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California closes $12B deficit by cutting back immigrants’ access to health care

California Budget Overview

- Governor Gavin Newsom signed a $321 billion budget to address a $12 billion deficit.

- This is the third consecutive year California cut funding for progressive priorities.

- The budget may become void if lawmakers do not pass legislation to facilitate housing construction by Monday.

Budget Adjustments

- The budget prevents major cuts to essential safety net programs.

- Funding gaps were addressed using state savings, borrowing from special funds, and delaying payments.

Health Care Changes

- Enrollment of new undocumented adult patients in state-funded health care will stop in 2026.

- Starting July 2027, $30 monthly premiums will apply to immigrants under 60 on the program, including some legal immigrants.

- The changes to Medi-Cal represent a significant reduction from Newsom's broader health care proposals.

- $78 million for mental health phone lines will be eliminated.

- Funding for dental services will be cut in 2026.

- Legislation requiring health insurance to cover fertility services will be delayed by six months to 2026.

- Funding for in-home care services and Planned Parenthood was preserved despite other cuts.

Environmental Funding

- The budget allows $1 billion from the cap-and-trade program for firefighting efforts.

- Newsom aimed to reauthorize the cap-and-trade program through 2045.

- Legislative leaders have deferred detailed spending plans outside the budget process.

- Funding is included to transition part-time firefighters to full-time positions and increase wages for incarcerated firefighters.

Public Safety Initiatives

- $80 million is allocated for implementing stricter crime policies approved by voters.

- Funding will support the construction of behavioral health beds and pre-trial services.

- Advocates argue that $80 million is insufficient to meet the program’s needs.

Other Budget Provisions

- Film tax credits will increase from $330 million to $750 million annually.

- $10 million is earmarked for immigration legal services, including deportation defense.

- Local governments will not receive new funding for homelessness services, risking the loss of shelter beds.

- The budget does not support plans for a major underground water supply tunnel.

Political Reactions

- Senate President Pro Tempore Mike McGuire acknowledged tough budget decisions while avoiding new taxes.

- Republicans expressed concerns over the exclusion from negotiations and criticized future deficit management.

- Democrat Maria Elena Durazo opposed the health care changes, citing betrayal to immigrant communities.

- Critics of the budget point to increased borrowing and a decline in spending reductions as potential issues. 

https://nypost.com/2025/06/28/us-news/california-cuts-back-illegal-immigrants-access-to-healthcare-cutting-into-12b-deficit/?dicbo=v2-89nYZsy

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