California Governor Gavin Newsom has spent $2.8 billion to bail out the state’s Medicaid program, Medi-Cal, which is overstretched by illegal immigrants. Last month, Newsom had requested another loan of $3.4 billion to cover the ailing program’s $6.2 billion deficit.
The new funding will only cover medical expenses for 15 million beneficiaries, including 1.6 million illegal immigrants, until June.
The number of illegal immigrants living in California is estimated to be about 3 million (2.6 million in 2022, according to DHS), suggesting that over half were receiving free healthcare.
Additionally, the cost of covering them has increased from the projected $6 billion to $8.4 billion for the fiscal year 2024–2025. However, the cost will fall slightly for the next fiscal year to $7.4. Trump’s deportations could also significantly reduce the cost.
Newsom had previously boasted that the deep blue state could provide healthcare for everyone regardless of their immigration status due to certain cost-cutting budget reconciliation measures and strategic investment.
“With these new investments, California will become the first state to achieve universal access to health care coverage,” he said.
“We’re investing California’s historic surplus to accomplish transformative changes we’ve long dreamed of — including this historic Medi-Cal expansion to ensure thousands of older undocumented Californians, many of whom have been serving on the front lines of the pandemic, can access critical health care services,” he added.
The program officially launched in January 2024, although the Golden State has been offering free healthcare for illegal immigrants up to 26 years of age since 2019. During its launch, Newsom lauded Medi-Cal as “a major milestone in the state’s progress toward universal health coverage.”
However, the free coverage for illegal immigrants comes at a cost, as many Californians are forced to compete with noncitizens for the same resources, leading to poor coverage.
Subsequently, Californian Republican lawmakers have questioned the program’s sustainability and criticized state Democrats for prioritizing illegal immigrants over legal residents.
“Just now, Senate Democrats rubber-stamped another $3 BILLION for Newsom’s free healthcare for illegal immigrants—on top of the $9.5 billion already spent,” tweeted California Republican state Senate Minority Leader Brian Jones.
“Meanwhile, healthcare access is plummeting. Wait times are growing. Democrats have made their choice: legal residents come second. We must stop new enrollments of illegal immigrants and rein in this unsustainable program before it collapses entirely.”
Others, such as Assemblyman Carl DeMaio (R-75), have called for Gov. Newsom to be investigated for potential Medicaid fraud.
“AUDIT NEWSOM! I’ve officially requested an investigation into Gavin Newsom’s Medi-Cal scandal. He’s bankrupted the program by giving $10B in free healthcare to illegal immigrants—and there’s strong evidence he illegally tried to get federal Medicaid reimbursements.”
California has a $68 billion budget deficit, largely caused by a shortfall in revenue as many taxpayers continue to flee the state and are replaced by illegal immigrants.
While the Golden State experienced net negative domestic migration (-239,575), its population increased slightly (+0.6), bolstered by international migration (+361,057), which includes illegal immigration.
