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California Governor Proposes Pausing Expansion of Health Care to Low-Income Immigrants

  • California Governor Gavin Newsom announced in May 2025 a freeze on new Medi-Cal enrollment for undocumented adults starting in 2026 and a $100 monthly premium for existing enrollees beginning in 2027.
  • This proposal responds to an unexpected $16 billion drop in state tax revenues partly caused by federal tariff policies and higher-than-anticipated Medi-Cal costs including a $2.7 billion overrun from expanding coverage to undocumented immigrants in 2024.
  • About 1.6 million undocumented immigrants currently enroll in Medi-Cal, a program that now covers more than a third of California’s 39 million residents, and the premium aligns with subsidized healthcare marketplace costs.
  • Newsom’s office described the steps as “difficult but necessary” to maintain Medi-Cal’s fiscal stability and preserve its long-term viability amid a projected multibillion-dollar deficit.
  • The state Legislature, controlled by Democrats, must decide on this plan which could save $5.4 billion by 2028-29 but also signals a major policy shift amid ongoing budget strains and federal policy pressures.
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The Daily Caller broke the news in Washington, United States on Monday, May 12, 2025.
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