The return of the Trump administration brings new policies and familiar threats to home care and child care providers in California. While we don’t yet know all the details, there are key issues we must prepare for as we strengthen our program to meet these challenges head-on.
Federal Budget Cuts and Medicaid Changes
Congress is working to cut the budget by $880 billion, primarily by reducing Medicaid funding—the program that funds IHSS. One proposal would shift Medicaid whether through per person caps, work requirements, or other funding reductions. This change could significantly reduce federal Medicaid funding, as block grants do not account for caseload growth or inflation.
Impact on IHSS
If federal Medicaid funding is reduced, IHSS benefits and eligibility in California could be at risk. Currently, 55% of IHSS funding comes from Medicaid, meaning providers and clients would feel the effects of any cuts.
Impact on Child Care
While child care itself does not receive Medicaid funding, many providers and families would still be affected. Nearly 45% of child care providers rely on Medi-Cal (California’s Medicaid program) for healthcare, and 23% are covered through Covered California, which also depends on Medicaid funding. Any cuts could disrupt access to affordable healthcare for providers and families alike.
Why This Matters
Because IHSS and family child care are funded by both state and federal governments, their future depends on decisions made in Sacramento and Washington, D.C. That’s why we must stand together to protect our clients, our loved ones, and our livelihoods.
How Can You Help?
Call congress today and let them know we will not stand for cuts to Medicaid and they must stand with home care providers! Call them today at 1-866-584-5792.
