Sacramento, California (AP)-California governor of California wants to stop registering more low-income immigrants without legal status in the state’s health care program starting in 2026 and starting to impose fees on those who have already registered a monthly installment in the following year.
Newsum said in a announcement on Wednesday that the decision was driven at a price higher than expected on the program and the economic uncertainty of the federal tariff policies. The Democratic Ruler’s move highlights the newsom struggle to protect the priorities of his liberal policy amid the challenges of budget in his last years on the job.
California was among the first states that extend the benefits of free health care for all adult poor people, regardless of the migration state last year, an ambitious plan described by newsom to help the country’s population -most populated country close to the goal of comprehensive health care. But the cost of this expansion was more than $ 2.7 billion, which expected the administration.
Newsom suggested in March to reporters that he was not considering retracting the health benefits of low -income people living in the country illegally as the country was fighting with a minimum of $ 6.2 billion. He also defended the expansion over and over, saying that he provides state money in the long run. The program is funded by the state and does not use federal dollars.
Under the plan, changes will not affect children
Under the newsom plan, adults with low-income people who do not have a qualified legal status will not be to apply for Medi-Cal, which is the Medicaid program in the state, starting in 2026. Those who have already registered will not be launched due to the registration freezing, and changes will not affect children. The newsom office did not mention how much time will continue to freeze.
Starting in 2027, adults with “unsatisfactory migration” will have to have a “non-satisfactory migration” on Medi-Cal, including those who do not have a legal status and those who have a legal status but are not qualified to obtain a federal government-funded delegate, also paying a monthly installment of $ 100. The Ruler’s Office said that this is in line with the average cost paid by those who are involved in Heath plans supported through the California market. Most people are currently not in Medi-Cal.
In total, the newsom office estimated that the changes would save the country $ 5.4 billion by 2028-2029.
“The state must take difficult but necessary steps to ensure financial stability and maintain the long-term feasibility of Medi-Cal for all California residents.”
The expansion of Medi-Cal, along with other factors such as high pharmacy costs and the largest joining of the elderly, forced California to borrow and clarify new financing to connect the hole to billions of millions earlier this year. California provides free health care for more than 39 million people.
Forest fires, tariff policies and healthy costs press California budget
The proposals come before the scheduled NewSom display on the updated budget. The recovery of Los Angeles fires, changing federal tariff policies and expanding health care is expensive, puts pressure on the huge state budget in California. Legislators expect billions of dollars this year and more expected deficit for several years.
Newsom is expected to blame President Donald Trump’s policies for shortcomings, which is estimated that the policies have cost the state $ 16 billion in tax revenues. California is also preparing for large budget visits if Republicans in Congress follow a plan to reduce billions of dollars from the United States and punish the states to provide health care for migrants without legal status.
Newsom now opens budget negotiations with legislators, and it is not clear how Democrats who control the legislature with his plan to freeze the new registration for some immigrants will interact. The final budget proposal must be signed by June. California budget is the largest among the states.
“This will be a very difficult budget,” said Jesse Gabriel, a member of the House of Representatives, who heads the Budget Committee, before announcing the news proposals. “We will have to make some difficult decisions.”
The budget proposals presented this week will be built in some effects of federal policies, but there are still many unknown.
California may face a greater budget deficit in the coming years
The ruler has already said that he is planning to expand the scope of basic spending this year. Analysts and economists also warn that California will face a greater deficit in tens of billions of dollars in the coming years due to the economic slowdown and the fluctuation of the stock market caused by the tariff war.
The news suggested by the budget for the first time in January included a few new spending. But it allows the state to implement the first global transitional kindergarten program in the country and increase the state’s tax and television credit to 750 million dollars annually to restore Hollywood jobs that went to New York and Georgia. Trump recently called for tax credit for 7.5 billion dollars at the federal level.
Last year, the newsoms and the legislative body agreed to decrease in the state’s rainy day fund, and reduce spending – including almost 10 % reduction for all state departments – and temporarily raising taxes on some companies to close a budget deficit of about $ 46.8 billion.