Federal News
Rep. Costa Addresses Central Valley Healthcare Funding
March 11, 2026
Congressman Jim Costa convened healthcare providers and medical education leaders in California's Central Valley to discuss the significant challenges resulting from federal funding cuts under H.R.1, which reduced Medicaid and Affordable Care Act (ACA) support. These reductions have strained local hospitals and clinics, forcing difficult budgetary decisions and impacting the delivery of quality care. The meeting emphasized the critical need for federal support to sustain healthcare services and address physician shortages through enhanced medical education and training programs.
- Why this matters: Procurement professionals should anticipate potential shifts in healthcare service contracts and funding availability in the Central Valley region due to federal budget constraints.
- Healthcare providers and contractors may face increased competition for limited federal grants and contracts aimed at sustaining care delivery and workforce development.
- Organizations involved in medical education and training could find emerging opportunities as stakeholders prioritize addressing physician shortages.
- This situation underscores the importance of aligning procurement strategies with evolving federal funding landscapes and regional healthcare needs.
We appreciate Congressman Costa for bringing together health and medical education leaders to discuss the challenges facing the Central Valley health care landscape. Supporting medical education and training our own health care professionals is essential to addressing the physician shortage and meeting the health care needs of our communities.
— Jose M. Barral Sanchez, MD, PhD, Vice Dean at the UCSF Regional Campus in Fresno
Last year, Republicans made the largest cuts in history to Medicaid and the Affordable Care Act in the big ugly bill, leaving our Central Valley, and communities across the country, to make the hard decision of shifting priorities, making cuts, and adding strain to an already overloaded health care system.
— Rep. Jim Costa
Agencies
U.S. House of Representatives, California