SACRAMENTO, Calif. — Governor Gavin Newsom of California has committed to maintaining health insurance for low-income adults living in the state without legal permission, describing the policy as “something I believe in.” However, Newsom plans to cut a critical health benefit for some low-income immigrants with disabilities, causing backlash from his allies who accuse him of breaking his promise.
California was among the first states to offer free health insurance to all low-income adults regardless of their immigration status. This initiative, completed in January, enabled over 1 million people to enroll in Medi-Cal, the state’s Medicaid program, many of whom had never had health insurance before.
Now, facing a projected $45 billion deficit, Newsom proposes stopping payments for caregivers who assist some disabled undocumented individuals with daily tasks like cooking and cleaning, helping them avoid nursing homes. This cut would save an estimated $94 million and affect fewer than 3,000 people out of Medi-Cal’s 15 million enrollees. It would also prevent thousands more from becoming eligible in the future.
“This is a betrayal,” said David Kane, an attorney with the Western Center on Law and Poverty. Ronald Coleman Baeza of the California Pan-Ethnic Health Network called the proposal “indefensible,” likening it to a controversial 1990s ballot proposition that sought to deny government assistance to immigrants.
State Senator Maria Elena Durazo, a Democrat from Los Angeles and advocate for the Medicaid expansion, warned the proposal could stigmatize undocumented individuals.
Newsom’s proposal targets in-home supportive services, which have become increasingly costly. The average hourly wage for caregivers has risen by 6% since 2014, and the expiration of emergency federal funding from the pandemic has added about $200 million in costs this year.
Once eligible, individuals can hire their own caregiver, often a family member, effectively providing financial support to families. Marvin Estela Pineda, a 42-year-old blind woman from El Salvador living in California’s Central Valley, benefits from this program. Her daughter, Mayde Pineda, is paid $16.50 per hour to care for her, working 84 hours a month. This income has been crucial for the family’s financial stability while Mayde finished college.
The California Department of Social Services, which oversees the program, plans to mitigate the impact on affected individuals by helping them find alternative government-funded services, such as Medi-Cal’s community-based adult services program.
Responding to criticism, the governor’s office highlighted Newsom’s recent remarks about the budget, emphasizing the necessity of responsible and accountable fiscal management. Newsom, who has expanded government services during periods of surplus, now faces tough decisions due to consecutive deficits.
Navigating these challenges is critical for Newsom, who is building a national profile for a potential presidential run. He has already resolved some conflicts, such as striking a deal with the state’s largest teachers union over proposed education cuts, which still requires legislative approval.
Negotiations over the final budget will be complex. The state Legislature, controlled by Democrats, intends to pass a budget by June 15 that restores nearly all proposed cuts, including health care for some immigrants. Their plan involves a temporary tax hike on businesses and cutting $1 billion from the prison budget.
“We have ensured that the budget is not balanced on our most vulnerable populations,” said Assemblymember Corey Jackson, a Democrat from Moreno Valley.
Newsom and legislative leaders aim to finalize the budget by the start of the new fiscal year on July 1. While the Legislature votes on the budget, Newsom has significant influence as he can veto it, a power rarely overridden by California lawmakers.
