When Congress allowed covid-era subsidies for health insurance to expire, California used its own funds to offset the hike in Obamacare premium costs for residents with low incomes. As Gov.
Gavin Newsom negotiates his last budget with the legislature, the Democrat wants to offer financial help to more than 1 in 4 enrollees in Covered California, the nation’s largest state-run health insurance marketplace. Democratic lawmakers, who hold a supermajority, are still debating the plan.
“My budget proposal would KEEP $0 monthly plans for low-income Californians to help clean up the financial disaster Trump created,” Newsom posted on Facebook , where he often chides the president and GOP Congress. Ten blue states have put up their own funds to keep Affordable Care Act plans affordable and residents insured as the rising cost of healthcare has emerged as a top concern among voters.
Newsom’s $300 million proposal would make California’s program among the most generous, but even the nation’s richest state can’t patch a $2.5 billion hole left by the expiration of enhanced subsides at the end of last year.
KFF Health News published a clinical update in Research Highlights on 12 Jun 2026.
The item focuses on 1 in 4 Covered California Enrollees Could Get State Aid Under Newsom Proposal.
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