California Proposes Enrollment Freeze for Undocumented Immigrants in Medi-Cal

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Illustration depicting the ramifications of policy changes in California's Medi-Cal program.

News Summary

California Governor Gavin Newsom has announced a proposal to freeze enrollment for low-income immigrants without legal status in the Medi-Cal program, effective 2026. This decision comes as part of efforts to address a $12 billion budget deficit and could save the state approximately $5.4 billion by 2029. Current enrollees will maintain their coverage, while new policies will require some adults to pay monthly premiums. This proposal has raised concerns among lawmakers and advocates regarding its impact on immigrant communities amid economic uncertainty and rising healthcare costs.

California – Governor Gavin Newsom has announced a proposal to freeze enrollment for low-income immigrants without legal status in the state’s Medi-Cal program starting in 2026. This decision is a direct response to a projected $12 billion budget deficit that the state is currently facing.

In his budget plan, which amounts to nearly $332 billion and was presented on May 14, 2025, Newsom estimates that the proposed changes could save California approximately $5.4 billion by the fiscal year 2028-2029. The cost of Medi-Cal for undocumented immigrants has surged, now exceeding initial projections and reaching $9.5 billion per year—a steep increase from the original estimate of $6.4 billion.

Under the new proposal, those currently enrolled in Medi-Cal will retain their coverage, with no changes affecting children. However, as of 2027, adults aged 19 and older on Medi-Cal who have been classified with “unsatisfactory immigration status” would be required to pay a $100 monthly premium.

The enrollment freeze and accompanying measures are part of a broader strategy to address rising health care costs, an increase in Medi-Cal enrollment, and economic uncertainty primarily linked to federal tariff policies. Reports indicate that California has experienced a revenue decline of $16 billion, attributed to these federal tariff policies initiated during the Trump administration.

Governor Newsom’s budget revision reflects the ongoing challenges his administration faces as it navigates health care policy amid speculation about a potential presidential run in 2028. Despite past defenses of expanding health benefits for low-income immigrants, critics have raised concerns over the impacts of the enrollment freeze on immigrant communities. Some lawmakers, including fellow Democrats, are expected to scrutinize and possibly oppose the proposed changes.

Despite criticism regarding external factors influencing the budget shortfall and the blame placed on federal policies, analysts maintain that the failure to properly address the budget may risk California’s long-term fiscal health and the support extended to its most vulnerable populations.

If federal legislation is enacted to cut Medicaid funding for states providing health coverage to undocumented immigrants, California could face further budget constraints, exacerbating the current financial situation. Governor Newsom has emphasized the state’s historical commitment to supporting immigrants and has claimed that California remains unmatched in the support it offers compared to other states.

The proposed enrollment freeze for low-income immigrants is a critical aspect of Governor Newsom’s budget strategy, aiming to adjust health care spending in the face of significant financial challenges. As the proposal undergoes further review and discussion among lawmakers, the potential impacts on public health and immigrant communities continue to draw attention across the state.