Despite financial uncertainty ahead in California, Gov. Gavin Newsom on Wednesday announced an effort to continue providing health insurance to undocumented people, but with new limits that will keep some from joining the program. Learn more about Gov. Newsom’s updated budget proposal in this story.See more live updates from Capitol Correspondent Ashley Zavala on X here.In his state budget presentation Wednesday morning, the governor pushed for the new restrictions and premiums that will impact undocumented adults as the state is expected to be strapped for cash overall and after the state struggled to fund the program this year. Even with the changes in place, Newsom’s administration doesn’t expect the savings to fully kick in until he’s out of office in 2028. Budget documents show California is estimated to spend $10.8 billion this year on its MediCal coverage for residents, regardless of immigration status. Earlier this spring, the governor made back-to-back requests for loans to help cover unexpected, rising costs for the state’s Medicaid program, known as Medi-Cal, which the state uses to provide insurance and care to low-income Californians, regardless of immigration status.The state’s Democratic legislature and governor estimated that the health care coverage for undocumented people would cost about $6 billion this year. That number has since ballooned to about $10 billion. Newsom’s administration has said the coverage for undocumented residents played a role in the need for the loans but was not entirely to blame for the rising Medicaid costs.| VIDEO BELOW | Gov. Newsom says California won’t end health care for undocumented residentsNow, the governor is proposing to freeze enrollment for Full-Scope Medi-Cal for undocumented adults starting in 2026. Under the governor’s proposal, no new applicants over the age of 19 can sign up for the Medi-Cal program that provides medical, dental, vision, hearing and substance use disorder screenings.For those who already have coverage and are age 19 and up, the governor is proposing to charge $100 monthly premiums if they have an “unsatisfactory immigration status,” meaning they’re in the country illegally and ineligible for federally funded Medicaid. Newsom’s office said no one who currently has the coverage will be kicked off, and there is no impact on children. His office said the proposal does not have an effect on those with limited-scope coverage for pregnancy and emergency-related care.But the financial relief would not be immediate. Newsom’s Department of Finance said even with the governor’s proposal in place, it expects taxpayers will spend more on MediCal coverage for individuals in the upcoming budget year at a cost of a little more than $12 billion. For now, undocumented adults can still enroll in the program and it’s unclear if the governor’s announcement could trigger an influx of new sign-ups. A spokesman for the department said the estimates do not account for that scenario. Over time, Newsom’s office expects the savings to kick in later at about $5.4 billion total by mid-2028. The governor’s announcement won’t come as a surprise. He told reporters earlier this spring that getting rid of the program was not on his “docket.”The update is one of several the governor will include in his state budget presentation on Wednesday morning. His proposed spending plan kicks off month-long negotiations with state lawmakers over how they should use taxpayer dollars for the upcoming year. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
Despite financial uncertainty ahead in California, Gov. Gavin Newsom on Wednesday announced an effort to continue providing health insurance to undocumented people, but with new limits that will keep some from joining the program.
In his state budget presentation Wednesday morning, the governor pushed for the new restrictions and premiums that will impact undocumented adults as the state is expected to be strapped for cash overall and after the state struggled to fund the program this year.
Even with the changes in place, Newsom’s administration doesn’t expect the savings to fully kick in until he’s out of office in 2028. Budget documents show California is estimated to spend $10.8 billion this year on its MediCal coverage for residents, regardless of immigration status.
Earlier this spring, the governor made back-to-back requests for loans to help cover unexpected, rising costs for the state’s Medicaid program, known as Medi-Cal, which the state uses to provide insurance and care to low-income Californians, regardless of immigration status.
The state’s Democratic legislature and governor estimated that the health care coverage for undocumented people would cost about $6 billion this year. That number has since ballooned to about $10 billion. Newsom’s administration has said the coverage for undocumented residents played a role in the need for the loans but was not entirely to blame for the rising Medicaid costs.
| VIDEO BELOW | Gov. Newsom says California won’t end health care for undocumented residents
Now, the governor is proposing to freeze enrollment for Full-Scope Medi-Cal for undocumented adults starting in 2026. Under the governor’s proposal, no new applicants over the age of 19 can sign up for the Medi-Cal program that provides medical, dental, vision, hearing and substance use disorder screenings.
For those who already have coverage and are age 19 and up, the governor is proposing to charge $100 monthly premiums if they have an “unsatisfactory immigration status,” meaning they’re in the country illegally and ineligible for federally funded Medicaid.
Newsom’s office said no one who currently has the coverage will be kicked off, and there is no impact on children. His office said the proposal does not have an effect on those with limited-scope coverage for pregnancy and emergency-related care.
But the financial relief would not be immediate. Newsom’s Department of Finance said even with the governor’s proposal in place, it expects taxpayers will spend more on MediCal coverage for individuals in the upcoming budget year at a cost of a little more than $12 billion.
For now, undocumented adults can still enroll in the program and it’s unclear if the governor’s announcement could trigger an influx of new sign-ups. A spokesman for the department said the estimates do not account for that scenario.
Over time, Newsom’s office expects the savings to kick in later at about $5.4 billion total by mid-2028.
The governor’s announcement won’t come as a surprise. He told reporters earlier this spring that getting rid of the program was not on his “docket.”
The update is one of several the governor will include in his state budget presentation on Wednesday morning. His proposed spending plan kicks off month-long negotiations with state lawmakers over how they should use taxpayer dollars for the upcoming year.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel