Puntos Clave
• California gasta más de $22 mil millones anuales en servicios a migrantes, con $8.4 mil millones para Medi-Cal.
• Nueva York proyecta hasta $12 mil millones en costos migratorios hasta el año fiscal 2025, principalmente para refugio.
• El gobernador Newsom planea congelar Medi-Cal para indocumentados adultos desde enero de 2026 para frenar el déficit.
California, New York, and New Jersey are facing big challenges because of the high costs linked to supporting large numbers of migrants, including both people without documents and asylum seekers. These costs have increased very quickly in just a few years, putting extra pressure on the budgets of these states. This is happening while many other parts of the budget, like schools or health care, were already struggling for enough money.
Let’s look at what is happening in each state, what services are most affected, and how the growing costs are starting to shape new policy choices. As reported by VisaVerge.com, many lawmakers, governors, and local leaders are facing difficult decisions as they struggle to balance offering help to newcomers with protecting the state’s financial health—something that affects everyone living there, not just those newly arrived.
California: Costs, Changes, and Cuts
California leads the country when it comes to spending on programs that help immigrants, especially those who do not have legal status. The state pays more than $22 billion each year for these types of services. This big spending covers things like public schools (K-12), health care—including through a program called Medi-Cal (California’s version of Medicaid), housing aid, food help, legal assistance, and allowing certain students to pay lower, in-state college tuition.
Rapidly Rising Medicaid (Medi-Cal) Costs
A large part of this spending goes to health care. For 2025 alone, California will spend over $8.4 billion of taxpayer money to provide Medi-Cal health benefits to people living in the state without documentation. This amount is much higher than what officials first estimated. The reason is that, starting in January 2024, the state decided to expand its Medi-Cal program so that anyone who meets the income requirements can apply, no matter their immigration status.
This change aimed to help everyone get basic health care, but it quickly became clear that it would cost far more than was planned. As one committee hearing in the state assembly put it, “This expansion is proving far costlier than originally projected and is already straining the Medi-Cal program that vulnerable Californians rely on.”
Facing a Deficit and Considering Cuts
California is now dealing with a $12 billion deficit for the next budget year. A deficit means the state is spending more money than it is collecting from taxes and other sources. To help close this gap, Governor Gavin Newsom has suggested freezing new Medi-Cal enrollments for undocumented adults starting in January 2026. This means no new adults in this group would be able to join the program after that date. At the same time, the governor has proposed stopping long-term care benefits and reducing other help for immigrants—especially those kinds of programs that serve people without legal status.
These proposals are tough. Many immigrants, health care workers, and program supporters worry that freezing or cutting Medi-Cal will leave thousands without proper health care, possibly making their health problems worse and causing even more expensive emergencies in the future.
Other Social Services at Risk
Besides Medi-Cal, California also spends a lot on:
- Schools (public K-12 education)
- Housing assistance for those who cannot afford rent
- Nutrition programs to help families put food on the table
- Legal aid for those who need help understanding or fighting immigration cases
If cuts go through as planned, all these services could see reductions.
To get more details about Medicaid and eligibility in California, you can visit the official Medi-Cal page.
New York: City Under Pressure
While California’s efforts cover the whole state, New York’s main struggles are centered in New York City, where nearly 100,000 asylum seekers have arrived since spring 2022. The city expects to spend more than $12 billion by the end of the 2025 fiscal year just to support the new arrivals.
Huge Spending in a Short Time
- Between July and September 2024, the city spent about $308 million helping migrants.
- Over the past two years, New York City has spent about $5 billion, and costs could double by next year if things keep going as they are.
Where is the Money Going?
Most of New York City’s migrant spending goes toward:
- Housing and rent: $1.98 billion
- Services and supplies: $2 billion
- Food: about $500 million
- Medical help: about $500 million
These figures show how much shelter, meals, and basic medical care are needed for so many new people arriving within a short period.
Tough Choices for the City
To deal with these rising costs, New York City has started to cut back on things it considers “nonessential.” But even with cuts, need continues to rise because more migrants keep coming every week.
City and state leaders are struggling to keep up. They say that while they want to help people looking for a better life, they have to find a way to do so without using up all the resources that local families and long-time residents also need.
New Jersey: Big Costs and Debates Over New Benefits
A study from May 2023 found that New Jersey spends about $7.3 billion each year on its roughly 900,000 undocumented residents. This spending covers things like health care, public schools, help for low-income families, and costs in the justice system.
Debates Over New Cash Payments
Recently, state lawmakers in New Jersey debated giving $500 direct payments (cash checks) to certain people who use an Individual Taxpayer Identification Number (ITIN) to file taxes. Many immigrants, including those without documents, use an ITIN to pay taxes, even if they do not have a Social Security Number. The idea was to offer extra support to people who may not qualify for other types of government aid.
But as migrant-related costs keep climbing, this proposal was dropped from the latest budget. Many leaders said there simply was not enough money, and some voters did not support giving more assistance while other programs for everyone were getting cut.
Local Pressure
As with California and New York, local governments in New Jersey are also dealing with higher numbers of new arrivals. This means more calls for help with schools, medical care, and other basic needs. Many cities say they are already stretched thin.
