NATIONAL NEWS

California governor proposes pausing expansion of health care to low-income immigrants

May 14, 2025, 6:02 AM | Updated: 3:12 pm

FILE - California Gov. Gavin Newsom stands in front of a state flag during a press conference about...

FILE - California Gov. Gavin Newsom stands in front of a state flag during a press conference about President Donald Trump's tariffs on Wednesday, April 16, 2025, at an almond farm in Ceres, Calif. (AP Photo/Noah Berger,FIle)
Credit: ASSOCIATED PRESS

(AP Photo/Noah Berger,FIle)

SACRAMENTO, Calif. (AP) — Gov. Gavin Newsom wants California to stop enrolling more low-income immigrants without legal status in a state-funded health care program starting in 2026 and begin charging those already enrolled a monthly premium the following year.

The decision is driven by a higher-than-expected price tag on the program and economic uncertainty from federal tariff policies, Newsom said in a Wednesday announcement. The Democratic governor’s move highlights Newsom’s struggle to protect his liberal policy priorities amid budget challenges in his final years on the job.

California was among one of the first states to extend free health care benefits to all poor adults regardless of their immigration status last year, an ambitious plan touted by Newsom to help the nation’s most populous state to inch closer to a goal of universal health care. But the cost for such expansion ran $2.7 billion more than the administration had anticipated.

Newsom in March suggested to reporters he was not considering rolling back health benefits for low-income people living in the country illegally as the state was grappling with a $6.2 billion Medicaid shortfall. He also repeatedly defended the expansion, saying it saves the state money in the long run. The program is state-funded and does not use federal dollars.

Under the plan, the changes won’t impact children

Under Newsom’s plan, low-income adults without legal status will no longer be eligible to apply for Medi-Cal, the state’s Medicaid program, starting in 2026. Those who are already enrolled won’t be kicked off their plans because of the enrollment freeze, and the changes won’t impact children. Newsom’s office didn’t say how long the freeze would last.

Starting in 2027, adults with “unsatisfactory immigration status” on Medi-Cal, including those without legal status and those who have legal status but aren’t eligible for federally funded Medicaid, will also have to pay a $100 monthly premium. The governor’s office said that is in line with the average cost paid by those who are on subsidized heath plans through California’s own marketplace. There’s no premium for most people currently on Medi-Cal.

In total, Newsom’s office estimated the changes will save the state $5.4 billion by 2028-2029.

“The state must take difficult but necessary steps to ensure fiscal stability and preserve the long-term viability of Medi-Cal for all Californians,” his office said in an announcement.

The Medi-Cal expansion, combined with other factors such as rising pharmacy costs and larger enrollment by older people, it has forced California to borrow and authorize new funding to plug the multibillion hole earlier this year. California provides free health care to more than a third of its 39 million people.

Wildfires, tariff policies and health costs strain California’s budget

The proposals come ahead of Newsom’s scheduled presentation on the updated budget. Recovery from the Los Angeles wildfires, changing federal tariff policies and the expensive health care expansion are putting a strain on California’s massive state budget. Lawmakers are expecting a multibillion dollar shortfall this year and more deficits projected for several years ahead.

Newsom is expected to blame President Donald Trump’s tariff policies for the shortfalls, estimating that the polices have cost the state $16 billion in tax revenues. California is also bracing for major budget hits if Republicans in Congress follow through with a plan to slash billions of dollars in Medicaid and penalize states for providing health care to immigrants without legal status.

Newsom now opens budget negotiations with lawmakers and it’s unclear how Democrats who control the Legislature will react to his plan to freeze new Medi-Cal enrollment for some immigrants. A final budget proposal must be signed by June. California’s budget is by far the largest among states.

“This is going to be a very challenging budget,” Assemblymember Jesse Gabriel, who chairs the budget committee, said before Newsom’s proposals were announced. “We’re going to have to make some tough decisions.”

The budget proposals presented this week will build in some of the impacts from federal policies, but many unknowns remain.

California could face bigger budget deficits in coming years

The governor already said he’s planning to scale back on baseline spending this year. Analysts and economists also warn that California will face bigger deficits in the tens of billions of dollars in coming years due to economic sluggishness and stock market volatility brought on by the tariff war.

The budget Newsom first proposed in January included little new spending. But it allows the state to fully implement the country’s first universal transitional kindergarten program and increase the state’s film and TV tax credit to $750 million annually to bring back Hollywood jobs that have gone to New York and Georgia. He recently called on Trump to pass a $7.5 billion film tax credit at the federal level.

Last year, Newsom and the Legislature agreed to dip into the state’s rainy day fund, slash spending — including a nearly 10% cut for nearly all state departments — and temporarily raise taxes on some businesses to close an estimated $46.8 billion budget deficit.

Please follow our Community Guidelines

National News

Victor Martinez, who runs La Mega 101.7, a Spanish-language radio station in Pennsylvania's Lehigh ...

Associated Press

A Spanish-language radio show overflows with voters’ frustration in Pennsylvania battleground

ALLENTOWN, Pa. (AP) — Una sola cosa. Just one thing. That’s all Victor Martinez wanted from listeners of his Spanish-language radio station — tell him one positive thing about President Donald Trump. The calls started rolling in. Someone mentioned the $5,000 payout that Trump promised if Republicans keep control of Congress, which Martinez thought was […]

5 hours ago

Dr. Annie Andrews, Democratic nominee for Senate in South Carolina, left, and Sen. Darline Graham, ...

Associated Press

Online feud spills onto South Carolina stage as Darline Graham, Annie Andrews snipe in Senate debate

COLUMBIA, S.C. (AP) — Sen. Darline Graham, R-S.C., and Democratic nominee Annie Andrews took their social media sniping to the debate stage Sunday night, with each candidate arguing their case for the Senate seat in a race that has appeared to tighten unexpectedly close in the weeks ahead of the midterms. The issues bounced from […]

7 hours ago

Associated Press

Wildfire north of Los Angeles prompts evacuation order for parts of Santa Clarita

SANTA CLARITA, Calif. (AP) — A fast-moving wildfire north of Los Angeles prompted authorities to order an evacuation for some parts of the city of Santa Clarita on Sunday. Authorities said the Bike fire had burned 172 acres (67 hectares) by Sunday evening. It was 12% contained. The cause of the fire, which broke out […]

8 hours ago

President Donald Trump returns to the White House following a trip to Clarksville, Tenn., on the So...

Associated Press

Judge orders Trump administration to cancel taxpayer-funded promotional TV ads

NEW YORK (AP) — A Manhattan judge has ordered the Trump administration to cancel taxpayer-funded TV ads that promote his political message.

9 hours ago

Associated Press

Pennsylvania shooter who killed 8 was family’s patriarch, slain toddler’s dad says

ERIE, Pa. (AP) — A man whose toddler was among eight people killed in a mass shooting in Erie, Pennsylvania, said Sunday that the gunman was a grandfather who never seemed distressed or out of the ordinary. “I think that was a front for him,” Julius Windham said as he stood at a memorial to […]

11 hours ago

President Donald Trump speaks with reporters as he arrives on Air Force One, Saturday, Oct. 10, 202...

Associated Press

Six senators call for Trump administration to ‘immediately reverse course’ on Russian diesel plan

WASHINGTON (AP) — A bipartisan group of six senators on Sunday called for President Donald Trump’s administration to “immediately reverse course” on a plan to purchase diesel from Russia as part of an effort to lower high fuel prices. Trump shocked lawmakers when he announced on social media Friday that he struck a deal with […]

15 hours ago

California governor proposes pausing expansion of health care to low-income immigrants