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State’s $3.4 Million Request to Shore Up Medi-Cal Sparks Immigration Debate
Republican Assemblymember Carl DeMaio (R-San Diego) criticized the expansion, warning that it could push the system toward financial collapse. He urged Gov. Gavin Newsom to suspend coverage for undocumented people, arguing that taxpayer-funded healthcare for noncitizens is unsustainable.
By Bo Tefu, California Black Media
California lawmakers have been notified that the state needs a $3.4 billion loan to keep Medi-Cal – the state’s Medicaid program which serves more than 15 million residents — financially stable.
The funding gap has rekindled political debates, especially regarding the program’s expansion to include undocumented immigrants.
Republican Assemblymember Carl DeMaio (R-San Diego) criticized the expansion, warning that it could push the system toward financial collapse. He urged Gov. Gavin Newsom to suspend coverage for undocumented people, arguing that taxpayer-funded healthcare for noncitizens is unsustainable.
“This is only the first of many loans that will have to be made if we continue to give free taxpayer-funded handouts for health care to illegal immigrants,” said DeMaio.
According to the Department of Finance, Medi-Cal coverage for undocumented immigrants is projected to cost $9.5 billion, surpassing the original $6 billion estimate.
Immigrant rights advocate Enrique Morones refuted claims that undocumented residents are to blame for the financial strain. He warned that eliminating coverage could deter individuals from seeking medical care, leading to costlier emergency treatments.
“Blaming immigrants is a distraction from the real issues: rising healthcare costs and an aging population. Denying coverage won’t save money; it will only shift the burden elsewhere,” said Morones.
Newsom’s office is emphasizing that Medicaid funding challenges are a nationwide issue, pointing to rising healthcare costs, an aging population, and post-pandemic enrollment spikes as key contributors. The administration noted that other states, including Pennsylvania, New Jersey, and Indiana are facing similar financial pressures.
While the federal government provides substantial Medicaid funding, it prohibits using those funds for undocumented immigrants, leaving California to cover the costs.
As lawmakers debate solutions, the future of Medi-Cal’s financial stability remains uncertain.
