Gov. Newsom proposes immigrant healthcare cuts to close $12B deficit
SAN DIEGO (FOX 5/KUSI) — Governor Gavin Newsom is proposing cuts to healthcare for undocumented immigrants to address the state's $12 billion budget deficit next fiscal year.
The move marks a significant shift for Newsom, who championed the first-in-the nation law expanding Medi-Cal to include more low-income immigrants last year.
He detailed his nearly $322 billion spending plan at a press conference Wednesday morning.
'We're not cutting or rolling back those that are enrolled in our Medi-Cal system. We're just capping it particularly for those without documentation,' Newsom said.
His revised 2025-2026 budget includes significant changes to the state-funded insurance program for low-income people. Newsom wants to freeze enrollment for adults 19 and older who are in the country illegally starting next year.
The 1.6 million immigrants already signed up would keep their plans, according to CalMatters.
'First immediate reaction is I told you so,' said State Senate Minority Leader Brian Jones, a Republican from San Diego.
Jones said he and other Republicans previously warned Newsom about the Medi-Cal expansion and slammed his approach.
'There's still over $11 billion of expenditures for illegal immigrant healthcare, this year in this budget. There's a $12 billion deficit, so they are about even,' Jones said.
Starting in 2027, Newsom is also proposing charging a $100 monthly premium to adult Medi-Cal enrollees with 'unsatisfactory immigration status.'
'We believe that people should have some skin in the game as it relates to contributions,' Newsom said.
The governor's office estimates the changes would save $5.4 billion by fiscal year 2028-2029. However, some immigrant rights advocates are pushing back.
'If someone doesn't have regular healthcare then they might forgo treatment that they would otherwise need and use the healthcare system only during emergency situations, which could be much costlier for the general public,' said Pedro Rios, director of the nonprofit American Friends Service Committee.
There's also the possibility the proposed changes may prompt legal scrutiny.
'This kind of comes back to 'Do you have a right to healthcare?' 'Can the governor do that?' Technically yes, he can roll it back. Will he get hit by a lawsuit? Most-likely yes,' said Immigration law attorney Saman Nasseri.
Still others believe the state government needs to rethink how to address their budgetary shortfalls.
'Looking at cutting basic human rights and basic healthcare benefits just is a really cheap way of scapegoating some of the most vulnerable members of our communities,' said Pedro Rios, director of the nonprofit American Friends Service Committee.
Meanwhile, budget negotiations are ongoing as the Legislature faces a June 15 deadline to pass a balanced budget for the fiscal year beginning July 1.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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