California Seeks $3.44 Billion Loan Amid Medicaid Shortfall for Undocumented Immigrants

California Governor Gavin Newsom's administration is seeking a $3.44 billion loan to address a budget shortfall in the state's Medi-Cal program, which has faced financial strain since the expansion to provide free health care to illegal immigrants took effect on January 1, 2024. The estimated cost for covering undocumented individuals has surged to $9.5 billion, significantly higher than the initial projection of $6 billion, prompting criticism from Republican lawmakers. Assemblyman Carl DeMaio highlighted the fiscal irresponsibility of the program, while Democrats, including Assembly Speaker Robert Rivas, acknowledged potential tough choices ahead regarding healthcare coverage for Californians. The governor's administration has faced scrutiny over its budgeting practices, leading to calls for greater transparency and accountability. Despite the challenges, Rivas emphasized the importance of providing healthcare to immigrant workers who contribute to the state's economy. Newsom's recent efforts to engage with conservatives through a podcast have drawn attention amidst these financial woes.