California Closes $12 Billion Budget Deficit While Freezing Immigrant Healthcare Access
On Friday, California Governor Gavin Newsom approved a $321 billion budget that addresses a $12 billion shortfall by reducing some progressive initiatives, including a significant expansion of healthcare for undocumented immigrants.
“In signing the budget, Mr. Newsom backtracked on his earlier pledge to insure all low-income residents, regardless of their immigration status,” Laurel Rosenhall reported for The New York Times on June 27. “[I]t would have been politically difficult to cut programs for citizens without reducing benefits for undocumented immigrants.”
“The cuts to immigrant health services represent a significant retreat from California's universal healthcare ambitions, affecting hundreds of thousands of residents,” Newsweek’s Adeola Adeosun wrote on June 28. “Starting next year, the Golden State will halt new enrollments for undocumented adults in Medi-Cal, effectively capping the program's growth. Additionally, beginning July 2027, the state will implement a $30 monthly premium for immigrants currently enrolled in the program, including some with legal status, affecting adults under 60 years old.”
In a statement, Governor Newsom called the budget balanced, “As we confront Donald Trump’s economic sabotage, this budget agreement proves California won’t just hold the line — we’ll go even further. It’s balanced, it maintains substantial reserves, and it’s focused on supporting Californians — slashing red tape and catapulting housing and infrastructure development, preserving essential healthcare services, funds universal pre-K, and cuts taxes for veterans.”
