California’s Department of Finance has approved a $3.44 billion loan to address a growing budget gap in the state’s Medi-Cal program. Critics argue that the increased spending is a direct result of the state’s decision to offer healthcare benefits to illegal immigrants, while Governor Gavin Newsom’s office claims the shortfall is in line with national trends.
The state initially estimated a $6 billion funding gap for Medi-Cal, but that figure has since risen to $9.5 billion. The expansion of Medi-Cal eligibility to all residents, regardless of immigration status, has placed additional strain on the program, which is funded by both state and federal taxpayer dollars.
Critics of Newsom’s policies argue that the financial burden is unsustainable. Rep. Carl DeMaio (R), accused the governor of misleading taxpayers, stating, “Gov. Gavin Newsom lied and cooked the books to gift all illegal immigrants free healthcare and now has stuck California taxpayers with a multi-billion dollar bill.”
DeMaio went on to add, “This is so egregious that he needs to resign.”
DeMaio recently questioned a state budget official in a hearing, leading to the revelation of the higher Medi-Cal spending figure. He was later removed from the California State Assembly budget committee, raising concerns among conservatives about transparency in the state’s financial decisions.
The Newsom administration has downplayed concerns, arguing that other states, including Pennsylvania, Colorado, and Indiana, are also facing rising healthcare costs. Spokesperson Izzy Gardon defended the administration’s handling of the issue, stating, “Rising Medicaid costs are a national challenge, affecting both red and blue states alike.”
California’s border policies remain a contentious issue, with critics pointing to the state’s sanctuary laws and expanded benefits for illegal immigrants as key drivers of the financial strain.
