Assembly approves $25 million emergency grants to keep distressed hospitals open

The California State Assembly on April 28 approved AB 108, an urgency budget measure that provides up to $25,000,000 in one‑time emergency grants to hospitals at risk of closing.

"This bill provides up to $25,000,000 in one‑time emergency grant funding for distressed hospitals that are on the verge of closing in the next month," Assemblymember Gabriel said on the floor, urging immediate transmittal to the governor. She said the funding is intended as bridge support while the Legislature addresses broader solutions in the June budget package.

Members from across the state described local examples of hospitals in peril and urged quick action. "When a rural hospital closes, people do not suddenly stop needing care," Assemblymember Jeff Gonzales said, noting longer drives and greater emergency risk for residents in his district. "This is life saving." Assemblymember Ransom called the bill an opportunity to "put our money where our mouth is," and Assemblymember Soria described past use of distressed‑hospital loans to reopen a community hospital in his district.

Assemblymember Gibson, representing an area served by Martin Luther King Community Hospital, said the measure could prevent closures that previously left communities without nearby care.

The Assembly passed AB 108 by recorded roll call (Ayes 59, No 0). The clerk noted the measure will be transmitted to the governor for immediate action under the urgency clause.

What the bill does: AB 108 authorizes up to $25 million in emergency grant funding to be distributed over the coming weeks to hospitals identified as distressed, creating short‑term liquidity while the Legislature considers longer‑term budget and structural responses.

Next steps: Because the bill carried an urgency clause, members requested immediate transmittal to the governor. Budget negotiations in June were cited by proponents as the forum for follow‑up policy and funding decisions.