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California Governor Gavin Newsom has proposed a freeze on enrollment for low-income immigrants without legal status in the state-funded Medi-Cal health care program starting in 2026. This change aims to address a projected $12 billion budget deficit and is expected to save approximately $5.4 billion by 2029. Current participants will keep their coverage, but changes will affect adults aged 19 and older who will need to pay a $100 monthly premium. This proposal has raised concerns about its impact on immigrant communities and the ongoing fiscal pressures facing the state.

California Governor Gavin Newsom has announced a proposal to freeze enrollment for low-income immigrants without legal status in the state-funded health care program, Medi-Cal, starting in 2026. This decision comes as California faces a projected $12 billion budget deficit, prompting significant changes to the state’s financial planning.

The proposed changes are expected to save California approximately $5.4 billion by the 2028-2029 fiscal year. The Medi-Cal program’s costs for undocumented immigrants have ballooned, currently estimated at $9.5 billion annually—$2 billion more than initial projections of $6.4 billion. Despite this enrollment freeze, current participants will retain their Medi-Cal coverage, and children will remain unaffected by these changes.

Beginning in 2027, adults aged 19 and older who are on Medi-Cal with what is termed “unsatisfactory immigration status” will be required to pay a $100 monthly premium. This adjustment comes as part of a larger budget proposal presented by Newsom, totaling nearly $332 billion, which aims to address the state’s mounting fiscal challenges.

The decision to impose an enrollment freeze highlights several key factors influencing California’s government budget. Rising health care costs and a significant surge in Medi-Cal enrollment have played critical roles. Furthermore, economic uncertainty stemming from federal tariff policies has contributed to the state’s fiscal difficulties. A reported $16 billion revenue loss directly relates to these federal policies initiated during President Donald Trump’s administration.

Governor Newsom has historically defended expansions in health coverage for low-income immigrants, arguing that such measures ultimately save costs in the long term. Nevertheless, the current budget revision and enrollment freeze reflect the challenges his administration faces amid speculation about a potential presidential run in 2028.

As Newsom’s budget proposal enters deliberation, lawmakers—including some from his own party—are expected to analyze the enrollment freeze critically. Concerns have been raised regarding the adverse effects this measure may impose on immigrant communities, emphasizing the potential social ramifications of budgetary adjustments that cut health services for vulnerable populations.

Critics of the proposal have pointed out the Governor’s tendency to attribute the budget shortfall to external factors, such as federal policies, rather than state spending decisions. Uncertainty is also amplified by the possibility that federal legislation might cut Medicaid funding for states providing health support to undocumented immigrants, which could impose additional fiscal pressures on California moving forward.

In light of these financial complexities, Governor Newsom has reaffirmed California’s commitment to supporting immigrants, stressing that no other state provides as comprehensive assistance. However, analysts caution that failure to effectively manage the state’s budget could threaten California’s fiscal health and its ability to provide support for marginalized populations.

As the proposal is reviewed, the outcome may hinge on legislative responses and broader discussions about the role of state versus federal policy in shaping health care access for underserved communities. This unfolding situation underscores the delicate balance between fiscal responsibility and maintaining essential health care services in a state that has historically prioritized inclusivity for all its residents.

California Proposes Enrollment Freeze for Low-Income Immigrants in Medi-Cal

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Author: HERE Huntington Beach