Small business speaks: Calif. entrepreneurs visited Sacramento to discuss healthcare and other policymaker concerns with lawmakers

With healthcare and other essential costs skyrocketing, California lawmakers are increasingly focused on addressing cost of living concerns. With this important work already underway in Sacramento, Small Business Majority in May arranged for a group of small business owners to travel to the capital to help ensure that small business concerns are taken into account as new laws are being made. Addressing affordability issues for small businesses has become essential as the state faces major fiscal pressure resulting from the passage of The One Big Beautiful Bill Act, federal legislation enacted last year that made significant cuts to federal programs like Medicaid, as well as cutbacks resulting from slow state revenues and an uncertain 2026–2027 budget outlook. 

In their meetings with lawmakers, the group of small business owners stressed the need for policymakers to support the California Office of Healthcare Affordability’s cost containment efforts as lower Medicaid reimbursement rates will reduce clinic capacity and increase wait times. They also addressed the need to respond to billions of dollars in projected federal funding losses that could impact counties, workers and small businesses statewide. If policymakers fail to act – the entrepreneurs warned – small businesses will bear disproportionate cost increases due to rising health insurance premiums as unpaid provider costs shift into the commercial market. They will have greater difficulty offering or maintaining employee health benefits and more employees will lose or cycle through coverage.

“I provide high quality healthcare and benefits to my employees but it’s very expensive. It’s straining my bottom line as costs have increased tremendously over the past year,” said CP Phan, owner of a small business in Rancho Cucamonga.

Additionally, the entrepreneurs shared their support for the COMPETE Act (AB 1776). In a modern economy, a single company can have enough power to illegally cripple competition. The COMPETE Act closes this loophole by modernizing California’s antitrust laws by making it easier for small business owners to bring and win antitrust claims against a single company, whether from dominant sellers that control a market for dominant buyers that dictate terms to supplier businesses. This would allow small business owners, entrepreneurs and suppliers to compete on their merits, not on terms dictated by powerful gatekeepers.

“California is the fourth largest economy in the world yet relies on antitrust laws that were created in 1907 that do not reflect the realities of today’s economy or technology,” said Small Business Majority Northern California Outreach Manager Suli Kenyatta. “Small businesses are the backbone of California’s economy, but they cannot compete on a level playing field without modern protections that reflect today’s market realities.”

Throughout the fly-in, the small business owners emphasized the challenges of running a business in 2026. The skyrocketing cost of health insurance and other business expenses, in addition to unfair competition with larger corporations, makes it harder for them to thrive. As California policymakers continue their budget negotiations, Small Business Majority will keep uplifting the perspectives of the small business community.

“We were able to move forward with a series of concepts and policies that we can use to bridge the gap between where we are and where we can be. I thank all the members and their staff for having these conversations with us,” said JB Herrera, owner of a small business in Carmichael.