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

  • On Friday, California lawmakers approved a $321 billion budget that caps health care for low-income adult undocumented immigrants starting in 2026, closing a $12 billion deficit.
  • Facing broad economic uncertainty and potential federal health care cuts, California projected a $16 billion revenue loss, prompting negotiations between Gov. Newsom and legislative leaders.
  • The budget halts new Medi-Cal enrollments for undocumented adults in 2026 and introduces a $30 monthly premium starting July 2027 for those under 60.
  • Cities and counties face no new homelessness funding next year, risking the loss of thousands of shelter beds, local leaders warn.
  • Enactment hinges on passing AB 131 or SB 131 by June 30, after which Newsom's signature becomes valid, or the budget will be void.
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The Hamilton Spectator broke the news in Hamilton, Canada on Friday, June 27, 2025.
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