Starting in 2026, California is dramatically reworking its Medi-Cal program — and for many undocumented immigrants, it is not a positive development. Following weeks of negotiations, Governor Gavin Newsom signed a new budget that will limit health care coverage for them and also add other cuts.
Here’s what is occurring and why it is significant.
Why is this happening?
California has a staggering $12 billion budget deficit. One of the main reasons is the higher cost of covering Medi-Cal—California’s version of Medicaid—for illegal aliens.
As the New York Times puts it, California’s healthcare plan for illegal immigrants is now prohibitively expensive. Because the federal government does not subsidize paying for this group’s healthcare, the state must cover the cost entirely on its own. That translates to it being more costly to insure illegal immigrants compared to citizens.
As a means to balance the budget, the state decided to reduce spending, and unfortunately, that includes reducing benefits to illegal immigrants.
What is new in 2026?
These are the new rules for undocumented immigrants and Medi-Cal:
- No new enrollments in 2026: Illegal adults will no longer be able to sign up for Medi-Cal starting in 2026. Current ones can stay, but the program won’t cover new undocumented adults.
- Monthly premiums starting in 2027: If illegal aliens stay in the program by 2027, the majority of them will be expected to pay $30 a month. Certain legal residents, especially those below age 60, will also be expected to pay this fee.
These are part of a smaller version of an earlier proposal by Governor Newsom, who also proposed deeper cuts. However, these new rules may make it harder for poor immigrants to have access to health care.
Who will be impacted?
California has more immigrants than any state in America. Undocumented people do many jobs essential to the economy—including farming, cleaning, and construction, and use Medi-Cal for basic health care.
About 1.6 million undocumented immigrants currently get Medi-Cal. The reductions will lower this number in the long run.
What else is being cut?
Governor Newsom’s budget also suggests cuts to other health-related services:
- Mental health support: The state will end its funding for mental health hotlines that helped around 100,000 people each year.
- Dental care: Low-income individuals may no longer be able to receive dental care for free by 2026.
- Fertility treatments: The law that requires health insurance to include fertility services will now become effective six months later, in 2026.
These cuts show just how pinched California’s budget is. As the state is trying to trim costs, many low-income and immigrant families may feel the pinch in their daily lives.
Tune in if you or someone you know is on Medi-Cal — things are going to get changed.
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