Thursday, 20 Mar 2025

Newsom asks for nearly another $3B for state health program overwhelmed by illegal immigrants

The Newsom administration is asking more money from California lawmakers to patch the state's bloated healthcare budget amid costs from illegal immigrants.


Newsom asks for nearly another $3B for state health program overwhelmed by illegal immigrants
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"With tough fiscal choices ahead, Governor Newsom, jointly with Pro Tem McGuire and Speaker Rivas, will evaluate proposals to rein in long-term spending - including in Medi-Cal - while working to protect the core health and social services Californians rely on," Newsom spokesperson Izzy Gardon told Fox News Digital in a statement Tuesday. 

Newsom's office pushed back on the skyrocketing healthcare costs being solely due to illegal immigrants on the programs. Instead, they attribute the increases to higher overall enrollment for all populations and pharmaceutical costs. The administration also pointed to other states, Pennsylvania and Indiana, which are also facing budget shortfalls in their Medicaid programs.

However, Republicans in the legislature, who have been hounding against increased spending in the state for years, blame the state's policies as the culprit for the under-projection.

"Even Jerry Brown refused to expand Medi-Cal to all illegal immigrants because he knew it was fiscally irresponsible and unsustainable," Jones wrote. "Now under Newsom, legal residents are paying the price both financially and in reduced access to healthcare. The public deserves answers: Why are the costs so much higher than what Newsom promised? What is Newsom's plan to fix the financial disaster he created?"

Newsom's latest budget proposal projects that California will spend $8.4 billion to cover illegal immigrants in Medi-Cal for 2024-2025, followed by $7.4 billion in 2025-2026. During a budget hearing with legislators, Michelle Bass, director of the Department of Health Care Services - which manages Medi-Cal - the state significantly underestimated the number of illegal immigrant enrollees last year.

Bass said during the hearing the department had just one month of data on the new "unprecedented" policies before it had to make projections for the budget signed by Newsom, "and all happened at once."

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