California signs budget deal slashing health coverage for undocumented immigrants

California Governor Gavin Newsom signed a new state budget on Friday that reduces health care coverage for immigrants living in the US without legal status, as reported by The New York Times. The decision comes as the state faces a $12 billion budget deficit and follows rising political pressure over costs.

The new budget halts new enrollment of undocumented immigrants in the state’s Medi-Cal program starting January. Those already enrolled between ages 19 and 59 will be required to pay a $30 monthly premium from 2027. In addition, dental care for noncitizens and undocumented adults will end in July 2026.

Medi-Cal, California’s Medicaid program, currently serves around 15 million residents, including about 1.6 million undocumented immigrants. Because federal funds do not cover most care for these individuals, the cost falls largely on the state. Lawmakers said the overruns in the program’s expansion were a major factor in this year’s deficit.

Newsom had previously promised health coverage for all low-income residents, regardless of immigration status. His decision to cut back marks a shift from that pledge, but state officials defended it as necessary under current budget conditions.

"Lord knows it's not perfect,” said Assembly member Jose Solache, a Democrat who voted for the plan. “But we have a responsibility.”

The health care cuts were part of a broader budget package. While signing the bill, Newsom also warned that a federal Republican budget proposal could trigger deeper cuts in California, putting $28 billion in federal funding at risk. He said new federal work requirements and eligibility checks could result in 3.4 million Californians losing health coverage.

Republicans in California said the state should go further. Assembly member Carl DeMaio argued that eliminating Medi-Cal coverage for undocumented immigrants entirely could nearly wipe out the state’s deficit. “I think a lot of Californians have concerns about prioritizing noncitizens with scarce taxpayer resources,” he said.

Other Democratic-led states have taken similar steps. Illinois and Minnesota both reduced or eliminated health coverage for some undocumented adults earlier this year in response to budget pressures.

California had been steadily expanding Medi-Cal access for undocumented residents over the last decade. Last year’s full expansion was touted by Newsom as “universal health care for all.” But the number of enrollees exceeded projections and caused costs to surge beyond what lawmakers had planned.

Some Democrats opposed the move. Assembly member Sade Elhawary said, “We are no better than the Trump administration. We’re just doing harm in a different way.”

Sonja Diaz, a civil rights lawyer and founder of the Latino Politics and Policy Institute at UCLA, said the decision reflected a shift in the national political climate. “For a state like California to pull back and to create caveats on this issue is telling of how strong MAGA’s influence is,” she said.