California Governor Gavin Newsom has surprised his base by proposing a major reversal on one of the most controversial state policies in recent years: free taxpayer-funded healthcare for illegal immigrants.
In his newly released budget proposal, Newsom is pushing to end universal free coverage for undocumented migrants under Medi-Cal, the state’s publicly funded health insurance program for low-income residents.
Illegal Immigrant Healthcare No Longer Free in California?
According to documents reviewed by the Los Angeles Times, the proposed changes would require undocumented immigrants to pay $100 per month in premiums to keep their Medi-Cal benefits. The updated policy also seeks to block new adult applications for Medi-Cal after January 1, drastically limiting access for non-citizens.
This dramatic shift comes after California became the first U.S. state to offer free healthcare to all illegal immigrants, a policy Newsom proudly endorsed just one year ago.
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“In California, we believe everyone deserves access to quality, affordable health care — regardless of income or immigration status,” Newsom’s office had declared in 2024.
But now, facing a near $40 billion budget shortfall, the state can no longer support the costs. Newsom’s office estimates that the changes will save California $5.4 billion over the next few years.
Budget Pressure Forces Newsom’s Reversal
The cost of providing free medical care to undocumented individuals has surged to nearly $9.5 billion, a figure $3 billion higher than previously predicted, according to state projections. The state’s financial strain has been worsened by the end of pandemic-era federal funding and a significant drop in tax revenue.
A Pew Research Center study shows that California has the largest undocumented population in the United States, with 1.8 million illegal immigrants as of 2022. This has amplified concerns over the financial sustainability of policies offering benefits to non-citizens.
Newsom’s Political Shift Raises Eyebrows
Newsom’s policy pivot is only the latest in a series of moves that appear to signal a more centrist political strategy—and perhaps a presidential bid in 2028.
In April, he backed Republican legislation to increase penalties for child sex traffickers, breaking with his party’s progressive wing. A month earlier, he acknowledged that allowing biological males in women’s sports is “deeply unfair.” These actions mark a sharp contrast from his previous support for progressive policies on gender identity, prisons, and education.
Polls suggest most Californians believe Newsom is eyeing the presidency, prioritizing national positioning over state governance. The healthcare rollback is now seen as another calculated step to align with moderate voters ahead of a possible Democratic presidential run.
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What Happens Next?
The California legislature will now debate the proposal, and it remains to be seen how much support Newsom will receive from his Democratic allies, many of whom championed universal healthcare for all, regardless of legal status.
This sudden shift is drawing criticism from immigrant advocacy groups while gaining praise from fiscal conservatives, who say the governor is finally addressing the unsustainable costs of illegal immigration.
If approved, this proposal would fundamentally reshape California’s approach to healthcare access and signal a broader shift in how Democrats address immigration and state budgets.
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