California Governor Halts Medi-Cal for Low-Income Immigrants

Key Takeaways

• Governor Newsom proposes pausing new Medi-Cal enrollments for undocumented adults starting January 2026.
• Current undocumented adult enrollees must pay a $100 monthly premium to keep coverage beginning in 2027.
• California estimates nearly $5 billion in savings by 2028 from these Medi-Cal eligibility and cost changes.

California Governor Gavin Newsom has announced a major change in the state’s approach to health care for low-income immigrants. Under his new budget plan, the governor aims to pause the expansion of Medi-Cal, which is the state’s version of Medicaid, to some immigrants without legal status. This proposal highlights growing concerns about the state’s budget and has sparked strong reactions from many groups across California.

What Is Governor Newsom Proposing?

Governor Newsom’s latest budget suggests stopping new enrollments in Medi-Cal for undocumented adults starting in 2026. Before this, the state allowed all income-eligible people, no matter their immigration status, to join Medi-Cal if they met the financial requirements. The California governor’s update will shift this rule so that, in just a couple of years, adults aged 19 and older who are undocumented will no longer be able to newly enroll in Medi-Cal. Children and teenagers in this group will still be able to join, with no changes to their coverage.

Newsom’s plan doesn’t completely remove health care from undocumented adults already enrolled in Medi-Cal. Those currently covered will be allowed to stay in the program, but starting in 2027, each person will need to pay a $100 monthly premium to stay insured. This is a new cost for these low-income immigrants, who did not have to pay such premiums before.

The main reason behind this proposal is financial. California is struggling with a large budget deficit, and by making these changes, state leaders estimate that the move will save about $5 billion by 2028. These savings come from limiting who can join Medi-Cal and from the extra money collected through the new monthly premiums for those who keep their coverage.

Background: How Did California Get Here?

California has been a national leader in expanding health care access for immigrants. Since 2020, Governor Newsom and state lawmakers have opened the door for more undocumented immigrants to join Medi-Cal, step by step. The most recent progress made sure that all residents fitting the income rules—regardless of their immigration status—could get state-backed health care. This was seen as a big achievement for immigrant rights and efforts toward universal health care in California.

But as this happened, the costs began to rise. Covering more people, especially undocumented immigrants, made expenses higher than expected. Seniors’ care costs also went up, making it tough for the state to balance its budget. Suddenly, Medi-Cal needed an extra $6.2 billion to keep running smoothly, much more than lawmakers had planned for.

According to Governor Newsom, larger economic pressures have added to the state’s troubles. The governor’s team blames policies from the federal government—especially tariffs put in place during President Trump’s administration—for reducing state revenues by $16 billion. Tariffs, which are taxes on goods from other countries, can hurt a state’s income if they make business more difficult.

All of these problems have forced California to look again at its promises and how much it can afford to keep them.

Breaking Down the Changes: Who Is Affected?

Let’s look closely at what this means for real people across California:

• No New Enrollment for Adults: After January 2026, adults 19 and older without legal immigration status will not be allowed to join Medi-Cal as new members. If you’re not already enrolled by then, getting coverage will not be possible for these adults.
• Current Members Face New Fees: Those who are undocumented, age 19 and up, and already in Medi-Cal will not lose their coverage. However, starting in 2027, they’ll have to pay $100 every month to keep their insurance. This new premium may be a burden for many low-income immigrants.
• Children Stay Covered: No changes will take place for children and teenagers without legal status. They remain eligible for state-supported health insurance, and their families will not face extra fees or new rules.
• Estimated Savings: By freezing new enrollments and adding premiums, California predicts it will save nearly $5 billion through the 2028 budget year.

Here’s an easy-to-read table that compares the current policy and the proposed changes:

Why Did the Governor Change Course?

Governor Newsom had been a champion of expanding health care to all, no matter their immigration status. He often spoke about making sure every California resident could get medical care, and the newest rules were supposed to help those the system had often left out—low-income immigrants without legal status.

But now, Newsom says the money is simply not there. Rising costs for Medi-Cal, especially for seniors, and a sudden spike in the program’s needs made it impossible to keep expanding. Adding to this, state officials believe California is pulling in less money because of tariffs and other federal economic moves seen during President Trump’s presidency.

In public remarks, Governor Newsom has tried to show that this is not a full reversal of his earlier goals. He explained that these steps are meant “to uphold that commitment [to universal coverage], safeguard coverage for millions… and maintain integrity” while dealing with harsh financial realities.

Political Response: Divisions and Debates

Not surprisingly, the plan has touched off a debate at every level. Newsom is a member of the Democratic Party, which has long supported health care for all. Many Democrats believe cutting back on immigrant health care, after just making progress, is a mistake. They see health coverage as not just practical but also as a symbol of fairness and equality.

Democrats in the California legislature have pushed back hard, saying they do not want to undo the steps they fought to put in place since 2020. They argue that the cost of health care for low-income immigrants is worth it because it improves lives and brings the state closer to true universal health care. Several lawmakers and groups have already promised to fight for coverage when the full budget is up for debate in the coming weeks.

On the other hand, some conservative voices have long argued that Medi-Cal expansion went too far. To them, spending so much state money to cover undocumented immigrants is unfair to taxpayers and adds to budget problems during tough economic times. These critics point to the nearly $5 billion in expected savings as proof the new policy is smart and needed.

