Congress is currently considering significant cuts to Medicaid funding as part of broader federal budget negotiations. For California, these cuts could have a devastating impact—potentially resulting in the loss of up to 217,000 jobs and billions of dollars in economic output.

Such reductions would not only affect the health care workers who provide critical services across the state but also ripple through local businesses and communities that depend on the health care sector for economic stability.

To help you see what this might mean where you live, we’ve included a tool (below) that lets you explore the health care facilities and services in your area.

The UC Berkeley Study Highlights

A recent report from the UC Berkeley Labor Center, bluntly titled California Could Lose Up to 217,000 Jobs if Congress Cuts Medicaid, outlines the potential fallout of these proposed Medicaid cuts on California’s economy and workforce.

According to the study, federal Medi-Cal funding to California could be reduced by between $10 billion and $20 billion annually.

This would translate into the loss of between 109,000 and 217,000 jobs statewide, with roughly 67% of those losses occurring directly in health care sectors—including hospitals, clinics, nursing homes, and home care services.

The economic consequences extend beyond job losses. The state could see a reduction in economic output ranging from $18.5 billion to $37 billion, accompanied by a decrease in state and local tax revenue between $860 million and $1.7 billion. These figures account for direct employment losses, as well as indirect impacts on suppliers and the broader economy caused by reduced consumer spending.

According to the study, federal Medi-Cal funding to California could be reduced by between $10 billion and $20 billion annually:

"Depending on the specific mechanisms and timing for cutting Medicaid, which are yet to be proposed, California could expect to see between $10 billion and $20 billion fewer federal dollars per year coming to Medi-Cal, the state’s Medicaid program. This would be a reduction of between 8.5% and 16.9% in the $118 billion in federal Medi-Cal spending projected for 2025-26. These federal cuts not only threaten health care access for many of the nearly 15 million–or one out of three–Californians currently enrolled, they would also lead to significant job loss in health care and other sectors. "

-Laurel Lucia, UC Berkeley Center for Labor Research and Education

Importantly, many of the affected health care jobs offer middle-class wages and benefits, supporting families across California. The loss of these jobs would threaten not only access to essential health services but also the economic security of thousands of households throughout the state.

Localized Impact—Which Counties and Districts Face the Biggest Losses?

The economic fallout from potential Medicaid cuts would be felt unevenly across California, with some counties and congressional districts facing particularly severe job losses.

According to the UC Berkeley Labor Center analysis, Los Angeles County could see as many as 63,800 jobs lost, reflecting its large population and extensive health care infrastructure.

San Diego County could lose up to 15,200 jobs, while Orange County faces a potential loss of 14,700 jobs.

Other counties like Riverside, San Bernardino, and Sacramento are also projected to experience significant job reductions, ranging from 9,400 to nearly 14,000 lost positions.

The report breaks down losses not only by county but also by congressional district, providing detailed insight into the communities that would be most impacted. These localized estimates highlight how deeply Medicaid funding supports California’s health care workforce and economy at the community level.

Explore Your Community’s Health Facilities with this Interactive Tool

To better understand how potential Medicaid cuts could impact your community, the California Department of Health Care Access and Information (HCAI) offers a valuable resource: an interactive emergency health facility map.

This tool allows users to locate hospitals, dialysis centers, skilled nursing facilities, and mental health treatment centers across the state. It's especially useful during emergencies like wildfires, earthquakes, and Public Safety Power Shutoffs (PSPS).

By exploring this map, Californians can identify which facilities serve their areas and assess how cuts to Medi-Cal funding might affect local health infrastructure. Understanding the distribution and capacity of these facilities can empower communities to advocate for necessary resources and support for Medi-Cal and health services.

Why it Matters

These Medicaid funding cuts threaten more than just jobs—they endanger access to health care for millions of Californians who rely on Medi-Cal for coverage. For many low-income families, seniors, and people with disabilities, Medi-Cal is a lifeline to essential medical services.

Compounding this concern is the fact that many health care workers themselves depend on Medi-Cal benefits. Cuts to funding could disproportionately impact these workers, jeopardizing both their employment and their health coverage.

Moreover, this looming crisis comes at a precarious time for California’s economy. With the risk of a national recession and other federal budget reductions on the horizon, slashing Medicaid funding could further weaken the state’s economic recovery and strain local communities already facing economic uncertainty.

How You Can Help Protect Medi-Cal Funding

The potential loss of up to 217,000 jobs and billions in economic output due to Medicaid cuts is a pressing issue for all Californians. We encourage readers to share this article and the interactive tool with friends, family, and community members to raise awareness about the stakes involved. By staying informed and engaged, individuals can play a crucial role in advocating for the protection of Medi-Cal funding and ensuring continued access to essential health services.

Additionally, we recommend monitoring upcoming legislative actions related to Medicaid funding and contacting your representatives to express support for maintaining or increasing Medi-Cal resources. Your voice can make a difference in shaping the future of health care in California.