California voters passed Proposition 35 this past November, a ballot initiative that promised doctors more money to see low-income patients.

Yet that promise appears likely to go unfilled after California Democratic Gov. Gavin Newsom's administration missed out on millions of federal dollars. 

Administration failed to meet federal deadline

According to Cal Matters, Proposition 35 directs funds from a special tax on health insurance plans towards doctors and health care facilities that participate in Medi-Cal, which is California's Medicaid program.

However, the state was required to first submit an application for approval from the federal government by March 31, something it failed to do.

California voters overwhelmingly passed a ballot measure that increases pay to doctors with Medi-Cal patients. The Newsom administration missed an early deadline to begin implementing it. https://t.co/mWUknZQJNI

📝 Kristen Hwang

— CalMatters (@CalMatters) April 1, 2025

As a result of this, health care providers will not receive the additional money which Proposition 35 is supposed to guarantee for the first quarter of this year.

What's more, the oversight also ensures that California will not receive its federal Medicaid matching fund for the time period in question.

State claims that money will be forthcoming

Cal Matters noted how the California Department of Health Care Services (DHCS) initially refused to answer questions concerning the missed deadlines.

Yet it subsequently provided the website with a statement that insisted that steps are being taken to ensure that the money is forthcoming.

"This process is underway, and DHCS is moving forward in accordance with the law. Proposition 35 revenues remain available and will be matched with federal funds to the maximum extent allowed by the payment methodologies ultimately adopted," the statement read.

Meanwhile, Health Care Services Director Michelle Baass provided state lawmakers last month with more information on why California’s federal application deadline could not be met.

One position on advisory committee remains vacant

Specifically, Bass indicated that there were unfilled positions on an advisory committee that Proposition 35 established to oversee spending.

Cal Matters pointed out that although enough appointments have been made for the committee to meet, one position remains vacant.

Gov. Newsom's office refused to answer questions regarding why the outstanding committee position has thus far remained unfilled.

Sen. Akilah Weber Pierson expressed frustration over the situation in a recent legislative hearing, stating, "It is extremely unfortunate that we will not be able to meet that first deadline and that we are just leaving funds on the table."