The Brief

California voters told lawmakers last fall that they wanted doctors to get paid more to see low-income patients. But officials for the Newsom administration blew past a federal deadline to make that happen through Medi-Cal on Monday, effectively leaving millions of dollars unclaimed.

The unclaimed money is tied to Proposition 35, a ballot measure passed by 68% of voters in November. The measure committed money from a special tax on health insurance plans to increase payments to doctors and healthcare facilities that treat low-income patients in Medi-Cal, the state’s Medicaid program.

But first the state had to submit papers to the federal government for approval. That deadline was March 31.

Missing the deadline means that, for the first quarter of the year, doctors will not get the rate increases promised by the ballot measure. It also means that California will lose federal matching dollars intended to boost the Medi-Cal program during that time period.

The Department of Health Care Services, the agency that oversees Medi-Cal and the implementation of Proposition 35 did not respond by publication deadline to questions from CalMatters about why the state missed the deadline.

In recent legislative hearings, Health Care Services Director Michelle Baass stated that California’s federal application was delayed by unfilled appointments on the advisory committee established by the ballot measure to oversee spending.

Enough of those appointments were filled for the committee to legally meet, but there is still one outstanding appointment. Gov. Gavin Newsom’s office refused to respond to questions about why the appointment has not been made. The committee is set to meet for the first time April 14.

During a February hearing, another official for the healthcare services department said the agency never believed it would be feasible for the state to meet the March deadline.

The slow implementation is frustrating lawmakers and clinicians alike who say rate hikes are long overdue and necessary to increase access for Medi-Cal recipients.

Assemblymember Dawn Addis, a Democrat from Morro Bay, said in a recent hearing that Prop. 35 was “widely popular” and she had supported it with the hope that rate increases would begin quickly.

Lawmakers have aggressively expanded Medi-Cal benefits and eligibility in the past 10 years. Today, one in three Californians get healthcare through the state program. But doctors say the amount they get paid to see Medi-Cal patients hasn't increased in two decades.

Addis said during the hearing that “94% of Californians now have healthcare coverage, but so many folks can't access providers. And what people in rural areas will point to is that providers just simply cannot afford to practice in rural areas because the reimbursement is so low.”

In a separate legislative hearing, Sen. Akilah Weber Pierson noted that even with the unfilled position, the advisory committee has a quorum and could have met to discuss Proposition 35 implementation.

“This was something the voters were very, very clear about. ... I don’t think the residents would like for us to delay,” said Weber Pierson, a Democrat and obstetrician from San Diego. “It is extremely unfortunate that we will not be able to meet that first deadline and that we are just leaving funds on the table.”

Medi-Cal shortfall as costs increase

The missed deadline comes at a time when California is confronting other Medi-Cal challenges. The state is bracing for potential federal funding cuts that are tied to budget agreements moving through Congress.

And, the state program faces its own shortfall.

Newsom and the Department of Health Care Services are under increased scrutiny for requesting a $6 billion state loan to carry out Medi-Cal operations through the end of the year.

State Republican lawmakers were quick to pin the blame on Newsom’s expansion of Medi-Cal access to all income-eligible immigrants who don’t have permanent legal status.

The administration defended the expansion and pointed to other cost drivers such as increasing pharmacy costs and growing senior enrollment, but acknowledged that about half of the money from the deficit is from the immigrant expansion.

Newsom also blamed the Medi-Cal deficit partially on Proposition 35 in an interview with reporters earlier this month.

“Prop. 35 placed a lot of cost burdens as it relates to rates and so all those things have to be factored in. The voters chose that path with Prop. 35, and we were clear, had strong opinions about it. The cost of [Prop. 35[ would increase the cost of Medicaid, and that’s happening,” Newsom said.

Healthcare industry backed Proposition 35

Before the election, Newsom stopped short of opposing the measure but said Proposition 35’s passage would limit the Legislature’s ability to address future state budget deficits because it committed the money to a specific use.

The measure was backed by nearly the entire healthcare industry, including doctors, hospitals, clinics and ambulance companies. Those groups supported the measure in part because Newsom and past governors had previously reneged on promises to increase Medi-Cal payments and instead used the healthcare tax money to support general government expenses.

The proposition allocates $2 billion annually for 2025 and 2026 to the state general fund while reserving roughly another $2 billion for rate increases and other investments providers want.

