California Faces $6.2 Billion Medi-Cal Shortfall After Expanding Coverage to Immigrants

Governor Gavin Newsom reaffirms commitment to expanded healthcare access despite financial pressures and rising enrollment costs.

California's Medi-Cal program is grappling with a $6.2 billion budget shortfall, partly due to higher-than-expected enrollment from the 2024 expansion of coverage to immigrants without legal status.
Governor Gavin Newsom has requested an additional $2.8 billion loan to sustain Medi-Cal, following a $3.4 billion loan earlier this month, bringing total borrowing to $6.2 billion in March alone.
The recent expansion to cover all low-income adults regardless of immigration status is costing $2.7 billion more than initially projected due to underestimated enrollment numbers.
Republican lawmakers have criticized the policy, describing it as financially unsustainable, while Newsom and other Democratic leaders defend it as an investment in preventive care and equity.
California is also preparing for potential federal Medicaid funding cuts, which could further strain the program and force difficult decisions about coverage or funding sources.