California Faces $6.2 Billion Medi-Cal Shortfall as Newsom Seeks Additional $2.8 Billion

Governor Gavin Newsom has requested further funding to cover rising Medi-Cal costs driven by expanded coverage, higher enrollment, and pharmacy expenses.

Medi-Cal spending has exceeded projections by $6.2 billion, with cost drivers including expanded coverage for undocumented immigrants and rising pharmacy expenses.
Governor Newsom has requested $2.8 billion in additional funding from the Legislature to sustain Medi-Cal through the fiscal year ending in June.
The program now serves approximately 15 million low-income Californians, including half of the state’s children, with costs more than doubling over the past decade.
Republicans criticize the expansion of Medi-Cal to undocumented immigrants as fiscally unsustainable, while Democrats defend it as critical for healthcare access.
Potential federal Medicaid cuts could result in annual losses of $10-20 billion for California, compounding the state's fiscal challenges.