California’s $330 billion budget deal for 2025-2026 reveals a sharp shift in priorities, especially when it comes to undocumented immigrants. Once a national leader in offering healthcare access to everyone, regardless of legal status, the Golden State is now pulling back. Governor Gavin Newsom and legislative leaders reached a tentative agreement that includes freezing new enrollment in Medi-Cal for undocumented adults, eliminating some benefits like dental care, and requiring monthly premiums. According to NBCLA reporter Christian Cazares, the move aims to help plug a staggering $12 billion budget deficit.
The announcement has caused ripples across immigrant communities and healthcare clinics. “It’s a big hit,” said Leticia Ruiz de Cruz, who runs a clinic in San Bernardino. She’s one of many now scrambling to create new cash-based care options for low-income patients who may soon lose their state support. For families already barely making ends meet, even a $30 premium feels out of reach.
From Generosity to Austerity
Just one year ago, California made headlines for expanding Medi-Cal to include undocumented adults, a major leap toward universal healthcare. But the budget signed by Newsom on June 28 reverses course. As reported by AP News’s Tran Nguyen, the revised plan halts new enrollments starting in 2026 and imposes a $30 monthly premium by 2027 for immigrants under age 60.
These cuts are not just about healthcare. Nguyen noted that Newsom’s budget also trims mental health programs, eliminates dental service funding for low-income people, and delays fertility benefit mandates. What once looked like a model for progressive state healthcare is now being restructured into something leaner and meaner.
The $30 Premium: Symbolic or Punitive?
Back in May, Newsom proposed a $100 monthly premium for undocumented Medi-Cal recipients. That number was reduced to $30 after negotiations, according to ABC10’s Jeannie Nguyen. Lawmakers also delayed the fee’s rollout until 2027. State Senator Scott Wiener defended the compromise, saying Democrats fought hard to soften the blow.
Still, critics say even $30 is too much. In Cazares’ NBCLA report, a former farmworker named Marissa explained how she and others avoid doctors already, relying instead on home remedies. “Now they’re stripping away the little aid that we get,” she said. “That’s why many people like me are left to roam the streets to get by.”
Freezing Enrollment – The Silent Shutdown
Perhaps the most troubling part of the new deal is what it doesn’t do. Rather than kick people off Medi-Cal, it simply stops allowing new ones to join. Starting January 1, 2026, undocumented adults will no longer be allowed to sign up for the program at all. As reported by Nguyen of ABC10, the freeze is meant to quietly shrink the number of recipients over time, without the political drama of mass disenrollments.
This move helps save the state millions. According to NBCLA, eliminating dental coverage alone is expected to save $308 million in 2025-2026 and $336 million the following year. Freezing enrollment could save $3.3 billion by 2028. But the social cost? That’s a lot harder to calculate.
Critics From the Left and Right
The budget has drawn fire from all sides. On the left, Democratic State Senator Maria Elena Durazo broke with her party and voted “no,” calling the cuts a “betrayal” of immigrant communities. On the right, Republican Senator Roger Niello said the whole Medi-Cal program for undocumented residents is “fiscally irresponsible,” suggesting it attracts more undocumented immigrants to the state.
“It just seems to be unaffordable,” Niello told ABC10. He emphasized that California already offers more than nearly every other state in the union, and warned that continued spending like this would deepen deficits in future years.
Newsom’s Balancing Act
In his statement to AP News, Governor Newsom said the budget “is balanced, maintains substantial reserves, and is focused on supporting Californians.” But not all Californians are feeling that support. Newsom is trying to walk a tightrope: appeasing progressive lawmakers and advocates while keeping the state’s finances from crumbling under a growing deficit and potential federal cuts.
Federal policies, Newsom warned, could strip another $16 billion from the state in coming years due to tariffs and immigration enforcement. That possibility is one reason the governor says “tough decisions” were unavoidable.
Clinics Left in the Lurch
Leticia Ruiz de Cruz, featured in Cazares’ NBCLA segment, said clinics like hers are already making plans to fill the gap. “These cuts are scaring us,” she admitted. Her team is developing new “cash packages” that bundle services like lab tests, EKGs, and X-rays to offer affordable care outside the Medi-Cal system.
But for many undocumented patients, even those discounted rates will be too much. Marissa, the former farmworker, said she and others already pay taxes. “Now they’re taking away the aid we get. We’re left to figure it out alone.”
What the Budget Keeps – and What It Sacrifices
The cuts may be dramatic, but not everything was slashed. According to AP News, the final budget protects funding for in-home care for low-income seniors and people with disabilities. It also avoids major cuts to Planned Parenthood and domestic services. However, other priorities were sidelined – like new homelessness funding, mental health hotlines, and even some public safety initiatives.
One clear winner: California’s high-speed rail project, which secured $1 billion annually for the next 20 years. That’s a long-term investment in infrastructure, but critics argue it’s being prioritized over the basic health needs of living, breathing Californians.
A Case of Political Amnesia?
Let’s be honest – California sold itself to the nation as a progressive role model. Just last year, the state proudly extended Medi-Cal to undocumented adults, calling it a historic step toward universal coverage. Now, those same people are being asked to pay up or step aside. That’s a fast turnaround – and a painful one for communities that believed they finally had a seat at the table.
It’s hard not to feel like this is political amnesia: when budgets get tight, the promises made to marginalized groups are the first to get tossed aside. Healthcare is either a right or it’s not – and this budget seems to forget that entirely.
The Bigger Picture: What Happens Next
Looking ahead, these changes may not just be temporary belt-tightening. California’s Legislative Analyst’s Office has warned that the state could face $17 to $24 billion in annual deficits in coming years. If this is the new fiscal normal, undocumented immigrants could find themselves permanently pushed out of the healthcare system.
And the rest of the country is watching. California has long been a bellwether for progressive policy. If it’s rolling back immigrant health benefits, other states might follow, especially those already hostile to undocumented residents.
You Can’t Call It Universal Care If It’s Not For Everyone
There’s no way around it – this decision is disappointing. California made a big promise and is now quietly walking it back. Leaders will say it’s not a total rollback, that the premium is “only” $30, that benefits remain for some. But the message is clear: the moment things get tough, some people become expendable.
Budgets are real. Math matters. But if California can spend $1 billion a year on bullet trains and keep Hollywood’s tax credits, it can find a way to keep poor, undocumented workers healthy. This was a choice – and it speaks louder than any campaign speech ever could.
A New Chapter With Old Problems
As California’s 2025-2026 budget goes into effect, it’s ushering in a new chapter, one defined by retrenchment instead of expansion. Lawmakers have chosen to tighten the belt by leaving thousands of undocumented residents behind. For all the talk of equity and inclusion, this budget exposes a harsh truth: in tough times, the most vulnerable still bear the brunt.
Whether that’s a financial necessity or a political failure is up for debate. But one thing is certain – people like Marissa will feel the effects long before lawmakers do.
Growing up in the Pacific Northwest, John developed a love for the great outdoors early on. With years of experience as a wilderness guide, he’s navigated rugged terrains and unpredictable weather patterns. John is also an avid hunter and fisherman who believes in sustainable living. His focus on practical survival skills, from building shelters to purifying water, reflects his passion for preparedness. When he’s not out in the wild, you can find him sharing his knowledge through writing, hoping to inspire others to embrace self-reliance.