Comments on the motion of the Los Angeles County Board of Supervisors regarding obtaining funds to protect critical county services from the cuts proposed in H.R.1.

February 9, 2026 Board of SupervisorsCounty of Los AngelesKenneth Hahn Hall of Administration500 West Temple Street, Room 383 RE: Motion Securing Funding to Preserve Critical County Services Cut by H.R.1 Dear Supervisors, I am submitting this letter to share UC Berkeley Labor Center research on the economic harmsassociated with H.R. 1 because it underscores the need for funding to backfill the federal Medi-Cal cuts. Without funding solutions like the motion the Board is considering on SecuringFunding to Preserve Critical County Services Cut by H.R. 1, not only will hundreds of thousands Health care makes up a large portion of Los Angeles County’s economy, with approximately 16percent of jobs being in health care.1Federal Medi-Cal spending is critical to the health caresystem in Los Angeles County given that four out of ten county residents are enrolled and $54 In a UC Berkeley Labor Center report published in April 2025, I estimated that up to 217,000jobs will be lost in California under the large federal Medicaid cuts that ultimately were enactedunder H.R. 1,3including up to 63,800 jobs in Los Angeles County. Approximately two-thirds ofthe projected job loss will be in health care and the remaining job loss will occur at businessesthat supply the health care industry, such as food, laundry, and building services, medicalsupply companies, employment agencies, and accounting firms, and at local businesses at Fewer Medi-Cal dollars circulating through the economy will also result in up to an estimated$1.7 billion in lost state and local tax revenue in California,4including approximately $500 million The exact number of lost jobs and lost state and local tax revenue will depend on factors suchas yet-to-be-finalized details in federal H.R. 1 regulations, adjustments to certain Medicaidfinancing policies under H.R. 1, and how the state and counties implement H.R. 1. Regardless The economic harm from the H.R. 1 Medi-Cal cuts will be felt throughout Los Angeles County.●Every Assembly district in Los Angeles County has at least one out of every sixresidents enrolled in Medi-Cal, although some parts of the county have much higherMedi-Cal enrollment (up to seven out of ten residents enrolled) than other parts.●The health care delivery system in Los Angeles County, nearly all of which relies on5 Certain health care providers will be more affected by the federal Medi-Cal cuts than othersgiven that they disproportionately rely on Medi-Cal, including safety net providers such as publichospitals and public and non-profit community clinics. For example, Medi-Cal makes up The proposed motion would not only improve access to health care for Los Angeles Countyresidents affected by H.R. 1, but it would also mitigate the harm to the economy and workforce. Sincerely, Laurel Lucia Deputy Executive Director of Programs 1https://laborcenter.berkeley.edu/california-health-care-employment-by-district-and-county-2023/2https://laborcenter.berkeley.edu/medi-cal-enrollment-by-district-and-county-2024/3https://laborcenter.berkeley.edu/wp-content/uploads/2025/04/California-Could-Lose-Up-to-217000-Jobs-if-Congress-Cuts-Medicaid.pdf4ibid.5https://laborcenter.berkeley.edu/medi-cal-enrollment-by-district-and-county-2024/6UC Berkeley Labor Center analysis of 2024 data from the California Department of Health Care Accessand Informationhttps://data.chhs.ca.gov/dataset/primary-care-clinic-annual-utilization-data,https://data.chhs.ca.gov/dataset/hospital-annual-financial-data-selected-data-pivot-tables7https://www.cms.gov/data-research/statistics-trends-and-reports/national-health-expenditure-data/state-