California Proposes Applying Federal Work Requirements to State-Funded Immigrant Medicaid Coverage

California is considering extending work requirements from the 2025 Reconciliation Act (H.R. 1/OBBBA) to immigrants covered through state-only Medi-Cal funding, despite the Governor's Office previously calling OBBBA "not cost-saving" and "cruel." State stakeholders project the requirements will cause coverage losses through administrative churn rather than generate savings. The proposal would affect immigrants ineligible for federally-funded Medicaid who currently receive state-funded benefits. This marks a significant policy shift as California would voluntarily apply federal work requirement provisions to populations the federal mandate does not reach.

Managed Care · Finance