Alright, so let’s dive into the latest news from Sacramento. Governor Gavin Newsom is backtracking on his promise to provide free healthcare to low-income undocumented immigrants. Turns out, the costs were way higher than expected, and the state is bracing for tough economic times ahead. Newsom’s new plan includes making undocumented adults pay $100 a month for Medi-Cal coverage and stopping new adult applications starting January 1st. It’s a move to save some cash and prevent the program from growing out of control. The changes are estimated to save about $5.4 billion by 2028-29, but we don’t have all the details on savings for the upcoming fiscal year yet.
Seems like California is facing a budget deficit in the near future, with Medi-Cal costs being a big part of the problem. The rising expenses have led to some backlash from Republicans and put pressure on Democrats to rethink healthcare coverage for immigrants. Despite the challenges, a recent poll showed that Californian voters are in favor of providing free healthcare to undocumented children, as well as older and younger adults. Medi-Cal, the state’s version of Medicaid, offers coverage to low-income residents, but with federal funding potentially on the chopping block, California’s finances could take another hit.
Governor Newsom’s budget shortfall is just one piece of the puzzle, with lawmakers already agreeing to hefty financial remedies to address the $27.3 billion gap. It’s the third year in a row that California has had to tighten its belt due to overspending and unrealistic projections. And let’s not forget about President Trump’s tariff policies, which are expected to cost the state billions in revenue over the next year and a half. With all these challenges on the horizon, California’s economic outlook is definitely uncertain. But hey, that’s politics for you.
