Podcaster Gavin Newsom Forced to Borrow $3.44 Billion to Pay for Medicaid for Illegal Aliens
The State of California must borrow $3.44 billion dollars to cover a shortfall in Medi-Cal, the state’s Medcaid program — a year after expanding it to offer free health care to illegal aliens.
As Breitbart News reported at the time: “Beginning January 1, 2024, illegal aliens residing in California will become eligible for taxpayer-funded health insurance — the first state in the nation to enact such a policy.”
Governor Gavin Newsom had boasted of the budget agreement that made such a dramatic offer possible: “With these new investments [sic], California will become the first state to achieve universal access to health care coverage,” he had Newsom said in a statement in June 2022.
But after a year, it is clear that the Golden State lacks the cash to follow through on that commitment.
New: Gov. Newsom’s Dept. of Finance notified CALeg it needs a $3.44 billion loan for Medi-Cal.
Letter doesn’t say it, but state leaders expanded Medi-Cal last year to provide health insurance to undocumented people.
The administration underestimated how much that would cost. pic.twitter.com/EoKEGsh5VC
— Ashley Zavala (@ZavalaA) March 13, 2025
As Politico notes:
California will need to borrow $3.44 billion to close a budget gap in the state’s Medicaid program, Newsom administration officials told lawmakers Wednesday in a letter obtained by POLITICO.
That’s the maximum amount California can borrow, and will only be enough to cover bills for Medi-Cal — the state’s Medicaid program — through the end of the month, Department of Finance spokesperson H.D. Palmer separately told POLITICO.
…
Originally, the state estimated it would cost around $3 billion per year to insure [undocumented immigrants]. But one year after the program has been fully implemented, it’s turning out to be more expensive than anticipated.
(Read more from “Podcaster Gavin Newsom Forced to Borrow $3.44 Billion to Pay for Medicaid for Illegal Aliens” HERE)
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