The California Department of Finance cleared a $3.44 billion loan to make up for a gap in Medi-Cal spending, which critics say is due to illegal immigrant healthcare costs, whereas the governor’s office argues it’s not out of the ordinary.
New: Gov. Newsom’s Dept. of Finance notified CALeg it needs a $3.44 billion loan for Medi-Cal.
Letter doesn’t say it, but state leaders expanded Medi-Cal last year to provide health insurance to undocumented people.
The administration underestimated how much that would cost. pic.twitter.com/EoKEGsh5VC
— Ashley Zavala (@ZavalaA) March 13, 2025
It was revealed a few weeks ago that the state had $6 billion in expected costs for Medi-Cal, but it is now roughly $9.5 billion. This comes after it became state law to allow people to qualify for the program regardless of their immigration status. Medi-Cal is the state’s Medicaid system for certain Golden State residents, which takes both federal and state taxpayer dollars, according to a state government website.
Critics of allowing the program’s availability to those who are in the country illegally strongly believe it is cause for concern.
“Gov. Gavin Newsom lied and cooked the books to gift all illegal immigrants free healthcare and now has stuck California taxpayers with a multibillion-dollar bill,” Rep. Carl DeMaio, R-San Diego, told Fox News Digital in a statement.
“This is so egregious that he needs to resign,” he continued.
DeMaio was the lawmaker who, in a hearing last month, questioned a state budget official who ended up revealing the higher spending figure for MediCal. DeMaio was later removed from the California State Assembly budget committee.
However, Democratic Gov. Gavin Newsom’s office said that California is not the only state facing spending issues with its state-based healthcare programs, such as Pennsylvania, Colorado and Indiana.
“This isn’t new — as the administration already outlined in the Governor’s January budget proposal, additional funding is needed to support Medi-Cal,” Izzy Gardon, a spokesperson for the governor, told Fox News Digital in a statement.
“Rising Medicaid costs are a national challenge, affecting both red and blue states alike. This is not unique to California.”
The border state continues to face scrutiny for its policies pertaining to people in the country illegally, whether it is for healthcare eligibility or “sanctuary” policies.
