Newsom Signs Budget That Includes Health Care Cuts for Undocumented Immigrants

Gov. Gavin Newsom signed a California budget on Friday that relied on scaling back health care for undocumented immigrants, even as he and other California Democrats in recent weeks have condemned the Trump administration for cracking down on immigrant workers.

In signing the budget, Mr. Newsom backtracked on his earlier pledge to insure all low-income residents, regardless of their immigration status. But it came as the state faced a $12 billion deficit, driven in part by a large cost overrun in the state’s insurance plan for undocumented immigrants, and it would have been politically difficult to cut programs for citizens without reducing benefits for undocumented immigrants.

When Mr. Newsom initially proposed the cuts in May, it was seen as a centrist pivot for a governor who is a potential presidential candidate in 2028. But after President Trump sent National Guard troops to Los Angeles nearly three weeks ago to thwart protesters, Mr. Newsom returned to his role as a liberal antagonist of the Republican administration and accused Mr. Trump of endangering American democracy.

The California budget for the fiscal year that starts Tuesday relies on prohibiting new enrollment of undocumented immigrants in the state’s Medicaid program, known as Medi-Cal, starting in January. Adults between the ages of 19 and 59 who were already enrolled will have to pay a new $30 monthly premium beginning in 2027. And the state will eliminate dental care in July 2026 for undocumented adults and other noncitizens.

Medi-Cal serves roughly 15 million people, including 1.6 million undocumented immigrants.

Because the federal government does not pay for most health care for undocumented immigrants, it costs California more to insure noncitizens than it does to cover citizens. Democrats have argued that the state has a moral responsibility to provide health care to its immigrant work force, and they have said that preventative treatment can avert more costly emergency care down the road.

Democrats who control the State Capitol cast their decisions on Friday as a necessary move to help close the budget deficit and said it was not an ideological shift away from supporting immigrants. Some choked back tears in emotional floor speeches about their undocumented family members as they voted for cuts to Medi-Cal.