Newsom Proposes Rollback of Medi-Cal Expansion for Undocumented Adults Amid Budget Deficit

Newsom Proposes Rollback of Medi-Cal Expansion for Undocumented Adults Amid Budget Deficit

California Governor Gavin Newsom has proposed significant changes to the state's Medi-Cal program, targeting coverage for undocumented adult residents in an effort to address a projected $12 billion budget deficit.

Under the proposal, s

tarting in 2026, new enrollment into full-scope Medi-Cal for undocumented adults aged 19 and older would be frozen.

By 2027, those currently enrolled would be required to pay a monthly premium of $100 to maintain coverage.

Children, pregnant individuals, and those receiving limited-scope emergency services would remain unaffected.

The state's initial cost projection for expanding Medi-Cal to cover undocumented adults was around $6 billion annually. However, updated estimates now place the expense closer to $10 billion—a cost Governor Newsom argues is unsustainable given rising healthcare expenses, declining tax revenues, and broader economic pressures, including federal trade policies.

These proposed adjustments are expected to save the state an estimated $5.4 billion by the 2028-29 fiscal year. However, critics argue the plan risks undermining California’s progress toward universal healthcare and could disproportionately impact vulnerable immigrant communities.

The California Legislature is currently reviewing the proposal, with final decisions anticipated by July 1.

Sources:

• KCRA

• AP News

• Reuters

• Politico

• SF Chronicle