The Los Angeles Post

NEW REPORT: Republicans’ Rushed Plan to Cut $880 Billion from Medicaid Could Also Wipe Out Up to 217,000 California Jobs

by ·

Republicans’ Rushed Plan to Cut $880 Billion from Medicaid Could Also Wipe Out Up to 217,000 California Jobs

Rep. Young Kim, Who Voted to Advance Medi-Cal Cuts, Would See Up to 2,300 Jobs Lost in Her District 

Medicaid Cuts Threaten Hospitals and Clinics, Where Two-Thirds of Projected Job Losses Would Hit

 

Orange County, CA – California stands to lose as many as 217,000 jobs according to a new policy brief published by UC Berkeley Labor Center on Friday that outlines the severe economic fallout if Republican leaders in DC secure their proposed $880 billion in cuts to Medicaid.

 

As Republican leaders rush through their reckless plan to cut health care, between $10 billion and $20 billion per year in federal funding for Medi-Cal, the state’s Medicaid program, is on the line. These deep cuts would not only terminate health care for many of the 15 million Californians – one in three residents – who rely on Medi-Cal, but deliver a massive blow to the state’s economy in the form of job loss, reduced economic output, and loss of state and local tax revenue.

 

Rep. Young Kim’s (CA-40) district will face significant job loss under the Republicans’ proposed cuts, with as many as 2,300 jobs at risk. Orange County overall could see up to 14,700 jobs vanish. This would be a startling blow for the community Kim represents, particularly as a recession looms.

 

Key findings from the analysis of projected 2026 funding losses for the state of California include:

  • 109,000 to 217,000 jobs lost

  • $18.5 billion to $37 billion in reduced economic output

  • $860 million to $1.7 billion in lost state and local tax revenue

 

Roughly two-thirds (67%) of lost jobs would be in health-care related fields such as hospitals, clinics, nursing homes, home care, insurance companies, and other providers. The remaining third would be spread across industries that support or are supported by health care – including food services, janitorial services, medical supply chains, employment and accounting services, and local businesses like restaurants and retail stores.