California Governor Gavin Newsom signed a state budget that includes $26 million in one-time funding designated to protect healthcare access for transgender youth. The allocated funds aim to support providers and ensure continued access to medically necessary care.

Newsom stated, "For decades, we've been told that government has to choose between balancing the books and investing in people. California proved that's a false choice." He added, "This budget reflects years of disciplined decisions that built historic reserves, paid down debt, strengthened our economy, and made transformational investments in education, healthcare, housing, infrastructure, and opportunity." Newsom concluded, "We're leaving California stronger than we found it — and leaving the next generation a state that's fiscally sound, economically dominant, and ready for whatever comes next."

The initial budget proposal from Newsom did not include the gender-affirming care fund. During subsequent budget negotiations, California lawmakers restored the gender-affirming care fund, and this funding remained in the final budget. LGBTQ+ advocacy groups had lobbied the California Assembly to include this funding. A coalition of advocacy groups suggested the dollar amount was needed to protect access to medically necessary health care for transgender, gender-expansive, and intersex residents of California. The budget also includes $30 million to cover funding gaps for providers after the Trump administration cut funding to California's Medi-Cal program and other revenue sources.

Tony Hoang, Executive Director of Equality California, commented on the situation in February. "Transgender health care remains legal and medically necessary in California, and our state has a responsibility to ensure those protections are real in practice," Hoang said. He further stated, "When communities face targeted federal attacks, California has stepped up before to protect access to care and uphold our values." Hoang also urged action from the state leadership, saying, "The Governor and Legislature should act to stabilize providers, protect patients, and ensure transgender youth and their families are not left without options."

Bamby Salcedo, president and CEO of The TransLatin@ Coalition, thanked the state's leadership. "We are grateful to Governor Newsom, policymakers, and advocates who took action to protect access to care for our community in California," Salcedo said. She added, "Our policy team will continue to track the implementation of these funds, and ensure that these funds continue to support the livelihood of our community across the state."

Why It Matters

This budget allocation addresses the financial stability of healthcare providers for transgender youth in California, following previous reductions in federal funding. The action by California lawmakers to reinstate this funding, initially absent from the governor's proposal, demonstrates a response to lobbying efforts from LGBTQ+ advocacy groups. The funds are intended to ensure that access to gender-affirming care continues to be available for transgender, gender-expansive, and intersex residents across the state, consistent with California's established legal framework for transgender healthcare.