HOPE’s Response to the Governor’s May Revise Budget Proposal
The Governor’s May Revise outlines a more severe fiscal reality than anticipated in January, proposing measures to close a $12 billion deficit. While we understand the necessity of fiscal responsibility, HOPE urges state leaders to reject cuts that would harm California’s economic future by limiting opportunities for communities that are driving growth—especially Latinas, who are essential to the state’s workforce, small business economy, and caregiving systems.
“We recognize the difficult fiscal decisions facing our state and appreciate the Governor’s efforts to craft a balanced, responsible budget. At the same time, we urge our leaders to avoid solutions that shift the burden onto low-income Californians—particularly Latinas, immigrants, and others who form the foundation of California’s workforce and caregiving economy. Proposals to reverse health care access for undocumented adults—many of whom are essential workers—and to reduce investments in reproductive care risk rolling back years of hard-won progress. California has long been a leader in expanding opportunity and access, and now is the time to protect that legacy and ensure a healthier, more resilient future for all.”
— Helen Torres, CEO, Hispanas Organized for Political Equality (HOPE)
Below, we outline our primary concerns and recommendations in alignment with HOPE’s policy agenda.
Health Equity & Access
Oppose Cuts to Medi-Cal for Undocumented Adults: The Governor proposes to freeze enrollment and add premiums for undocumented adults starting in 2026, and to eliminate dental and long-term care benefits. These actions would reverse the progress California has made in expanding health care for all Californians.
Medi-Cal, the state’s public health insurance for low-income individuals, provides care for 40% of California’s population, over half of which are Latino. In 2022, California expanded Medi-Cal to all income-eligible adults, regardless of immigration status. This was a historic expansion that reflected California’s commitment to ensuring all residents have access to health insurance.
In March of this year, California noted that the state’s Medi-Cal expenditures exceeded projections, and the state issued a cash flow of close to $6 billion to meet the needs to run the program. Despite this allocation, the cost of Medi-Cal is still projected to rise and is credited to higher overall enrollment, pharmacy costs and higher managed care costs.
To close the deficit, the Governor is proposing a series of cuts to health programs, including:
A freeze on new enrollment of undocumented adults 19 and over starting January 1, 2026 and $100 monthly premium for undocumented adults aged 19 and over, effective January 1, 2027.
Elimination of Long-Term Care Benefits for undocumented adults 19 and Older starting January 1, 2026.
Elimination of Dental Benefits for undocumented adults 19 and Older starting January 1, 2026.
HOPE urges the Legislature and Governor to maintain the Medi-Cal expansion for undocumented adults and protect access to long-term care and dental services. Requiring a $100 monthly premium for healthcare exacerbates existing financial burdens that our communities face when accessing health care and will only lead to widening health disparities for communities that depend on Medi-Cal as a lifeline. California has led with equity to ensure all Californians have access to health services. We urge our leaders to ensure the continuity of care and protection for immigrant communities that are vital to our workforce and economy.
Protect Access to Care for Seniors and People with Disabilities: The reinstatement of the Medi-Cal asset test threatens access to care for low-income seniors and disabled individuals.
In 2024, California completely eliminated asset limits for Medi-Cal eligibility. This means that Medi-Cal, which is the state-based Medicaid program, no longer considers assets (like bank accounts or property) when determining who is eligible for benefits. Previously, there were asset limits, such as $2,000 for individuals and $3,000 for couples, and these limits were phased out over a two-year period, with the final phase starting in January 2024.
In order to balance the budget, the May Revise reinstates Medi-Cal asset limit for seniors and disabled adults of $2,000 for an individual or $3,000 for a couple, effective no sooner than January 1, 2026. This change would bring back an inequitable practice that will limit access to Medi-Cal for income-eligible adults.
HOPE opposes the reinstatement of the Medi-Cal asset limit and supports policies that allow aging and disabled adults to live with dignity.
Support Investments in Reproductive Health: Cuts to Proposition 56 supplemental payments will limit critical access to reproductive and women’s health services, at a time when federal action is already threatening the continuity of these services.
The May revise proposes the elimination of approximately $504 million in 2025-26 and $550 million ongoing for Proposition 56 supplemental payments to dental, family planning, and women’s health providers. This would have the effect of destabilizing critical family planning and reproductive health services that Californians depend on. We urge our state leaders to reinstate this funding to ensure health centers can keep their doors open and continue to provide the essential and lifesaving health care countless Californians rely on.
We commend the continued $90 million investment under Proposition 35, including midwifery scholarships and education pipeline expansion. HOPE supports continued reproductive health access, including investment in a culturally competent birthing care workforce that reflects the needs of our communities.
