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| California governor seeks to exclude undocumented from Medicaid program | |
| (about 7 hours later) | |
| Measure targeting immigrants is to help close added $12bn deficit that Newsom blamed on ‘Trump slump’ | |
| The California governor, Gavin Newsom, wants his state to stop enrolling more low-income immigrants without legal status in a state-funded healthcare program starting in 2026 and begin charging a monthly premium the following year to those already enrolled. | The California governor, Gavin Newsom, wants his state to stop enrolling more low-income immigrants without legal status in a state-funded healthcare program starting in 2026 and begin charging a monthly premium the following year to those already enrolled. |
| It is one of several measures proposed by Newsom on Wednesday to help close an additional $12bn deficit, a budget shortcoming the Democratic governor squarely placed on the shoulders of the “Trump slump”. | |
| The decision to cut in the state insurance program is driven by a higher-than-expected price tag on the program and economic uncertainty from federal tariff policies, Newsom said in a Wednesday announcement. The Democratic governor’s move highlights his struggle to protect his liberal policy priorities amid budget challenges in his final years on the job. | |
| California was among one of the first states to extend free healthcare benefits to all poor adults regardless of their immigration status last year, an ambitious plan touted by Newsom to help the nation’s most populous state inch closer to a goal of universal healthcare. But the cost for such expansion ran $2.7bn more than the administration had anticipated. | California was among one of the first states to extend free healthcare benefits to all poor adults regardless of their immigration status last year, an ambitious plan touted by Newsom to help the nation’s most populous state inch closer to a goal of universal healthcare. But the cost for such expansion ran $2.7bn more than the administration had anticipated. |
| Newsom in March suggested to reporters he was not considering rolling back health benefits for low-income people living in the country illegally as the state was grappling with a $6.2bn Medicaid shortfall. He also repeatedly defended the expansion, saying it saves the state money in the long run. The program is state-funded and does not use federal dollars. | Newsom in March suggested to reporters he was not considering rolling back health benefits for low-income people living in the country illegally as the state was grappling with a $6.2bn Medicaid shortfall. He also repeatedly defended the expansion, saying it saves the state money in the long run. The program is state-funded and does not use federal dollars. |
| Under Newsom’s plan, low-income adults without legal status will no longer be eligible to apply for Medi-Cal, the state’s Medicaid program, starting in 2026. Those who are already enrolled will not be kicked off their plans because of the enrollment freeze, and the changes will not affect children. Newsom’s office did not say how long the freeze would last. | |
| Starting in 2027, adults with “unsatisfactory immigration status” on Medi-Cal, including those without legal status and those who have legal status but are not eligible for federally funded Medicaid, will also have to pay a $100 monthly premium. The governor’s office said that was in line with the average cost paid by those who are on subsidized heath plans through California’s own marketplace. There is no premium for most people currently on Medi-Cal. | |
| In total, Newsom’s office estimated the changes will save the state $5.4bn by 2028-2029. | In total, Newsom’s office estimated the changes will save the state $5.4bn by 2028-2029. |
| In the presentation of his $321.9bn budget, Newsom on Wednesday pointed at the policies of the Trump administration, heavily emphasizing Trump’s tariffs. | |
| Newsom stated that California was “under assault”, and estimated that Trump’s policies would cut revenue to the state by $16bn in the coming year. The governor notably sued the presidential administration over tariffs in April. The Golden state exported $67bn worth of goods to China, Mexico and Canada in 2024, with China as its largest trading partner. | |
| The new deficit comes in addition to more than $23bn in remedies previously agreed to, the Los Angeles Times reports. | |
| California’s public universities, the University of California and California State systems, will receive a 3% budget cut, far short of the originally anticipated 8% cut. Newsom’s proposal to increase the state’s film and television subsidy by $420m in the aftermath of the Los Angeles wildfires survived the cuts as well. | |
| The governor also proposed the fast-tracking of the $20bn, 45-mile long Delta Conveyance project. Newsom’s proposal would shorten the allowable window for bringing legal challenges against the project. | |
| Other cuts to the budget included long-term care, environmental protections, K-12 education and overtime for in-home care workers. | |
| Newsom now opens budget negotiations with lawmakers and it is unclear how Democrats who control the legislature will react to his plan to freeze new Medi-Cal enrollment for some immigrants. A final budget proposal must be signed by June. California’s budget is by far the largest among states. | Newsom now opens budget negotiations with lawmakers and it is unclear how Democrats who control the legislature will react to his plan to freeze new Medi-Cal enrollment for some immigrants. A final budget proposal must be signed by June. California’s budget is by far the largest among states. |