Governor Newsom released the 2026-27 May Revision today, finalizing proposals that directly affect Orange County IHSS recipients and home care families. Photo: Pexels
California’s 2026-27 May Revision Is Out: What OC Home Care Families Need to Know Right Now
Governor Newsom released his 2026-27 May Revision budget today, and for Orange County families who rely on In-Home Supportive Services (IHSS) or private home care, the stakes are high. Several proposals in this budget — first outlined in January and now confirmed in the May Revision — will change how IHSS benefits are structured, who qualifies, and what the financial safety net looks like when Medi-Cal coverage is disrupted.
This isn’t abstract policy. For the approximately 42,000 OC residents who receive IHSS, and thousands more who supplement it with private home care, these budget decisions determine whether a caregiver shows up tomorrow. Here’s a clear-eyed breakdown of what’s in the budget and what OC families should do right now.
What the May Revision Means: The 3 Biggest IHSS Changes
1. IHSS Ends When Medi-Cal Ends — With No Bridge
Under current law, when an IHSS recipient loses Medi-Cal eligibility, they can temporarily continue receiving care through the IHSS-Residual program while they appeal or re-qualify. This bridge program gives families breathing room — usually 30 to 90 days — to resolve the Medi-Cal issue without losing care abruptly.
The 2026-27 budget eliminates this bridge. Starting in 2026-27, when Medi-Cal ends, IHSS ends at the same time. The state saves $68 million by cutting the residual program, but thousands of families across California — including in Orange County — could face sudden loss of care during a Medi-Cal redetermination error or processing delay.
2. Counties Will Absorb the Cost of More IHSS Hours — Starting 2027-28
Currently, if your loved one’s condition worsens and they become eligible for more IHSS hours, the state pays for those additional hours. The 2026-27 budget proposes to eliminate this state funding for increased hour awards, shifting that cost to individual counties beginning in 2027-28 ($233 million in annual state savings).
In practical terms, this creates a financial pressure on counties to limit new hour authorizations. Orange County administers IHSS through its Social Services Agency, and budget pressure could translate into tighter assessments and longer waits for hour increases. Families should document all care needs meticulously now — before the shift takes effect.
OC families should review Medi-Cal and IHSS documentation carefully as budget changes take effect in 2026-27. Photo: Pexels
3. IHSS Backup Provider System Already Being Eliminated
As previously reported, the IHSS Backup Provider System — which dispatched temporary caregivers when a primary IHSS provider was unavailable — is being eliminated. This change is already underway. If your regular IHSS caregiver calls out sick or takes leave, there is no longer a county-funded backup option.
This is especially critical for families where an IHSS recipient lives alone or has complex care needs. Private home care agencies, including At Home VA Staffing, now fill this role — but planning ahead before a crisis is essential. See our deeper coverage: IHSS Backup Provider System Eliminated.
What DIDN’T Change: IHSS Funding Is Actually Growing
Here’s the nuance most coverage misses: despite the targeted cuts above, total IHSS funding is increasing. The Governor’s 2026-27 budget proposes $12.5 billion in General Fund spending on IHSS — a 9.7% increase from the prior year — bringing total program funding to $33.4 billion. The growth reflects the rising cost of serving California’s aging population, not a reduction in the program overall.
The three cuts above represent structural policy changes, not a dismantling of IHSS. The program remains one of the largest in-home care programs in the United States. But the structural changes shift risk to families and counties in ways that matter enormously at the individual level.
The OC IHSS Contract Expiring June 30: What’s at Stake
Separate from the state budget is an urgent OC-specific deadline: the Memorandum of Understanding (MOU) between Orange County and the United Domestic Workers (UDW) expires June 30, 2026 — just 46 days away.
This MOU sets the terms of IHSS provider pay in OC, including the $1.25/hour Public Authority supplement that brings OC’s rate from $18.90 to $20.15 per hour. If a successor contract isn’t finalized by June 30, negotiations will continue under the current terms temporarily — but the outcome of the successor agreement will determine whether OC’s supplement increases, stays flat, or is restructured.
