Newsom cuts health benefits for illegal immigrants, citing California's deficit as excuse

In an unexpected twist, California Governor Gavin Newsom proposed a fiscal tightening plan that seeks to limit access to health coverage for illegal immigrants.

The move completely contradicts his promise of universal health care for all state residents regardless of immigration status, which is drawing harsh criticism for Newsom from detractors and Democratic allies.

The proposal is part of a new budget plan that seeks to address a multibillion-dollar, $16 billion deficit.

Newsom, far from taking responsibility for his state's deficit, took aim at President Donald Trump for California's fiscal deficit, criticizing the president for his "Trump Slump," referring to the trade wars driven from the White House.

"California is under assault. The United States of America, in many respects, is under assault because we have a president that’s been reckless in terms of assaulting growth engines," said the Californian governor.

Newsom also mentioned the increase in state spending on Medi-Cal, California's public health program, which far exceeded projections following the expansion of coverage to illegal immigrants.

As a result, Newsom laid out several changes to Medi-Cal, including canceling new illegal immigrant enrollments in the program starting in 2026, charging a $100 monthly premium starting in 2027 for those with "unsatisfactory immigration status," and eliminating additional benefits, such as dental care and long-term care for noncitizen immigrants.

Newsom said his decision was a simple "fiscal correctness" measure that does not have to be identified as ideological spin.

The governor denied he was "cutting or rolling back" Medi-Cal. "We’re just capping it, particularly for those without documentation," he said.

The Newsom administration estimates these changes will save $5.4 billion through fiscal year 2028-2029.

According to official data, the 2024 expansion of the program alone cost at least $2.7 billion more than anticipated.

For California Republican leaders, Newsom's decision was an ideal time to say, "We told you so."

State Sen. Brian Jones, for example, recalled that he had urged Newsom to rein in what he called “his reckless Medi-Cal expansion for illegal immigrants.”

"Governor Newsom is finally adopting our call to freeze free healthcare for illegal immigrants, but it’s too little and too late," Jones wrote. "If he had listened sooner, we wouldn’t be in this crisis—breaking promises, scrambling for loans, and cutting services for legal Californians just to keep a broken program afloat."