California Gov. Gavin Newsom will release a budget plan Wednesday that will cut health care benefits for undocumented immigrants, his office said.
Newsom's office said the plan would help balance the state's budget, which would be a clear reversal of Democratic governor's commitment to universal health care for all, including "all low-income adults," regardless of their immigration status.
"Despite the federal government's financial uncertainty, Governor Newsom will announce the continued health insurance for undocumented Californians, but there are new regulations to reduce costs," Newsom spokesman Izzy Gardon said in an email.
The move is expected to announce a budget speech later Wednesday as President Donald Trump's administration says it will investigate other aid programs for California's proposed undocumented immigration.
The factual statement in the proposal provided by the Newsom office says he will freeze his 2025-26 budget for "undocumented adults" to get the full scope of the state's Medicaid program, called Medi-Cal. Newsom's office said the changes only apply to new applicants over the age of 19, existing participants will not be initiated by their program, and the freezing will not apply to those participating in limited programs, such as those who specifically cover emergency or pregnancy services. The freeze will begin in 2026.
The proposed changes also include a $100 monthly premium for adults aged 19 and older, "unsatisfactory immigration status". "It refers to people with immigrant status that make them ineligible for federally funded Medicaid, including those with legal status and undocumented," the Newsom office said. The increased premium will begin in 2027.
The Newsom office’s factual note also said he needed to take “corrective action” due to the $16 billion shortfall in state revenue, which was attributed to “Trump’s swing against tariffs” and increased the cost of Medi-Cal from senior registrations.
The plan also emerges, with Congressional Republicans pushing forward a bill that would cut Medicaid funds by 10% to provide health care coverage to California like California does.
Newsom's cost of Medi-Cal expansion far exceeded his government's expectations. Earlier this year, Newsom filed consecutive loan requests to help fund rising costs, the product of undocumented immigrants living in California in providing plans.
Newsom's office said the moves proposed in the budget need to be approved by democratically controlled state legislatures and will save states $5.4 billion in the 2028-29 budget year.
These proposals are very different from Newsom's groundbreaking plan, which expands government-provided health care for all low-income adults, including immigrants living in the country illegally. These expansions have resulted in billions of dollars in balloon costs in recent years.
The statement of printing materials provided by the Newsom office claimed that the changes would help his administration to keep its commitments and that the governor “still committed to protecting” the immigrant communities.
"California is leading the nationwide opportunity to expand health care. While fiscal headwinds now require tough decisions, our commitment to visits remains," the statement said. "These changes are designed to retain the commitment, protect the coverage of millions of Californians, and retain the strength of our values and the health care system."
Newsom, widely regarded as a potential contender for the 2028 Democratic presidential nomination, has raised rights in recent months on a series of well-known policy issues.
Earlier this week, Newsom called on California cities to adopt policies that would “unstop” clear the streets of homeless camps.
In a podcast interview with conservative commentator and Trump Ally Charlie Kirk, Newsom angered some of the allies in the LGBTQ community, who said he opposed trans athletes’ participation in women’s and women’s sports.