Fact Check: Governor Gavin Newsom requested an additional $2.8 billion loan to address a deficit in California's Medicaid program, which has exceeded budget expectations due to coverage for illegal immigrants.

Fact Check: "Governor Gavin Newsom requested an additional $2.8 billion loan to address a deficit in California's Medicaid program, which has exceeded budget expectations due to coverage for illegal immigrants."

What We Know

California Governor Gavin Newsom signed emergency legislation to address a $2.8 billion shortfall in the state's Medicaid program, known as Medi-Cal. This shortfall is attributed to rising costs associated with the expansion of Medi-Cal benefits to all income-eligible adults, including those without legal immigration status, which was implemented in January 2024. The expansion was initially projected to cost $2.7 billion annually and cover approximately 764,000 undocumented residents, but actual costs have exceeded these estimates, contributing to a broader budget gap of $6.2 billion in Medi-Cal (Signal [3], Fox News [8]).

The legislation signed by Newsom, Assembly Bill 100, aims to ensure continued health care coverage for approximately 15 million low-income residents, including hundreds of thousands of illegal immigrants, through June 2025 (Signal [3]). Critics, including Republican lawmakers, have raised concerns about the sustainability of Medi-Cal under its current structure, particularly regarding the financial implications of providing health care to undocumented immigrants (Fox News [4]).

Analysis

The claim that Governor Newsom requested an additional $2.8 billion loan to cover a deficit in California's Medicaid program due to costs associated with illegal immigrant coverage is supported by multiple credible sources. The emergency legislation signed by Newsom directly addresses a significant budget shortfall in Medi-Cal, which has been exacerbated by the expansion of benefits to undocumented individuals (Signal [3], Fox News [8]).

While the administration has indicated that the shortfall is due to a combination of factors—including rising drug costs and increased enrollment among older individuals—Republican lawmakers have specifically pointed to the costs associated with providing health care to illegal immigrants as a major contributing factor (Signal [3], Fox News [4]). The assertion that the expansion of Medi-Cal for undocumented individuals is financially burdensome is echoed by fiscal watchdogs and various political figures, indicating a consensus on the issue among certain groups (Fox News [4], FAIR [7]).

However, it is important to note that the sources discussing the costs associated with illegal immigrant health care may carry political biases, particularly those from conservative outlets. The framing of the issue often reflects partisan perspectives, which can affect the interpretation of the data presented.

Conclusion

The claim that Governor Gavin Newsom requested an additional $2.8 billion loan to address a deficit in California's Medicaid program, exacerbated by coverage for illegal immigrants, is True. The evidence from multiple sources confirms that the shortfall is indeed linked to the expansion of Medi-Cal benefits to undocumented individuals, which has resulted in costs exceeding initial projections.

Fact Check: Governor Gavin Newsom requested an additional $2.8 billion loan to address a deficit in California's Medicaid program, which has exceeded budget expectations due to coverage for illegal immigrants.