto-verification of certain income and use of other data sources without the need to submit further documentation, have been successful in reducing the number of people whose coverage has been terminated for paperwork reasons. Allowing unwinding flexibilities to expire risks the health care coverage of 450,000 eligible Californians – family members raising our state’s children.
CHW/P/R Rate Increases: We are disappointed that the state eliminated the planned rate increase for community health workers, promotores and representatives (CHW/P/Rs) – essential health providers providing culturally competent care. CHW/P/Rs serve as a critical trusted bridge between underserved populations and the health care system at large. The Governor’s proposal to withhold a modest $5 million increase contradicts our state’s commitment to health equity, and inadequate compensation devalues the vital contributions of the CHW/P/R workforce.
ACEs Aware for Trauma-Informed Care: Given the ongoing and escalating threats to children’s mental health and well-being, especially against children and youth from immigrant and low-income families, we are grateful the Governor chose to increase the state’s investment by $2.9 million for the next year in Adverse Childhood Experiences (ACEs) Aware, a historic first-in-the-country investment in trauma-informed care. While this investment falls far short of the $50 million needed to fully sustain the program, completely sunsetting ACEs Aware would have meant losing funding for the provider training requirement for ACEs, dramatically increasing the likelihood that families of color screened by untrained providers would face greater stigma and judgment, medical discrimination, and increased reluctance to engage with the health care system – outcomes we cannot afford to risk. We are hopeful that the Administration and the Legislature agree the program must be sustained to meet our present and future needs for trauma-informed care in California.
Legal Defense for Immigrant Families: Nearly half of California’s children are part of immigrant families. Federal attacks on immigrant communities—through executive orders, immigration enforcement, and the rollback of civil rights protections—have led to increased fear, confusion, and distress for children and their caregivers. Legal service providers play a critical role in reducing this harm by helping families understand their rights, prepare family safety plans, and challenge unlawful enforcement actions. With federal protections shrinking, California must meet the moment by investing in legal supports that help families feel safe in schools, access critical services, and plan for their futures without fear. The May Revise did not include the $60 million increase requested by advocates and impacted communities.
We call on the Governor to reconsider these choices and work with the Legislature to identify more appropriate savings. California’s economy is now the 4th largest in the world. Our state leaders must harness this massive wealth to build a healthier, more equitable California. The Children’s Partnership and our partners will keep fighting to ensure that every child, regardless of race, income or immigration status, has the opportunity to grow up healthy and thrive.
About The Children’s Partnership
The Children’s Partnership (TCP) is a California-based children’s policy and advocacy organization committed to advancing child health equity through public policy, research and community engagement. TCP envisions a California where all children—regardless of their race, ethnicity or place of birth—have the resources and opportunities they need to grow up healthy and thrive. Learn more at childrenspartnership.org.
