The recent proposed cuts to Medicaid (referred to as Medi-Cal in California) could be detrimental to the essential community and disability services that many of our participants depend on. We’ve compiled information to help you understand the potential impact of these cuts and how you can help.
What is Medicaid?
Medicaid (or Medi-Cal, as it’s referred to in California) is the government health program for low-income and disabled Americans. Medicaid operates as a partnership between states and the federal government to fund crucial health care services. It covers about 72 million people. The federal government funds the majority of Medicaid.
Medicaid operates as a partnership between states and the federal government to fund crucial health care services.
What is currently happening with Medicaid?
On May 22, 2025, the House passed a budget reconciliation bill that includes significant changes to the Medicaid program and the Affordable Care Act, which includes work requirements and state budget constraints. The proposed budget bill includes cuts to Medicaid of over $700 billion, potentially affecting millions of people.
Why does this matter?
Medicaid insures one in five Americans. That’s 72 million people. Medicaid cuts could severely impact the services that millions of people depend on, including those who rely on Intellectual and Developmental Disability (I/DD) programs.
When federal Medicaid funding is reduced, states must find new funding to balance the shortfall in state budgets. If new funding cannot be found, community-based services for people with I/DD are often reduced, leading to longer waitlists for HCBS and higher rates of unnecessary institutionalization.
Who will be impacted by Medicaid cuts?
Reforms to Medicaid financing will have the impact of cutting I/DD programs. Even if not specifically targeted to disability services, reductions to Medicaid funding will have a negative impact on state budgets. State budgets unable to absorb these drastic budgetary shortfalls will likely look to cutting optional services first, such as community-based services for people with I/DD.
In California, Medi-Cal plays a significant role in funding developmental disability services by providing coverage for a portion of necessary care through a dedicated "Developmental Disability Waiver.” This allows individuals with developmental disabilities to access various services like home-based support, therapy, and specialized equipment.
In summary, these cuts would:
- Shift Medicaid costs to states, forcing them to cut provider rates or reduce essential services to balance their budgets.
- Jeopardize access to community-based services, leading to longer waitlists, fewer services, and increased institutionalization for individuals with I/DD.
- Further destabilize the disability services workforce, making it harder for providers to meet the growing needs of their communities.
- Put 14.9 million Californians covered by Medi-Cal at risk, which includes 2.2 million seniors and people with disabilities
How will Medicaid cuts impact Easterseals Southern California’s services?
Easterseals provides services to 25,000 children and adults, the majority of whom are people with I/DD, including Adult Day Services, Living Options, Employment Services, Autism Services, and more. If Medi-Cal funding is cut, this will drastically reduce Regional Center funding, which could restrict participant access to our services and cause further staffing shortages.
How can you help?
Our communities are at their best when all people, including people with disabilities, have the opportunity to develop skills, achieve greater independence, and successfully reach their goals. Medicaid enables community providers to support individuals with disabilities and helps contribute to a stronger America for everyone.
You can reject these harmful cuts to Medicaid funding by using your voice and sending a message to your US Representative. Visit congress.gov/members to find your Senators and speak up today.
