California Gavin Newsom (D-CA) is once again seeking a multi-billion loan from his state’s general fund to cover Medicaid costs that have been sent soaring by the state’s expansion of healthcare coverage to illegal immigrants. The new $2.8 billion general fund loan request comes on the heels of a $3.4 billion request to cover an earlier shortfall in Medi-Cal, the state’s major healthcare program.
In response to allegations that his administration’s aid to illegal immigrants is responsible for skyrocketing state healthcare costs, Gov. Newsom obfuscated and claimed that rising pharmaceutical prices and increased enrollment in Medi-Cal are also significant contributors to the deficit. However, other states that have extended healthcare coverage to illegals are experiencing similar cost overruns.
Republican lawmakers in California are criticizing the state’s financial strategies, attributing the shortfall to unsound policy decisions. They note that even former Governor Jerry Brown (D-CA) did not expand Medi-Cal to all illegal immigrants, on fiscal grounds.
Last year, California became the first state to offer Medicaid to all low-income adults aged 26 to 49 regardless of immigration status. State data indicates that approximately 1.6 million illegal immigrants and 15 million residents are currently enrolled in the program.
The National Pulse has previously reported that the extension in Democrat-run states of government services—including healthcare—to illegal immigrants has placed severe strain on state and local budgets. The Governor J.B. Pritzker (D-IL) administration in Illinois is under investigation after a state audit report found that Democrat officials underestimated the cost of healthcare provided to illegals. In total, the audit report found Pritzker has spent $1.6 billion taxpayer dollars since 2020 on illegal immigrant healthcare.