Nurses warn HR 1 could trigger hospital cuts in California and push lawmakers toward CalCare

Michelle Gutierrez Vaux, president of the California Nurses Association, told senators that HR 1’s proposed reductions in federal health funding present immediate risks to hospitals and community health services across California.

"Current projections show that the bill's $1,000,000,000,000 in cuts to Medi‑Cal and Covered California subsidies will result in up to 3,400,000 Californians losing access to medical care," Gutierrez Vaux said, summarizing the association’s projections. She testified that more than 400 nonprofit and community hospitals nationally — including 53 in California — could face service reductions or closure absent state intervention.

The nurses’ testimony connected coverage losses to employment impacts: hospital closures and service reductions would eliminate jobs and diminish access in rural and underserved communities. Gutierrez Vaux said nurses are advocating AB 1,900 (CalCare), which would create a state single‑payer system covering medical, dental, vision, reproductive and long‑term care and include undocumented residents.

"CalCare would save money and provide coverage at the point of service," she said, noting a Health Commission estimate that a single‑payer model could produce large long‑term savings compared with the current system.

The witness also raised workforce concerns: she said there is not an absolute RN shortage but rather many licensed nurses who are not working as RNs because of unsafe conditions; she urged investment in nursing training programs (e.g., Song‑Brown funding) and supports for graduate students.

Why it matters: Testimony framed HR 1 as an immediate threat to access and to employment in health care, and it tied legislative responses (CalCare, moratoria, loan and training supports) to both patient access and workforce stability. The committee heard the request for oversight and potential state measures but did not vote on legislation at the hearing.