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California Gov. Gavin Newsom is backing away from a landmark progressive policy by proposing to end free health care for most illegal immigrants, citing pressures from a projected revenue shortfall that has pushed the state’s budget deficit to $12 billion.

Under a revised budget plan <a href="https://ebudget.ca.gov/FullBudgetSummary.pdf">unveiled</a> by the California Department of Finance on May 14, illegal immigrant adults currently enrolled in Medi-Cal—the state’s Medicaid program—would be required to pay $100 monthly premiums starting in 2027.

The proposal would also freeze new enrollment as early as next year, though emergency and maternity care would remain available, and children would continue to receive coverage.

The changes are expected to save California approximately $5.4 billion by 2028, according to estimates from Newsom’s office.

The policy shift marks a major reversal for California, which in January 2024 became the first state in the nation to offer free, full-scope Medi-Cal benefits to all low-income adults regardless of immigration status.

California’s Democratic leaders <a href="https://www.theepochtimes.com/us/newsom-asks-for-2-8-billion-more-for-medi-cal-program-that-covers-illegal-immigrants-5827642">initially projected</a> $2.7 billion in annual costs for providing health care to illegal immigrants, but the figure has <a href="https://ad75.asmrc.org/2025/02/11/demaio-exposes-9-5-billion-taxpayer-cost-for-free-healthcare-for-illegal-immigrants-a-46-2-cost-spike-in-one-year/">since surged</a> to roughly $9.5 billion, according to Republican lawmakers, contributing significantly to the state’s widening budget shortfall. Newsom’s latest budget revision indicates that California’s budget deficit stands at $12 billion.

In a bid to shore up Medi-Cal’s finances, Newsom <a href="https://www.theepochtimes.com/us/california-governor-signs-2-8-billion-medi-cal-bailout-to-cover-soaring-costs-including-for-illegal-immigrants-5841916">signed</a> Assembly Bill 100 on April 14, approving emergency funds to close a $2.8 billion budget gap and extend health coverage through June for nearly 15 million low-income residents, including some 764,000 illegal immigrants. The emergency measure was part of a broader effort to address the budget shortfall in the Medi-Cal expansion to cover illegal immigrants, a policy that earned praise from progressive leaders while drawing criticism from conservatives who warn the costs are unsustainable.

“California taxpayers should be outraged that they face massive tax hikes in this budget while illegal immigrants are being given nearly $10 billion in free taxpayer-funded healthcare coverage,” California state Rep. Carl DeMaio, a Republican, said in a <a href="https://ad75.asmrc.org/2025/02/11/demaio-exposes-9-5-billion-taxpayer-cost-for-free-healthcare-for-illegal-immigrants-a-46-2-cost-spike-in-one-year/">statement</a> in February, commenting on a previous January <a href="https://ebudget.ca.gov/budget/2025-26/#/BudgetSummary">version</a> of the budget that did not roll back coverage for illegal immigrants.

The program has also drawn federal attention. Although California funds health care for illegal immigrants with state dollars, the broader Medi-Cal system is heavily reliant on federal Medicaid funding. Congressional Republicans have <a href="https://hudson.house.gov/press-releases/hudson-reintroduces-bill-to-prevent-liberal-states-from-forcing-american-taxpayers">pointed to</a> California’s approach as a cautionary tale and are pushing legislation to tighten federal restrictions, saying the state’s policy encourages illegal immigration.

“Working as a doctor in California, I saw that free health care is a magnet for illegal immigration,” Sen. Bill Cassidy (R-La.), who is also a medical doctor, said in a <a href="https://hudson.house.gov/press-releases/hudson-reintroduces-bill-to-prevent-liberal-states-from-forcing-american-taxpayers">statement</a> in February. “We should focus on making America healthy again instead of straining our medical system and burdening American taxpayers. Attempting to provide free health care to the world is not sustainable. Compassion that cannot be sustained is not compassion.”

Newsom’s proposed changes come as part of his revised May budget plan—a constitutionally required update to the governor’s annual spending plan that serves as the basis for final budget negotiations. Lawmakers must pass a balanced budget by June 15 to meet the July 1 start of the fiscal year.

<em>From <a href="https://www.theepochtimes.com/us/california-governor-moves-to-end-free-health-care-for-illegal-immigrants-as-budget-deficit-climbs-to-12-billion-5857701">The Epoch Times</a></em>

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California Moves to End Free Health Care for Illegal Immigrants as Budget Deficit Climbs to $12 Billion