Gavin Newsom floats pause on undocumented adults in California accessing Medi-Cal
Citing budget shortfalls, Gov. Gavin Newsom announced Wednesday that California would delay expanding Medi-Cal to more undocumented adults and will charge existing recipients with “unsatisfactory immigration status” a $100 monthly fee starting in 2027.
The changes are part of Newsom’s May revise unveiled Wednesday and aimed at addressing a $12 billion shortfall to the state’s budget blamed in part on President Donald Trump’s tariffs, as well as rising drug costs and higher health care utilization among seniors.
In a fact sheet provided by his office, the governor said he would not kick anyone off of Medi-Cal, but that Trump’s tariffs — which are estimated to blow a $16 billion hole in the state budget — and rising costs have forced the state to “take corrective action that balances fiscal responsibility while preserving core tenets of key investments.”
Medi-Cal, the state Medicaid plan, is facing budget shortfalls due to increases in pharmaceutical drug prices and an influx of newly eligible senior citizens. Republicans blamed the increases on a newly enacted 2024 policy allowing undocumented people to become eligible for Medi-Cal, one of Newsom’s 2018 campaign promises.
Legislators must pass a version of the budget by June 15, ahead of the new fiscal year kicking in July 1.
“Gov. Newsom championed these expansions and remains committed to protecting the immigrant communities who contribute to the fabric and economy of California,” the fact sheet read. “He refuses to turn his back on hardworking Californians, especially when it comes to their basic health care needs.”
But, it continued, “because of the $16 billion Trump Slump and higher-than-expected health care utilization, the state must take difficult but necessary steps to ensure fiscal stability and preserve the long-term viability of Medi-Cal for all Californians.”
Newsom’s plan calls for Medi-Cal to pause allowing undocumented adults over 19 to access “full-scope” program services starting no sooner than Jan. 1, though children and people already on the plan would not be affected. The pause also would not curb access to “limited” scope services like pregnancy and emergency services.
Adults with “unsatisfactory” immigration status will be charged $100 a month starting Jan. 1, 2027, “in line with the average subsidized Covered California premium, which is approximately $135/month in 2025,” the fact sheet read.
Newsom’s office clarified that the designation includes undocumented immigrants and some individuals with legal status who do not qualify for federally funded Medicaid.
Together, those two policies are expected to save California $5.4 billion by the 2028-29 fiscal year, according to Newsom’s office.
According to Newsom’s May Revise, spending for Medi-Cal’s general fund is expected to rise to $44.6 billion in 2025-26, up from $37.4 billion this fiscal year.
This story was originally published May 14, 2025 at 6:00 AM with the headline "Gavin Newsom floats pause on undocumented adults in California accessing Medi-Cal."
