Overview

• California's Medi-Cal program is grappling with a $6.2 billion budget shortfall, partly due to higher-than-expected enrollment from the 2024 expansion of coverage to immigrants without legal status.
• Governor Gavin Newsom has requested an additional $2.8 billion loan to sustain Medi-Cal, following a $3.4 billion loan earlier this month, bringing total borrowing to $6.2 billion in March alone.
• The recent expansion to cover all low-income adults regardless of immigration status is costing $2.7 billion more than initially projected due to underestimated enrollment numbers.
• Republican lawmakers have criticized the policy, describing it as financially unsustainable, while Newsom and other Democratic leaders defend it as an investment in preventive care and equity.
• California is also preparing for potential federal Medicaid funding cuts, which could further strain the program and force difficult decisions about coverage or funding sources.