What to watch: UDW negotiations began “around February 1, 2026” per the current MOU. As of May 14, no tentative agreement has been publicly announced. If negotiations extend past June 30, the current $20.15/hr rate typically remains in effect during an impasse period. Families should monitor OC IHSS Public Authority announcements at ochealthinfo.com for updates.
Families who rely on IHSS should create backup plans now — private home care provides stability that state budget changes can’t disrupt. Photo: Pexels
Comparing IHSS and Private Home Care: Stability During Budget Uncertainty
| Factor | IHSS (Public Program) | Private Home Care (At Home VA Staffing) |
|---|---|---|
| Funding source | State / Federal / County | Private pay, LTC insurance, VA benefits, other |
| Affected by Medi-Cal status | Yes — Medi-Cal required; benefit ends with Medi-Cal | No — independent of Medi-Cal eligibility |
| Backup coverage | No (Backup Provider system eliminated) | Yes — agency provides replacement caregiver |
| Hour flexibility | Fixed authorized hours; increases require county approval | Flexible — adjust hours as needs change |
| Service scope | ADLs only; no skilled or companion care | ADLs, companionship, dementia care, overnight, respite |
| Subject to budget cuts | Yes — directly affected by state budget decisions | No — pricing set by agency contract |
| Can combine with | VA benefits, CalAIM, private pay | IHSS, VA benefits, LTC insurance, CalAIM |
What Orange County Families Should Do Right Now
Budget changes this significant reward families who prepare early. Here are the most important steps to take before the 2026-27 changes take effect:
- Verify your Medi-Cal contact information with CalOptima — Call 1-888-587-8088 or log into the My CalOptima portal. An outdated mailing address or email is the #1 cause of missed renewal notices and accidental Medi-Cal termination.
- Set a Medi-Cal renewal calendar reminder — Check your loved one’s renewal date and set a reminder 90 days before. Under the old system, a missed renewal bought time through IHSS-Residual. That cushion is gone.
- Request an IHSS reassessment if care needs have increased — Once the county cost-shift takes effect (2027-28), counties will face pressure to hold the line on new hour awards. Request a reassessment now if conditions have changed.
- Document all care needs in writing — Keep a daily log of what your loved one needs help with. This documentation is critical if you need to appeal an IHSS hour denial.
- Create a backup care plan — Since the IHSS Backup Provider System is gone, identify a private home care agency you can call when your regular provider is unavailable.
- Explore CalAIM Community Supports — Through CalOptima, OC residents may qualify for additional services (personal care, respite, meal delivery) that don’t count against IHSS hours. See our full guide: CalAIM Community Supports in OC.
- Veterans: check VA Aid & Attendance eligibility — VA benefits are entirely separate from Medi-Cal and IHSS. If your loved one served during wartime, they may qualify for up to $2,431/month that can fund private home care independent of any state budget. See: VA Aid & Attendance Guide for OC.
OC Family Budget-Readiness Checklist
Use this checklist to make sure your family is protected before the 2026-27 changes fully take effect.
Test Your Knowledge: 2026-27 California Budget and IHSS
Five questions to see how well you understand the changes and what they mean for your family.
1. Under the 2026-27 budget, what happens to IHSS when Medi-Cal coverage is terminated?
2. What is Orange County’s current IHSS total hourly rate (base plus Public Authority supplement)?
3. When does the OC IHSS contract (MOU) between Orange County and UDW expire?
4. Starting in which year does the 2026-27 budget proposal shift the cost of increased IHSS hours from the state to counties?
5. Despite the targeted cuts, how does the 2026-27 budget treat total IHSS General Fund spending overall?
Frequently Asked Questions
Don’t Let Budget Changes Leave Your Family Unprotected
At Home VA Staffing provides stable, reliable in-home care across Orange County — independent of Medi-Cal eligibility, IHSS Backup Provider status, or state budget decisions. Whether you need backup coverage, supplemental hours, dementia care, or overnight support, our caregivers are ready.
Call us today: (213) 326-7452
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