Comparing the States: What the Numbers Say
Here is a simple table to see how these three states compare when it comes to migrant-related costs, what areas use the most money, and recent actions by state leaders:
| State | Annual Cost | Where Money Goes | Recent Actions |
|---|---|---|---|
| California | $22B+ | Medi-Cal ($8.4B+), education, housing, nutrition, legal aid | Proposed freeze for Medi-Cal, cuts to other aid |
| New York | $5–$12B* | Housing/rent, food, medical, services | Cutting nonessential spending, but costs still going up |
| New Jersey | $7.3B | Health care, education, welfare, criminal justice | Dropped new cash aid proposal, local governments feel strain |
*NYC-specific spending projected up to $12B through 2025
Why Are the Costs So High?
There are several reasons why costs are as large as they are in places like California, New York, and New Jersey:
- All three states have “safety net” programs meant to protect the most vulnerable.
- Many people arrive needing shelter, food, and basic health care—the most expensive services.
- Big cities, especially those on the coasts, tend to be places where migrants first settle or are taken.
- None of the states get enough help from the federal government to cover what they spend, so the rest comes from their own budgets.
Even though migrants as a group pay a lot in taxes nationwide—$31 billion each year, according to some leaders—the money they pay is still less than what is spent on public programs for now.
How Political Leaders are Reacting
As states spend more and more each month, leaders are rethinking how much help they can give. Some are talking about freezing, cutting, or even rolling back benefits that were recently expanded.
In California, for example, Governor Newsom made it clear in his budget comments that freezing new benefits for undocumented people—including Medi-Cal—is an effort to bring the budget into balance. The reasoning is simple: if the costs keep rising, there will not be enough money for other important needs, like education or services for the elderly, children, or people with disabilities.
In New Jersey, lawmakers decided not to include new cash payments for ITIN filers, saying their focus had to be on existing programs first, given the budget shortfall.
Meanwhile, in New York City, officials have said they will keep providing basic shelter as required by local law, but have begun reducing less urgent services to try to slow down spending.
There are, of course, differing opinions. Some believe that cutting these programs will hurt vulnerable people and could make problems worse in the long run. Others argue the costs are just too high to keep adding new benefits at a time when deficits are growing.
The Human Side: What Do Cuts Mean for People?
For many immigrants, changes being discussed in places like California would have real impacts:
- Losing access to Medi-Cal means going without regular doctor visits, medicine, or care for chronic conditions like diabetes or high blood pressure.
- Reduced help with rent or food could push some families into homelessness or hunger.
- Cuts to education programs, including legal help for young immigrants, could slow down their progress in school or make it harder to build a new future.
On the other hand, state and city officials say they need to keep basic programs running for everyone—including citizens and long-time residents. Some fear that if debts keep growing, everyone will eventually face bigger cuts to schools, bridges, or even police and fire services.
What Happens Next?
Right now, pressure is coming from all sides:
- States are asking for more federal help, but there is not always enough funding.
- Local leaders are looking for ways to control costs, such as by reducing or delaying services.
- Immigrant groups and advocates are speaking out, warning that cuts can put lives at risk or increase long-term costs when untreated problems get worse.
Governor Newsom’s suggestion to freeze Medi-Cal enrollment for undocumented adults is one clear example of the kinds of tough choices ahead. Other proposals, like cutting long-term care or reducing legal help for immigrants, show how deep the cuts could go.
Similarly, New York City will likely need to keep making trade-offs as asylum seeker numbers remain high. New Jersey and other states may reconsider new benefits as the costs of supporting new arrivals continue to rise.
For residents of places like California, these debates affect daily life. Taxpayers, teachers, nurses, landlords, and store owners all watch carefully, since every dollar spent on migrant-related services is a dollar that cannot go to something else.
The Broader Picture
States with large immigrant populations and strong public programs are finding it hard to support so many new arrivals at once, especially without extra federal funds. The combination of rising costs and tight budgets will likely force many states to reconsider not just how much help to offer migrants, but how to run their entire safety net for everyone.
For more information about state programs and costs, or to learn about official rules on Medicaid and immigrant benefits, visit trusted sources such as state government websites. Readers can always find up-to-date federal guidelines at the U.S. Medicaid page.
In summary, California’s struggles with costs for Medicaid (including Medi-Cal), as well as food and housing programs, are similar to what is happening in New York and New Jersey. The debate over how to handle the growing expenses—sometimes called “costos migratorios”—is ongoing, and will continue to shape state politics and budgets for years to come. Those decisions affect not only recent arrivals, but every single resident who counts on public support for health, education, or simply a fair chance at a better life.
Aprende Hoy
Medi-Cal → Versión californiana de Medicaid que ofrece cobertura de salud a residentes de bajos ingresos, incluyendo indocumentados desde 2024.
Déficit → Situación en la que el gasto gubernamental supera los ingresos, obligando a recortes o búsqueda de nuevos fondos.
Migrantes indocumentados → Personas que residen en un país sin autorización legal oficial o documentos válidos.
Solicitantes de asilo → Individuos que huyen de su país y solicitan protección internacional por peligro o persecución.
Número de Identificación Personal del Contribuyente (ITIN) → Número usado para fines fiscales por quienes no califican para un Seguro Social, incluyendo inmigrantes.
Este Artículo en Resumen
California, Nueva York y Nueva Jersey enfrentan crecientes costos migratorios que presionan los presupuestos y generan difíciles decisiones. Medi-Cal, expandido en California, encabeza los gastos. Los líderes estatales evalúan congelar beneficios y reducir ayudas a indocumentados, afectando a inmigrantes y residentes. Estas decisiones modelarán los servicios sociales y de salud estatales.
— Por VisaVerge.com
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