California Gov. Gavin Newsom, a Democrat, is partially blaming his state’s financial woes — including a proposed freeze on illegal immigrant adult enrollment in full-scope Medicaid — on President Donald Trump.
Newsom debuted the state’s $322 billion budget. It includes a $12 billion deficit — a shortfall Newsom is partially blaming on what he called the “Trump Slump.” Newsom also hedged his criticism, saying: “I’m not blaming the president for the deficit. Someone else might be, you might be, but that’s not what I’m doing. I’m directly attaching estimated significant dollars of revenue loss to the actions.”
The White House reacted to Newsom’s comments.
“After decades of mismanagement, incompetence, and corruption, California Democrats have no one to blame but themselves for California’s financial woes,” White House spokesman Kush Desai said in a statement to FOX Business.
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In order to combat California’s budget shortfall, Newsom unveiled a plan that would freeze enrollment in the state’s Medicaid program, known as Medi-Cal, for adult illegal immigrants, a fact sheet the governor’s office provided to FOX Business said.
The document notes that the proposed freeze would take effect “no sooner than January 1, 2026,” and would apply “to new adult applicants over age 19.” People would not “be kicked off their health care,” according to the document.
Californians currently without legal status that are already registered with Medi-Cal will maintain coverage.
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On Jan. 1, 2027, any illegal immigrant older than 19 and enlisted in the program will be charged a $100 monthly premium.
The change, the document claims, is partially due to Trump’s economic policies.
“Trump’s pendulum swings on tariffs have slowed the economy and weakened state revenues by a staggering $16 billion,” the document declared.
While the plan still needs to pass through the state legislature, the release said that Newsom “refuses to turn his back on hardworking Californians, especially when it comes to their basic healthcare needs.”
“No state has done more than the state of California,” Newsom said. “No state will continue to do more than the state of California, by a long shot.”
The release continued, “But because of the $16 billion Trump Slump and higher-than-expected health care utilization, the state must take difficult but necessary steps to ensure fiscal stability and preserve the long-term viability of Medi-Cal for all Californians.”
Fox News Digital’s Alex Nitzberg contributed to this report.
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