- Gov. Gavin Newsom plans to halt new enrollments of undocumented adults (19+) into full-scope Medi-Cal starting January 2026, though 1.6 million already enrolled retain coverage. Children remain eligible.
- Undocumented adults and some legally present immigrants ineligible for federal Medicaid will face a $100/month premium starting in 2027 – lower than Covered California's average subsidized rate.
- The proposal eliminates long-term care and full dental coverage for undocumented adults (emergency dental stays) and shifts clinic reimbursements from upfront payments.
- The measures aim to save $5.4 billion from the freeze/premiums and $2.4 billion by 2028 to 2029, addressing a $12 billion deficit and $16 billion revenue drop partly blamed on President Donald Trump's tariffs.
- Newsom emphasized California's continued leadership in healthcare access but cited fiscal necessity, stating the state will "cap" rather than cut existing enrollees' benefits. Legislative approval is pending.
California Democratic Gov. Gavin Newsom has proposed freezing new enrollments and charging premiums to adult illegal migrants to save more than $5 billion amid a growing budget deficit.
The plan, announced on Wednesday, May 14, would stop the state from accepting new undocumented adult enrollees (ages 19 and older) into full-scope Medi-Cal starting in January 2026. The 1.6 million undocumented immigrants already enrolled would retain coverage and children would still be eligible to sign up. Undocumented residents would also continue receiving emergency and pregnancy-related care under federal law. However, those who do not enroll before January 2026 will lose access to comprehensive benefits like prescription drugs and routine doctor visits.
Additionally, Newsom proposed a $100 monthly premium for adults with "unsatisfactory immigration status," including some with legal status who are ineligible for federal Medicaid, starting in 2027. The governor's office noted this is lower than the average subsidized premium under Covered California.
Further cuts include eliminating long-term care and full dental coverage for undocumented adults, though emergency dental services would remain available. Community health clinics serving this population would also shift to a reimbursement model rather than receiving upfront state payments.
Combined, these measures are projected to save $5.4 billion from the enrollment freeze and premiums, plus an additional $2.4 billion by 2028 to 2029. Newsom cited a $12 billion deficit and a $16 billion drop in tax revenue, attributing part of the shortfall to President Donald Trump's tariffs.
"The state must take difficult but necessary steps to ensure fiscal stability and preserve the long-term viability of Medi-Cal for all Californians," Newsom's office said. He then reiterated it in a separate statement on Wednesday. (Related: Economic idiocy to bankrupt California: HALF of illegal immigrants qualify for Medicaid.)
"We're not cutting or rolling back those enrolled in our Medi-Cal system. We're just capping it," Newsom said. "No state has done more than the state of California. No state will continue to do more than the state of California."
The proposal must still be approved by the state legislature as part of the budget process.
Newsom blames Trump's tariffs
The proposed moves are being blamed on the broad tariffs imposed by Trump.
"Trump's pendulum swings on tariffs have slowed the economy and weakened state revenues by a staggering $16 billion," a fact sheet from the governor's office stated. It added that Newsom "refuses to turn his back on hardworking Californians, especially when it comes to their basic health care needs, but because of the $16 billion Trump Slump and higher-than-expected health care utilization, the state must take difficult but necessary steps to ensure fiscal stability and preserve the long-term viability of Medi-Cal for all Californians."
But the fact sheet failed to mention that Medi-Cal has been facing financial strain for a while now due to rising enrollment and escalating prescription drug costs. The state faces financial strain with a $6.2 billion Medi?Cal shortfall, including $2.7 billion in unexpected spending on unauthorized immigrants, totaling $8.5 billion annually from the general fund.
California has expanded Medi-Cal access to illegal immigrants since 2016, now covering low-income individuals regardless of citizenship status at $1.2 billion, part of a $310.8 billion budget.
Visit Migrants.news for more stories about illegals in California and the rest of the United States.
Watch this clip from "The Dana Show" as host Dana Loesch talks about New York's decision to slash spending as it allots more money to deal with the migrant crisis.
This video is from the NewsClips channel on Brighteon.com.
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