Newsom calls for walking back free healthcare for eligible undocumented immigrants

Published: Wednesday, May 14, 2025 at 1:00 pm

Newsom Backtracks on Free Healthcare for Undocumented Immigrants Amidst Budget Woes

California Governor Gavin Newsom is proposing significant changes to the state's healthcare coverage for undocumented immigrants, a move driven by escalating costs and a looming budget deficit. The revised 2025-26 budget plan, unveiled Wednesday, aims to address the financial strain by requiring undocumented adults to pay a $100 monthly premium for Medi-Cal coverage and halting new adult applications starting January 1st.

This shift marks a reversal of Newsom's previous policy, which aimed to provide free healthcare to all low-income undocumented immigrants. The governor's office projects these changes will save $5.4 billion through 2028-29. The state is facing a challenging economic climate, including higher-than-expected Medi-Cal expenses and potential cuts to federal Medicaid funding. The state already approved a $2.8 billion appropriation and took out a $3.4 billion loan to cover extra Medi-Cal expenses through June.

The decision comes after California became the first state to offer healthcare to all income-eligible immigrants, a multi-year expansion that concluded in 2024. This expansion, championed by Newsom and the Democratic-led legislature, built upon a 2015 bill signed by former Governor Jerry Brown that provided Medi-Cal coverage to all children under 19.

The budget shortfall is compounded by existing financial remedies, including $16.1 billion in cuts and a $7.1 billion withdrawal from the state's rainy day fund. The state is also projecting a $16 billion revenue loss due to President Trump's tariff policies.

BNN's Perspective: While the financial realities facing California are undeniable, this move raises concerns about access to healthcare for a vulnerable population. Finding a balance between fiscal responsibility and upholding the state's commitment to healthcare access will be a key challenge for the Newsom administration. The long-term implications of this policy shift warrant careful consideration, especially regarding the health and well-being of those affected.

Keywords: Gavin Newsom, California budget, Medi-Cal, undocumented immigrants, healthcare, healthcare coverage, budget deficit, premiums, healthcare costs, Medicaid, Jerry Brown, Trump tariffs, California economy, budget cuts, healthcare access, low-income immigrants, state budget.

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