In 2024, California made significant strides by providing Medi-Cal access to undocumented immigrants. However, Governor Gavin Newsom now suggests freezing part of this expansion due to a $16 billion tax revenue shortfall, attributed to President Trump's tariffs and rising Medi-Cal enrollment. The proposal includes a $100 premium for enrollees aged 19 and older without legal status and a freeze on new enrollments by 2026. These measures aim to recoup $5 billion to maintain fiscal health and Medi-Cal's long-term viability amidst ongoing discussions of considerable federal budget cuts impacting Medicaid.
In response to a $16 billion loss in tax revenue, California's Gov. Gavin Newsom proposes limiting Medi-Calâs expansion for undocumented immigrants.
Newsom's administration suggests a $100 monthly premium for undocumented Medi-Cal participants aged 19 and over to recover about $5 billion.
The need for fiscal stability has led to a proposal to freeze new enrollment for undocumented immigrants in Medi-Cal by 2026.
Despite expanded Medi-Cal services in previous years, the unexpected budget challenges are linked to tariffs and higher enrollment rates.
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