California Gov. Gavin Newsom wants his state to reduce healthcare for undocumented immigrants to help balance the state's budget.
As part of a budget presentation, Newsom will propose freezing enrollment of undocumented adults in Medi-Cal, the state's healthcare program, starting next year. Those enrolled in the program will be charged $100 a month starting in 2027, The New York Times reported.
The cost savings for California will be $5.4 billion by fiscal year 2028-2029, the Times said.
California faces a budget shortfall after a $16 billion drop in tax revenues that Newsom blames on President Donald Trump's trade wars and tariffs.
But the Times said Medi-Cal has cost billions more than expected, questioning whether the state could afford the program, especially after it was offered to all low-income residents, regardless of immigration status last year. The program has also dealt with rising prescription drug costs and more seniors enrolling than the state projected.
Medi-Cal benefits for undocumented immigrants have cost the state at least $2.7 billion more than projected by lawmakers, the Times reported.
"The state must take difficult but necessary steps to ensure fiscal stability and preserve the long-term viability of Medi-Cal for all Californians," Newsom's office said in a statement.
Lawmakers must approve a budget by next month.
Sam Barron ✉
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