Newsom Signs $2.8B Bailout Amid Mounting Costs for Medi-Cal and Illegal Immigrant Coverage

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GOP lawmakers on Capitol Hill are pushing for federal cuts as well—proposing to slash $880 billion from Medicaid over the next decade to control what they describe as reckless government spending.

Soaring Costs and Policy Questions

Originally projected to cost just under $6 billion for the fiscal year 2024–2025, the cost of covering undocumented immigrants has ballooned to $8.4 billion this year and is expected to be $7.4 billion in 2025–2026, according to Newsom’s latest budget proposal.

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The expansion has fueled debates nationwide over whether undocumented immigrants should qualify for Medicaid-style benefits funded by American taxpayers. Progressive figures like Sen. Bernie Sanders (I-VT) and Sen. Adam Schiff (D-CA) have notably avoided taking a firm stance.