California Governor Gavin Newsom looks on as he visits the United States and Mexico border, in San Diego, California, U.S. December 5, 2024. REUTERS/Mike Blake
California Governor Proposes Cuts to Healthcare Program for Undocumented Migrants
California Governor Gavin Newsom announced a budget proposal on Wednesday aimed at reducing the scope of a free healthcare program for low-income undocumented migrants. The proposal comes in response to an anticipated $16 billion shortfall in state revenues, attributed to the economic impact of tariffs imposed by U.S. President Donald Trump.
Fiscal Concerns Prompt Program Reduction
Governor Newsom’s budget presentation highlighted the need for “corrective action” to maintain fiscal responsibility while safeguarding essential state investments. The proposed measures reflect the challenges California faces as a result of decreased revenue linked to federal tariff policies, particularly targeting states with immigrant-friendly policies like California.
Under the new proposal, undocumented adults currently enrolled in Medi-Cal, California’s Medicaid program, would be required to pay a $100 monthly premium to maintain healthcare coverage. Additionally, the governor plans to halt new adult enrollments starting January 1, 2026. However, coverage for children and limited-scope services, including emergency and pregnancy care, would remain unaffected.
Projected Savings and Policy Rationale
According to the governor’s office, these adjustments are projected to save the state approximately $5.4 billion over the period from 2028 to 2029. The program, which began on January 1, 2024, initially aimed to provide free healthcare to all low-income undocumented migrants.
Governor Newsom acknowledged that the decision to scale back the program was difficult but emphasized that it was necessary to preserve the state’s financial health. He affirmed his continued commitment to supporting immigrant communities, recognizing their vital role in California’s social and economic fabric.
Budget Outlook and Economic Pressures
Newsom is expected to forecast a state budget deficit for the upcoming fiscal year, exacerbated by higher-than-anticipated expenses related to the Medi-Cal program. As part of the effort to balance the budget, the governor’s office has stressed the importance of maintaining core public services while navigating the financial challenges posed by declining revenue.
The proposed changes underscore the broader conflict between federal policies and state-level initiatives aimed at providing support to undocumented residents. As California continues to adjust its budget priorities, the healthcare program’s modification reflects a strategic attempt to mitigate financial strain while maintaining essential coverage for vulnerable populations.
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