Health Excel

California’s In-Home Care Program Faces Uncertainty Amid Budget Cuts and Federal Standoff

Written by PNN | May 28, 2025 3:01:00 PM

California’s In-Home Supportive Services (IHSS) program, a lifeline for over 600,000 low-income seniors and individuals with disabilities, is under threat due to proposed federal Medicaid reductions and state budget constraints. These potential cuts could force many beneficiaries into institutional care, reversing decades of progress in promoting independent living. 

Governor Gavin Newsom’s revised budget proposal includes measures such as capping provider overtime at 50 hours per week, reinstating asset limits, and eliminating IHSS eligibility for undocumented immigrants not currently enrolled. These changes aim to address a projected $12 billion state budget deficit, partly attributed to rising Medi-Cal costs and economic challenges. 

Concurrently, a federal budget bill passed by the House proposes nearly $700 billion in Medicaid cuts over the next decade. Such reductions could have a severe impact on California, where almost two-thirds of IHSS funding relies on federal Medicaid dollars. Governor Newsom has expressed concerns that the state cannot fully compensate for these federal funding losses. 

For individuals like Carol Crooks, a 77-year-old retired teacher in Oakland, IHSS provides essential daily assistance, enabling her to live independently. Her caregiver, Florence Owens, emphasizes the importance of the program: “They still have to understand the elders are our roots.” Similarly, Burt Conell, a 64-year-old paraplegic in San Francisco, fears that cuts to IHSS could lead to institutionalization, a prospect he finds deeply distressing. 

Advocates warn that reducing IHSS services may lead to higher long-term costs, as institutional care is significantly more expensive than in-home support. They urge lawmakers to consider the profound human and economic implications of these proposed cuts. 

As California’s legislature works to finalize the state budget by June 15, the future of IHSS remains uncertain, with thousands of vulnerable residents awaiting decisions that will impact their daily lives and independence.