🚨 California Gov. Gavin Newsom (D-CA) is seeking federal funds after the state spent about $8 billion on healthcare for undocumented residents in 2025.
In 2025, California’s Medi-Cal program, which provides health coverage to low-income residents, expanded to include all undocumented immigrants. This move was part of a broader initiative to ensure healthcare access for all residents, regardless of immigration status. However, the expansion led to significant financial challenges.
The state initially projected costs of $8.4 billion for the fiscal year 2024-2025. These expenses were primarily funded through the state’s general fund. However, a portion of emergency services, such as emergency room visits and pregnancy care, were covered by federal funds under the Emergency Medical Treatment and Labor Act (EMTALA), which mandates hospitals to treat all patients in emergency situations.
Despite these federal contributions, the majority of the costs fell on California taxpayers. In response to the escalating expenses, Governor Newsom proposed a budget plan to scale back the program. The proposed changes included implementing monthly premiums for undocumented adults and freezing new enrollments. These measures aimed to reduce the state’s financial burden while maintaining essential healthcare services.
The federal government has also taken steps to address the issue. In October 2025, the White House for the first time acknowledged that enhanced federal funding for emergency care provided to undocumented immigrants, as allowed under the Emergency Medical Treatment and Labor Act (EMTALA), has led to increased federal spending.
The debate over funding healthcare for undocumented residents continues to be a contentious issue in California. While some argue that providing healthcare to all residents is a moral imperative, others contend that the financial strain on the state’s budget is unsustainable. As the situation evolves, it remains to be seen how California will balance its commitment to healthcare access with the fiscal realities it faces.
