Undocumented Californians have paid nearly $8.5 billion in state and local taxes, yet Governor Gavin Newsom will stop enrolling them in a state-funded healthcare program.
“Despite their vital contributions to public services, California’s undocumented residents are excluded from essential programs.”
Last Friday, California Governor Gavin Newsom signed a budget that scales back a number of progressive priorities — including a landmark healthcare expansion for low-income adult immigrants without legal status — to close a $12 billion deficit.
This marks the third consecutive year that the nation’s most populous state has been forced to cut funding or halt programs championed by Democratic leaders. Lawmakers passed the budget earlier in the day after reaching a $321 billion spending agreement between Newsom and Democratic legislators.
Under the budget deal, California will stop enrolling new adult patients without legal status in its state-funded healthcare program for low-income residents starting in 2026. The state will also implement a $30 monthly premium in July 2027 for immigrants who remain in the program, including some with legal status. The premiums will apply to adults under 60 years of age.
The changes to the program, known as Medi-Cal, are a scaled-back version of Newsom’s proposal in May. Still, they represent a major blow to an ambitious initiative launched last year to help the state move closer to its goal of universal healthcare.
Democratic State Senator María Elena Durazo broke with her party and voted “no” on the healthcare changes, calling them a betrayal of immigrant communities.
The budget deal also eliminates $78 million in funding for mental health phone lines, including a program that served 100,000 people annually. It will end funding for dental services for low-income individuals in 2026 and delay implementation of legislation requiring health insurance to cover fertility services by six months, to mid-2026.
