California bill swaps statewide hospital loan plan for Fresno road tax measure

Assemblymember Esmeralda Soria rewrote AB 1923, eliminating the Distressed Hospital Loan Program that offered loan forgiveness to financially troubled hospitals throughout California. In its place, she introduced a ballot initiative to continue a half-cent sales tax in Fresno County, directing the revenue to road and sidewalk repairs. The original bill was intended to aid hospitals statewide, but the new focus is limited to Fresno’s transportation infrastructure.

Kaweah Health chief executive Marc Mertz criticized the shift, saying it undermines support for hospitals that already rely on state grants and face high operating costs under California’s Medicaid rates. Soria defended the decision, citing $130 million in hospital grants already approved this year and emphasizing the urgency of local infrastructure needs. The change will appear on the November ballot, potentially affecting both healthcare financing and county road projects.