In reversal, Gavin Newsom proposes health care cuts for undocumented immigrants
California Gov. Gavin Newsom is set to propose a state budget on Wednesday that would roll back health care benefits for undocumented immigrants — a significant shift from his earlier push for universal health coverage.
According to Newsom’s office, the plan is intended to help close a $16 billion budget gap. The move would represent a notable departure from his previous efforts to expand Medi-Cal to cover all low-income adults, regardless of immigration status.
“Governor Newsom will outline a plan to maintain health coverage for undocumented Californians, but with new cost-saving measures,” spokesperson Izzy Gardon said in an emailed statement. The announcement is expected during Newsom’s formal budget presentation later Wednesday.
Among the proposed changes is a freeze on enrollment for undocumented adults in the full-scope Medi-Cal program starting in 2026. This would apply to new applicants over the age of 19. Those already enrolled would remain covered, and the freeze would not affect individuals using limited services like emergency or maternity care.
Additionally, the plan introduces a new $100 monthly premium for adults aged 19 and older who fall under the category of “unsatisfactory immigration status.” This group includes undocumented individuals as well as some with lawful status who don’t qualify for federal Medicaid funding. These premiums would begin in 2027.
The proposal comes as congressional Republicans push legislation that would reduce Medicaid funding to states offering health benefits to undocumented residents. Meanwhile, the Trump administration has signaled it will scrutinize California’s aid programs for undocumented immigrants.
Newsom’s office said the corrective measures are necessary due to declining state revenues and unexpectedly high Medi-Cal costs, largely driven by increased enrollment among undocumented populations. Earlier this year, the governor sought emergency funding through state loans to support the expanding program.
The changes are projected to save California approximately $5.4 billion by the 2028–29 fiscal year. But they also signal a major shift away from one of Newsom’s hallmark policies — extending government health care to all low-income Californians, regardless of immigration status.
Despite the pullback, the governor insists the state is staying true to its values. “California continues to lead in expanding access to health care,” materials from Newsom’s office read. “These tough but necessary decisions will protect coverage for millions, preserve our system’s strength, and uphold our core values.”
Newsom, often mentioned as a potential 2028 Democratic presidential candidate, has recently taken more moderate stances on several controversial issues. Earlier this week, he called on cities to quickly clear homeless encampments. And in a podcast interview with conservative commentator Charlie Kirk, he sparked backlash from LGBTQ advocates by stating his opposition to transgender athletes competing in women’s sports.
