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OAN Staff Brooke Mallory
6:28 PM – Wednesday, May 14, 2025
Governor Gavin Newsom’s recent proposal to scale back healthcare benefits for illegal aliens in California has elicited significant backlash from far-left immigration activists and members of his own party — though conservatives say they are not persuaded by Newsom’s attempts to project a more moderate stance.
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Nonetheless, it represents a stunning reversal of the Democrat governor’s previous promises of universal healthcare for all, “regardless of immigrant status.”
During an extensive budget presentation, Newsom said that the proposed plan would mitigate the state’s fiscal imbalance, which has been exacerbated by a multibillion-dollar deficit.
He blamed this “shortfall” on the economic impact of “President Donald Trump’s tariffs and escalating expenditures” driven by “increased enrollment” in the state’s Medicaid program — Medi-Cal.
After the announcement, Senate Majority Leader Lena Gonzalez (D-Calif.), who represents California Senate District 33, asserted that the Latino Legislative Caucus would not support the proposal, arguing the “potential harms” that could arise — negatively affecting working illegals. Additionally, Carlos Alarcón, an immigrant rights advocate who spoke to the press, asserted that the move would adversely impact “marginalized communities.”
The proposal, which requires approval from the Democrat-majority legislature, emerges amid indications that the Trump administration intends to take down other taxpayer-funded assistance programs that California provides to illegal aliens.
A POLITICO-UC Berkeley Citrin Center poll conducted in April found that “21 percent of voters believe California should continue to offer Medicaid to undocumented immigrants, even if it means the state is forced to make cuts elsewhere. Another 32 percent said the state should continue the program but prioritize people in the country legally if budget cuts are necessary.”
Many conservative Californians argue that the cost of public services consumed by illegal aliens exceeds their tax contributions, placing a net burden on U.S. born taxpayers.
Newsom’s office had distributed fact sheets on the idea before the presentation, stating that he would block enrollment in his 2025-2026 budget for “undocumented adults” to get the full extent of Medi-Cal.
According to Newsom, the adjustments would only apply to new applicants over the age of 19, and existing participants would not be thrown off their plans. Anyone enrolled in limited plans, such as those that provide emergency or prenatal services, would be exempt from the freeze. The freeze would start in 2026 — according to NBC News.
The proposed amendments also include a new $100 monthly charge for anyone aged 19 and above with “unsatisfactory immigration status.” Newsom’s office noted that this “refers to people whose immigration status makes them ineligible for federally funded Medicaid, including people with lawful status and the undocumented.” The increased premiums would commence in 2027.
The fact sheets from Newsom’s office further claimed that he needed to take “corrective action” due to a $16 billion shortfall in state revenues, which he continued to blame on “Trump’s pendulum swings on tariffs,” as well as the ballooning costs from increased enrollment in the Medi-Cal program — which Newsom’s administration had expanded.
The move also comes as Congressional Republicans are drafting legislation that could cut Medicaid funds by 10% in states that, like California, give healthcare to illegals.
“The challenge that we face this year and the challenge we will face for many years, is on growth of our Medicaid system, Medi-Cal,” Newsom said on Wednesday. He also noted that his approach “was not to kick people off and not to roll back the expansion, but to level set on what we can do and what we can’t do.”
Soon after, already seemingly expecting outrage to unravel with his announcement, Newsom denied that his administration was “cutting or rolling back” the program, noting: “We’re just capping it, particularly for those without documentation.”
Newsom’s expansion of Medi-Cal has incurred significantly higher costs than his administration claimed it would. Earlier this year, in response to escalating expenses driven primarily by increased enrollment from illegal aliens residing in California, Newsom submitted successive loan requests to secure additional funding.
“Clearly we’re not in a position to continue to do as much as we wish to do and want to do,” Newsom said.
Newsom, often regarded by lefties as a potential candidate for the 2028 Democrat presidential nomination, has recently adopted more conservative stances on several prominent policy issues. Earlier this week, he urged California municipalities to implement measures aimed at swiftly clearing homeless encampments from public spaces. In addition, during a podcast interview with conservative commentator Charlie Kirk, Newsom sparked controversy among LGBTQ advocates by expressing his opposition to biological male athletes participating in women’s and girls’ sports.
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