UC Davis Health's New Tower to Reshape Sacramento's Medical Care

The $66 million budget gap could also impact city services and priorities

Published on Feb. 18, 2026

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UC Davis Health's massive new 14-story California Tower has officially topped out at its Sacramento medical campus, marking a key step toward adding hundreds of hospital beds and expanded specialty care. Meanwhile, Sacramento officials are warning of a projected $66.2 million gap in the 2026–27 city budget, driven by homelessness spending, labor agreements, inflation, and rising costs. In other news, Sacramento police are investigating a string of seven business break-ins across the city over roughly 24 hours, leaving several neighborhood restaurants and cafes with thousands in damage and losses.

Why it matters

The new UC Davis Health tower will significantly grow the campus footprint and is expected to open in 2030, boosting regional health capacity. The city's budget gap could lead to difficult decisions about protecting core services like parks and public safety while seeking structural fixes to address rising costs. The recent business burglaries highlight ongoing challenges around public safety and the economic impacts on local small businesses.

The details

The 14-story California Tower is part of UC Davis Health's Vision 2030 plan to expand its Sacramento campus. The new facility will add hundreds of hospital beds and expanded specialty care services. Meanwhile, Sacramento officials say the projected $66.2 million budget gap for 2026–27 is driven by increased homelessness spending, labor agreements, inflation, and rising pension and insurance costs. City leaders say they'll work to protect core services while seeking structural fixes. In a separate incident, Sacramento police are investigating seven business break-ins across several neighborhoods, with owners reporting thousands in damage and losses.

  • The California Tower has officially topped out at the UC Davis Health campus in Sacramento.
  • The new tower is expected to open to patients in 2030.
  • Sacramento officials are warning of a projected $66.2 million gap in the 2026–27 city budget.
  • The seven business break-ins occurred over roughly 24 hours on Monday.

The players

UC Davis Health

A major academic health system and medical center in Sacramento, California.

Sacramento City Government

The local government of Sacramento, the capital city of California.

Sacramento Police Department

The law enforcement agency responsible for policing the city of Sacramento.

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What they’re saying

“We must protect core services like parks and public safety while seeking structural fixes to address the budget gap.”

— Sacramento City Officials (nsarrow.com)

“The organized, masked burglars targeted cash, prompting at least one spot, Sac City Brew, to go cashless while police seek tips from residents and review surveillance footage.”

— Sacramento Business Owners (kcra.com)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The expansion of UC Davis Health's facilities, the city's budget challenges, and the recent business burglaries all highlight the complex issues Sacramento is grappling with, from healthcare access and public safety to the economic pressures facing local small businesses. As the city navigates these challenges, community engagement and collaborative solutions will be key to shaping the future of Sacramento's medical care and overall livability.