Stuart Thompson, a lobbyist for the California Medical Association, which supported the measure, advocated at a March legislative hearing for the Proposition 35 committee to meet as soon as possible. Thompson noted that some payment increases that were approved separately by the Legislature in 2023 have still not been implemented and that the state needs to work to keep the ballot measure on track.

“We really want to get our bang for the buck and make sure that the way that Prop. 35 is implemented really enhances the care for the most needed here in California,” Thompson said.

CalMatters reporter Alexei Koseff contributed to this story.

Supported by the California Health Care Foundation (CHCF), which works to ensure that people have access to the care they need, when they need it, at a price they can afford. Visit www.chcf.org to learn more.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

L.A. City Councilmember Ysabel Jurado introduced seven motions Tuesday, all geared toward providing immediate and long-term relief for community members who’ve been hurt by the aftermath of the Lineage warehouse fire in Boyle Heights.

According to Jurado, the legislative package is centered around three priorities:

• “Immediate relief and cleanup”
• "Accountability, transparency and site safeguards”
• “Long-term oversight and community power”

Jurado is calling for a Mitigation Response Fund of up to $10 million to provide aid for affected residents and small businesses that have lost revenue as the neighborhood continues dealing with foul odors, flies, rats and other vermin. Jurado also wants to see higher penalties for corporate negligence, and create a commission to advise L.A.’s city leadership on environmental justice policy.

After the fire in mid-June, tons of food at the cold storage warehouse were left to rot. Now, more than a month later, community members are still dealing with odors and pests, which have disrupted local businesses, community spaces and everyday quality of life.

Local activists and community members say the Lineage fire aftermath is part of a long legacy of environmental injustice in Boyle Heights. In recent decades, residents have also dealt with pungent smells from rendering plants in the neighboring city of Vernon. And up until 2015, Vernon was also home to Exide, a battery recycling facility that contaminated the soil of thousands of homes in surrounding communities with lead. The taxpayer-funded cleanup for that issue is still ongoing. Lineage also has several facilities in the city of Vernon.

Jurado’s proposed commission “can serve as an interdisciplinary body to identify and start to protect our communities from historical harms that continue to function as standard practice today,” said mark! Lopez, a community organizer at East Yard Communities for Environmental Justice.

Community members will have a chance to provide public comment on Jurado’s motions before they move to a full council vote.

In a statement, Jurado said recovery "cannot mean removing debris and moving on.” In her view, it must also involve the “aggressive pursuit of every recoverable dollar from responsible parties” and "give communities that have carried Los Angeles' environmental burdens real power over what happens next."

Lineage President and CEO Greg Lehmkuhl previously said in a statement that he cannot estimate how long the cleanup will take. “What we can tell you is this: there are people on site working on this recovery 24/7,” he added.

L.A. County will provide assistance grants to small businesses that suffered financial loss from the Lineage warehouse fire that burned for a week in June in Boyle Heights. The fire's aftermath has many in the community seeking help to recover.

Why it matters

The county surveyed business owners in the area who said they are continuing to face a loss of customers and revenue amid persisting odor from food in the Boyle Heights warehouse that continues to rot in the summer heat. The fire started June 17 and burned until June 24. It initially generated significant air quality hazards and prompted evacuations.

About the funds

The grants from Supervisor Hilda Solis’ discretionary budget will be disbursed within 45 days — and then draw from countywide funds if needed. The county will also seek reimbursement for the grants from Lineage. The Department of Public Health and County Counsel will also evaluate new fees and penalties for businesses that pose environmental or health risks in L.A. County. Some fee increases could fund county assistance for future economic disasters.

Who is eligible

Small businesses within the affected area will be able to apply for the grants. The county is looking to prioritize initial funding for businesses that have not already received emergency financial support from other organizations.

More details to come

The Board of Supervisors and Department of Economic Opportunity will announce more about the amount of assistance and how to apply when those details are made final. Affected business owners and residents can find more information on the L.A. County Recovers website.

What to have ready

Existing documentation from L.A. County recommends you collect the following documentation of any damage.

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Courtesy L.A. Department of Economic Opportunity

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Courtesy L.A. Department of Economic Opportunity

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The Los Angeles City Council voted 13-1 on Tuesday to put a measure on the November ballot that will ask voters whether homes affected by the Palisades Fire should be exempt from the city’s controversial “mansion tax.”

