On Friday, June 13, California state lawmakers approved a budget proposal that would freeze enrollment in a state-funded health care program for immigrants without legal status. It’s part of the state and Gov. Gavin Newsom’s plan to close a $12 billion deficit.
Medi-Cal program
Under the new plan, adult immigrants without legal status who are currently enrolled in Medi-Cal would be required to pay a $100 monthly premium starting in 2027. New low-income adults in that group would no longer be able to sign up.
Republican Assembly member Carl DeMaio said the budget cuts $11.2 billion in health care coverage for citizens, so $12.1 billion can go to health care for immigrants without legal status. DeMaio points to changes in the rules of the federal Medicaid program that impose a 10% penalty on federal funds for Medicaid in any state that provides health care to immigrants without legal status.
“Prioritizing illegal immigrants over your own citizens,” DeMaio said on the Assembly floor. “I would say I’m shocked, but it’s part and parcel with a lot of policies and rhetoric that I’ve seen from the other side in recent months.”
Democratic lawmakers said the enrollment freeze undermines California’s values and the state’s goal of universal health care.
“If we move forward with freezing Medi-Cal enrollment and charging premiums to our immigrant population, we are no better than the Trump administration,” Democratic Assemblymember Sade Elhawary said before the vote. “The federal administration targeted immigrant communities with force, and we are targeting them through this budget by basically cutting off their access to health care.”
California began expanding Medi-Cal coverage to all low-income adults, regardless of immigration status, in 2023. But the program became more costly than expected, with annual spending reaching about $8.5 billion from the state’s general fund. Approximately 1.6 million immigrants without legal status are currently enrolled, according to state data.
Illinois and Minnesota are also on track to end health care access for low-income adults without legal status because of budget shortfalls.
California state budget
Friday’s vote on a $325 billion spending plan comes ahead of a Sunday, June 15, deadline for lawmakers to pass a budget or forfeit their own salaries. The measure passed largely along party lines, backed by the Democratic majority. The new fiscal year begins on July 1.
Democrats rejected many of Newsom’s proposed cuts from May, including reductions to public transit, higher education and raises for state employees. However, they accepted provisions such as the Medi-Cal enrollment freeze and the elimination of coverage for weight-loss drugs like Ozempic.
Public opinion of California’s spending appears to be changing as well. The Public Policy Institute of California has conducted surveys of Californians since 2003.
For most of that time, the surveys showed Californians preferred to pay higher taxes and have more social services. However, in a survey released this week, 55% of Californians said they’d prefer lower taxes and fewer services.
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Author: Cole Lauterbach
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