Gavin Newsom approved a $2.8 billion bailout to fund Medi-Cal after runaway costs from expanding coverage to illegal immigrants. Critics say legal residents are suffering while the state spends billions it doesn’t have.
Key Facts:
- Gov. Gavin Newsom signed a $2.8 billion bailout on Monday to fund Medi-Cal through June.
- California expanded Medi-Cal to cover 1.6 million illegal immigrants, now part of 15 million enrollees total.
- Originally projected to cost $6 billion, the program is now estimated at $8.4 billion for FY 2024–2025.
- Newsom had previously requested a $3.4 billion loan from the state’s general fund.
- Republicans are calling for a halt to new enrollments and pushing for major Medicaid cuts nationwide.
Rest of the Story: Newsom Signs Bailout for Medicaid Covering Illegal Migrants
Governor Gavin Newsom’s administration confirmed a $2.8 billion bailout to plug a hole in California’s Medi-Cal budget.
The shortfall comes after Newsom expanded the program last year to include illegal immigrants, swelling the total number of enrollees to 15 million.
The bailout follows a larger request made last month by Newsom for a $3.4 billion loan to help cover the now $6.2 billion budget gap in Medi-Cal.
The latest numbers project the program will cost $8.4 billion in the upcoming fiscal year — nearly 40% more than originally planned.
Republican lawmakers warn the system is buckling, with legal residents reporting longer wait times and fewer available services.
GOP leaders argue that covering illegal migrants is not only costly but unfair to those who follow the rules.
Democrats claim the extra $3 billion isn’t just for illegal immigrants, it’s for the entire Medi-Cal program.
But ask yourself this:
If we hadn’t spent nearly $10 billion on free healthcare for illegal immigrants, would Medi-Cal be in crisis at all? #FixCalifornia https://t.co/5eN39X24NV— Brian W. Jones (@SenBrianJones) April 10, 2025
Commentary: Why Newsom’s $2.8 Billion Healthcare Bailout Is a Failure of Leadership
Governor Newsom’s decision to offer free healthcare to illegal immigrants without consulting voters has pushed California into a deeper fiscal crisis.
Instead of prioritizing services for citizens, the governor unilaterally expanded coverage and now expects taxpayers to foot the bill — again.
The numbers are staggering: just a year after the expansion, the program is already $2.4 billion over budget.
Newsom’s office insists the bailout will keep services running, but for whom?
Legal residents are stuck with longer wait times while resources go to those who are in the country unlawfully.
This is not just a state problem.
Medi-Cal uses federal funds, meaning taxpayers from across the country are partially paying for California’s decision to subsidize illegal immigration.
That’s not only unfair — it’s unsustainable.
Republicans are right to demand an audit.
AUDIT NEWSOM! I’ve officially requested an investigation into Gavin Newsom’s Medi-Cal scandal. He’s bankrupted the program by giving $10B in free healthcare to illegal immigrants—and there’s strong evidence he illegally tried to get federal Medicaid reimbursements. WATCH: pic.twitter.com/ATy99V94XS
— Carl DeMaio (@carldemaio) April 13, 2025
There must be transparency about how billions are being spent and whether the promises made to Californians are being kept.
With a federal bailout quietly funneled through state channels, the question isn’t just about healthcare anymore — it’s about accountability.
Enough is enough.
Lawmakers need to draw a line.
Healthcare should not be a blank check — especially when taxpayers were never asked if they agreed to this policy.
Californians deserve better. So does the nation.
The Bottom Line: Newsom’s Medicaid Expansion Drives Costs and Controversy
Gavin Newsom’s $2.8 billion bailout for Medi-Cal reveals the consequences of expanding healthcare to illegal immigrants without fiscal restraint or voter input.
The ballooning costs now top $8.4 billion and threaten to destabilize the entire system.
Republicans are demanding action, from stopping new enrollments to cutting federal spending.
As California’s finances falter under Newsom’s policies, the burden is spreading beyond the state — to taxpayers nationwide.
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