The move is the latest sign of political moderation from a man believed to have White House ambitions, who is looking to soften his image among conservative voters and distance himself from a reputation as a free-spending liberal helming a state where migration is out of control.
“We’re not cutting or rolling back those that enrolled in our medical system. We’re just capping it, particularly for those without documentation,“ he said.
In March, the California state legislature reported that opening Medi-Cal to undocumented immigrants -- which began in 2023 -- had cost $2.7 billion more than expected in 2024.
'Trump Slump'
He presented the idea as part of an overall plan to make up a $12 billion shortfall in California's budget.
The state’s revenues for the first 18 months of Trump’s presidency were expected to be $16 billion lower than they would have been without the volatility, a fall he dubbed the “Trump Slump.”
California last month sued the Trump administration over the tariffs, saying the president did not have the ability to impose taxes on imports unilaterally, a power the lawsuit said rests only with Congress.
But he faces a tough balancing act in a state where a majority of voters support providing healthcare to undocumented migrants.
“It’s created a climate of deep uncertainty,“ he added.
Local Republicans hit back Wednesday, characterizing the budget shortfall as Democratic Party overspending that disproportionately benefits migrants.
“With a massive deficit largely driven by this policy, our focus should be on preserving Medi-Cal for those it was originally designed to serve.”
Newsom's proposal must now go to the state legislature for review.
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