Spending on California’s joint state and federal-funded health care program is slated to reach “an all‑time high,” according to a new budget analysis from the Legislative Analyst’s Office (LAO).
Budget estimates for the upcoming 2026–2027 fiscal year propose $222 billion in total funds for Medi-Cal, the state’s Medicaid health care program for low-income people, according to the LAO’s March budget report. That’s a 13.1 percent increase from the current fiscal year, which ends on June 30, 2026.





