In an effort to close a budget deficit, California Democrats have agreed to delay a minimum wage increase for healthcare workers.

The new minimum wage for healthcare workers, set to be $25 per hour, was expected to take effect in phases over the course of the next 10 years. Approximately 426,000 healthcare workers were expected to see their first pay bumps in July, but legislators concluded that they would not be able to balance the state’s budget with the wage increase, which would cost about $2 billion.

The minimum wage set in California for most workers is $16 per hour. While the state successfully passed a minimum wage increase for food service workers to $20 per hour, the problem with setting a minimum wage for healthcare workers is that it will come out of the state’s budget. The state employs some healthcare workers and also pays for health benefits through its Medicaid program.

There is a chance healthcare workers may see a rise in the minimum wage by Oct. 15, but only if state revenues between July and September are at least 3% higher than what state officials have estimated. If not, healthcare workers will not see wage increases until January 2025. By delaying this wage increase to the start of next year, it will cost the state’s general fund about $600 million.

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“Of course, workers are disappointed that not every low-wage worker in healthcare will receive raises this summer as the law initially scheduled,” Dave Regan, president of Service Employees International Union-United Healthcare Workers West, told the Associated Press. “But we also recognize and appreciate that legislative leaders and the governor listened to us as we mobilized and spoke out this year to insist that, despite a historic budget deficit, California’s patient care and healthcare workforce crisis must be addressed.”

On Saturday, Gov. Gavin Newsom (D-CA) and state legislators finally reached a deal to close a $47 billion budget deficit.