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Congress advances $3.5 billion cut for CA for illegal immigrant health care

  • A recent Congressional budget plan aims to reduce California’s federal funding by $3.5 billion due to the state’s policy of providing health care to undocumented immigrants.
  • The reduction in federal funding for California stems from lowering the government's contribution rate for Medicaid coverage related to the ACA expansion from 90% to 80%, impacting the state's program that permits undocumented immigrants to access Medi-Cal.
  • This year, California allocated $9.5 billion from taxpayer funds to provide health care coverage to approximately 1.9 million undocumented immigrants through its state program.
  • California Governor Gavin Newsom, an advocate for universal health care, has stated that terminating Medi-Cal coverage for undocumented immigrants is not a measure he plans to consider, despite the state grappling with a $10 billion budget shortfall.
  • The proposed cut could worsen California's budget deficit and pressure the state to make further cuts, raise taxes, or both, while Republican lawmakers warn that continuing benefits risks Medi-Cal's solvency.
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Congress advances $3.5 billion cut for CA for illegal immigrant health care

(The Center Square) - A new Congressional budget proposal would cut federal payments to California by $3.5 billion for allowing illegal immigrants to enroll in the state’s taxpayer-funded health care program.

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regionalmedianews.com broke the news in on Monday, May 12, 2025.
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