Medi-Cal Financial Crisis Worsens
Mar 18, 2025 05:15PM ● By Office of Assemblymember Carl DeMaio News ReleaseOn March 17, California Governor Gavin Newsom admitted that the state’s Medi-Cal financial crisis is quickly getting much worse with each passing day. Last Wednesday night, Newsom informed the State Legislature that his administration was issuing an emergency $3.44 billion loan to bailout the state’s depleted Medi-Cal program – but today Newsom alarmingly announced an additional $2.8 billion loan would also be needed.
Both actions reflect the fact that Medi-Cal does not have adequate funds to pay providers without the emergency loan.
“Make no mistake about it: Medi-Cal program is officially insolvent due to the reckless financial mismanagement of Gavin Newsom and California Democrat politicians who gave away free taxpayer funded healthcare to illegal immigrants,” notes Asm. Carl DeMaio.
“How many more multi-billion emergency bailout loans will it take before Governor Gavin Newsom and the state legislature finally put the interests of California citizens first and immediately cancel the free healthcare handouts to illegal immigrants?” DeMaio asks.
Newsom’s admission that Medi-Cal has run out of money and associated $6.2 billion in combined loan bailouts come just weeks after DeMaio exposed that the Newsom Administration had misrepresented the cost of providing free taxpayer-funded healthcare to illegal immigrants by a whopping 43% – with the actual cost hitting a whopping $9.5 billion this year versus a $6.5 billion budgeted.
When proposing the free healthcare for illegal immigrants, Newsom had claimed that he expected many costs would be reimbursed by the federal government – a claim that has turned out to be completely false.
In fact, because the costs of providing free illegal immigrant healthcare are not covered by federal Medicaid reimbursements to the state, the state’s general fund is forced to cover the increased costs.
DeMaio says illegal immigrants are now being given 1-out-of-4 Medi-Cal dollars in the state general fund budget.
DeMaio is available by phone or zoom for interviews at the State Capitol.
California State Assemblymember Carl DeMaio (R-San Diego) is a member of the California State Assembly representing District 75 which includes the communities of Fallbrook, Bonsall, Valley Center, Ramona, Poway, Scripps Ranch, Santee, Lakeside, Alpine, Julian, Borrego Springs, Pala, Jamul, Pine Valley, Pauma Valley, and Bonita.
