California lawmakers are set to vote Friday on a budget proposal that would freeze enrollment in a state-funded health care program for immigrants without legal status, aiming to address a $12 billion deficit.
This plan, a trimmed-down version of Governor Gavin Newsom’s May proposal, reflects the state’s third consecutive year of budget shortfalls, pushing Democratic leaders to scale back progressive initiatives, including the landmark Medi-Cal expansion for low-income undocumented adults.
The state, which boasts the nation’s largest budget, currently covers over 1.6 million undocumented individuals in its health care program, but rising costs have prompted tough choices.
Newsom’s original plan would halt new Medi-Cal enrollments for undocumented adults starting in 2026, with existing enrollees facing a $100 monthly premium by 2027 to save $5.4 billion by 2028-2029.
Lawmakers, however, propose a $30 premium for adults aged 19-59 and a six-month reenrollment window for those who miss payments, projecting $3.8 billion in savings by 2027-2028.
Tensions Rise Amid Immigration Crackdown and Protests
The budget vote coincides with heightened tensions in Los Angeles, where President Donald Trump’s immigration crackdown has sparked days of protests, some escalating into clashes with law enforcement.
Trump deployed over 4,000 National Guard members and 700 Marines, citing violent demonstrations, despite objections from state and local leaders who argue the protests have been largely peaceful.
California has filed a lawsuit to block the federal deployment. Critics, including Masih Fouladi of the California Immigrant Policy Center, warn that the Medi-Cal enrollment freeze could push people into emergency rooms if they can’t afford premiums, stating:
“This is no way to respond to concerns about the health and safety of communities that power our economy and contribute billions in state taxes.”
The budget debate emphasizes the challenge of balancing fiscal responsibility with California’s commitment to inclusive policies, as the state was among the first to offer free health care to all low-income adults, regardless of immigration status.
Lawmakers Navigate Fiscal and Political Pressures
As negotiations continue before the July 1 fiscal year deadline, lawmakers face pressure to pass a balanced budget or risk losing their salaries.
Republican state Sen. Roger Niello criticized the proposal, arguing, “We have a structural deficit of ongoing programs continuing to increase at a greater rate than revenues are increasing. So far, there’s nothing seen to reverse that.”
Some Democrats, like state Sen. Caroline Menjivar, expressed unease, noting, “People have already a decreased amount of trust in government and when we continue to go back on our words, it makes it even harder.”
However, state Sen. Akilah Weber Pierson defended the plan, emphasizing that it preserves coverage for current enrollees and avoids deeper cuts, such as those proposed for in-home care services or Planned Parenthood funding.
“No one who is currently covered will lose their health care coverage,” she said. With potential federal cuts and economic uncertainties like tariffs looming, California’s leaders are bracing for further fiscal challenges while striving to uphold the state’s progressive legacy.
