California Gov. Gavin Newsom signed a supplemental budget bill Monday that appropriates $2.8 billion to cover higher-than-anticipated Medi-Cal costs.
The budget trailer bill,
The bill appropriates $11.3 billion in spending as a revision to the 2024-25 budget, rather than as part of the fiscal year 2026 budget lawmakers will approve in June.
On Thursday, the Senate passed Assembly Bill 100 by a vote of 29-7, and the Assembly voted 56-7 to concur, with Republicans voicing opposition largely because Medi-Cal, California's Medicaid program, covers undocumented immigrants.
"All of us support Medi-Cal; it's affordable health insurance for the neediest among us, but this program is at risk because Newsom decided to provide a gift of public funds to provide insurance for illegal immigrants and their families," said Assemblymember Carl DeMaio, R-San Diego in floor remarks ahead of the vote.
"When he first proposed it, he said it would only cost $6.5 billion – and today we learn it costs $9.5 billion to give free healthcare to illegal immigrants," DeMaio said.
The budget bill authorizes general fund spending of $2.8 billion to support the Medi-Cal deficiency the governor announced in mid-March compared to his January budget proposal and an additional $8.3 billion in federal matching funds for the same purpose.
Democrats, who control both the Senate and Assembly, spoke in favor of the program.
Assemblymember Dawn Addis, D-Morro Bay, said the Assembly health budget subcommittee are looking at ways to stem rising healthcare costs and recognize that federal funding is threatened.
"I am completely offended by the comments made about healthcare for undocumented immigrants," said Assemblymember Jasmeet Bains, D-Delano. "The idea that covering undocumented healthcare will increase healthcare costs is a completely nonsensical argument."
Bains, a physician, said without healthcare coverage, patients show up in the emergency room at the late and more costly stages of a disease, rather than at a clinic where they can receive preventive care.
"We are not backing down," Sade Elhawary, D-Los Angeles, said during the pre-vote debate. "We are going to make sure everyone gets the care they need."
DeMaio had sent a
"Medi-Cal is billions of dollars over budget with no clear explanation or accountability from the governor's office," DeMaio said.
The letter claims that general fund spending on Medi-Cal has nearly doubled in six years to $42.1 billion, and total spending on Medi-Cal has grown by 84% to $188.1 billion. Republicans blame the expansion of Medi-Cal benefits to undocumented immigrants for the soaring costs.
The state began offering full-scope Medi-Cal benefits to undocumented children in 2016, adding additional age groups in increments, and then offering the benefits to all undocumented immigrants in 2024.
Newsom Monday also signed an
