California Governor Gavin Newsom signed a $2.8 billion bailout to address the overspending in the state’s Medicaid program. The deficit arose after expanding the program to include illegal immigrants. Newsom originally requested a $3.4 billion loan to manage $6.2 billion in outstanding costs for Medi-Cal, which serves approximately 15 million Californians, including 1.6 million illegal immigrants.
- Republicans expressed concern, arguing that Medicaid’s sustainability is compromised by covering illegal immigrants.
- Initial projections underestimated the financial impact of the expansion, leading to current budgetary challenges.
The bailout will sustain Medicaid funding through June.
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