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AB 4

Budget Act of 2024.

2025-2026, Special Session 1 Introduced by Jesse Gabriel and 1 co-sponsor

Expands Covered California to enroll those ineligible due to immigration status, no sooner than 2027 with appropriation; requires parity with other enrollees and outreach.

Chaptered by Secretary of State - Chapter 1, Statutes of 2025.
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Bill Summary · AB 4

AB 4 — Budget Act of 2024 (Chapter 1, Statutes of 2025)

Status: Chaptered by Secretary of State (Chapter 1, Statutes of 2025).
Introduced: December 2, 2024. Approved by Governor and chaptered January 23–24, 2025.

Purpose / Overview

AB 4 (as enacted) combines (1) amendments to the Budget Act of 2024 (budget control/appropriation provisions) and (2) statutory changes directing the California Health Benefit Exchange (Covered California) to administer a program to allow people currently barred from Exchange coverage because of immigration status to enroll in health insurance in California in a manner substantially similar to other enrollees, subject to appropriation and federal law.

Key provisions — Covered California expansion

  • Repeals prior Government Code section 100522 (which had required the Exchange to apply for a federal Section 1332 waiver to allow coverage for persons otherwise ineligible due to immigration status).
  • Adds a new Government Code section 100522 that:
    • Directs the Exchange, no sooner than January 1, 2027 and only upon legislative appropriation, to administer a program permitting persons otherwise ineligible due to immigration status to enroll in health insurance “as substantially similar to other Californians as feasible,” consistent with federal law and guidance, and to apply for subsidies if available.
    • Specifies that “substantially similar” covers eligibility determination, benefit design, contracting, appeals, and other relevant provisions of state/federal law.
    • Requires the Exchange to undertake outreach, marketing, and other efforts to ensure enrollment; enrollment is to begin October 1, 2028 (per the bill digest).
    • Requires the Exchange to adopt an annual program design by board resolution, provide stakeholder (including legislative and public) consultation opportunities, and report progress to the Department of Finance and Legislature as specified.
    • Requires issuers that offer qualified health plans (QHPs) on the Exchange individual market to concurrently offer plans to persons covered under this new section (i.e., parity in product availability).
    • Establishes a “Covered California for All Fund” within the General Fund to be administered by the Exchange; user fees, appropriations, and other funds deposited there are to be used (upon appropriation) for program administration.

Key provisions — Budget Act / Appropriations

  • Amends Section 39.00 to identify related appropriation bills.
  • Adds Section 90.00 to the Budget Act of 2024 authorizing the Director of Finance to augment appropriations (from any available source, including the General Fund) up to $1,500,000,000 total for uses consistent with the Disaster Response–Emergency Operations Account related to wildfire states of emergency declared by the Governor in January 2025. Uses include emergency protective measures, evacuations, sheltering, hazardous waste removal, post-fire hazard remediation, air/water testing, traffic control, and other recovery actions.
    • The first $1,000,000,000 of this augmentation authority may be implemented immediately upon notification to the Joint Legislative Budget Committee chair; increases beyond that are subject to a minimum three-day notification (unless waived).
    • Funds remain available until the relevant emergency declarations are terminated (or an alternate date set by the Director of Finance).
  • Confirms this act is a Budget Bill and takes effect immediately.

Who is affected

  • Primary policy impact: Californians currently unable to enroll in Exchange coverage because of immigration status (including undocumented persons), Covered California (administration and contracting), individual-market insurers (must offer concurrent plans), and state budget/finance authorities (appropriations and Fund administration).
  • Fiscal/operational impact: potential budgetary costs for coverage subsidies (if available) and administrative costs (funded through the newly created fund and legislative appropriation). Separate budget authority provides up to $1.5 billion for wildfire response in January 2025–declared emergency areas.

Timeline / Procedural notes

  • Program may be administered no sooner than January 1, 2027 and only upon appropriation by the Legislature.
  • Outreach and enrollment processes are required; enrollment start date indicated as October 1, 2028 (per legislative digest).
  • AB 4 was passed by the Legislature, enrolled, approved by Governor, and chaptered as Chapter 1, Statutes of 2025 — and the budget-related provisions take effect immediately as a Budget Bill.

Compiled from official sources — confirm details with the bill’s official record.

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