California borrows $3.444 billion this month to continue to surface the Medicaid program as a cost to the state’s healthcare expansion, including compensation for illegal immigration.
The emergency loan requested by the Democratic government’s administration of Gavin Newsom in Wednesday’s letter to lawmakers is the maximum amount the state can take, and will only cover Medi-Cal costs until the end of March. According to To Politico. Republicans, including Senate minority leader Brian Jones, seized a cost overrun. (Related: California was forced to pay back millions after giving taxpayer-funded healthcare to “non-citizens”)
“They quietly dropped a terrible notice that they were receiving a $3.444 billion loan to fund free medical care for illegal immigrants,” Jones wrote to X. This program is out of control. ”
Typical of the Secret Newspaper, they quietly dropped a terrible notice that they were receiving a $3.444 billion loan to fund free medical care for illegal immigrants.
The loan is taken from taxes for healthcare providers.
This program is… pic.twitter.com/5c6wx7ukha
– Brian W. Jones (@senbrianjones) March 13, 2025
Medi-Cal’s financial problems have been exacerbated by the state’s decision to expand compensation to illegal immigrants, with costs far exceeding initial estimates. When California first expanded its MEDI-CAL eligibility, officials projection It costs around $3 billion a year. That figure has swelled to $8.4 billion in the governor’s 2024-25. Budget proposal – Almost triple the original estimate – puts more strain on the state budget.
Advocates of the expansion, including Newsom and Assembly Speaker Robert Rivas, have argued that reducing compensation for illegal immigration is not an option.
“There will be a tough choice first, and Congressional Democrats will carefully consider the governor’s proposal,” Rivas said in a statement to Politico. “But let’s be clear: we don’t roll and leave immigrants behind.”
Meanwhile, California is increasing financial pressure as its total MEDI-CAL spending is expected to reach $42 billion from 2025-26. State officials have denounced the rise in the elderly population due to rising prices and rising prescription drugs.
Over 225,000 elderly people are registered with Medi-Cal than before Pandemic, but an increase of 40%, According to In the office of legislative analysts. Seniors make up only 10% of enrollees, but they cost almost twice as much per person than the average recipient.
Newsom’s administration continues to downplay concerns about rising prices, claiming that rising Medicaid costs are a national trend.
“Rising Medicaid costs is a national challenge and affects both red and blue conditions. This is not unique to California,” Newsom spokesman Izzy Gardon wrote in a statement in The Daily Caller News Foundation.
California’s financial difficulties could, like Ribas said, force Democrats to make “hard choices,” and could force them to consider registration caps and profit cuts on the state’s generous benefits to illegal immigration.
Rivas and Jones’ offices did not respond to DCNF’s request for comment.
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