"The past year ushered in a new age of fiscal challenges for the county as President Donald Trump and a Republican-controlled Congress passed legislation last summer that triggered unprecedented cuts to the federal Medicaid program. Known as Medi-Cal in California, the program provides health insurance to low-income and disabled individuals. As the operators of the second-largest county health and hospital system in the state, Trump's landmark tax-and-spending bill has left a giant hole in Santa Clara County's growing budget for the coming years."
"2025 saw the county act swiftly to respond to the challenge, placing a general sales tax increase on the November ballot to backfill a portion of the lost revenues, which make up roughly a third of the budget. Voters ultimately approved the sales tax increase, which will take effect in April. But the projected $330 million it will raise annually will only plug part of the $1 billion annual gap, placing budget challenges - and health care - at the forefront of the county's priorities."
President Trump's 2025 tax-and-spending bill and a Republican-controlled Congress triggered unprecedented cuts to the federal Medicaid program, known as Medi-Cal in California. Medi-Cal provides health insurance to low-income and disabled individuals. Santa Clara County operates the state's second-largest county health and hospital system and faces a roughly $1 billion annual shortfall from the cuts. The county placed a general sales tax increase on the November ballot; voters approved the measure, which will raise an estimated $330 million annually beginning in April. That revenue will cover only part of the gap, forcing difficult budget choices to preserve baseline services and care for vulnerable residents.
Read at The Mercury News
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