Carl DeMaio says that under Medi-Cal, the state’s $30 billion deficit increases

California implemented a policy in 2024 under the Medi-Cal program to provide health insurance to undocumented immigrants of all age groups.

Under this policy, approximately $9.5 billion of taxpayer funds are being spent, with $8.4 billion coming from the state’s general fund. This information was provided by Guadalupe Manriquez, Budget Manager of the California Department of Finance, to the Assembly Budget Committee in February 2025.

Elon Musk X Post:

The rationale behind this step is to reduce the cost of emergency room treatments and provide broader healthcare access. However, critics such as Republican lawmakers Carl DeMaio and James Gallagher argue that this exacerbates the state’s $30 billion budget deficit while citizens face inadequate services due to low Medi-Cal reimbursement rates. They contend that this policy encourages illegal immigration and places an unfair burden on taxpayers.

On the other hand, the call to impose “Federal $trings” on Sacramento’s one-party rule reflects a demand for the federal government to curb California’s policies.

The Trump administration issued an executive order in February 2025 aimed at denying taxpayer-funded benefits to undocumented immigrants and restricting federal funding to states supporting “sanctuary” policies.

Additionally, U.S. Representative Kevin Kiley introduced a bill proposing to prohibit the use of Medicaid funds for non-emergency healthcare services for undocumented immigrants. This could impact states like California, which rely on state funds to implement such policies.

However, Governor Gavin Newsom’s administration asserts that immigrants, including undocumented ones, have lower crime rates compared to citizens and make significant contributions to the state’s economy, particularly in the agricultural sector.

Newsom has allocated $50 million to fight legal battles against the Trump administration, with half of that amount dedicated to protecting immigrants from deportation.