Health care costs for many Californians will nearly double in three months because of Donald Trump, Governor Newsom warns
What you need to know: Because of President Trump’s “Big Beautiful Bill,” Californians will see the average monthly share of their premiums increase from 73 – 388 percent starting in January. Democrats in Congress have agreed to fund the government to reverse these cost increases, but Republicans continue to block the deal.
SACRAMENTO – Without immediate action from Congress to extend key funding as part of a government shutdown deal, Californians enrolled in the state’s health care marketplace, Covered California, will see their monthly health insurance bills nearly double beginning in January — and in some cases more than triple, Governor Newsom warned today.
As a result of President Donald Trump’s recently passed HR 1 (the “Big Beautiful Bill”), Congress made devastating cuts to health care, and failed to extend tax credits for all Affordable Care Act (ACA) enrollees to fund tax breaks largely benefiting billionaires. If Congress does not restore these tax credits, consumers with coverage through Covered California will see premiums jump by an average of 97 percent, nearly doubling overnight. Democrats in Congress have agreed to fund the government with these tax credits included, but Republicans continue to block the deal.
“California has led the nation in expanding access to affordable health care, but Donald Trump is ripping it away. His Big Beautiful Betrayal gutted critical health care programs, and unless Republicans agree, nearly 2 million Californians will be hit with unaffordable bill hikes — and hundreds of thousands could lose coverage altogether.”
Governor Gavin Newsom
“Increasing out-of-pocket health care costs puts coverage out of reach for millions of Californians and others across the nation,” said California Health and Human Services Secretary Kim Johnson. “This threatens affordability and will force many individuals and families to lose their health coverage altogether. Without federal action, the health of our communities is at risk.”
Trump shutdown tied to health care funding
At midnight on October 1, the federal government began shutting down after Republicans in Congress failed to work with Democrats to extend funding. Democrats have proposed a continuing resolution to fund the government through October 31 and extend health‑insurance tax credits, but Republicans blocked the measure, which fell short of the 60‑vote threshold. Without renewal of these credits, ACA enrollees will see their costs skyrocket at the start of next year.
Deadly for Californians
If Congress does not immediately extend the tax credits as part of a government shutdown deal, Covered California enrollees will face unaffordable premium hikes in three months, beginning in January 2026. On average, premiums are expected to increase by 97 percent, effectively doubling overnight. For some, costs will more than triple.
Key impacts include:
- Premiums nearly double: Covered California enrollees will see a 97% increase in monthly premiums on average.
- Low-income Californians hit hardest: Individuals making less than $62,600 will see premiums rise from $97 to $182 per month.
- Older Californians impacted: Adults aged 55–64 will see monthly premiums climb from $186 to $365.
- Self-employed Californians: Nearly 500,000 independent workers will face an average increase of $131 per month.
- Communities of color disproportionately affected: Premiums for Latino Californians would rise by 122%, for Asian and Pacific Islander Californians by 112%, and for Black Californians by 106%.
- Middle-class families lose big savings: More than 160,000 Californians making over $62,600 currently save an average of $502 per month thanks to health insurance tax credits – savings that would disappear.
Covered California reached record enrollment this year, with nearly 2 million Californians signing up for coverage. Without the enhanced premium tax credits, that progress is at risk, threatening to reverse historic gains in reducing California’s uninsured rate.
Governor Newsom is calling for immediate action from Congress to extend this funding and end the government shutdown.
Recent news
Health care costs for many Californians will nearly double in three months because of Donald Trump, Governor Newsom warns
What you need to know: The passage of Proposition 1 by California voters adds rocket fuel to Governor Gavin Newsom’s transformational overhaul of the state’s behavioral health system. These reforms refocus existing funds to prioritize Californians with the most serious mental health and substance use issues, who are too often experiencing homelessness. They also fund more than 11,150 new behavioral health beds and supportive housing units and 26,700 outpatient treatment slots.
Los Angeles, California – California took a major step forward in correcting the damage from 50 years of neglect to the state’s mental health system with the passage of Proposition 1. This historic measure — a signature priority of Governor Gavin Newsom — adds rocket fuel to California’s overhaul of the state’s behavioral health systems. It provides a full range of mental health and substance abuse care, with new accountability metrics to ensure local governments deliver for their communities.
This is the biggest reform of the California mental health system in decades and will finally equip partners to deliver the results all Californians need and deserve. Treatment centers will prioritize mental health and substance use support in the community like never before. Now, it’s time to roll up our sleeves and begin implementing this critical reform – working closely with city and county leaders to ensure we see results.
Governor Gavin Newsom
What they’re saying:
- Sacramento Mayor Darrell Steinberg, original author of the Mental Health Services Act: “Twenty years ago, I never could have dreamed that we would have the strong leadership we have today, committing billions and making courageous policy changes that question the conventional wisdom on mental health. Now, with the passage of Proposition 1. California is delivering on decades old promises to help people living with brain-based illnesses, to live better lives, to live independently and to live with dignity in our communities. This is a historic moment and the hard work is ahead of us.“
- Senator Susan Eggman (D-Stockton), author of Senate Bill 326: “Today marks a day of hope for thousands of Californians who are struggling with mental illness – many of whom are living unhoused. I am tremendously grateful to my fellow Californian’s for passing this important measure. And I am very appreciative of this Governor’s leadership to transform our behavioral health care system!”
- Assemblymember Jacqui Irwin (D-Thousand Oaks), author of Assembly Bill 531: “This started as an audacious proposal to address the root cause of homelessness and today, Californians can be proud to know that they did the right thing by passing Proposition 1. Now, it’s time for all of us to get to work, and make sure these reforms are implemented and that we see results.”
Bigger picture: Transforming the Mental Health Services Act into the Behavioral Health Services Act and building more community mental health treatment sites and supportive housing is the last main pillar of Governor Newsom’s Mental Health Movement – pulling together significant recent reforms like 988 crisis line, CalHOPE, CARE Court, conservatorship reform, CalAIM behavioral health expansion (including mobile crisis care and telehealth), Medi-Cal expansion to all low-income Californians, Children and Youth Behavioral Health Initiative (including expanding services in schools and on-line), Older Adult Behavioral Health Initiative, Veterans Mental Health Initiative, Behavioral Health Community Infrastructure Program, Behavioral Health Bridge Housing, Health Care Workforce for All and more.