Medicaid entitlement for 7 - FY 2026 - T19

The Department of Health and Human Services Centers for Medicare and Medicaid Services awarded the California Department of Health Care Services $34.648 billion on October 1, 2025, under the Grants to States for Medicaid program (CFDA 93.778), a Block Grant assistance type.

The award funds Medicaid entitlements for California for fiscal year 2026, covering medical assistance payments on behalf of cash assistance recipients, children, pregnant women, the aged meeting income and resource requirements, and other categorically-eligible groups. The program also covers Medicare premiums, copayments, and deductibles for qualified Medicare beneficiaries meeting certain income thresholds. Performance occurs in California with a period of performance running through September 30, 2026.

States receive Medicaid funds quarterly based on their estimates of funds needed to provide medical assistance to eligible individuals. Recipients receive assistance as long as they remain qualified under state requirements. Individuals denied medical assistance may appeal within 60 days under state and federal due process procedures. The California Department of Health Care Services, the state's Medicaid administrator, operates under an HHS-approved Medicaid State Plan and must comply with all federal regulations governing aid and medical assistance.