California Gov. Gavin Newsom announced Wednesday that the state will freeze enrollment for undocumented adults in its Medi-Cal health care program starting in 2026, citing rising costs and economic strain from Trump‘s tariff policies.
The proposal halts new enrollments but allows current enrollees to stay on Medi-Cal. Beginning in 2027, those remaining will be charged a $100 monthly premium — a major shift from the current no-cost structure. Children and legally present individuals already on Medi-Cal won’t be affected.
California’s historic expansion of Medi-Cal to low-income adults without legal status cost $2.7 billion more than projected. Newsom’s administration says the changes will save $5.4 billion by 2029. The move comes amid a projected multibillion-dollar deficit, rising health costs, and fallout from federal trade policies the governor says have cost California $16 billion in tax revenue.
The Legislature, controlled by Democrats, must now weigh Newsom’s cuts before the June budget deadline. The state already provides health coverage to over a third of its 39 million residents.
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