Economic Empowerment:
Protect Child Care Access and Family Supports: The Governor’s May Revise proposes reductions to childcare programs that serve as a lifeline for working families.
Child Care Cost-of-Living Adjustment: A reduction of $60.7 million General Fund in 2025-26 and ongoing to suspend the annual COLA for childcare.
Emergency Child Care Bridge: A reduction of $42.7 million General Fund in 2025-26, while maintaining $51 million in ongoing funding.
These cuts threaten the stability of working families—especially Latinas and single mothers—by increasing the cost and decreasing the availability of childcare services. HOPE urges the Legislature to restore childcare investments and prioritize the needs of families who rely on these supports to remain in the workforce.
Fully Fund the California Food Assistance Program (CFAP) Expansion: The May Revise delays the expansion of CFAP for undocumented adults 55 and older, tying implementation to an uncertain budget trigger in spring 2027.
CFAP Trigger Proposal: Defers implementation based on availability of General Fund revenue.
This delay denies food security to vulnerable older adults in immigrant communities. HOPE calls on state leaders to fully fund CFAP expansion now to uphold California’s commitment to dignity and equity for all.
Preserve statewide Coordination for Career Education: The May Revise reduces funding for workforce coordination efforts and an interagency council aligned with the Governor’s Master Plan for Career Education.
Workforce Coordination Funding: A reduction of $3 million one-time General Fund, decreasing the original $4 million allocation to $1 million.
California Education Interagency Council: Reduces the $5 million ongoing General Fund for the California Education Interagency Council. The January budget proposal had previously allocated $5 million General Fund in 2025-26 and ongoing for GovOps to establish a planning and coordinating entity to bring together TK-12 education, higher education, and state economic and labor agencies to improve coordination of resources and initiatives across state government in alignment with recommendations from the Master Plan for Career Education.
These regional coordination efforts are essential to ensure equitable workforce development across sectors. The California Interagency council also has the potential to bring together agencies and stakeholders to advance an aligned, coordinated plan to better bridge education to career opportunities for students. HOPE looks forward to working with the Legislature and Administration to maintain robust investments that support regional, coordinated strategies for career readiness and economic mobility.
Oppose Cuts to IHSS benefits and Support for Caregivers: Proposed elimination of IHSS benefits for undocumented adults and caps on In-Home Supportive Services (IHSS) overtime and travel hours will diminish care capacity and burden both providers and recipients.
The IHSS program provides domestic and related services such as housework, meal preparation, and personal care services to eligible low-income individuals with disabilities, including children and adults, as well as low-income individuals who are ages 65 and over. These services are provided to assist individuals to remain safely in their homes and prevent more costly institutionalization. The May revise proposes the following cuts to IHSS:
IHSS Overtime and Travel Hours: A reduction of $707.5 million General Fund and ongoing to cap provider hours at 50 per week starting in 2025-26.
IHSS Alignment with Medi-Cal Asset Test: A $25.5 million reduction in 2025-26 to align with the reinstatement of Medi-Cal asset limits.
Eliminate IHSS benefits for Undocumented adults aged 19 or older.
These cuts will directly affect the ability of low-income seniors, disabled individuals, and families to access reliable, in-home support. HOPE strongly opposes reductions to IHSS services and calls for fair compensation for caregivers—many of whom are Latinas—who provide essential care that allows Californians to age and heal with dignity.
Support expanded workforce opportunities: The May revise proposes a series of investments to expand apprenticeship programs and leverage federal funding to increase workforce development programs.
Workforce Innovation and Opportunity Act: An increase of $20.4 million one-time in 2024-25 and an increase of $119.6 million one-time in 2025-26 to align with anticipated federal Workforce Innovation and Opportunity Act funding that will be available to support various workforce development programs.
Department of Industrial Relations (DIR) Apprenticeship Training Grant Expansion: An increase of $18.2 million, one-time from the Apprenticeship Training Contribution Fund for DIR to support apprenticeship training in construction and related trades. This funding is in addition to the $3 million in the Governor’s Budget for this purpose.
HOPE is in support of investments that will expand opportunities for Latinas to access well-paying, fulfilling careers and that will create opportunities for on the job learning and training.
Missing from the May Revise - Increased investments for Immigrant Entrepreneurs: During our day of advocacy, HOPE was proud to partner with Inclusive Action for the City and other advocacy organizations to elevate the need for a reinstatement in funding for the Social Entrepreneurs for Economic Development (SEED) Initiative, which provides microgrants, entrepreneurship training, and coaching to immigrant entrepreneurs.
