Governor Newsom’s May Revision Budget Proposal Released

By Jordan Lindsey, Executive Director, The Arc & UCP California Collaboration

Governor Gavin Newsom released the May Revision of California’s proposed 2026-27 state budget on May 14, and while the proposal avoids major new cuts to regional center services, it includes several deeply concerning proposals that could significantly impact Californians with disabilities and their families.

Most concerning are proposals to reinstate drastically lower Medi-Cal asset limits beginning January 1, 2027 (page 39)— reducing allowable assets to just $2,000 for an individual and $3,000 for a couple. Because In-Home Supportive Services (IHSS) is tied to Medi-Cal eligibility, these changes could force tens of thousands of seniors and people with disabilities to lose access to critical healthcare and support services simply for having modest savings or assets.

The proposal also includes changes to IHSS, elimination of the IHSS Backup Provider System, and other healthcare-related reductions and cost containment measures.

At the same time, the May Revision does maintain funding for regional center services and includes continued investments in developmental services, special education, and inclusive postsecondary education programs.

It is important to remember that the May Revision is only a proposal. The Legislature and Governor will now negotiate the final state budget before the June 15 deadline.

The Arc & UCP California Collaborative will continue advocating throughout the budget process to protect critical services and supports for Californians with intellectual and developmental disabilities and their families.

Click the following link to view: May Revise Budget Summary by The Arc of California