Liberal Gov. Gavin Newsom signed a $2.8 billion bailout Monday to close the state’s bloated deficit in California’s Medicaid program, which surpassed projections due to the program’s expansion last year to include illegal immigrants.
The move, confirmed by Newsom’s office to Fox News Digital Monday afternoon, comes after the Democratic governor asked lawmakers last month for a $3.4 billion loan from the state’s general fund to cover some $6.2 billion in outstanding costs for Medi-Cal, one of the state’s primary healthcare programs that takes both federal and state taxpayer dollars. The additional funds will help keep the program running through June for some 15 million Californians, including noncitizens.
But Republicans have been critical of the loan, arguing the current Medicaid program isn’t sustainable with illegal immigrants included in the coverage.
“Meanwhile, healthcare access is plummeting. Wait times are growing. Democrats have made their choice: legal residents come second,” California Republican state Senate Minority Leader Brian Jones wrote on X. “We must stop new enrollments of illegal immigrants and rein in this unsustainable program before it collapses entirely.”
According to state data, roughly 1.6 million illegal immigrants are currently enrolled in Medi-Cal, part of the program’s total 15 million enrollees. The state had initially projected the expansion would cost just under $6 billion for fiscal year 2024–2025. But just one year in, the costs have surged far past that estimate.
Newsom’s latest budget proposal now puts the cost of covering illegal immigrants at $8.4 billion for 2024–2025, and $7.4 billion the following year.
Meanwhile, state House Republicans are pushing back. A new GOP proposal aims to cut $880 billion, primarily from Medicaid, over the next decade to rein in what they say is reckless government spending.