Newsom Signs $2.8 Billion Medi-Cal Bailout Amid Soaring Illegal Alien Costs [WATCH]

California Governor Gavin Newsom signed off on a $2.8 billion bailout Monday to cover shortfalls in the state’s Medi-Cal program, after costs surged due to the expansion of benefits to illegal immigrants.

The bailout was confirmed by Newsom’s office Monday afternoon following a report from Fox News Digital. Last month, Newsom asked the legislature to authorize a $3.4 billion loan from the state’s general fund to help cover a $6.2 billion shortfall in Medi-Cal, California’s Medicaid system, which is jointly funded by state and federal taxpayer dollars.

The emergency funding is intended to keep the program solvent through June and cover healthcare services for roughly 15 million Californians enrolled in Medi-Cal—including about 1.6 million illegal immigrants.

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Republicans in the state legislature have raised concerns about the sustainability of Medi-Cal’s rapid expansion. California Senate Minority Leader Brian Jones pointed to deteriorating access to care as a direct result of the program’s growing enrollment.

“Meanwhile, healthcare access is plummeting. Wait times are growing. Democrats have made their choice: legal residents come second,” Jones said in a statement on X. “We must stop new enrollments of illegal immigrants and rein in this unsustainable program before it collapses entirely.”

Just now, Senate Democrats rubber-stamped another $3 BILLION for Newsom’s free healthcare for illegal immigrants—on top of the $9.5 billion already spent.

Meanwhile, healthcare access is plummeting. Wait times are growing. Democrats have made their choice: legal residents come…

— Brian W. Jones (@SenBrianJones) April 10, 2025

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When the Medi-Cal expansion was first announced, state officials projected the cost of covering noncitizens would be just under $6 billion for the 2024–2025 fiscal year.

However, updated estimates in Newsom’s latest budget proposal now show the actual cost ballooning to $8.4 billion for the upcoming fiscal year, and $7.4 billion for the following year.

The state’s Medicaid program now finds itself under increased scrutiny, as legislative Republicans push for broader spending cuts. A new GOP proposal on Capitol Hill seeks to trim $880 billion in federal spending over the next 10 years, with major reductions targeting Medicaid programs.

Republican leaders argue that ballooning entitlement programs—especially those that provide services to illegal immigrants—are pushing federal and state budgets toward insolvency.

California’s Medi-Cal program has long been a point of political contention, especially as the state expands access to benefits regardless of immigration status.

NEW: Gavin Newsom is asking for a $2.8 billion BAILOUT for CA’s Medicaid program after he opened it up to illegals. This is on top of a $3.4 billion loan issued last week.

This marks nearly $6.2 billion in just a few weeks. Why should taxpayers fund Medicaid for illegals? pic.twitter.com/qOW0fXwx6t

— Libs of TikTok (@libsoftiktok) April 15, 2025

The latest budget move by Newsom adds fuel to the broader national debate over taxpayer-funded healthcare for noncitizens.

Newsom’s office has not yet responded to additional requests for comment.

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