This proposal, then, sits at the crossroads of financial necessity and long-standing moral goals. The governor and his team face the hard task of explaining to the public why they can no longer keep promises made just a few years ago.

What Happens Next?

In the coming weeks, California lawmakers will debate Governor Newsom’s full budget plan. Nothing is final yet—these proposals could change as advocacy groups, health care leaders, and regular Californians weigh in.

If the policy goes forward as planned, it will:

• Continue coverage for low-income immigrants already in Medi-Cal, but at a higher monthly cost.
• Block new enrollments for adults without legal status after January 2026.
• Keep health care coverage steady for children and teens, with no change to their coverage.
• Move the state further from its recent push for universal health care access.

Leaders from immigrant rights and health advocacy groups say they plan to speak out against the proposed pause, hoping lawmakers will choose another way to save money that doesn’t target those already struggling. Many are worried that pushing more costs onto the shoulders of low-income immigrants will make some skip care, leading to worse health problems in the future.

Broader Impact: What Does This Mean for California and the Nation?

California has long been a model for other states when it comes to including immigrants in public health programs. The steps it took from 2020 to today inspired other places to consider similar policies. Pausing and even slightly rolling back health care access for immigrants, as Governor Newsom is now suggesting, could slow or even reverse that trend.

For people directly affected, the results could be serious. New adult arrivals and undocumented immigrants who miss the enrollment window will have to look elsewhere for medical help. Often their only choice will be to use urgent care services or emergency rooms, which are much more expensive and less efficient. Many health experts argue that this could cost the state more in the long run.

Others point out that requiring current members to pay $100 a month—especially when they already have low incomes—could push some to drop coverage entirely, leaving them uninsured again. This could move California away from its strong reputation for building safety nets for the vulnerable.

Looking at the Numbers

California is the most populous state in the United States and has a large immigrant population. Many of these residents work jobs that do not offer health insurance and make too little to pay for private coverage. Expanding Medi-Cal was meant to help fill this gap.

According to state estimates shared as part of Newsom’s new budget, enforcing the new rules and collecting new premiums will help save about $5 billion by the 2028 budget year. This money, officials say, is needed to keep the health care system running for everyone during hard times.

Still, this money comes at the cost of fewer benefits for certain Californians. Lawmakers now need to find a balance between saving public funds and protecting the most vulnerable.

Comments from Both Sides

Groups who support the governor say the new plan is responsible given the state’s financial issues. They point to the steep rise in Medi-Cal costs and less money coming in, and they believe a pause is better than cutting benefits even further or shutting out larger groups of people.

Meanwhile, health and immigrant rights advocates say that freezing enrollment and adding costs for low-income immigrants are harmful steps. They argue this group already faces major barriers getting care and that the policy may actually increase health system costs over time, because people put off care until small problems become emergencies.

Legislators from both sides are expected to weigh in. The coming debates in Sacramento could be lively and may result in changes to the plan before it becomes final.

What Should You Know or Do Now?

If you are a low-income immigrant in California, it’s important to stay informed during this time. Keep track of updates from the Department of Health Care Services, which oversees Medi-Cal. You can visit the official Medi-Cal website for the latest information on rules and eligibility.

If you’re already in Medi-Cal and undocumented, watch for notices about the planned $100 monthly premium starting in 2027. If you are not enrolled yet, consider acting soon, as the current proposal would close the door to new adult enrollments after January 2026 unless lawmakers change this timeline.

Those who care about public health policy or support immigrant communities might want to reach out to their state representative, participate in community meetings, or join in discussions about the next steps for health care in California.

Conclusion

Governor Newsom’s proposal marks a big turning point in California’s approach to health care for low-income immigrants. By freezing new enrollments and adding monthly costs for current members, the plan may help the state close a major budget gap, but it also raises tough questions about fairness and the promise of health coverage for all. As reported by VisaVerge.com, this issue is now at the heart of both state politics and the wider discussion about how to support immigrants during tight economic times.

The final decision lies with state lawmakers, who will weigh the budget numbers against the real-life effects on families and communities across California. In the weeks ahead, their choices will shape the health and well-being of thousands—and set a path that other states may follow for years to come.

Learn Today

Medi-Cal → California’s public health insurance program, similar to Medicaid, providing health coverage for low-income residents, regardless of immigration status.
Undocumented Immigrant → A person living in a country without legal immigration status or official authorization, affecting eligibility for public benefits.
Premium → A recurring payment required to maintain health insurance coverage, in this case, $100 monthly for certain Medi-Cal enrollees.
Budget Deficit → When government spending exceeds its revenues, creating financial shortfalls and prompting cuts or policy changes.
Tariff → A tax imposed on imported goods, which can impact state revenue and overall economic health.

This Article in a Nutshell

Governor Newsom’s revised budget plan freezes new Medi-Cal enrollments for undocumented adults in 2026 and adds $100 monthly premiums for current enrollees from 2027. Children remain unaffected. State leaders cite a massive budget shortfall, projecting $5 billion in savings, sparking statewide debate on immigrant healthcare and fiscal priorities.
— By VisaVerge.com

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