In the current fiscal year, California is spending approximately $9.5 billion on healthcare for undocumented immigrants through its state-sponsored Medi-Cal program. This figure is significantly higher than original budget estimates.

Breakdown of Costs and Funding

Total Program Cost: The state is spending an estimated $9.5 billion on state-sponsored healthcare for all income-eligible undocumented immigrants, a program fully implemented in 2024.

Funding Source: The vast majority of this cost, $8.4 billion, is funded by California state taxpayers through the state's general fund.

Federal Funds: An additional $1.1 billion covers mandatory emergency room visits and pregnancy care, which the federal government requires and helps cover under federal law for uninsured patients.

Budget Shortfall: The $9.5 billion cost is more than $3 billion above the initial budget estimate from mid-2024, contributing to the state's current budget crunch. To cover the shortfall, the Newsom administration has had to borrow billions of dollars from the state's general fund.

Context

Program Expansion: California became the first state to offer comprehensive, full-scope health insurance to all low-income income-eligible undocumented immigrants in 2024, expanding coverage to approximately 764,000 additional people.

Controversy: The program's high costs and unexpected overruns have generated significant political debate and pressure on state Democrats to consider cuts.

Tax Contributions: Immigrants without permanent legal status contribute roughly $8.5 billion in state and local taxes annually, an amount nearly equivalent to the program's total cost.

(http://www.autoadmit.com/thread.php?thread_id=5812773&forum_id=2)#49527699)