Stanislaus County, CA, USA; California Governor Gavin Newsom (C), and former Los Angeles Mayor Antonio Villaraigosa (L) meet with NorCal Carpenters Union workers along the construction of the Battery Energy Storage Systems (BESS) for the future site of Proxima Solar Farm in Stanislaus County, California, USA, 19 May 2023. The Governor unveiled legislation to speed up construction for a streamlined process and to expedite court review on legal challenges that often tie up projects. The project is expected to create 300 construction jobs and generate $35 million in local revenue. The project is expected to be operational by December, could power 60,000 homes in the surrounding region and can generate up to 210 megawatts of clean, renewable energy and 177 megawatts of better energy storage. Mandatory Credit: John G. Mabanglo/Pool via USA TODAY NETWORK
Sacramento, California – The Department of Government Efficiency (DOGE) is raising alarms over what it describes as a “systemic loophole” that has enabled over a million undocumented immigrants to enroll in taxpayer-funded Medicaid programs, placing increasing pressure on both federal and state budgets.
In California, the crisis has reached a boiling point. Governor Gavin Newsom recently requested two emergency loans totaling more than $6 billion to address growing budget shortfalls. A large portion of this deficit, officials say, stems from an unexpected surge in undocumented migrants enrolling in Medi-Cal, the state’s Medicaid program.
“So in the current year to cover undocumented individuals in Medi-Cal, we’re spending $9.5 billion total funds,” said Guadalupe Manriquez of the California Department of Finance.
Federal officials are taking notice. Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services (CMS), criticized California’s use of federal funds, stating, “The state of California has taken tens of billions of dollars from the federal government providing free health insurance for illegal immigrants. We are going to get that money back.”
New York is facing a similar challenge, with enrollment in emergency Medicaid for immigrants surpassing 480,000. The Department of Government Efficiency, in collaboration with Elon Musk’s DOGE (Department of Government Efficiency) initiative, claims to have identified at least 1.3 million undocumented migrants currently receiving Medicaid.
“In 2021, you see 270,000 people. It goes all the way to 2.1 million in 2024. These are non-citizens that are getting Social Security numbers,” said Antonio Gracias, a DOGE Border Team volunteer.
While the rising numbers have sparked calls for reform, Governor Newsom remains steadfast. When asked about potentially scaling back immigrant healthcare, he replied, “It’s not on my docket.”
Meanwhile, Republican lawmakers on Capitol Hill have introduced new legislation aiming to prevent states from using federal Medicaid dollars to fund healthcare for undocumented immigrants. Supporters of the bill argue it would help rein in ballooning costs, while critics warn it could have public health consequences.
Advocates for maintaining coverage argue that extending healthcare benefits to all residents, regardless of legal status, protects the broader community by ensuring access to preventative care and emergency services.
As debates intensify, the clash between federal oversight and state policy continues to grow, with billions of taxpayer dollars—and public health—hanging in the balance.
