(The Center Square) – California Gov. Gavin Newsom on Wednesday called for an end to new enrollments of adult illegal immigrants in Medi-Cal to save more than $5 billion.
The proposal by the governor, who’s viewed as a potential Democratic presidential candidate in 2028, is a reversal of his pledge to provide universal health care to everyone including low-income adults regardless of their immigration status.
Under Newsom’s new proposal, no illegal immigrants 19 and older could enroll in Medi-Cal starting in January 2026, which means they couldn’t get coverage for medical expenses such as doctor’s visits and prescriptions. Coverage would continue for emergency and pregnancy care, which are paid for with federal funds.
The 1.6 million illegal immigrants already signed up wouldn’t lose their coverage under Newsom’s plan, and their children could still enroll, according to CalMatters and other media.
Newsom also said Wednesday that he wants to start charging those already enrolled who have “unsatisfactory immigration status” a $100 monthly premium starting in 2027. The premium would be charged to those who are ineligible for federal Medicaid because of their immigration status. Newsom’s office said that would include “people with lawful status and the undocumented.”
Medi-Cal, which is California’s name for Medicaid, is the state taxpayer-funded health insurance for low-income patients and those with disabilities.
The governor’s plan wouldn’t go into effect unless the Legislature approved the changes in the California budget. Lawmakers in the Democratic supermajority in the Assembly and Senate have objected to making major cuts to coverage for illegal immigrants. But Republican legislators have said the expense of covering illegal immigrants is too costly to sustain.
Newsom cited his reasons for the Medi-Cal changes as the program’s higher-than-anticipated cost for covering illegal immigrants and economic uncertainty because of President Donald Trump’s tariffs. The changes would save California $5.4 billion by 2028-29, according to the Governor’s Office.
Critics of the Democratic governor have noted an expected deficit of $10 billion or more in the state’s budget matches estimated costs of expanding eligibility of Medi-Cal to all income-qualifying illegal immigrants.
The budget deficit is now expected to be $16 billion, according to the Governor’s Office.
Newsom is blaming the deficit on Trump’s tariffs. He and Attorney General Rob Bonta filed a motion Tuesday in the U.S. District Court for Northern California for a preliminary injunction to freeze the tariffs. The motion is part of a lawsuit against the Trump administration that the state filed in April.
