California's Budget Strain: Newsom's Tough Choices on Health Care for Immigrants

California Governor Gavin Newsom plans to cease enrolling low-income immigrants without legal status in a state-backed health care plan starting in 2026, citing unsustainable costs and economic instability due to federal tariff policies. The bold maneuver underscores Newsom's efforts to safeguard his liberal policies despite budgetary pressures in his final gubernatorial years.

The state, which pioneered offering free health benefits to all poor adults regardless of their legal status, found the program's cost vastly exceeded expectations—$2.7 billion over initial estimates. Newsom maintains that while painful, these measures are essential to maintaining fiscal stability and ensuring the long-term sustainability of Medi-Cal for all Californians. By levying a new $100 monthly premium from 2027 on those currently enrolled, the state aims to save $5.4 billion by 2028-2029.

The proposals arrive in the wake of significant challenges to the state budget, as Newsom confronts implications from Los Angeles wildfire recoveries and federal policies. The state's economic landscape is set to grapple with potential cuts to Medicaid by Congress, affecting health care access for immigrants. With negotiations pending with Democratic lawmakers, California faces an arduous road to fiscal balance, as it proactively adjusts to the economic hurdles ahead.

(With inputs from agencies.)