California's Medicaid-for-illegals disaster couldn't come at a worse time for Democrats. After grinding the federal government to a halt for more than 40 days — partly to reopen a loophole letting taxpayers foot the bill for illegal immigrant health care — the Golden State is serving up a perfect example of why that's a terrible idea.
The numbers are staggering.
According to a report from the Epoch Times, California's spending on health care for illegal immigrants through Medi-Cal is now projected to hit $10 billion annually from the state's General Fund. That figure is more than double what officials initially estimated. The Legislative Analyst's Office released findings in October showing this cost will consume approximately 25% of state funding for Medi-Cal, California's version of Medicaid.
To put that $10 billion in perspective, it's roughly three times the $3.3 billion allocated to the California Highway Patrol and more than twice the $4.5 billion for CalFire. Around 1.7 million Medi-Cal enrollees are illegal immigrants, representing roughly 11% of total enrollees. The program provides health care coverage to poor residents, with adults earning 138% or less of the Federal Poverty Level qualifying for coverage. Children are eligible with income up to 266% of that level. The program covers everything from doctor's visits and hospital stays to mental health treatments.
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Total Medi-Cal costs are expected to reach $197 billion in the current budget period running from July 2025 through June 2026. The federal government covers slightly more than half of those costs, but here's where things get particularly interesting. Unlike Medicare, which payroll taxes and premiums fund, Medi-Cal relies on federal and state tax dollars, as well as local taxes and funds. California’s General Fund entirely funds comprehensive coverage for illegal immigrants, because this group is ineligible for federal funding after Republicans closed the loophole when the Big Beautiful Bill was passed. Democrats shut down the government in part because they were trying to reopen the loophole.
The higher-than-expected $10 billion cost results from "greater-than-expected caseload and service utilization," which is bureaucrat-speak for "way more people showed up and used way more services than we thought they would."
Who could have possibly seen that coming?
The program is changing for illegal immigrants beginning in 2026 in order to solve the state’s $11.8 billion deficit, according to the final 2025–2026 budget summary.
Medi-Cal will freeze new enrollments for illegal immigrant adults aged 19 and older starting in January 2026. Beginning in July 2027, adults aged 19 to 59 with unsatisfactory immigration status will be required to pay a $30 monthly premium to remain enrolled in comprehensive coverage.
“This policy is expected to add to the disenrolling effect of the undocumented persons’ freeze, as some undocumented beneficiaries may be unable or unwilling to pay the premium, losing comprehensive coverage and remaining permanently barred from re-enrolling in it,” the LAO report states.
$30 a month for comprehensive coverage? Seriously?
California just handed Republicans the blueprint for 2026 — and they’d be fools not to use it. Democrats shut down the government in part because they wanted to reopen a Medicaid loophole for illegal immigrants — while California was quietly proving why that loophole needed to stay closed. The $10 billion disaster unfolding in Sacramento is exactly what Republicans are trying to prevent nationwide, and every Democrat who backed that shutdown should be forced to defend it.
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