On June 11, 2026, California's Assembly and Senate leaders announced a bipartisan budget deal that rejects the most damaging proposals in Governor Newsom's plan to cut In-Home Supportive Services (IHSS) and Medi-Cal. The Legislature called it "a responsible, compassionate budget that protects the services people rely on most."

If you're receiving IHSS, here's what you need to know before the Governor signs the final budget by June 30.

What the Legislature Rejected

The June 11 agreement blocks three proposals that would have directly reduced access to IHSS and Medi-cal:

IHSS hour cost-shift to counties. The Governor proposed shifting $233.6 million in IHSS hour costs from the state to counties. Counties with smaller budgets would have faced pressure to reduce hours or tighten eligibility. The Legislature rejected this outright.

Elimination of the IHSS Backup Provider System. The backup provider system lets families access temporary coverage when their primary IHSS provider is unavailable. Eliminating it would have meant families with no plan when their primary caregiver calls in sick. The Legislature rejected or delayed this proposal, saving the $3.5 million program.

Immediate Medi-Cal asset limit drop. The Governor's budget proposed slashing Medi-Cal asset limits from $130,000 to $2,000 for individuals and $3,000 for couples. The Legislature's deal delays this change entirely in 2026-27 and softens it to $21,000 (not $2,000) starting in 2027-28. Without this change, 25,000 adults and people with disabilities would have lost Medi-Cal coverage in the first year alone.

IHSS Residual Program termination. When you lose Medi-Cal eligibility, the IHSS Residual Program lets your IHSS benefits continue temporarily while you work through the transition. The Governor proposed ending this immediately. The Legislature rejected it.

The Legislature also delayed Medi-Cal dental cuts by 12 months.

What's Still Uncertain

The budget now moves to negotiations between the Legislature and the Governor. Newsom hasn't publicly stated whether he'll accept the Legislature's version or push back on specific provisions. The constitutional deadline for the Legislature to pass a budget is June 15. The Governor has until June 30 to sign it.

Some cuts enacted last year are being "delayed" in this agreement, not permanently reversed. That means future budget cycles could bring them back.

What to Do Right Now

Contact your county IHSS social worker. Verify your current enrollment status, your authorized hours, and your backup provider status if you have one enrolled. If you don't have this contact information saved, call your county's IHSS Public Authority office and ask for it.

Sign up for legislative notifications. Disability Rights California maintains an action alert system for budget and policy changes affecting disability services. Sign up at disabilityrightsca.org so you're notified when the final budget is signed and what it contains.

Document your current IHSS plan. Write down your authorized hours, your provider's schedule, and any backup arrangements you have in place. If cuts are enacted in future budget cycles, having a baseline record of what you were authorized before changes took effect can help you appeal reductions.

If you're close to Medi-Cal asset limits, talk to a benefits planner. The $21,000 asset limit starting in 2027-28 is still a significant drop from $130,000. If you have assets near that threshold, consult a disability benefits planner now to understand your options for protecting eligibility. Many counties offer free benefits planning through their IHSS Public Authority or Area Agency on Aging.

Why This Matters Beyond California

California's IHSS program serves over 700,000 people with disabilities and older adults who need help with daily tasks like bathing, dressing, and meal preparation. It's the largest state-funded home care program in the country.

When California proposes IHSS cuts, other states watch. The legislative pushback on June 11 signals that lawmakers are willing to fight for home and community-based services even under federal budget pressure, setting a precedent other states may follow.

Earlier this year, Vice President Vance suspended $1.3 billion in Medicaid payments to California and threatened similar action in other states. The Legislature's June 11 agreement acknowledges that federal pressure while refusing to pass those cuts directly onto families.

Timeline to Watch

June 15: Constitutional deadline for the California Legislature to pass the budget.

June 30: Deadline for Governor Newsom to sign the budget into law.

Between now and June 30, watch for public statements from the Governor's office about whether he'll accept the Legislature's rejection of the IHSS and Medi-Cal cuts or attempt to negotiate different terms. The Assembly Budget Committee's Floor Report published June 11 contains the full list of provisions the Legislature agreed to.

You can't control whether the Governor signs the Legislature's version or pushes back. You can control whether you're prepared for either outcome. Verify your enrollment, document your current plan, and get on the notification list so you're not finding out from social media speculation threads when the final decision happens.

FAQ

Does this mean my IHSS hours are safe?

The Legislature's June 11 agreement rejects the proposed cost-shift to counties and preserves the IHSS Residual Program. If the Governor signs this version, your current authorized hours aren't affected by the 2026-27 budget. Future budget cycles could propose new cuts.

What happens to the backup provider system?

The Legislature rejected or delayed elimination of the backup provider system. If you're currently enrolled with a backup provider, that arrangement continues under this budget agreement.

When will I know the final budget details?

The Governor has until June 30 to sign the budget. Once signed, the full text will be published on the California Department of Finance website. Disability Rights California and other advocacy organizations will publish plain-language summaries of what the final budget means for IHSS recipients.

What if I lose Medi-Cal eligibility before 2027-28?

The IHSS Residual Program remains in place under this budget. If you lose Medi-Cal, your IHSS benefits can continue temporarily while you work through the transition process with your county social worker.

Can I appeal if my hours are reduced in the future?

Yes. Any reduction in authorized IHSS hours triggers an appeal right. Contact your county IHSS office immediately if you receive a Notice of Action reducing your hours. You have 90 days from the date on the notice to file an appeal.

Where can I read the Legislature's full budget agreement?

The Assembly Budget Committee published its Floor Report on June 11, 2026. The full document is available at abgt.assembly.ca.gov. Speaker Robert Rivas's press release announcing the agreement is published at speaker.asmdc.org.