AG Bonta Leads a Coalition of 14 AGs in Challenging the Trump Administration’s Proposal to Cut Medicaid Payments

Published Date: Jul 21, 2026

AG Bonta led a coalition of 14 attorneys general in submitting a comment letter opposing a proposed rule by the U.S. Department of Health and Human Services and Centers for Medicare & Medicaid Services that would severely limit an important tool used by state Medicaid programs to increase access to care. State-Directed Payments and supplemental payments under fee-for-service Medicaid help states support hospitals and other healthcare providers, including those serving rural, urban, and underserved communities, where Medicaid payments often fall short of the cost of providing care. The proposed rule, intended to implement the One Big Beautiful Bill Act, would sharply restrict these payments beyond what Congress authorized and fails to consider the devastating harms to patients and providers that will flow from further Medicaid cuts. In California, Medi-Cal serves as the state’s Medicaid program.

“Medical emergencies don’t stop when Medicaid payments stop — they just become more expensive and less accessible. As Americans face a crisis of affordability, we should be expanding access to affordable healthcare, not making the cuts Congress enacted even worse. This proposed rule will have real consequences for hardworking Americans and their families. My fellow attorneys general and I insist that it be withdrawn." -AG Bonta

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