The California Department of Finance cleared a $3.44 billion loan to make up for a gap in Medi-Cal spending, which critics say is due to illegal immigrant healthcare costs, whereas the governor’s office argues it’s not out of the ordinary.
New: Gov. Newsom’s Dept. of Finance notified CALeg it needs a $3.44 billion loan for Medi-Cal. Letter doesn’t say it, but state leaders expanded Medi-Cal last year to provide health insurance to undocumented people. The administration underestimated how much that would cost. pic.twitter.com/EoKEGsh5VC
— Ashley Zavala (@ZavalaA) March 13, 2025
It was revealed a few weeks ago that the state had $6 billion in expected costs for Medi-Cal, but it is now roughly $9.5 billion. This comes after it became state law to allow people to qualify for the program regardless of their immigration status. Medi-Cal is the state’s Medicaid system for certain Golden State residents, which takes both federal and state taxpayer dollars, according to a state government website…