There is a lack of sustainable economic support and opportunity for undocumented and limited English proficient (LEP) immigrants in California, despite their substantial contributions to the state’s economy, including $8.5 billion in annual state and local taxes. This is particularly the case for undocumented and LEP entrepreneurs, who utilize their small and microbusinesses as a means for wealth building in California.
The SEED Initiative has helped address this by providing entrepreneurship training, coaching, and microgrants, but its remaining $2.5 million in funding will be exhausted by 2025. Without renewed investment, a critical pathway to economic opportunity for these communities is at risk.
As budget conversations continue, HOPE urges the Legislature and Governor to build on the success of existing programs and continue investments that are driving growth in our immigrant small business economy.
Education Equity & Access
Maintaining Access to Education Investments in a Challenging Budget Year
HOPE commends the Governor for maintaining access to critical education investments in the May Revision, which includes $137.8 billion total for TK–14 education ($80.5 billion General Fund and $57.3 billion other funds). These sustained investments uphold California’s commitment to equity by protecting funding for the Local Control Funding Formula (LCFF), special education, transitional kindergarten (TK), universal school meals, and literacy initiatives.
Support for Universal Transitional Kindergarten and Literacy Investments: We applaud the Administration’s continued commitment to Universal TK and new literacy investments that align with HOPE’s goals of educational equity and student success.
The May Revise includes:
Universal TK: The May Revision allocates $2.1 billion ongoing Prop 98 General Fund to support full implementation by 2025–26—providing access to approximately 51,000 more children than in the prior year. An additional $1.2 billion supports reducing the student-to-adult ratio from 12:1 to 10:1 in TK classrooms.
Literacy and ELA/ELD Framework: $200 million one-time Prop 98 is dedicated to evidence-based professional learning for elementary educators. A further $10 million supports the UCSF Multitudes dyslexia screener, aiding early identification of reading challenges for multilingual and diverse learners.
Regional English Learner Lead Agencies: $2 million ongoing Proposition 98 General Fund to support Regional English Learner lead agencies that assist schools in providing focused support to English Learners.
HOPE supports these equity-driven efforts that close early opportunity gaps for English learners and students of color.
Strengthening the Educator Pipeline: The May Revision builds on prior investments to diversify and strengthen California’s teacher workforce, particularly for underrepresented and first-generation candidates. This includes:
Teacher Preparation: $100 million of repurposed Prop 98 funding for the Teacher Recruitment Incentive Grant Program to provide stipends for student teachers, reducing financial barriers to entry.
Credentialing Flexibility: Extended deadlines for credentialing requirements and new authority for alternative reading assessments reflect continued support for aspiring educators impacted by the COVID-19 pandemic.
Golden State Teacher Grant Program: Now totaling $64.2 million due to carryover funds, enabling continued support for future educators.
HOPE supports these measures as essential to recruiting and retaining a culturally competent and representative teacher workforce.
Protecting Student Services and Advancing Dual Enrollment: The Student Support and Professional Development Block Grant remains a $1.7 billion investment in local efforts to:
Expand dual enrollment and career pathways aligned with the Master Plan for Career Education.
Provide literacy and math professional development.
Support teacher recruitment and retention.
HOPE strongly supports the continued focus on dual enrollment, a proven strategy for improving college access and persistence among Latina students.
Investing in Student Basic Needs: The May Revision includes critical supports to address student well-being and learning readiness:
Universal Meals: $90.7 million additional ongoing Prop 98 funding to fully fund the school meals program in 2025–26.
SUN Bucks Program: $21.9 million ongoing Prop 98 to provide summer nutrition benefits, matched by federal funds.
Multilingual Learner Supports: $7.5 million in one-time funding to mitigate TK-related reductions, and $2 million ongoing to sustain Regional English Learner Lead Agencies.
College Affordability and Financial Aid Access: We support the May Revision’s increases to financial aid programs that reduce the cost burden for low-income and first-generation students:
Cal Grant Adjustments: $94.7 million one-time and $228.7 million ongoing General Fund increases to meet higher-than-expected student demand.
Middle Class Scholarship: $77 million one-time increase to support additional caseload.
HOPE urges the Legislature to sustain momentum on Cal Grant Reform and ensure that aid reaches the students who need it most.
What is next?
While the January proposal had projected a modest surplus, the economic outlook is starker going into the 2025-2026 fiscal year—credited largely to federal policy, including the impact of tariffs on California’s revenue forecasts. Notably, the May revision does not reflect any effect of federal cuts to programs like Medicaid, that are currently under consideration in Congress and could have detrimental effects on California's economy. With the final June deadline approaching in about a month, state legislators and the public will have one final opportunity to engage on this proposed spending plan and ensure it meets the needs of all Californians.