California Governor Gavin Newsom’s administration has admitted to a major miscalculation in the cost of providing taxpayer-funded healthcare to illegal immigrants, with the projected price tag rising from $6.5 billion to $9.5 billion—a 46.2% increase.

The admission came during the California Assembly’s first budget hearing of 2025, where lawmakers confronted the growing financial burden of the state’s Medi-Cal expansion.

This development comes as California faces a staggering $68 billion budget deficit, raising concerns about the sustainability of funding programs for illegal aliens while legal residents experience rising taxes and economic challenges.

Elon Musk Called This Financial News 'Terrifying'

MORE NEWS: Illegal Immigrant’s Accomplices To Be Deported After Tragic Laken Riley Murder [WATCH]

California remains the first and only state in the nation to provide full Medicaid benefits to all illegal immigrants residing within its borders.

American Made Patriotic Apparel - Save 15% with Promo Code MERICA

Do you support President Trump removing illegal violent criminals from the U.S.?

By completing the poll, you agree to receive emails from LifeZette, occasional offers from our partners and that you've read and agree to our privacy policy and legal statement.

The expansion, which began in phases over the past few years, has now added an estimated 700,000 illegal immigrants to the state’s Medi-Cal program.

Assemblymember Carl DeMaio (R) criticized the spending increase, highlighting the burden placed on California taxpayers.

“California taxpayers should be outraged that they face massive tax hikes in this budget while illegal immigrants are being given nearly $10 billion in free taxpayer-funded healthcare coverage,” DeMaio said.

MORE NEWS: Planned Parenthood Retreats, Shutting Down Major NYC Abortion Hub [WATCH]

The Federation for American Immigration Reform (FAIR) estimated in 2023 that California is home to over 3.2 million illegal immigrants, along with more than 1.1 million U.S.-born children of illegal immigrants.

Together, this population represents over 11% of the state’s total residents and contributes to the growing strain on public resources.

Close

California’s decision to expand healthcare to illegal immigrants comes at a time when the state is grappling with rising homelessness, a struggling middle class, and an exodus of businesses leaving due to high taxes and regulatory burdens.

Critics argue that the mounting costs of these programs threaten to overwhelm an already fragile economy.

Tech billionaire Elon Musk, who has increasingly spoken out against government corruption and fiscal mismanagement, reacted strongly to Newsom’s latest budget revelations.

“Treason,” Musk posted in response to the $9.5 billion price tag.

MORE NEWS: Disgraced Democrat Anthony Weiner’s Comeback Bid Gets Pennies From Ex-Wife Huma Abedin

Musk’s criticism reflects growing frustration among California residents who are witnessing soaring costs of living while state funds are directed toward non-citizens.

With the budget deficit now at $68 billion, state lawmakers are under increasing pressure to address financial shortfalls while balancing social programs.

The revised cost of the Medi-Cal expansion has intensified the debate over how California should allocate taxpayer money and whether policies benefiting illegal immigrants should continue amid growing economic concerns.

As California navigates its fiscal challenges, the increased spending on healthcare for illegal immigrants is likely to remain a contentious issue, with critics calling for a reassessment of the state’s budget priorities.

The opinions expressed by contributors and/or content partners are their own and do not necessarily reflect the views of LifeZette. Contact us for guidelines on submitting your own commentary.