Overview

• California will freeze new Medi-Cal enrollments for undocumented adults starting January 1, 2026, while maintaining coverage for current enrollees and children.
• Beginning in 2027, undocumented adults on Medi-Cal will be required to pay a $100 monthly premium, a measure expected to save $5.4 billion by 2028-29.
• The Medi-Cal expansion, which began in 2024, exceeded cost projections by $2.7 billion and contributed to the state’s growing fiscal challenges.
• Governor Newsom attributes part of the $12 billion budget deficit to economic pressures, including $16 billion in lost revenue from federal tariffs and stock market volatility.
• The revised plan underscores the tension between California's progressive policy goals and the state’s financial constraints, as lawmakers prepare to negotiate the final budget.