California Governor Gavin Newsom is planning to make significant changes to the state’s health care program for illegal immigrants. In his revised budget proposal for 2025-2026, Newsom aims to freeze enrollment for new adult applicants in the Medi-Cal program, which provides free health care to low-income individuals, including undocumented immigrants. This freeze is set to take effect on January 1.
The governor’s decision comes as California faces a budget deficit, and he is looking to cut costs. The Medi-Cal program, which was expanded under his leadership to cover all income-eligible illegal immigrants, has ended up costing the state billions more than anticipated. Last year, California became the first state to offer free health insurance to undocumented immigrants, but the program’s rapid growth has led to unexpected financial pressures.
In addition to freezing new enrollments, Newsom’s proposal includes plans to charge existing adult beneficiaries $100 a month starting in 2027. His office estimates that these changes could save California about $5.4 billion through the 2028-2029 fiscal year.
The state has previously had to secure loans to cover the rising costs of the expanded health program, and this is the third consecutive year that Newsom and state lawmakers have had to make spending cuts. The financial strain has prompted discussions about the sustainability of such programs.
Moreover, the Trump administration has been scrutinizing state-funded benefits for illegal immigrants. Recently, the Department of Homeland Security announced an investigation into California’s cash assistance program for elderly undocumented immigrants, emphasizing a commitment to ensuring that federal benefits are not accessible to those in the country illegally.
Homeland Security Secretary Kristi Noem expressed strong disapproval of California’s approach, stating that it prioritizes illegal immigrants over citizens. She indicated that the administration is taking steps to address what it views as misuse of public benefits.
As these changes unfold, they highlight the ongoing debate over immigration policy and state responsibilities in providing health care. Newsom’s administration will have to balance the needs of vulnerable populations with the financial realities facing the state.