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The legislature is gearing up for a major couple of weeks as the Assembly and Senate Appropriations Committees meet to dispense with bills from their house of origin by May 23. Many bills will head to the suspense file, where many will live and die based on the fiscal impacts to the state and political capital of the bill’s author and sponsors. ACHD will be providing an update to members following the suspense file, related to outcomes of bills. As most of ACHD’s high priority bills have yet to be heard in appropriations, there is little change from our last update. Please be on the lookout for Calls to Action and bill updates as the legislative process continues.
Bill Update:
AB 1113 (Gonzalez)- Federally qualified health centers: mission spend ratio- ACHD Neutral
ACHD successfully secured an exemption for healthcare district FQHC and FQHC “look alike” clinics, coming out of the Assembly Health Committee. The bill otherwise would have required healthcare districts to comply with a 90% mission spend ratio. Basedon these negotiated amendments, ACHD has removed opposition and move to a neutral position.
Budget Update:
Yesterday, Governor Newsom presented the 2025-26 May Revise. For those interested in watching the Governor’s presentation and press conference it can be viewed here. A summary of the budget and budget details are available, here. The Governor in his press conference, criticized federal actions—particularly from the Trump administration—for targeting growth drivers such as research, innovation, and science. Cuts have included $400 million to programs like NIH grants, libraries, literacy efforts, and volunteer services. ACHD has compiled a high-level initial summary of the May Revise, with a particular focus on the Health and Human Services Budget.
ACHD will be working over the next month to provide additional details to members and advocate on budget priorities. The legislature must pass a balanced budget by midnight on June 15th, with initial budget actions going into effect on July 1. However, please note that the Governor and Legislature have both signaled that more budget work may need to occur as federal changes are implemented.
ACHD’s Advocacy Day:
A huge thank you to ACHD’s Advocacy Committee members who joined our team in Sacramento last week. It is the leadership, advocacy and dedication of our members that makes our legislative wins possible. We look forward to our continued work with this Committee to strengthen relationships with the new class of legislators and to help support ACHD’s mission and storytelling.
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