California to offer 700,000 illegal immigrants free healthcare as deficit soars and population shrinks
The free health insurance for illegal immigrants is expected to cost $2.6 billion annually
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California is ushering in 2024 with free healthcare for more than 700,000 migrants living illegally in the Golden State as the state is faced with a looming $68 billion deficit.
The program, which was announced in May by Gov. Gavin Newsom, will provide health insurance for approximately 700,000 illegal immigrant residents aged 26-49.
California has been providing free health insurance to illegal immigrants who are under 26-years-old since 2019.
The program will begin on Jan. 1, 2024 and will provide more illegal immigrants with health insurance under the state's Medi-Cal coverage.
California Governor Gavin Newsom makes an appearance after the polls close on the recall election, at the California Democratic Party headquarters in Sacramento, California, U.S., September 14, 2021. (REUTERS/Fred Greaves / Reuters Photos)
When he proposed the bill two years ago, Newsom called the expansion "a transformative step towards strengthening the healthcare system for all Californians."
California's Health and Human Services Secretary Dr. Mark Ghaly called the bill the future "national model" for "expanding access, reducing costs, improving services, and closing equity gaps."
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"No other state in the country has done more in the space of health care access and affordability than the state of California," Dr. Ghaly said. "I am proud of this Administration’s work to pioneer a comprehensive health care system that will become a national model for expanding access, reducing costs, improving services, and closing equity gaps."
LOS ANGELES, CA - AUGUST 15: Los Angeles General Medical Center restrains psychiatric patients at the Augustus Hawkins Mental Health Center at a higher rate than any other hospital in the state. Photographed at Los Angeles General Medical Center on T (Myung J. Chun / Los Angeles Times via Getty Images / Getty Images)
In a statement to Fox News Digital, Gov. Newsom's office said that they believe that everyone deserves access to health care.
"In California, we believe everyone deserves access to quality, affordable health care coverage – regardless of income or immigration status," Newsom's office said. "Through this expansion, we’re making sure families and communities across California are healthier, stronger, and able to get the care they need when they need it."
Asylum seeking migrants wait to be processed by the U.S. Border Patrol after crossing from Mexico at a makeshift camp next to the US border wall on December 13, 2023 in Jacumba Hot Springs, California. (Qian Weizhong/VCG via Getty Images / Getty Images)
The Cost
According to state Sen. María Durazo, D-Calif., the Medi-Cal expansion to include all illegall immigrants is expected to cost $2.6 billion annually.
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The added cost comes as California is faced with a major budget crisis due to a "severe revenue decline."
According to California's non-partisan Legislative Analyst's Office (LAO) report released Thursday, the state's budget deficit has grown exponentially in just a few months' time, up more than $54 billion from just $14.3 billion in June.
California Gov. Gavin Newsom (D) is seen in the U.S. Capitol Rotunda after a meeting with Speaker of the House Nancy Pelosi, D-Calif., on Friday, July 15, 2022. (Tom Williams/CQ-Roll Call, Inc via Getty Images) / Getty Images)
The growing budget deficit comes as residents and businesses have fled the predominately Democrat-run state.
California saw its first-ever population decline in 2020 when the state imposed rigid lockdowns during the COVID-19 pandemic.
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From January 2020 to July 2022, the state lost well over half a million people, with the number of residents leaving surpassing those moving in by almost 700,000.
According to the Los Angeles Times, economic factors like the cost of living and the housing market have also contributed to people moving out of California, and so has remote work.
Fox News' Brandon Gillespie contributed to this report.