The Office of the Governor of the State of California

10/02/2025 | Press release | Distributed by Public on 10/02/2025 13:33

Health care costs for many Californians will nearly double in three months because of Donald Trump, Governor Newsom warns

What you need to know: Because of President Trump's "Big Beautiful Bill," Californians will see the average monthly share of their premiums increase from 73 - 388 percent starting in January. Democrats in Congress have agreed to fund the government to reverse these cost increases, but Republicans continue to block the deal.

SACRAMENTO - Without immediate action from Congress to extend key funding as part of a government shutdown deal, Californians enrolled in the state's health care marketplace, Covered California, will see their monthly health insurance bills nearly double beginning in January - and in some cases more than triple, Governor Newsom warned today.

As a result of President Donald Trump's recently passed HR 1 (the "Big Beautiful Bill"), Congress made devastating cuts to health care, and failed to extend tax credits for all Affordable Care Act (ACA) enrollees to fund tax breaks largely benefiting billionaires. If Congress does not restore these tax credits, consumers with coverage through Covered California will see premiums jump by an average of 97 percent, nearly doubling overnight. Democrats in Congress have agreed to fund the government with these tax credits included, but Republicans continue to block the deal.

"California has led the nation in expanding access to affordable health care, but Donald Trump is ripping it away. His Big Beautiful Betrayal gutted critical health care programs, and unless Republicans agree, nearly 2 million Californians will be hit with unaffordable bill hikes - and hundreds of thousands could lose coverage altogether."

Governor Gavin Newsom

"Increasing out-of-pocket health care costs puts coverage out of reach for millions of Californians and others across the nation," said California Health and Human Services Secretary Kim Johnson. "This threatens affordability and will force many individuals and families to lose their health coverage altogether. Without federal action, the health of our communities is at risk."

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