The leader of the Republican Party in the California Legislature criticized Governor Gavin Newsom and state Democrats for spending billions on illegal immigration while the state faces a growing deficit.
In January 2024, California became the first state to offer taxpayer-funded healthcare to all undocumented immigrants, allowing around 700,000 individuals to enroll in Medi-Cal, a Medicaid program aimed at low-income individuals. However, the costs and enrollment numbers quickly exceeded initial projections, causing significant budget problems and prompting lawmakers to seek cuts.
State GOP Representative James Gallagher, who heads the legislative minority, stated that the financial issues currently facing California were inevitable after the state implemented universal healthcare for undocumented immigrants. “In what other countries can you just show up and get full service from government programs?” Gallagher remarked, emphasizing the lack of similar policies elsewhere.
“It’s just crazy,” he added. “It’s not sustainable, which is why our budget is completely blown away.”
The federal government typically reimburses states for most Medicaid expenses, yet it does not cover costs related to illegal immigrant care outside of emergencies. In 2024, the Biden administration directed California to repay about $53 million for improperly claiming reimbursements for undocumented immigrant care.
This trend began under former Governor Jerry Brown, who expanded medical eligibility to undocumented minors in 2016. In 2020, state Democrats extended coverage to young adults and seniors, and by January 2024, all low-income undocumented immigrants became eligible.
In June 2024, Newsom signed legislation that his office claimed would enable a balanced budget over the next two fiscal years. Yet, as financial troubles resurfaced, the budget came under scrutiny, especially given the $8.5 billion allocated for undocumented care.
As the budget shortfall widened, both houses of the California legislature approved a plan in June aimed at drastically reducing Medi-Cal eligibility for undocumented immigrants. However, discussions continue, particularly among Democrats and the media about how to strengthen registration processes. Lawmakers have about a week left to finalize the budget.
Newsom proposed a freeze on Medi-Cal registrations for undocumented individuals and suggested a $100 monthly out-of-pocket fee for those already in the program. On the other hand, Democrats introduced a bill extending registration freezes to include all non-citizens with “inadequate immigration status.” This could affect legal residents while still preserving other medical benefits.
Gallagher criticized the freeze, arguing it wouldn’t solve the problem since millions of undocumented immigrants are already enrolled. “Freezing, really, doesn’t do much because millions of illegal immigrants have already signed up for this. With no enforcement at the southern border,” he remarked.
In March, Newsom requested $2.8 billion in loans to address the program’s costs, adding to a total of $6.2 billion in spending beyond the original state budget plans.
Gallagher mentioned that Democrats might be losing touch with voters on this issue. Citing a recent survey by the California Institute of Public Policy, he noted that 58% of state voters oppose providing free healthcare to undocumented immigrants, a significant shift from previous support in earlier years.
Amid these debates, one Democrat lawmaker expressed dismay at the prospect of undocumented immigrants paying a $100 premium to maintain healthcare access, to which Gallagher retorted that everyday Californians often pay much more in insurance premiums. “Every day Californians pay hundreds of dollars, maybe even $1,500 for insurance. They don’t want to require that undocumented immigrants pay to access medical care,” Gallagher said.
