California Burns $11 Billion a Year on ‘Shadow Welfare System’ for Illegal Aliens [WATCH]

A Fox Business segment featuring Dagen McDowell, City Journal reporter Kenneth Schrupp and Brian Brenberg focused on claims that California is spending billions of dollars each year on benefits for illegal immigrants, including healthcare, housing, food assistance, cash support and cell phones.

McDowell opened the discussion by highlighting public interest in reporting on the issue, pointing to a video posted by Schrupp’s co-author, Chris Rufo.

“Joining us now, one of the reporters behind this City Journal reporter Kenneth Schrupp. Kenneth, great to see you. There’s a video that your co-author Chris Rufo posted on X. It’s almost got 9 million views. That’s how much people care about this issue,” McDowell said.

She then raised the question of direct financial assistance for illegal immigrants in California and how the state could afford such spending.

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“There are illegal aliens getting direct checks in California. How in the heck can that state even afford it?” McDowell asked.

Schrupp responded by arguing that California cannot afford the current level of spending.

He said Medi-Cal coverage for illegal immigrants alone costs the state at least $11 billion annually.

“Well, the state can’t afford it. We’re spending at least $11 billion a year on just Medi-Cal for illegal immigrants, but on top of that, we have everything from housing, food, and cash, and other benefits they can claim on behalf of themselves and their U.S.-born children,” Schrupp said.

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He described the collection of programs as a state-funded system designed to provide benefits despite federal restrictions on taxpayer money going directly to illegal immigrants.

“California has created a shadow welfare state to get around prohibitions on federal dollars going to illegal immigrants, and they’re funding it 100% with California taxpayer money,” Schrupp said.

He also connected the spending to California’s broader financial condition.

“And we see this every year: the state’s budget is going bust, and as Gavin Newsom walks out the door, we’re in dire fiscal straits,” Schrupp said.

Brenberg then focused on the relationship between state and federal funding.

He acknowledged that state funds are used for programs benefiting illegal aliens but argued that federal funding can still indirectly affect how California allocates its own money.

“They have to use state money, as I understand it,” Brenberg said.

He argued that because money can be shifted among different eligible spending categories, federal dollars may allow California to direct more state tax revenue toward programs for illegal immigrants.

“But to me, kind of the the trick in all that is money is fungible, so if they’re getting money from the feds, they use that for stuff technically that they can spend it on, and that, I guess, frees up their own taxpayers money to spend on illegals, so they’re sort of technically abiding by the law, but in reality, they’re ripping us off,” Brenberg said.

Schrupp agreed with Brenberg’s characterization and expanded on the range of benefits available.

“Yeah, that’s true. And these benefits are wraparound. They include everything from housing to free cell phones,” Schrupp said.

He also described one cell phone provider that, according to his reporting, accepts Mexican consular identification.

“And one provider that we talked to offering these cell phones, they say you can sign up with a Mexican consular ID, and that’s thanks to a recent rule change by Gavin Newsom,” Schrupp said.

Schrupp concluded by outlining what he said could be the total annual value of benefits available to certain households.

“And that’s, when we look at the cost of these benefits, you can get over $100,000 a year if you’re a family of five with two adults, one grandparent, and two U.S.-born children.”

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