In a surprising reversal, California Gov. Gavin Newsom’s new budget plan seeks to cut healthcare benefits for adult illegal immigrants, his office is saying.
The proposed plan, which his office says will help balance the state’s budget, walks back his previous promise to provide healthcare for all, including “all low-income adults” regardless of their immigration status.
Izzy Gardon, a Newsom spokesperson said in an email to NBC News, “Despite federal financial uncertainty, Governor Newsom will announce an effort to continue providing health insurance to undocumented Californians, but with new rules in place to curtail costs.”
The budget comes after the Trump administration said it would open investigations into other aid programs California offers to illegal migrants.
Fact sheets, provided by Newsom’s office indicate that enrollment in the state’s Medicaid program, known as Medi-Cal, of “undocumented adults” will be frozen during the 2025-26 fiscal year.
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The changes will only apply to applicants over the age of 19 years old and existing enrollees will not be kicked off the program. The freeze will begin in 2026.
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‘Unsatisfactory immigration status’
Those who are found to have an “unsatisfactory immigration status” and who are 19-years-old or older will have the option to pay a new $100 monthly premium to receive some healthcare services.
Newsom’s office said that this “refers to people whose immigration status makes them ineligible for federally funded Medicaid, including people with lawful status and the undocumented,” NBC News reported.
The move comes after Republicans tabled a bill that seeks to cut Medicaid funding by 10 percent to states like California that provide healthcare to illegal migrants.
Newsom’s office says the walking back of their healthcare promises to illegal migrants is to address a $16 billion shortfall in state revenues brought on by Trump’s tariff war, in addition to growing costs of the healthcare program.
However, the cost of providing healthcare to illegal migrants has proven to be much more expensive than what state officials expected.
Earlier this year, Newsom made repeated loan requests to help fund the program, specifically due to rising enrollments.
Newsom’s office says the changes will save state coffers around $5.4 billion by the 2028-29 fiscal year.
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Committed to protecting immigrant communities
A statement from Newsom’s office claims that the proposed changes will help his administration keep its promises, and that Newsom remains “committed to protecting” immigrant communities.
“California is leading the nation in expanding health care access. While fiscal headwinds require tough decisions right now, our commitment to access remains,” the statement said. “These changes are designed to preserve that commitment, protect coverage for millions of Californians, and preserve the strength of our values and health care system.”
Newsom, who is expected to seek the Democratic presidential nomination in 2028, has tracked right on a few issues as of late.
He angered many democrats after he voiced opposition to trans athletes competing in women’s and girl’s sports on a recent episode of Trump ally Charlie Kirk’s podcast.
