California health care advocates, labor unions and progressive lawmakers are urging the governor and the Legislature to find new money to fund medical care and other social services for millions of low-income and disabled Californians. 

Their coalition, known as “Fight for Our Health,” demanded Wednesday on the Capitol steps that the Legislature and soon-to-be lame duck Gov. Gavin Newsom take action to backfill funding cuts that President Donald Trump and Republicans approved last year.

The dilemma over how to respond to billions of dollars in cuts to social services — particularly to the budget for Medi-Cal, the state’s nearly $200 billion Medicaid program — foreshadows a showdown that will dominate both the 2026 legislative session and the midterm elections. 

As one union pursues a controversial wealth tax ballot measure to offset the cuts, progressive Democrats in the Legislature are floating a separate corporate tax, though details remain scant. If that materializes into a bill, it’s also likely to divide the party, which is sensitive to accusations that Californians are over-taxed and has recently declared its leaders will focus on lowering costs for state residents. 

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