California Adjusts Free Healthcare Amid Tariff Strains

California Governor Gavin Newsom proposed budget cuts to a free healthcare program for low-income undocumented migrants. These changes aim to counter a projected $16 billion revenue loss due to Trump-era tariffs. The adjustments require undocumented adults to pay premiums, while coverage for children remains unchanged.

The state of California, under the leadership of Governor Gavin Newsom, has announced significant adjustments to its free healthcare program for low-income undocumented migrants. The budget proposal, unveiled Wednesday, comes in response to an anticipated $16 billion shortfall in state revenues attributed to tariffs introduced during Donald Trump's presidency.

Newsom's office outlined a plan for undocumented adults to start paying $100 monthly premiums for Medi-Cal healthcare coverage, starting on January 1, 2026, while freezing new adult applications for the program. Coverage for children will remain unaffected, and emergency and pregnancy-related limited-scope services will continue. These changes are projected to save the state $5.4 billion through 2028-2029.

The free healthcare initiative for all low-income migrants began earlier this year. Despite the cutbacks, Governor Newsom reaffirmed his dedication to supporting immigrant communities, crucial to California's economy. However, he emphasized that budgetary constraints necessitate these measures, especially considering the Medi-Cal program's rising costs and the overall projected state deficit.

(With inputs from agencies.)