Meanwhile, on Wednesday, California Governor Gavin Newsom announced a projected state budget deficit of $12 billion. He even proposed a number of solutions to address this budgetary gap. Among these proposals is a controversial freeze on enrollment in Medi-Cal, the state-funded health care program for undocumented immigrants living in California. This decision indicates a shocking reversal of policy and threatens to limit access to healthcare among our most vulnerable populations.
To address the shortfall, Newsom is calling for $1.5 billion to be transferred from a fund that’s being used to pay for the state’s fire department. He emphasized that we must invest in infrastructure on a consistent basis. His primary goal is to win $1 billion annually to jumpstart California’s long-stalled high-speed rail project. The governor has announced plans to reauthorize California’s cap-and-trade program through 2045. This campaign will bring millions of new, clean revenue into our state’s coffers and help combat the impacts of climate change.
Her proposed budget for the coming fiscal year is almost $322 billion. Newsom’s office estimates that these changes would save California about $5.4 billion by the 2028-2029 fiscal year. Yet the Medi-Cal enrollment freeze has alarmed immigrant advocates and healthcare professionals, drawing national attention to its harmful effects.
Historically opposed to adding health care benefits to immigrants under any circumstance, Gavin Newsom has amended his position given the budgetary constraints. Earlier this year, he suggested that reversing cuts to health benefits for this population was out of the question. What we’re seeing in the new proposal represents a major departure from that position. Under the new proposal, adults with “non satisfactory immigration status” who are in the Medi-Cal program will incur a monthly premium of $100. This new fee will start in 2027. While this move is intended to reduce state costs, it poses serious questions related to access to vital public health and health care services.
In his announcement, Newsom expressed the urgency of addressing California’s budgetary issues, stating, “California’s budget is under assault.” He emphasized the need for residents to contribute towards their healthcare costs, asserting, “We believe that people should have some skin in the game as it relates to contributions.” This sentiment indicates a shift toward a more sustainable model in managing state resources.
Newsom’s sweeping proposal has been criticized from all sides—advocates, tribes, and industry. Advocates say that enrollment freeze will have a disproportionate impact on low-income immigrants who depend on Medi-Cal for their health care. Masih Fouladi, a representative from a local advocacy group, remarked, “Questions about the practicality of the program aren’t even something that we want to entertain with.” This all exemplifies the tension that exists between financial limitations and guaranteeing equal access to quality healthcare.
As the governor’s proposed cuts to IHSS program implementation takes place within the context of a larger conversation about immigrant rights and health care access in California, Newsom’s 2022 Line-item veto tracker Newsom is fond of saying that no state has done more to help its residents than California. His recent budget proposals point to the significant challenges that lie ahead in sustaining that support.
