California Legislator Urges Federal Audit of Medi-Cal Amid Rising Costs
A resolution from the Republican assemblyman comes on the heels of the state borrowing funds to bolster the program after expanding coverage to undocumented immigrants.
A Republican representative is advocating for a federal audit of California’s Medi-Cal program after the state sought to borrow $6.24 billion to cover cost overruns.
This resolution, which requires approval from Democratic supermajorities in both chambers of the state Legislature, urges the federal Centers for Medicare and Medicaid Services to conduct an audit of the state program to restore its financial viability.
Under Newsom’s leadership, Medi-Cal spending has almost doubled, increasing from $21.6 billion to $42.1 billion in six years.
The surge in funding is largely attributed to the expansion of Medi-Cal benefits to undocumented immigrants, which Gallagher estimates costs an additional $8.4 billion annually.
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Gallagher stated that the program’s expansion to individuals lacking legal status is negatively impacting its low-income recipients.
The legislator noted that the program is projected to reach $118.1 billion in the 2025–2026 budget year.
“This is a matter of priorities,” Gallagher remarked. “As Californians find it hard to obtain care, the state continues to pour money into a program that is heavily deficit-ridden. We require accountability before it collapses entirely.”
Newsom has increased the budget for the state’s health care program while proposing cuts to other areas in the forthcoming budget year, which commences on July 1 and concludes on June 30, 2026. Among the suggested reductions is an 8 percent cut to the University of California and California State University systems.
California Governor Gavin Newsom addresses a news conference at East Los Angeles College in Monterey Park, California, on February 26, 2025. Mario Tama/Getty Images
Gallagher highlighted that Newsom is also considering a $7 billion withdrawal from the state’s rainy day fund.
In response to the backlash regarding the state’s funding choice for healthcare for undocumented immigrants, Newsom remarked last week that California is not alone in facing escalating medical care costs.
“This is not unprecedented—as the administration previously outlined in the governor’s January budget proposal, extra funding is essential to support Medi-Cal,” a spokesperson for Newsom informed The Epoch Times via email on Thursday. “Increasing Medicaid costs are a national issue, affecting states of all political affiliations. This is not exclusive to California.”
Newsom’s office did not immediately respond to a request for comment regarding Gallagher’s proposed resolution on Monday.
