Newsom’s Medi-Cal Requests $6.4B Bailout, Spending $9.5B on Noncitizens

California Gov. Gavin Newsom’s administration has requested a $2.8 billion bailout for taxpayer-funded Medi-Cal, on top of an additional $3.4 billion for the program requested last week.

With $9.5 billion spent by Medi-Cal on illegal immigrant health care this year, Newsom told a press gaggle that this benefits expansion was at least partially to blame. He also shared his support for universal taxpayer-funded health care.

 “It’s partial,” said Newsom, speaking to the relationship between expanding taxpayer-funded healthcare to illegal immigrants and the $6.4 billion bailout request. “I believe in universal healthcare … it’s just a core principle.”

Newsom said rolling back the expansion is not on his “docket,” but that he is open to “changes.”

With an estimated 1.9 million illegal immigrants and $9.5 billion spent by Medi-Cal on their healthcare, the state is spending approximately $5,000 per illegal immigrant on healthcare this year. 

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The average illegal immigrant in California earns $13 per hour, often in untaxed cash, or $27,040 per year if working 40 hours a week. If taxed, this wage would produce $464 in state income taxes. Assuming 30% of remaining income goes to rent and the rest goes to sales-tax qualified spending, that’s another $1,372 in state sales taxes.

This means a working illegal immigrant may contribute approximately $1,846 per year in state taxes — well short of the $5,000 spent by Medi-Cal, let alone other services such as CalFresh, the state’s food assistance program, and other benefits they may claim on behalf of their children born in the United States.

Trump-era Republicans paint illegal immigration as a fiscal drain, noting the divide between the high costs of services used and relatively low taxes raised on even working, single individuals.

“Newsom doubling down on bankrupting CA by giving free universal healthcare to illegal immigrants,” said Assemblyman Bill Essayli, R-Corona, in response to the governor’s conversation. “He’s unfit to be Governor, let alone President!”

Syndicated with permission from The Center Square.