The California Medical Association (CMA) is calling on state lawmakers to reject Governor Gavin Newsom’s proposal to divert billions in voter-approved health care funds from Propositions 35 and 56. The proposal will devastate access to care for Medi-Cal patients and betrays the trust of California voters. The Governor’s revised budget proposal diverts significant funding from Prop 35 to  backfill the state’s budget shortfall instead of to increase provider rates, as the proposition requires.

“This is a direct violation of the will of California voters,” said CMA President Shannon Udovic-Constant, M.D. “Instead of honoring the clear intent of Prop 35 and voters – to increase access to care for Medi-Cal patients through a legally protected funding stream – the Governor is proposing to use this money to patch a budget shortfall of the state’s own making.”

Proposition 35, passed in November 2024 with nearly 68% voter support, created a protected funding stream to raise Medi-Cal provider payments and expand access to care. But under the Governor’s revised budget proposal, those funds would be used to backfill existing Medi-Cal obligations—not to improve access for the 15 million Californians who depend on the program.

At the same time, the administration is also proposing to redirect funds from Proposition 56—a 2016 voter approved tobacco tax to support essential services like reproductive health care, family planning and dental care.

“This isn’t just a broken promise – it’s a dangerous precedent that will worsen California’s health care crisis,” said Dr. Udovic-Constant. CMA joins a broad coalition of Prop 35 supporters in expressing outrage at the Governor’s proposal.

“The Newsom administration’s budget proposal that diverts Proposition 35 funding raises serious legal concerns and blatantly disregards the will of California voters,” the Yes on Prop 35 Coalition said in a statement. “This move hurts millions of Californians and undermines the very reason Prop 35 was passed—to improve access to care, not cover past debts.”

“We believe the Administration’s proposal to swipe Proposition 35 funds in order to backfill the state’s budget is not only a direct violation of state law, but also a snub to the millions of California voters — 68% — who supported this ballot measure last fall,” said Carmela Coyle, President & CEO of the California Hospital Association.

With unprecedented Medicaid cuts looming at the federal level, California should be strengthening access to care—not undermining it. Diverting voter-approved health care funds to close a budget gap not only violates the will of the people but threatens the health of the 15 million Californians who rely on Medi-Cal. CMA will continue to fight to protect voter intent, safeguard Medi-Cal, and ensure critical health care dollars are used as promised.