California Gov. Gavin Newsom has proposed a moratorium as the state faces economic uncertainty and enrolls more low-income immigrants without legal status in 2026.

Newsom outlined his nearly $332 billion state spending plan Wednesday, which shows that California faces a $12 billion budget deficit.

"California is under attack," Newsom said. "We have a president who has been reckless in attacking these growth engines."

The Democratic governor pointed out that the freeze does not mean that California is withdrawing from support for immigration.

"No state does more than California, and no state will continue to do more than California for a long time. It's a sense of pride," Newsom said.

Decide, These details are revealed ahead of Wednesday's budget revision introductionNewsom said the plan was priced higher than expected, and economic uncertainty over federal tariff policies was driven. As he faced his last years in the governor’s office, speculation continues to be speculated about his future political prospects.

California offers free health care benefits to all low-income adults regardless of their immigration status Announced at the end of 2023. Newsom touts the expansion of the program as “a step towards transformational change in strengthening the health care system for all Californians.”

However, that cost has exceeded the state's initial $6.4 billion estimate, more than $2 billion.

Still, until March, Newsom advised journalists that he was not considering bringing health benefits to low-income people living in the country illegally, even though California encountered a $6.2 billion Medicaid shortage. He also repeatedly defended the expansion, saying that it would save the country's money in the long run. The program is state-funded and does not use federal funds.

Under Newsom's program, low-income adults without legal status will no longer be eligible for Medi-Cal, the state's Medicaid program (starting in 2026). Due to the registration freeze, those who have already enrolled will not be initiated by their program and the changes will not affect the children. Newsom's office didn't say how long the freeze would last.

Beginning in 2027, adults with “unsatisfactory immigration status” on Medi-Cal, including those without legal status and who have legal status but do not meet federally funded Medicaid, will also have to pay a premium of $100 per month. This is consistent with the average cost for those who subsidize wasteland programs through California’s own market, the governor’s office said. Most people currently in Medi-Cal have no premium.

"We think people should have some skins in the game that are related to contributions," Newsom said.

Newsom's office estimates a total of $5.4 billion savings by 2028-2029.

Medi-Cal's expansion, coupled with other factors such as increased pharmacy costs and seniors' enrollment, forced California to borrow and authorize new funds to insert billion-dollar vulnerabilities earlier this year. California provides free health care for more than one-third of 39 million people.

The proposals were presented before Newsom's scheduled speech on the budget was updated. From Los Angeles wildfires, changing federal tariff policies, and expensive healthcare expansion put pressure on California's huge national budget. Legislators expect billions of dollars in shortfall this year, and more are expected in the coming years.

Newsom accused President Donald Trump of owing a shortage of tariff policies that are estimated to cost $16 billion in tax revenue. If Republicans in Congress follow a plan to cut billions of dollars in Medicaid and punish the state, California will also hit the big budget and provide health care for immigrants without legal status.

Newsom now opens budget talks with lawmakers, and it is unclear how Democrats who control the legislature respond to his plans to freeze the number of new Medi-Carl enrollment for some immigrants. The final budget proposal must be signed by June. California's budget is by far the largest state.

"It will be a very challenging budget," said Jesse Gabriel, the chairman of the Budget Committee, before announcing Newsom's proposal. "We will have to make some tough decisions."

The budget proposal proposed this week will be based on some of the implications of federal policy, but many unknowns remain.

The governor has said he plans to cut back on benchmark spending this year. Analysts and economists also warn that California will face a tens of thousands of dollars in the coming years due to the slowdown in the economy caused by the tariff war and volatility in the stock market.

The budget news first proposed in January included very little new spending. However, this allows the state to fully implement the country’s first universal transitional kindergarten program and increase the state’s movie and television tax credit to $750 million each year to bring back Hollywood jobs in New York and Georgia. He recently called on Trump to pass a $7.5 billion movie tax credit at the federal level.

Last year, Newsom and the Legislature agreed to lower the state’s rainy day fund, cut spending (including nearly 10% of nearly all state departments), and temporarily increase tax revenues for certain businesses to end an estimated $46.8 billion budget deficit.