Governor Gavin Newsom is under pressure from the most unlikely of folks: his Democratic base. As California attempts to get a handle on an over-bloated budget, one of the items on the chopping block is what elevated the state into a bastion of safe spaces for illegal immigrants – Medi-Cal. Who wouldn't want sanctuary living and free health care? Unfortunately for the taxpayers, however, it’s just too expensive.
Since 2023, illegal immigrants have had what some might call a free ride with health care – the good kind, with full coverage for those who meet income and residency requirements. But that gravy train is as close to derailment as ever because the governor is contemplating adding a $100 insurance premium for "unsatisfactory immigration status" and is pondering the ghastly idea of pausing new signups. According to the governor's office, these small adjustments would save the state about $5.4 billion by fiscal year 2029.
So why are his colleagues in the Democratic Party seeding the clouds over Newsom's pretty little head?
The Newsom Nexus
It was just two short years ago that California took a victory lap after becoming the first state to provide free health care to anyone and everyone – a noble task indeed. As Governor Newsom's Office heralded:
"In California, we believe everyone deserves access to quality, affordable health care coverage – regardless of income or immigration status. Through this expansion, we're making sure families and communities across California are healthier, stronger, and able to get the care they need when they need it."
Well, now it's time to pony up – and it turns out that’s a tricky proposition. Now, 24 months in, there’s a $9.5 billion price tag for 1.6 million immigrants who are "unsatisfactorily" documented, which is more than $3 billion above the budget estimate.
Adding insult to injury, Newsom is diverting $3.4 billion from the state's general fund to address the shortfall. As a result, the entire budget is in question, and federal funding – which typically makes up about a third of California’s state budget – is not a given under the Trump administration. Medi-Cal alone depends on $107.5 billion in federal funds.
To say the perfect storm brewing has energized state GOP lawmakers to inch forward on getting the purse strings tied up would be an understatement. California Senate Minority Leader Brian Jones said Newsom has lost touch with the reality of regular people struggling to survive. "Democrats and the governor are picking priorities, and they're prioritizing people that have come into our country illegally over people who immigrated here legally, people that are citizens," Jones said.
"We should not bear these costs. Period. But especially in a budget crisis," said Assemblymember Carl DeMaio, a San Diego Republican.
The governor is not experiencing love from either side of the aisle, and the claws have come out over what the King of the Coast has proposed. State Sen. Caroline Menjivar, a San Fernando Valley progressive, claimed that the changes floated by Newsom could have come from "a Republican in perhaps Alabama."
"Gov. Newsom, this is not the solution. There are other ways. We're saying no to these Medi-Cal cuts," Menjivar said.
"Newsom has literally become that degenerate brother-in-law who squanders his money and then comes back asking for a loan," Assemblyman James Gallagher, a Republican, posted on X. Will Newsom plant his flag on this issue and face the wrath of his once warm and fuzzy colleagues? There is a lot at stake – California is the world's fourth-largest economy. Maybe health care is not the problem. A new research study by the Institute on Taxation and Economic Policy (ITEP) claims that, in California, illegal immigrants contributed $8.5 billion in state and local taxes in 2022 – a number that would rise to $10.3 billion if these taxpayers were granted work authorization.
You Can't Blame the Flimsily Documented
Medi-Cal is not just a front for the "unsatisfactorily" documented immigrant: Approximately 15.3 million Californians are enrolled in Medi-Cal, which represents about 40% of the state's population. Over half of the enrollees are children. Medi-Cal enrollment surged during the COVID-19 pandemic when the federal government suspended income eligibility checks to maintain coverage for individuals. The enrollment peaked at 15.6 million in 2023.
California has, for decades, led the way in welcoming immigrants. In 2007, Republican Gov. Arnold Schwarzenegger pushed for universal health care with state-subsidized coverage for all children, regardless of their legal residency status. Democrat Jerry Brown signed a bill in 2015 that requires kids under 19 to be fully covered.
Regardless of how the budget reaches Newsom's desk, the legislature has until June 15 to finalize it. But alienating illegal aliens from health care may be the biggest boondoggle of his career. Perhaps tread carefully before signing on the budget's bottom line.
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