California Governor Gavin Newsom is reportedly now set to announce significant changes to the state’s Medi-Cal program, which currently provides free health care to illegal immigrants.
Facing a budget deficit, Newsom’s revised budget proposal aims to freeze new enrollments for adult illegal immigrants starting January 1, 2026.
This shift comes after the program, which was expanded to cover all income-eligible undocumented residents, has reportedly exceeded initial financial expectations.
The expansion of Medi-Cal, which made California the first state to offer universal health care access to illegal immigrants, has resulted in costs that far outstripped the state’s projections.
Newsom’s administration is now grappling with the financial fallout, having previously allocated a $3.4 billion loan to cover unexpected expenses related to this initiative.
As part of his new plan, the governor also intends to impose a $100 monthly fee on those who remain enrolled in the program, aiming to save the state approximately $5.4 billion by 2029.
This proposal comes amid increasing scrutiny from the Trump administration, which has initiated investigations into California’s funding of programs for illegal immigrants.
Homeland Security Secretary Kristi Noem criticized the state’s policies, arguing they prioritize illegal residents over American citizens.
Newsom has attributed some of California’s economic struggles to federal tariffs imposed during the Trump administration, projecting a loss of $16 billion in revenue over the next two years.
As the governor seeks to balance fiscal responsibility with his progressive agenda, the proposed cuts to Medi-Cal highlight the complexities of managing state-funded benefits amid financial constraints.
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