California is borrowing $3.44 billion this month to keep its Medicaid program running as costs surge due to expanding healthcare coverage for illegal immigrants. The state’s financial crisis is worsening, and taxpayers across the country are footing the bill.
Key Facts:
- California will take out a $3.44 billion emergency loan to fund Medi-Cal through March.
- Costs for covering illegal immigrants have soared from an estimated $3 billion annually to $8.4 billion for 2024-25.
- California has already been using a Medicaid loophole to funnel federal taxpayer dollars into its system, avoiding its fair share of costs to the tune of $19 billion.
- State officials blame rising prescription costs and an aging population for the budget strain.
- Governor Gavin Newsom’s administration insists cutting benefits for illegal immigrants is not an option.
The Rest of The Story:
California’s Medicaid program, Medi-Cal, is running out of money faster than expected due to expanding coverage for illegal immigrants.
When the expansion was first proposed, the cost was estimated at $3 billion per year.
That figure has nearly tripled, ballooning to $8.4 billion, forcing the state to request an emergency loan.
Typical of the secretive Newsom Administration, they just quietly dropped a damning notification that they are taking a $3.44 BILLION loan to fund free healthcare for illegal immigrants.
The loan is being taken from tax dollars meant for healthcare providers.
This program is… pic.twitter.com/5c6wX7ukHa
— Brian W. Jones (@SenBrianJones) March 13, 2025
To make matters worse, California has been using a controversial Medicaid funding scheme.
A study by EPIC and the Paragon Health Institute found the state manipulates Medicaid provider taxes to generate federal reimbursements, redirecting billions in taxpayer money while avoiding its own financial responsibility.
This has allowed California to secure more than $19 billion in federal funds without contributing its fair share.
In a new paper, @brian_blase and I expose how California launders federal funds through a tax on Medicaid insurance plans to cover illegal immigrants.
While the feds covers 50% of Medicaid for the disabled & pregnant in California, they pay 100% for illegal immigrants. pic.twitter.com/Q6cHBCXwkU
— 𝙿𝚊𝚞𝚕 𝚆𝚒𝚗𝚏𝚛𝚎𝚎 (@paulwinfree) March 12, 2025
Commentary:
California’s reckless spending on healthcare for illegal immigrants is now coming at the direct expense of American taxpayers.
The state is not only running out of money but is resorting to financial gimmicks to keep the scheme going.
This latest $3.44 billion loan is just another step in a long pattern of fiscal mismanagement.
For years, California has been using a Medicaid loophole to siphon federal taxpayer money, essentially laundering funds through provider taxes.
While hardworking Americans struggle with rising healthcare costs, California is expanding benefits to illegal immigrants without proper financial accountability.
This is nothing short of a national burden placed on taxpayers who had no say in the matter.
Meanwhile, Governor Gavin Newsom and other state officials refuse to consider cutting benefits for illegal immigrants, despite the overwhelming strain on the budget.
The cost overruns are so severe that even their federal money-laundering scheme can’t keep up.
Now, California wants more money in the form of loans, forcing Americans to subsidize their failed policies.
Enough is enough.
Why should the rest of the country be forced to bail out a state that actively encourages illegal immigration?
The Biden administration’s open-border policies have already saddled taxpayers with soaring costs for healthcare, housing, and social services.
Now, California is asking for even more.
If California wants to continue its radical policies, it should do so on its own dime—not by robbing taxpayers in other states.
The Bottom Line:
California’s Medicaid expansion has spiraled out of control, forcing the state to take out a $3.44 billion emergency loan just to stay afloat.
The state’s misuse of federal Medicaid funds has allowed it to avoid financial responsibility while pushing the burden onto taxpayers nationwide.
As costs continue to skyrocket, Americans are being forced to clean up the mess created by reckless policies.
It’s time to stop subsidizing California’s self-inflicted crisis.
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