Governor Gavin Newsom has unveiled a plan to reduce healthcare access for undocumented immigrants. The proposal aims to help close a $12 billion budget deficit. Newsom blames the shortfall on federal policies, calling it the “Trump slump.”
Starting in 2026, California will stop enrolling low-income undocumented adults in Medi-Cal. Those already enrolled won’t lose coverage but must pay a $100 monthly premium by 2027. The changes won’t affect children or legal residents.
California was the first state to offer full Medicaid coverage to undocumented adults. The program is entirely state-funded, avoiding federal restrictions. Still, rising costs forced a reevaluation.
Newsom previously denied plans to roll back benefits. Yet economic pressures, including Trump’s tariffs, changed the outlook. California exports $67 billion in goods to China, Mexico, and Canada annually. New tariffs threaten state revenue.
The governor’s budget includes other major adjustments. Public universities face a 3% cut, less than the expected 8%. Film industry subsidies will increase by $420 million despite wildfires.
A controversial $20 billion water project, the Delta Conveyance, may also advance faster. Newsom wants to limit legal challenges to speed up construction. Critics argue this bypasses environmental reviews.
Additional cuts affect long-term care, K-12 education, and in-home worker overtime. Lawmakers must approve the budget by June. Democrats control the legislature but may resist Medicaid restrictions.
Advocates warn the California Medicaid cuts for immigrants will harm vulnerable families. Opponents argue the state must prioritize fiscal responsibility. Newsom insists the changes balance compassion with economic reality.
The California Medicaid cuts for immigrants mark a shift in the state’s progressive policies. As negotiations begin, the outcome remains uncertain. For now, thousands await clarity on their future coverage.
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