Governor Gavin Newsom has signed a $2.8 billion bailout to close the bloated deficit in California's Medicaid program.
The development came after California's Medicaid program surpassed projections due to the scheme's expansion last year to include illegal immigrants.
The move, according to Fox News, has been confirmed by Newsom's office on Monday.
The governor has asked lawmakers last month for a $3.4 billion loan from the state's general fund to cover some $6.2 billion in outstanding costs for Medi-Cal.
Medi-Cal is noted as one of the state's primary healthcare programs that takes both federal and state taxpayer dollars.
The additional funds will help keep the program running through June for some 15 million Californians, including noncitizens.
But Republicans have been critical of the loan, arguing the current Medicaid program isn't sustainable with illegal immigrants included in the coverage.
California Republican state Senate Minority Leader Brian Jones wrote on X saying that “We must stop new enrollments of illegal immigrants and rein in this unsustainable program before it collapses entirely.”
According to state data, roughly 1.6 million illegal immigrants are currently enrolled in Medi-Cal, part of the program’s total 15 million enrollees.
Newsom’s latest budget proposal now puts the cost of covering illegal immigrants at $8.4 billion for 2024–2025, and $7.4 billion the following year.