If passed, the exemption would apply to the sale of homes damaged or destroyed by the fire. The exemption would last until early 2030, five years from the date of the fire.

This could potentially reduce the tax’s revenue up to 6% — or $32 million each year — according to a May 2026 report from the L.A. Housing Department.

How the ‘mansion tax’ works 

The “mansion tax,” officially called Measure ULA, is a tiered tax on real estate selling for $5.4 million or more. The tax, which was passed by voters in 2022, funds programs such as rental assistance, eviction defense and affordable housing construction in the city.

The measure has fierce defenders, as well as staunch critics. A statewide ballot measure sought to kill the tax before it was pulled by supporters earlier this year in exchange for a legislative deal in Sacramento.

State and local lawmakers have considered reducing the tax or exempting newly constructed apartment buildings. Their ideas have been guided by economic studies that found the tax was slowing down housing development in the city. So far, none of those reforms have mustered enough support to pass.

Where council members stand

Councilmember Eunisses Hernandez, whose district includes Highland Park, Chinatown and Westlake, previously spoke against the measure’s scope at a City Council meeting on July 1.

“Any exemption should only be for homeowners whose primary residence was destroyed, and people who genuinely need help rebuilding, not LLCs, investors or people with a portfolio of properties,” Hernandez said. “We had the opportunity to write those protections into this ordinance, and we didn’t.”

Hernandez criticized her colleagues for shooting down the post-fire eviction protections she proposed after tenants living in her district lost work as gardeners and nannies in the Pacific Palisades.

“When wealthy property owners need relief, we’re willing to bend over backwards,” she said. “But when working class people and tenants need protection, suddenly our hands are tied and the political will is not there.”

Councilmember Traci Park, who represents the Pacific Palisades, voiced support for the measure at the same meeting.

“Putting this tax on these folks who are trying to recover and reckoning with the fact that some of them just aren’t coming home, is just unspeakably cruel,” Park said. “It’s an exemption that applies in very narrow circumstances to original owners and first transactions for five years, only for residential properties. This is the least we can do as this community continues to recover.”

In Tuesday’s meeting, Hernandez cast the lone vote against placing the measure on the November ballot. Thirteen council members supported the move. Councilmember Curren Price was not present for the vote.

What happens next 

L.A. voters will have the final say on whether Palisades homeowners will be exempt from the tax. The proposal needs a simple majority of support from voters in the upcoming November general election to pass.

How to keep tabs on the L.A. City Council

The L.A. City Council tends to meet Tuesdays, Wednesdays, and Fridays. Meetings typically start at 10 a.m.

Here’s how you can follow along:

• Attend in person: The council typically meets at City Hall, Council Chambers, 200 N. Spring St., Los Angeles
• Watch the live broadcast
• Here’s how to submit a comment or contact the council

It’s a tumultuous time for healthcare. Federal and state budget cuts are changing the rules for public benefits. Most people with Medi-Cal won’t be affected, but it may be confusing to figure out whether your benefits will change.

Are you on Medi-Cal, or is someone in your family worried about the cuts?

Tell us about your health coverage, and we'll share advice, information and updates.

The two most important things to do: Update your contact information with your county benefits office, and keep an eye out for any letters mailed from the county or state.

You can update your information by calling your local county office or online with a BenefitsCal account.

Here are the key changes, what they mean, and where to get help.

Changes for immigrants

Non-citizens — undocumented immigrants, refugees, asylum seekers, and people with pending immigration cases — are the group most affected, even those with a green card. The state has an immigration status chart to help you check whether these changes apply to you. If they do, you’ll get a letter.

Undocumented immigrants

• As of Jan. 1, immigrants over age 19 without legal status can no longer apply for Medi-Cal (children remain eligible). 
• Those already enrolled keep benefits if they renew on time. If they miss the renewal deadline and coverage ends, they have three months to reapply. After that window, they cannot sign up again. 
• Anyone who loses Medi-Cal may apply for emergency services. Those are limited to pregnancy, emergency visits and nursing home care.
• Starting Jan. 1, 2027, this group moves to “fee-for-service” Medi-Cal that limits some coverage. Doctors visits, prescriptions, and mental health treatment won’t be affected. Confirm your doctor accepts this Medi-Cal type, or find a new doctor by calling 1-800-541-5555.
• Adults ages 19-64 must also prove they are working or volunteering at least 80 hours a month. Students, people with disabilities and parents with young children are exempt from the work requirement. Starting July 1, 2027, adults lose dental coverage. Those 19-59 will also pay a $30 monthly fee.
• Children and pregnant individuals will remain eligible for Medi-Cal.

