Dems reject Newsom's cuts to healthcare for undocumented immigrants

Yahoo

a day ago

Nearly a month after Governor Gavin Newsom proposed pausing the expansion of publicly funded healthcare for undocumented Californians, Democratic lawmakers are drawing a line in the sand.
This week, legislative leaders in both the Assembly and Senate advanced a new budget proposal that pushes back against some of the governor's most controversial cuts.
At the heart of the disagreement is Newsom's plan to pause the 2026 Medi-Cal expansion for low-income undocumented residents and require the 1.6 million undocumented Californians already enrolled to begin paying $100 monthly premiums. Citing the state's projected $12 billion deficit, Newsom has said these proposals are difficult but necessary.
'There are investments we're making we cannot continue to make,' Newsom said during his budget presentation last month.
But state Senate Budget Committee Chair Scott Wiener (D-San Francisco) assured the public this week, 'No one is going to be kicked off healthcare.' Wiener argued that undocumented Californians – who work, pay taxes, and have deep roots in their communities – deserve continued access to Medi-Cal coverage.
The Democrats' budget plan would delay the Medi-Cal pause until summer 2027 and reduce proposed premiums from $100 per month to $30.
Senator Akilah Weber-Pierson (D-San Diego) emphasized that maintaining coverage was a promise California made: 'We are not disenrolling anyone from Medi-Cal.'
Republicans, however, have raised concerns about cost. Senator Kelly Seyarto (R-Murrieta) warned that healthcare spending for undocumented individuals – estimated at $10 to $12 billion – is unsustainable.
'We have to figure out how to make that work better… this is the second runaway train,' Seyarto said, making a passing reference to the state's unfinished high-speed rail project.
To help close the budget gap, some Democrats are now discussing the possibility of raising taxes on large corporations. Senators Caroline Menjivar (D-San Fernando Valley) and Sasha Renée Pérez (D-Pasadena) said it's time to consider taxing the wealthiest businesses rather than cutting services for vulnerable populations.
'If corporations are getting huge tax breaks at the federal level, we need to start talking about taxing them at the state level,' Pérez said.
Still, Republicans insist spending reforms should come first. Senator Roger Niello (R-Fair Oaks) dismissed the idea of a tax hike, saying, 'That's not a viable solution. Clearly it is a spending problem.'
The legislature and governor have until June 15 to finalize and pass a budget.
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