Healthcare and Public​ Sector Unions Face Existential Threat Amid Funding Cuts

SAN DIEGO, CA – August 30, 2025 ​- Unions representing healthcare workers and in-home care providers across California are bracing ⁤for significant disruption as ‍federal funding changes and‍ financial pressures lead ‍to service cuts and widespread layoffs.‌ The situation, fueled by the recent passage of ‍legislation dubbed “Big ‌Beautiful Bill,”⁢ poses a critical challenge‍ to the ⁣labor movement’s strength in the state and‍ threatens access to essential care for vulnerable​ populations.

California, despite having a relatively high ⁤rate of unionization, is increasingly⁣ reliant on public ⁢sector union membership. experts warn this reliance makes the labor movement especially vulnerable as‌ federal‌ policies shift ‍and⁣ state budgets tighten. The coming years will be pivotal, with unions fighting⁣ to maintain their influence and protect the livelihoods of their members. The changes‍ directly impact millions of⁢ Medicaid recipients⁤ and the workers ‍who provide their care, raising concerns about the ⁢future of essential services.

The impact is already being felt across major healthcare ‌systems. Sharp HealthCare⁤ announced ⁢layoff notices for 315⁣ workers, while UC San Diego Health and UCSF Health have revealed plans to ‌reduce ‍public ​health services and implement hundreds ‌of layoffs, citing substantial financial difficulties and uncertainty surrounding federal funding. These​ cuts come ‍as healthcare facilities grapple with ‍evolving financial landscapes and the potential loss of revenue streams.

SEIU Local 2015 ‍President Arnulfo De La Cruz expressed deep concern for in-home care providers, ‌many of whom ‍have ‍dedicated decades to caring for individuals. “Many in-home care providers who have cared for people for decades​ are⁤ now faced ⁣with the prospect that the people they care for ‌are going to lose their ⁤healthcare, and that they ⁤themselves may lose ⁣their healthcare and their jobs,” De La Cruz stated.‌ The potential ⁣loss of​ healthcare access for patients and job security⁢ for caregivers⁢ creates​ a precarious situation for both parties.

Cynthia Williams, a member of AFSCME ‍Local 3930 and a full-time ‌caregiver in Orange county, described the ⁤immediate consequences‌ of the⁤ funding changes. Williams provides care for her daughter, who is blind and ⁣has ​cerebral palsy, ‍and her sister, a veteran living with severe post-traumatic stress ⁢disorder.⁣ She reported preemptive ‌cuts to funding for her sister’s‍ transportation to weekly appointments ‌through the In-Home Supportive Services⁤ program, which is primarily funded by Medicaid, and a reduction in the hours she is​ paid to care for her daughter. “The last few⁢ months have been very stressful and very unpredictable,” Williams said.

labor analyst Logan noted the⁢ challenges facing unions, stating they are “ill-equipped to deal with this moment of ⁢crisis” and “fighting for its survival over the next four years.” The “Big Beautiful ⁢Bill,” with its tax spending⁣ cuts and increased funding for Immigration and Customs Enforcement, is identified as a key driver of the current instability. Critics, like Williams, condemn‌ the legislation, calling it “a nasty bill.⁣ There’s nothing beautiful about that bill.”

The situation underscores the interconnectedness‍ of healthcare funding,labor⁢ rights,and ⁣access to essential services.As federal policies continue to ⁣unfold, the future of California’s healthcare workforce and the well-being ​of‍ its most vulnerable residents remain uncertain.