California has a $6.2 billion budget deficit for Medicaid services, and Democratic Gov. Gavin Newsom’s latest budget proposal projects the state will spend a staggering $8.4 billion to cover Medi-Cal, the state’s version of Medicaid, for illegal immigrants in 2024-2025.
Two new reports by the Bureau of Economic Analysis found the U.S. economy has become increasingly reliant on government handouts. Entitlements are growing faster than tax receipts and wages. Private wages grew by $67 billion in early 2025, while government payments to recipients surged by $162 billion.
In North Carolina and California, growth in Medicaid benefits was the leading contributor to increased personal income. Coverage for undocumented immigrants under California’s $6.2 billion budget gap for Medi-Cal is contributing to the surge in personal income.
Fox News Digital asked lawmakers on Capitol Hill if taxpayers should have to pick up the Medicaid tab for illegal immigrants. Popular progressive senators Adam Schiff, D-Calif.; Michael Bennett, D-Colo.; and Bernie Sanders, I-Vt., refused to say whether illegal immigrants are entitled to Medicaid benefits funded by U.S. taxpayers.
NEWSOM ASKS FOR NEARLY ANOTHER $3B FOR STATE HEALTH PROGRAM OVERWHELMED BY ILLEGAL IMMIGRANTS
Popular progressives, including Sen. Bernie Sanders, I-Vt., right, refused to say whether illegal immigrants are entitled to Medicaid benefits funded by U.S. taxpayers when asked by Fox News Digital. (Fox News Digital )
Sen. Jon Husted, R-Ohio, who was tapped by moderate Republican Gov. Mike DeWine to replace Vice President JD Vance in the Senate this year, told Fox News Digital it should be illegal for Americans to fund healthcare for illegal immigrants.
NEWSOM CONCEDES SKYROCKETING HEALTHCARE COSTS FOR ILLEGALS ARE ‘PARTIAL’ CONTRIBUTOR TO MEDICAID PROBLEM
“That cost should be transferred back to the state of California if that’s the decision that they made. If people are here illegally, the taxpayers of this country should not be footing the bill for their healthcare when we can barely pay our own bills here in this country and people are going without. So, this is an astonishing thing that California would decide to do. Clearly, the leaders of that state are tone deaf because that’s not what the American public wants,” Husted said.
Rep. Maria Salazar, R-Fla., who serves on the House Committee on Foreign Affairs and on Small Business, said she doesn’t support any federal funding for federal programs for illegal immigrants.
“We need to see those numbers,” Salazar said. “I’m not in favor of any undocumented migrants in the United States using any type of federal funding or federal programs, because if you are not documented, you cannot be using any of the government or the federal government services.
“But I need to know what are the numbers. I do believe that in construction, hospitality and agriculture, the illegals, the undocumented are giving a lot to the economy.”
Sen. Mike Lee, R-Utah, a fiscal conservative who serves on economic and commerce committees, said programs like Medicaid are solely for U.S. citizens.
Sen. Mike Lee, R-Utah, questions President-elect Donald Trump’s nominee for Secretary of State, Sen. Marco Rubio, R-Fla., during his Senate Foreign Relations confirmation hearing at Dirksen Senate Office Building Jan. 15, 2025, in Washington, D.C. (Kevin Dietsch/Getty Images)
“They’re certainly not there for illegal aliens. And this is costing the American people a lot of money. So, yeah, that is a problem, and it’s one we need to fix,” Lee said.
Sen. Richard Blumenthal, D-Conn., said he has questions about the policy and wants to know more about the substance of Medicaid benefits for undocumented immigrants and “whether it applies in emergency situations where somebody’s life may be at stake.”
Another Northeast Democrat, Sen. Andy Kim, D-N.J., said he is more concerned “we’re not taking away Medicaid from people with disabilities, seniors that need long-term care” before discussions begin on expanding resources.
Sen. Ron Johnson, R-Wis., during a campaign event with Donald Trump, not pictured, at the Fiserv Forum in Milwaukee Nov. 1, 2024. (Jim Vondruska/Bloomberg via Getty Images)
Sen. Ron Johnson, R-Wis., said it could “threaten the benefits for disabled children.”
Sen. Marsha Blackburn, R-Tenn., a Trump loyalist, said California made a “conscious decision” to allow taxpayers to pick up the tab on healthcare for illegal immigrants.
“They fully realize and appreciate that the federal government does not have one single penny to spend until the taxpayer sends that penny into the treasury,” Blackburn said.
Sen. Cynthia Lummis, R-Wyo., said California needs to realize the impact its policies have on other states.
Democratic California Gov. Gavin Newsom speaks during a news conference Oct. 6, 2022, in San Francisco. (Justin Sullivan/Getty Images)
“A lot of people in Wyoming are living paycheck to paycheck. They’re struggling to pay for things they used to be able to take for granted, like food and gasoline. And it’s absolutely wrong that one state can expand its benefits to illegals, and my state has to pay for it,” Lummis said.
“Cost increases to the Medicaid program are driven by multiple factors, including expansion, increased enrollment for all populations and pharmacy costs,” a spokesperson for Newsom said when reached by Fox News Digital for comment.
Newsom’s office emphasized that Medi-Cal covers approximately 15 million Californians, which accounts for more than one-third of the state’s population. Program costs have more than doubled in the past decade, according to the governor’s office.
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Given Medi-Cal’s size, Newsom’s office said even a 1-2% increase in drug prices or hospital visits could mean billions of dollars in additional costs for the program, and states across the country and political spectrum are facing their own rising Medicaid expenses, specifically Pennsylvania and Indiana.