Next California governor faces Medicaid challenge

California faces significant financial challenges in its Medicaid program, Medi-Cal, as federal funding cuts and rising healthcare costs threaten to reduce coverage for millions. The state borrowed $3.4 billion in 2025 to sustain Medicaid services, and future repayment plans have been delayed, raising concerns about long-term stability. With upcoming federal reductions expected to cause over two million Californians to lose coverage and lawmakers considering reforms, the next governor will need to navigate difficult decisions on funding, eligibility, and program structure to maintain healthcare access for vulnerable populations.

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