Newsom Concedes Skyrocketing Healthcare Costs for Undocumented Immigrants Are 'Partial' Contributor to Medicaid Problem

California Governor Gavin Newsom has acknowledged that the soaring costs of the state’s Medi-Cal program—California’s version of Medicaid—are partly due to the inclusion of undocumented immigrants. However, he emphasized that this is only one piece of a broader national issue affecting healthcare expenses.

When questioned by a reporter about the program’s staggering $9.5 billion price tag, Newsom admitted, "That’s partial," referring to the impact of undocumented immigrant enrollment. The governor’s administration has been forced to request loans totaling $6.2 billion to manage the deficit, including $3.4 billion last week and another $2.8 billion more recently. Newsom remarked that these challenges had been previewed in earlier budget discussions.

Despite the financial strain, Newsom’s office remains committed to evaluating long-term spending proposals while safeguarding essential health and social services for Californians. His spokesperson, Izzy Gardon, noted on Tuesday that tough fiscal decisions lie ahead but assured the public that efforts to protect core services would not waver.

The Medi-Cal program has come under fire from Republican lawmakers, who argue that allowing enrollment regardless of immigration status is fiscally irresponsible. Senate Republican Minority Leader Brian Jones said in a statement, "Californians should not be forced to shoulder the burden of radical Democrats' reckless financial mismanagement." He criticized the program for exceeding its projected $6 billion budget by a jaw-dropping $3.5 billion and questioned Newsom’s plan to address what he called a "financial disaster."

Jones pointed out that even former Governor Jerry Brown had refused to expand Medi-Cal to undocumented immigrants, calling it unsustainable. Under Newsom, he argued, legal residents are left to bear the financial burden while facing reduced access to healthcare services.

Newsom defended California’s situation by drawing comparisons to similar challenges in other states, including Colorado, Pennsylvania, and Indiana, suggesting this is not a problem unique to the Golden State.

Currently, Medi-Cal serves roughly 15 million residents, 1.6 million of whom are undocumented immigrants, according to state estimates. The program is funded with taxpayer dollars at both the state and federal levels.

While the debate over Medi-Cal’s costs intensifies, one thing is clear: balancing the books for California’s healthcare system will require some hard choices—and perhaps a little less finger-pointing.