The governor of California, Gavin Newsom, signed a $2.8 billion financial bailout this Monday to cover a growing deficit in the state health program Medi-Cal, which has far exceeded budget projections due to its recent expansion to include illegal immigrants.
The measure, confirmed by the governor's office to the news network Fox News, aims to keep the program operational until June 2025.
The bailout is part of a broader request by Newsom to the state legislature last month, when he asked for a $3.4 billion loan from the state's general fund to cover about $6.2 billion in accumulated costs of the program.
Medi-Cal, which combines state and federal funds, provides medical coverage to approximately 15 million people in California, including approximately 1.6 million unauthorized immigrants.
According to state data, the program's expansion to cover illegal immigrants was initially estimated at nearly $6 billion for the 2024–2025 fiscal year. However, just a year later, the costs have far exceeded that figure.
The governor's most recent budget now estimates that the spending to cover these beneficiaries will amount to $8.4 billion in the next fiscal year, and $7.4 billion in the following one.
