California’s Democratic leadership is making waves with a stark policy reversal on healthcare. Starting January 2026, the state will freeze Medi-Cal enrollment for undocumented adults and implement $100 monthly premiums by 2027. The move comes as California grapples with a massive $12 billion deficit, with healthcare expansion costs soaring $2.7 billion over estimates. Current enrollees keep their benefits, but new applicants face a harsh new reality in the Golden State’s healthcare experiment.
California Governor Gavin Newsom dropped a bombshell on the state’s immigrant community, announcing plans to freeze enrollment for undocumented adults in the Medi-Cal program starting January 2026.
In a stunning policy reversal, Newsom halts Medi-Cal expansion for undocumented adults, signaling a major shift in California’s healthcare approach.
The move comes as California grapples with a staggering $6.2 billion Medicaid shortfall and unexpectedly high healthcare costs.
The change applies to full-scope Medi-Cal coverage for new adult applicants.
Talk about a plot twist.
The same governor who championed healthcare for all, regardless of immigration status, is now hitting the brakes.
And he’s not stopping there.
Starting January 2027, undocumented adults over 19 will need to fork over a $100 monthly premium to keep their coverage.
Current enrollees can breathe easy though – they’ll get to keep their benefits.
The numbers tell a sobering story.
The health care expansion for undocumented immigrants blew past initial estimates by $2.7 billion.
Newsom’s finger-pointing at “Trump’s fluctuating tariffs” for a $16 billion revenue hit adds another layer to this financial mess.
Rising costs from Los Angeles wildfire recovery are further straining the state’s budget.
The combined changes are expected to save $5.4 billion through 2028-29.
Not exactly pocket change.
Just months ago, in March 2025, Newsom was singing a different tune, defending the expansion and dismissing any notion of rolling back benefits.
But reality has a way of changing political calculations.
The governor’s now calling these moves “challenging yet essential measures” to maintain fiscal stability.
The policy shake-up doesn’t touch immigrant children’s eligibility, and the program remains entirely state-funded.
California’s bold experiment as one of the first states to extend health care benefits to all poor adults, regardless of immigration status, is hitting some serious turbulence.
Newsom’s team launched a rapid-response website to counter accusations that he’s prioritizing presidential aspirations over state needs.
But the stark reality remains – California’s signature policy of universal healthcare access is taking a significant detour.
The full budget plan drops in May 2025, and it’ll need legislative approval before these changes can take effect.
Stay tuned for what promises to be a heated political battle.
