California governor outlines $12 billion deficit and freeze on immigrant health program access

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California governor outlines $12 billion deficit and freeze on immigrant health program access

2025-05-15 06:11 Last Updated At：06:21

SACRAMENTO, Calif. (AP) — California is facing a $12 billion deficit that Gov. Gavin Newsom wants to help close by freezing enrollment in a state-funded health care program for immigrants living in California without legal status.

Newsom announced the deficit and his plans to cover it Wednesday as he outlined his nearly $322 billion state spending plan for the upcoming fiscal year.

Beyond higher-than-expected Medicaid spending, Newsom blamed broad economic uncertainty, including federal tariff policies and a volatile stock market. California relies heavily on revenue from a tax on capital gains.

Newsom, a Democrat, highlighted California's contributions to the U.S. and world economy and said President Donald Trump's economic policies could reduce state revenues by $16 billion in the coming years.

“California is under assault,” he said. “We have a president that's been reckless in terms of assaulting those growth engines.”

He now opens budget negotiations with lawmakers. A final budget must be signed by the end of June.

Assembly Republican Leader James Gallagher criticized Newsom for blaming much of the state’s budget woes on Trump.

“Newsom’s finger-pointing on the budget shortfall is the biggest load of crap I’ve ever seen from a politician, and he shovels out a lot of it,” Gallagher said. “We’re in this mess because of his reckless spending, false promises, and failed leadership.”

The decision highlights Newsom's struggle to protect his liberal policy priorities against budget challenges in his final years on the job and as he weighs his next political move, which could include a presidential run.

Immigration has become a politically potent issue nationally. Nearly half of Americans approve of President Donald Trump’s tougher immigration approach, according to an AP-NORC poll conducted in April. Meanwhile, Republicans in Congress have threatened to reduce Medicaid money for states that enroll immigrants living in the country illegally.

The freeze does not mean California is backing away from its support for immigrants, Newsom said.

“No state has done more than the state of California, no state will continue to do more than the state of California by a long shot. And that’s a point of pride,” he said.

California was among one of the first states to extend free health care benefits to all poor adults regardless of their immigration status last year, an ambitious plan touted by Newsom to help the nation’s most populous state inch closer to a goal of universal health care. But the cost ran $2.7 billion more than the administration had anticipated. The state has more than 1.6 million people without legal status enrolled in its health care program this fiscal year, according to the budget.

Newsom in March suggested he was not considering rolling back health benefits for immigrants as the state was grappling with a $6.2 billion Medicaid shortfall. He also repeatedly defended the expansion, saying it saves the state money in the long run. The program is state-funded and does not use federal dollars.

Under Newsom's plan, low-income adults without legal status will no longer be eligible to apply for Medi-Cal, the state's Medicaid program, starting in 2026. Those who are already enrolled won't be kicked off their plans, and the changes won't impact children. Newsom didn't say how long the freeze would last.

Starting in 2027, adults with “unsatisfactory immigration status” on Medi-Cal will also have to pay a $100 monthly premium. The governor's office said that is in line with the average cost paid by those who are on subsidized heath plans through California's own marketplace. There is no premium for most people currently on Medi-Cal.

“We believe that people should have some skin in the game as it relates to contributions," Newsom said.

Newsom's office estimated the changes will save the state $5.4 billion by fiscal year 2028-2029.

The Medi-Cal expansion, combined with other factors such as rising pharmacy costs and larger enrollment by older people, has forced California to borrow and authorize new funding to plug the multibillion hole earlier this year. California provides free health care to more than a third of its 39 million people.

Democratic state Sen. Dave Cortese said he opposed Newsom's plan to scale back coverage for some immigrants without legal status.

"Congress may be walking away from its obligation to the poor, the elderly, and the disabled, but California will not,” Cortese said in a statement.

Newsom's proposals go against the commitment the state has made to the immigrant community, said Masih Fouladi, executive director of the California Immigrant Policy Center.

“Questions about the practicality of the program aren't even something that we want to entertain with,” he said. “The proposal just doesn't match with our values as a state.”

Associated Press journalist Sophie Austin contributed.

Thousands of nurses go on strike at several major New York City hospitals

NEW YORK (AP) — Thousands of nurses in three hospital systems in New York City went on strike Monday after negotiations through the weekend failed to yield breakthroughs in their contract disputes.

The strike was taking place at The Mount Sinai Hospital and two of its satellite campuses, with picket lines forming. The other affected hospitals are NewYork-Presbyterian and Montefiore Medical Center in the Bronx.

About 15,000 nurses are involved in the strike, according to New York State Nurses Association.

“After months of bargaining, management refused to make meaningful progress on core issues that nurses have been fighting for: safe staffing for patients, healthcare benefits for nurses, and workplace violence protections,” the union said in a statement issued Monday. “Management at the richest hospitals in New York City are threatening to discontinue or radically cut nurses’ health benefits.”

The strike, which comes during a severe flu season, could potentially force the hospitals to transfer patients, cancel procedures or divert ambulances. It could also put a strain on city hospitals not involved in the contract dispute, as patients avoid the medical centers hit by the strike.

The hospitals involved have been hiring temporary nurses to try and fill the labor gap during the walkout, and said in a statement during negotiations that they would “do whatever is necessary to minimize disruptions.” Montefiore posted a message assuring patients that appointments would be kept.

“NYSNA’s leaders continue to double down on their $3.6 billion in reckless demands, including nearly 40% wage increases, and their troubling proposals like demanding that a nurse not be terminated if found to be compromised by drugs or alcohol while on the job," Montefiore spokesperson Joe Solmonese said Monday after the strike had started. "We remain resolute in our commitment to providing safe and seamless care, regardless of how long the strike may last.”

New York-Presbyterian accused the union of staging a strike to “create disruption,” but said in a statement that it has taken steps to ensure patients receive the care they need.

"We’re ready to keep negotiating a fair and reasonable contract that reflects our respect for our nurses and the critical role they play, and also recognizes the challenging realities of today’s healthcare environment,” the statement said.

The work stoppage is occurring at multiple hospitals simultaneously, but each medical center is negotiating with the union independently. Several other hospitals across the city and in its suburbs reached deals in recent days to avert a possible strike.

The nurses’ demands vary by hospital, but the major issues include staffing levels and workplace safety. The union says hospitals have given nurses unmanageable workloads.

Nurses also want better security measures in the workplace, citing incidents like a an incident last week, when a man with a sharp object barricaded himself in a Brooklyn hospital room and was then killed by police.

The union also wants limitations on hospitals’ use of artificial intelligence.

The nonprofit hospitals involved in the negotiations say they’ve been working to improve staffing levels, but say the union’s demands overall are too costly.

Nurses voted to authorize the strike last month.

Both New York Gov. Kathy Hochul and Mayor Zohran Mamdani had expressed concern about the possibility of the strike. As the strike deadline neared, Mamdani urged both sides to keep negotiating and reach a deal that “both honors our nurses and keeps our hospitals open.”

“Our nurses kept this city alive through its hardest moments. Their value is not negotiable,” Mamdani said.

State Attorney General Letitia James voiced similar support, saying "nurses put their lives on the line every day to keep New Yorkers healthy. They should never be forced to choose between their own safety, their patients’ well-being, and a fair contract.”

The last major nursing strike in the city was only three years ago, in 2023. That work stoppage, at Mount Sinai and Montefiore, was short, lasting three days. It resulted in a deal raising pay 19% over three years at those hospitals.

It also led to promised staffing improvements, though the union and hospitals now disagree about how much progress has been made, or whether the hospitals are retreating from staffing guarantees.