The fight for the restoration of workforce funding for California skilled nursing providers has moved to the legislative front after Gov. Gavin Newsom (D) did not include such funds in his May Revision to the state budget, according to Corey Egel, director of public affairs for the California Association of Health Facilities (CAHF).

“Despite improved state revenue projections, Governor Newsom’s May Revision did not restore funding for the Workforce & Quality Incentive Program [WQIP]. As a result, skilled nursing facilities [SNFs] continue to face the loss of a critical workforce and quality funding source beginning in 2027,” he said.

“Undoubtedly, this will impact caregiver recruitment and retention, workforce development, and quality improvement efforts throughout California’s skilled nursing sector,” he added.

Statehouse Is in Play

In response, CAHF’s advocacy efforts have increasingly focused on the legislature as budget negotiations move forward.

“Through the Support Skilled Nursing Patients coalition, CAHF and its partners are continuing direct outreach to legislators, encouraging them to restore WQIP funding in the final budget and highlighting the importance of these investments for patients, caregivers, and the broader healthcare system,” Egel said.

The coalition's message remains that preserving WQIP is essential to supporting workforce stability, protecting access to skilled nursing care, and strengthening California's healthcare safety net.

Now that the governor has submitted his revised budget, the state legislature will convene their budget committees and negotiate additional changes. The legislature must pass a state budget by June 15, which would then go into effect on July 1.

In July 2025, the state budget cut WQIP, eliminating $300 million in state and federal funding for SNFs.

Nursing homes will receive WQIP payments in calendar year 2026 for care provided in calendar year 2025. Unless the WQIP is restored in the state budget, there will be no quality payments for SNFs in 2027, and possibly beyond, contingent upon the future of a new rate agreement with the state’s Medicaid agency.

Comments or questions? Contact Patrick Connole at pconnole@parkplacelive.com.