California spends $12.1 billion on illegal immigrant healthcare, defying voters and risking fiscal collapse
By isabelle // 2025-06-16
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  • California's $12.1 billion budget allocates free healthcare for illegal immigrants via Medi-Cal despite a $58 billion deficit.
  • The state borrowed $3 billion to cover unexpected costs, risking new taxes on struggling families.
  • Federal Medicaid cuts could slash $11.2 billion annually, worsening California’s financial crisis.
  • Doctors flee due to low reimbursement rates, leaving citizens with dwindling healthcare access.
  • Critics call the program unsustainable, prioritizing illegal immigrants over taxpayers footing the bill.
California’s latest budget allocates a staggering $12.1 billion to provide free healthcare for illegal immigrants through Medi-Cal, despite a $58 billion deficit. The state has borrowed more than $3 billion to cover unexpected costs from the program in a reckless fiscal gamble that could soon force new taxes on struggling families. Worse yet, pending federal Medicaid reimbursement cuts could slash $11.2 billion annually from California’s budget, leaving citizens to foot the bill for a program they never approved. This isn’t just fiscal mismanagement; it’s a betrayal of the very people Sacramento claims to serve. While Gov. Gavin Newsom’s administration touts "healthcare for all" as a moral victory, the reality is a bankrupt system prioritizing illegal immigrants over vulnerable citizens, with doctors fleeing the state and emergency loans propping up an unsustainable scheme.

Medi-Cal expansion fuels budget crisis

California’s march toward fiscal insanity began in 2016 when it first expanded Medi-Cal, the state’s taxpayer-funded healthcare program for low-income residents, to include illegal immigrant minors. By 2024, the state had opened the floodgates to all illegal immigrants, despite federal law prohibiting Medicaid reimbursements for non-emergency care. The result? A program hemorrhaging money, with costs ballooning $5 billion beyond initial projections. "The state has had to borrow more than $3 billion to cover unexpected increases in Medi-Cal expenses—largely attributed to this expansion," the PPIC confirmed. Even Newsom’s proposed "pause" on new enrollments in 2026 and a reduced $30 monthly premium (down from $100) won’t stop the bleeding. Assemblyman Carl DeMaio (R–San Diego) blasted the budget as a "gift of public funds to illegal immigrants," warning that federal penalties for the expansion could cost California $11.2 billion yearly—more than double Newsom’s estimate. "Why are you doing it? So you can give $12.1 billion in a gift of public funds to illegal immigrants, prioritizing illegal immigrants over your own citizens," DeMaio declared in a fiery Assembly floor speech.

Federal backlash looms

The financial reckoning may worsen if federal lawmakers pass a House-backed plan to slash Medicaid reimbursements by 10% for states covering illegal immigrants. Newsom’s office claims this "extreme MAGA proposal" could collapse safety nets, but critics argue California invited the crisis by flouting federal guidelines. Meanwhile, Democrats like Sen. Lena Gonzalez (D-Long Beach) openly admit they’re "looking at all—across the picture—everything related to our budget" to fund the program, hinting at new taxes. With Medi-Cal already insolvent and doctors refusing patients due to pitiful reimbursement rates, even liberal lawmakers concede the system is broken.

A broken promise to citizens

Republicans like Senate Minority Leader Brian Jones note the cruel irony: while Democrats boast of "universal coverage," the reality is a hollow promise. "A lot of doctors in California that used to provide Medicare and Medicaid have closed up shop, moved to other states," Jones told Fox News. "The reimbursement rates are so low, doctors actually lose money." Assembly Minority Leader James Gallagher called the budget "a total disaster" fueled by unchecked migration. "We have a completely unsustainable, bankrupted Medi-Cal system," he said, noting the $3.4 billion in emergency loans. California’s experiment in radical healthcare expansion has proven one thing: when politicians prioritize ideology over fiscal reality, citizens always pay the price. With federal cuts looming and state taxes likely rising, the only "universal" truth is that taxpayers, not illegal immigrants, will bear the burden of Sacramento’s failures. California’s leaders have chosen fiscal suicide to virtue-signal their "compassion," ignoring the will of voters and the laws of economics. The Medi-Cal disaster is a warning: when governments reward illegal immigration with free benefits, citizens lose their healthcare, their wallets, and ultimately, their voice. The $12.1 billion question remains: How much longer will Californians tolerate being last in line for their own state’s resources? Sources for this article include: JustTheNews.com Budget.House.gov FoxNews.com
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