Medi-Cal Budget Cuts Could Eliminate 210,000 Jobs in California, UC Berkeley Warns

Federal cuts to Medi-Cal, California’s Medicaid program, could eliminate up to 210,000 jobs statewide, according to a policy report released in April by the UC Berkeley Labor Center. The proposed funding reductions would directly impact the healthcare system and ripple across the state economy.

The report estimates that approximately 145,000 jobs, or two-thirds of the projected losses, would come from core healthcare sectors such as hospitals, clinics, nursing homes, insurance companies, and home health care services.

In early May, Republican lawmakers introduced a bill to reduce Medicaid funding by $880 billion by 2034, part of a broader plan to support the Trump administration’s $4.5 trillion tax cut package.

Currently, Medi-Cal serves over 15 million Californians, covering more than one-third of the state’s population.

Laurel Lucia, director of the healthcare program at the UC Berkeley Labor Center, warned the cuts would have sweeping consequences. “With hundreds of thousands at risk of losing their jobs, concerns about a recession are growing,” she said. “Medi-Cal is a critical funding source for hospitals, nursing homes, and community clinics.”

Lucia added that the loss of federal support could lead hospitals and clinics to reduce staffing or shut down, worsening access to medical services for all insured patients.

Statewide and Local Economic Fallout

The job losses would not be evenly distributed across California. The Central Valley is expected to face some of the most severe disruptions. The UC Berkeley report projects the following job losses:

• 3,700 to 7,300 jobs in Fresno County
• 500 to 1,000 jobs in Madera County
• 1,000 to 2,000 jobs in Merced County

In Representative David Valadao’s district (California’s 22nd District, Delano area), between 3,400 and 6,900 jobs could be lost next year alone. Hospitals in his district receive $820 million from Medi-Cal, accounting for 50% of their total patient revenue, raising concerns about the financial stability of regional hospitals and clinics.

The UC Berkeley Labor Center also warned that the proposed Medi-Cal cuts could reduce state and local tax revenue by between $860 million and $1.7 billion annually. This drop in revenue could indirectly affect public services, education systems, and regional infrastructure, according to the report.

BY BRIAN CHOI [choi.inseong@koreadaily.com]