In the latest budget deal between Governor Gavin Newsom and the California State Assembly, funding for Medi-Cal dental services and dental coverage for undocumented adults will continue until July 1, 2026.
The decision comes after a strong advocacy campaign by the California Dental Association (CDA) that successfully prevented the planned immediate funding cuts.
In his revised budget proposal, Governor Newsom had proposed reallocating some Proposition 56 funds starting next month to help the state government’s $12 billion deficit.
However, the proposal was rejected by the State Assembly. On June 30, the Legislature formally approved the new budget, and the Governor signed it the same day.
Proposition 56 was originally passed by voters in 2016 to increase tobacco taxes and increase Medi-Cal reimbursement rates to expand coverage and access to dental services.
Driven by this measure, the number of dental service providers participating in Medi-Cal in California increased by 34%, and the dentist registration rate rose to 40%. In the past five years, the number of dental visits for Medi-Cal patients has also increased by 27%, and nearly 1 million new service recipients have been served.
After Newsom proposed the funding adjustment, CDA quickly launched an initiative, mobilized 745 dentists and related professionals, and conducted 1,475 direct communications with legislators, urging the government to “respect the will of voters and stop the plunder of dental funds.” In addition, CDA also launched a digital advertising campaign in the Sacramento area to increase public influence.
However, the situation is still challenging. With US President Trump signing the congressional budget bill on July 4, California will face significant cuts in federal Medicaid funds, especially in terms of policy restrictions on managed care organization (MCO) taxes, which may directly affect the funding source of Proposition 35.
The proposal, promoted by CDA and supported by 68% of voters in November last year, aims to make MCO taxes permanent and ensure that they are used exclusively for Medi-Cal and other designated health plans.
Another controversial part of the new budget is the reallocation of Proposition 35 funds – the state government decided to use it to pay for Medi-Cal expenses that have already been incurred, rather than increase Medi-Cal reimbursement rates as originally planned, which was severely criticized by CDA as “ignoring the will of voters and may cause serious legal problems.” Proposition 35 clearly stipulates that related revenues cannot be diverted for other purposes.
CDA President Dr. Max Martinez emphasized: “We can’t let all the hard work and great progress go to waste.”
He called for continued promotion of legislative guarantees to support the long-term stability of the Medi-Cal dental program and ensure that 15 million Californians who rely on the system will not lose critical medical services due to budget issues.
Currently, the Proposition 35 Coalition is actively evaluating various responses to maintain the authority of the law and public health achievements. CDA said it will continue to advocate in and outside the state legislature and firmly oppose any policy attempts to weaken the Medi-Cal dental program.