| 2026 California Legislative Session Update
The 2026 California legislative session is moving into a key decision-making period before the legislature adjourns at the end of August. By mid-May, bills generally had to clear their first major committee deadlines. The next key deadline is May 29, when most bills must pass the house where they were introduced to keep moving this year. The Legislature has until August 31 to pass bills, and the Governor has until September 30 to sign or veto them. HCA Healthcare is providing this session update to keep colleagues informed on key legislative developments that may affect care and access in the communities we serve. Budget California’s budget remains a central topic this session. Lawmakers are weighing spending priorities amid ongoing fiscal pressure. Governor Newsom’s May Revision proposes updates to the state’s revenue and spending projections leading into final budget negotiations, including a $1.8 billion reduction in General Fund spending and frames the revised budget as balanced for the current and next budget years, with no projected structural deficit through July 2028. The proposal also includes:
Medi-Cal remains one of the most important healthcare budget issues. Budget decisions affecting Medi-Cal financing, eligibility, and provider payments could influence hospital funding, workforce capacity, patient access, and service stability statewide. The Legislature must pass a final budget by June 15. Artificial Intelligence (AI) in Healthcare AB 1979 would apply California’s medical privacy rules to healthcare chatbots, deeming certain businesses that offer them to be providers under the Confidentiality of Medical Information Act. It would also require licensed clinicians to exercise independent professional judgment when using clinical decision support systems and ensure that clinical decisions are not based solely on the output. The bill also clarifies that AI may still be used for documentation or routine communications when clinical judgment is not involved. The bill passed the Assembly on May 21 and is now in the Senate, pending committee assignment. AB 2575 would create new transparency requirements for healthcare entities that use clinical decision support systems in patient care. Health facilities, clinics, physician offices, and group practices would have to provide written notice to licensed health care professionals and others who use or view outputs from these systems. The notice would include information about the system’s developer, intended use, and what information it relies on. The bill would also require notice that direct patient care workers may override the system’s output when needed to meet the applicable standard of care or comply with law. The bill was ordered to third reading on May 18 and remains pending on the Assembly floor. Distressed Hospital Loan Program AB 1923 would expand the Distressed Hospital Loan Program, which provides interest-free loans to help financially distressed hospitals avoid closure or restore services. The bill would broaden eligibility to more hospitals by allowing hospitals to qualify regardless of ownership type or system affiliation if financial distress criteria is met. It would also allocate $300 million from the General Fund to support additional rounds of funding. The bill has advanced out of Assembly Appropriations and is pending on the Assembly floor. Health Mandates Review Program AB 2353 would require the Department of Health Care Access and Information to seek a partnership with the University of California to develop a plan to establish the Center for Health Provider Policy Impact by January 1, 2028. The center would evaluate the anticipated and actual impacts of state and federal policies on hospitals, including effects on health care delivery, access, workforce, system sustainability, public health outcomes, regional disparities, and hospital financial stability. The bill also would allow the Legislature to request reviews of specific legislation or issues. The bill has advanced out of Assembly Appropriations and is now pending on the Assembly floor. Single-Payer Health Care Coverage AB 1900 would have created the California Guaranteed Health Care for All program, known as CalCare, to provide comprehensive universal single-payer health care coverage for California residents. It would have established a CalCare Board, created the CalCare Trust Fund, and set rules for provider participation and payment. The bill has not advanced beyond introduction and will not be moving forward this session. |
2026 California Legislative Session Update
Posted in California, News and Updates
