The 2025–26 California State Budget arrives at a moment of deep contradiction. While it includes critical investments in education and economic mobility, it also delivers cruel and discriminatory cuts to our state’s most vulnerable—particularly undocumented and immigrant families who form the backbone of California’s economy.
We are gravely disappointed by the decision to freeze Medi-Cal enrollment for undocumented adults ages 19 and over, and to impose a $30 monthly premium starting in 2027 for those already enrolled. Equally appalling is the scheduled elimination of full-scope dental coverage in 2026, targeting only those with an “unsatisfactory immigration status.” These changes may reduce costs to the state, but they do so at the expense of our undocumented communities. These exclusions are especially troubling given ongoing ICE raids and heightened targeting of immigrant communities across the state. Denying health coverage to undocumented individuals only deepens the instability experienced by those communities and at a time when families are already living in fear, it is more crucial than ever to ensure that healthcare is treated as a human right and not as a privilege tied to immigration status.
These harmful measures will force immigrant families to forgo life-saving preventative care and further isolate them from California’s healthcare system—a system they help fund through their labor, taxes, and caregiving roles. Despite these communities’ immense contributions, they are once again asked to pay the price for the state’s budget shortfall.
These cuts come at a time when 57% of Californians support Medi-Cal for all low-income residents, regardless of immigration status. California must pursue revenue-generating solutions, not cuts that compromise public health and human dignity. Alongside our partners, we will continue to fight for a reversal of these provisions in the next budget cycle.
Budget Wins: Investing in Education, Opportunity, and Economic Mobility
There are, however, notable wins for our communities and the organizations that support them.
We are proud to share that in partnership with SoCal CAN, we successfully secured $5.1 million in funding for community-based financial aid outreach and FAFSA application assistance. These funds will support trusted local organizations in helping current and prospective California Community College students—many of whom are first-generation, low-income, or undocumented—navigate the complex financial aid process.
This win comes at a crucial time. With federal changes creating instability in the FAFSA process, California’s investment is a necessary step to ensure that students aren’t left behind because of bureaucratic failures beyond their control.
Another major win in this year’s budget is the $7.5 million investment in the Social Entrepreneurs for Economic Development (SEED) Initiative. SEED has a proven track record: in its first two iterations, it delivered $30 million in total funding across California, supporting immigrant entrepreneurs in launching small businesses and worker-owned cooperatives—two powerful models of economic self-determination. This year’s renewed funding will allow trusted community-based organizations to offer technical assistance, training, and microgrants, helping immigrant families build economic power on their own terms.
Looking Ahead
We will continue to work with our partners, allies, and community leaders to advocate for a people-centered budget—one that prioritizes healthcare access, educational equity, and economic justice for all Californians, regardless of status. As we prepare for the next legislative cycle, we remain committed to organizing, informing, and fighting back.
Alliance for a Better Community
Advancing social, economic, racial equity and justice for the Latino community and the Los Angeles region through power building and policy advocacy.