In a stunning reversal, California Gov. Gavin Newsom is now proposing to freeze enrollment for illegal immigrants in the state’s taxpayer-funded health insurance program, Medi-Cal, starting January 1. The move—part of his revised 2025–2026 budget—is a dramatic pivot from Newsom’s previous sanctuary-style policies and a clear signal that even the most liberal governor in America can’t spend money he doesn’t have.
Just over a year ago, California became the first state to offer full-scope Medi-Cal coverage to all income-eligible illegal immigrants, regardless of age. It was hailed by progressives as a bold, compassionate milestone. But reality has come crashing in: the program ballooned far beyond projections, straining an already battered state budget, and now Newsom is scrambling to cap the bleeding—literally and fiscally.
Newsom’s plan doesn’t just halt new enrollments—it also proposes to charge illegal immigrants already in the program a $100 monthly fee beginning in 2027, a measure expected to save the state $5.4 billion through 2028–2029. This comes after lawmakers had to approve a $3.4 billion loan just to keep the system afloat through June—a stopgap that makes clear the original funding estimates were fantasy.
It’s the third consecutive year of fiscal backpedaling from Newsom and California Democrats, who have repeatedly overpromised with taxpayer dollars and underdelivered in results. And now, with the budget deficit looming large, they’re realizing that “free” comes with a price tag—one that Sacramento can no longer pass off to future generations.
Newsom’s about-face is politically explosive. The same governor who championed universal healthcare for illegal immigrants, sued the Trump administration, and called California a model of progressive values is now implementing policies that sound eerily familiar to those coming from Washington under President Trump.
The revised budget freeze lands at a moment when the Trump administration is actively investigating California’s cash assistance programs for elderly illegal immigrants. Homeland Security Secretary Kristi Noem announced a federal subpoena of Los Angeles County’s benefits program, warning that “the gravy train is over.”
Her statement places attention on the broader shift now taking shape: Sanctuary states are being forced to confront the fiscal consequences of their open-border philosophies.
“Radical left politicians in California prioritize illegal aliens over our own citizens,” Noem said. “If you are an illegal immigrant, you should leave now.”
Newsom’s freeze proposal is being spun as a pragmatic budget fix. But let’s be honest—it’s a glaring admission of a policy failure years in the making. The promise of providing free healthcare to hundreds of thousands of non-citizens in a state already grappling with homelessness, sky-high cost of living, and decaying infrastructure was never sustainable.
The governor has even tried to blame Trump-era tariffs for California’s economic woes, projecting a $16 billion revenue loss in the upcoming cycle. But voters are no longer buying the deflections. California’s budget crisis is homegrown, fueled by big government bloat, poor planning, and unchecked idealism that ignored economic realities.
