Media Statement

Newsom Administration Proposal to Use Proposition 35 Funds to Balance State Budget Thwarts Will of California Voters

SACRAMENTO (May 14, 2025) — “Just two days after a congressional committee released a federal budget proposal that would hollow out Californians’ health care services through drastic Medicaid cuts, the state’s May budget revision proposal piles on. The state would fill its spending gap by taking $1.6 billion from resources that voters directed to Medi-Cal providers and protecting access to care,” said Carmela Coyle, President & CEO of the California Hospital Association.

“We believe the Administration’s proposal to swipe Proposition 35 funds in order to backfill the state’s budget is not only a direct violation of state law, but also a snub to the millions of California voters — 68% — who supported this ballot measure last fall,” Coyle said.

 “We call on members of the Legislature to reject this ‘smoke and mirrors’ budget and adhere to the will of California voters by ensuring these funds are used as intended,” Coyle said.