Calif Dem Gov Newsom seeks pause on free healthcare for low-income illegal immigrants

California Democrat Gov. Gavin Newsom is seeking a pause on free state healthcare for low-income illegal immigrants amid budget challenges.

The reason for the pause is that the initial plan to expand California's free healthcare benefits to all low-income illegal immigrants ran $2.7 billion more than Newsom's administration expected, and President Trump's tariffs are estimated to cost the state $16 billion in tax revenues, according to the governor.

The indefinite pause means that low-income illegal immigrant adults will become ineligible to apply for California's Medicaid program in 2026. Children will not be impacted by the pause and those already enrolled will remain on their plans, the Associated Press reported.

In 2027, low-income illegal and legal immigrant adults on the program, called Medi-Cal, who are ineligible for federally-funded Medicaid, will have to pay a $100 monthly premium.

Newsom's office estimates that the changes will save California $5.4 billion by 2028-2029.

“The state must take difficult but necessary steps to ensure fiscal stability and preserve the long-term viability of Medi-Cal for all Californians,” the governor's office said in an announcement.