Capitol Alert

California lawmakers take stock of damage caused by the Big Beautiful Bill

SACRAMENTO, CALIFORNIA - AUGUST 19: An aerial view of the California state Capitol on August 19, 2025 in Sacramento, California. Republican state legislators filed a lawsuit today in hopes of blocking a mid-year redistricting plan that Gov. Gavin Newsom is proposing to counter an effort in Texas to redraw Congressional district lines. (Photo by Justin Sullivan/Getty Images)
An aerial view of the state Capitol on Aug. 19, 2025. Getty Images

ACCOUNTING BEGINS FOR FEDERAL IMPACT ON STATE PROGRAMS

State lawmakers have begun the process of getting their arms around federal cuts that affect millions of California residents. 

As state officials were crafting the budget in the spring, Congress’ House Resolution 1, otherwise known as the One Big Beautiful Bill Act, was a boogeyman invoked often, but the ramifications were still unknown. With hearings held last week and Monday, the reality is coming into focus. 

“You guys say it’s a Big Beautiful Bill – I know that’s the official name,” said Assemblymember Corey Jackson, D-Perris, during Monday’s oversight hearing on higher education funding. “But beauty is in the eye of the beholder, and this baby is ugly.”

Lawmakers got details from agencies in charge of health care, food assistance, and higher education. 

On health care changes:

  • There are new limits on how states can use “provider taxes,” which are a significant way the state pays for Medicaid, called Medi-Cal in California.

  • HR 1 adds new requirements that childless adults engage in at least 80 hours per month of work, education or community service to qualify for Medi-Cal.

  • Many lawfully present immigrants (including refugees and asylees) will no longer be eligible for federally-funded Medi-Cal. 

  • More regular eligibility checks will likely kick more people off the Medi-Cal rolls.

On food assistance changes:

  • The state is facing a $1.7-3.7 billion cut to the Supplemental Nutrition Assistance Program annually over the next 10 years

  • Many lawfully present immigrants (including refugees and asylees) will no longer be eligible for SNAP benefits, also called CalFresh and EBT in California

  • There are new work requirements for people 55-64 and people with children between 14 and 18.

  • California will have to pay a higher percentage of administrative costs for the program.

On education changes: 

  • The federal government eliminated some loan opportunities for graduate students.

  • There is less grant money for institutions that serve minority students.

  • Thousands of federally-funded research grants have been canceled across the California State University and University of California systems.

In some cases, officials who provided testimony asked lawmakers to fill in the funding gaps, requests that will have to be managed while the state is dealing with a structural budget deficit.

“Mitigating the deep harm caused by HR 1 to health care and SNAP will be key priorities for the Legislature,” said state Sen. Jesse Arreguín, D-Berkeley, who chairs the Senate Human Services Committee. Arreguín called Thursday’s hearing into food aid changes “sobering.”

HOUSE DEMOCRATS, REPUBLICANS JOIN TO URGE HEALTH CARE REFORM

Via David Lightman...

Rep. Adam Gray is helping lead a bipartisan effort to have senators include both House Democrats and Republicans in upcoming health care reform talks.

“Bipartisan engagement across both chambers will be essential to crafting a health care proposal that can pass and be signed into law,” Gray, D-Merced, and 31 other House members wrote to Senate leaders. The leaders are expected to reach out to House members.

Democrats and some Republicans have been pushing hard to extend the enhanced health care tax credits due to expire at the end of next month. Democrats had made the extension the key priority of recent talks to reopen the government, but got nothing.

Without an extension, prices of Obamacare-inspired policies would soar in January. 

As a result, the lawmakers said, “millions will lose their health care coverage because they will no longer be able to afford it. As you know, those who rely on the expiring Affordable Care Act enhanced premium tax credits are facing drastic premium increases. 

“Allowing these tax credits to lapse without a clear path forward would risk real harm to those we represent,” they said.

Senators are expected to caucus Tuesday and health care changes are expected to be a major discussion topic.

In addition to Gray, Reps. Josh Gottheimer, D-N.J., Juan Ciscomani, R-Ariz., and Jen Kiggans, R-Va., led the effort to sway the senators.

From California, Reps. Jimmy Panetta, D-Monterey, George Whitesides, D-Santa Clarita and Scott Peters, D-San Diego, signed.

QUOTE OF THE DAY

“I am proud to assume the role of President pro Tempore of the California State Senate at this critical time in our state and the nation’s history. I look forward to working alongside my colleagues to move California forward and address the issues impacting the almost 40 million people who call this state home.” 

- State Senate President pro Tempore Monique Limón, who began her role Monday

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KW
Kate Wolffe
The Sacramento Bee
Kate Wolffe is a former reporter for The Sacramento Bee.
David Lightman
McClatchy DC
David Lightman is a former journalist for the DCBureau
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