Newsom signs $2.8B bailout for healthcare program overrun by illegal immigrants
California Governor Gavin Newsom recently signed a $2.8 billion bailout to address the state’s Medicaid program deficit. The program, known as Medi-Cal, has faced financial challenges due to the inclusion of illegal immigrants in its coverage. This move, confirmed by Newsom’s office to Fox News Digital, follows the governor’s request last month for a $3.4 billion loan from the state’s general fund to cover outstanding costs totaling $6.2 billion.
Medi-Cal is a crucial healthcare program in California, serving approximately 15 million residents, including noncitizens. However, Republicans have voiced concerns about the program’s sustainability with the inclusion of illegal immigrants. State Senate Minority Leader Brian Jones criticized the decision, stating that legal residents are being put second, and called for a halt to new enrollments of illegal immigrants to prevent the program from collapsing entirely.
Currently, around 1.6 million illegal immigrants are enrolled in Medi-Cal, accounting for a significant portion of the program’s total enrollment. The initial cost projection for the expansion was under $6 billion for the fiscal year 2024–2025. However, within just one year, the costs have escalated beyond expectations. Newsom’s latest budget proposal estimates the cost of covering illegal immigrants at $8.4 billion for 2024–2025 and $7.4 billion the following year.
In response to the growing financial burden, state House Republicans have proposed a plan to cut $880 billion, primarily from Medicaid, over the next decade to address what they perceive as excessive government spending.
As the situation continues to evolve, Fox News Digital has reached out to Newsom’s office for further comment. This is a developing story, and updates will be provided as new information becomes available.
The article was written by Jamie Joseph, a U.S. Politics reporter for Fox News Digital, covering transgender and cultural issues, as well as developments in the Departments of Education and Health and Human Services.
