California Legislature OKs proposal to freeze health care access for
some immigrants
[June 14, 2025]
By TRÂN NGUYỄN
SACRAMENTO, Calif. (AP) — California lawmakers on Friday approved a
budget proposal to freeze enrollment in a state-funded health care
program for immigrants without legal status to help close a $12 billion
deficit.
Their plan is a scaled-back version of a proposal Democratic Gov. Gavin
Newsom introduced in May. California, with the largest state budget in
the country, is facing a deficit for the third year in a row. This
year's budget shortfall has forced Democratic leaders to start cutting
back on several liberal policy priorities, including to the landmark
health care expansion for low-income adult immigrants without legal
status.
The vote comes as tensions escalate in Los Angeles over President Donald
Trump's immigration crackdown across Southern California. As protesters
took to the streets and, at times, clashed with law enforcement in
dayslong demonstrations, Trump said protests had turned violent and
activated more than 4,000 National Guard members and 700 Marines over
the objections of city and state leaders. The demonstrations have
largely been peaceful. California has sued the federal government to
stop the deployment.
The decision to freeze Medicaid enrollment highlights Democratic state
leaders’ struggle to protect progressive priorities against budget
challenges. Illinois and Minnesota, also led by Democratic governors,
are on track to end health care access to low-income adults without
legal status after facing budget shortfalls this year.
It is not the state’s final spending plan. Newsom and legislative
leaders are still negotiating solutions before the start of the new
fiscal year on July 1. Lawmakers must pass a balanced budget by Sunday
or else they would forfeit their salaries. Democratic state leaders are
also bracing for potential federal cuts to health care programs and
other broad economic uncertainty such as federal tariff policies that
could force them to make even deeper cuts.
Republican lawmakers say the Legislature's budget doesn't do enough to
rein in costs ahead of future deficits. The caucus unsuccessfully pushed
for a proposal Friday that would have eliminated funding for the health
care programs for low-income people without legal status, among other
things.
“It's a difficult budget because of the unsustainable spending that the
governor and the legislative Democrats have been doing over many years
now,” Republican Assemblymember James Gallagher said Friday after the
vote.
Freezing access and adding premiums
The state has more than 1.6 million people without legal status enrolled
in its health care program this fiscal year, according to the budget.
Under Newsom’s plan, low-income adults without legal status would no
longer be eligible to apply for Medi-Cal, the state’s Medicaid program,
starting in 2026. Those who are already enrolled wouldn't be kicked off
their plans but would have to start paying a $100 monthly premium in
2027. The state would save $5.4 billion by fiscal year 2028-2029, state
officials estimated.
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Supporters of proposals to expand California's government-funded
health care benefits to undocumented immigrants gather at the
Capitol for the Immigrants Day of Action, on May 20, 2019, in
Sacramento, Calif. (AP Photo/Rich Pedroncelli, File)
 Lawmakers mostly agreed on the plan
to halt enrollment for adults without legal status, but their
proposal also includes a provision to allow people to reenroll
within six months if they lose coverage for missing payment. The
monthly premium would also lower by roughly a third to $30 and would
only apply to adults between 19 and 59 under the Legislature's plan
starting in July 2027. The proposal would save roughly $3.8 billion
by fiscal year 2027-2028.
The proposals would likely result in people losing coverage because
they can't afford the premiums and send more people into emergency
rooms, advocates said.
“This is no way to respond to concerns about the health and safety
of communities that power our economy and contribute billions in
state taxes,” said Masih Fouladi, Executive Director of the
California Immigrant Policy Center.
Democrats divided
California was among one of the first states to extend free health
care benefits to all low-income adults regardless of their
immigration status, an ambitious plan touted by Newsom to help the
nation’s most populous state inch closer to a goal of universal
health care. But the cost ran billions more than the administration
had anticipated and is projected to keep growing.
California provides free health care to more than a third of its 39
million people.
Several Democrats said the Medicaid enrollment freeze does not align
with California values. The plan would create a two-tier health care
system, they said.
“If we move forward with freezing Medi-Cal enrollment and charging
premiums to our immigrant population, we are no better than the
Trump administration,” Assemblymember Sade Elhawary said prior to
the vote. "The federal administration targeted immigrant communities
with force, and we are targeting them through this budget by
basically cutting off their access to health care."
Democratic state Sen. Akilah Weber Pierson defended the budget
proposal, saying that the plan is not cutting benefits to people who
are already enrolled as Legislature also avoided more devastating
cuts in social services. Lawmakers rejected the governor's plan to
cut funding for a program providing in-home domestic and personal
care services for some low-income residents and Californians with
disabilities. They also rejected a proposal that would have cut
Planned Parenthood's budget by a third.
“No one who is currently covered will lose their health care
coverage," she said.
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