Refugees, asylum seekers, some green card holders

• Starting Jan. 1, 2027, refugees, asylum seekers, humanitarian parolees, and survivors of domestic violence or trafficking move to “fee-for-service” Medi-Cal. They will still be able to see the doctor, pick up prescriptions and see the dentist, but they will no longer have a health insurance plan. Call 1-800-541-5555 to find a new doctor if your current one does not accept it.
• Six months later, this group will lose full-scope Medi-Cal and dental benefits, keeping only pregnancy and emergency care.

Promotoras, community health workers and legal aid groups can help answer questions about this.

Adults without children

About 5 million Californians gained Medi-Cal coverage when the Obama administration expanded eligibility to childless adults and those earning slightly above the federal poverty level. Now this group faces stricter requirements in order to keep their health coverage.

Work requirements

• Beginning Jan. 1, adults 19-64 and many immigrants must prove at least 80 hours each month of working or volunteering, or half-time schooling. 
• Who’s exempt: children, seniors, pregnant people, those who are disabled or have serious health conditions or addictions, people on Medicare, those recently released from prison, American Indians and Alaska Natives populations and some former foster youth.
• The state will mail a letter if this applies to you. Most renewal packets come in a bright yellow envelope, but notices may look different. Respond quickly.

More frequent renewals

Beginning next March, the state will check Medi-Cal eligibility every six months for adults ages 19-64 and many immigrants, verifying income, work status, and other requirements. Renewal may happen automatically; if it doesn’t you will receive a letter asking for more information.

Seniors (65+) and people with disabilities

Starting July 1, 2027, seniors (65+) and people with disabilities cannot own more than $21,000 in assets, including savings accounts, cash and property other than a home and a car. For couples it’s $31,000 total. This limit also applies to non-citizens. Your county benefits office or a local legal aid group can clarify what counts; the state also has an FAQ about the new limits.

If you’re afraid of losing coverage, do these things right now

Not everyone will be affected, and some people won’t need to do anything. If you’re required to report work hours or other information, you’ll receive a notice in the mail or through the BenefitsCal online portal if you have an online account: Check both regularly.

The state doesn’t yet have a timeline for initial notices, but advocates say the best move now is simply keeping your information current. This is especially important because the rules keep changing.

“It’s so vital they watch the mail, look out for communications from the county, and are responsive to requests for information,” said Jack Dailey, director of health policy at the Legal Aid Society of San Diego.

Bukola Olusanya, regional medical director for St. John’s Community Health, talks to a patient in a mobile clinic van in Los Angeles on Feb. 6, 2026.

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Jules Hotz

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If you get a notice: You should have plenty of warning before benefits are terminated – respond promptly to any notice of action.

If you get a notice that your benefits will be cancelled and you disagree with that decision, you can appeal and request a state hearing, which “allows you to temporarily freeze an adverse action and keep your benefits while your appeal is being reviewed,” says Alicia Emanuel, a staff attorney with the National Health Law Program.

If you’ve already lost coverage: You have 90 days to restore benefits without filing a new application. Submit the requested information in that window and, if you still qualify, you shouldn't see a coverage gap. After 90 days, you'll need to reapply from scratch.

Where to get free help

Promotoras — community health workers trained through groups like Vision y Compromiso — can meet you in your neighborhood, explain benefits in plain language, and help with Medi-Cal applications. Rosa Lopez, a promotora in Long Beach, said many immigrants worry about losing coverage: “I tell them you don’t have status, don’t worry. The first thing is your health.”

Community clinics often have benefits counselors on staff, and legal aid groups offer free advice for confusing letters — call the Health Consumer Alliance at (888) 804-3536, or check its website. The state also runs a helpline at (800) 541-5555 and keeps its website up-to-date.

One more thing worth knowing: Medi-Cal eligibility isn't just one door — there are several ways to qualify, based on conditions such as income, age, disability, or pregnancy. Before the state can terminate your benefits under one category, it must check whether you still qualify through any of the others. “It's a really critical protection because sometimes an individual is in fact eligible through a different pathway,” Emanuel said. And by law, Medi-Cal must provide free language assistance for people with limited English proficiency.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.