California Governor Gavin Newsom continued his rightward shift with a surprise announcement Wednesday proposing a freeze on healthcare coverage for undocumented immigrants in the state.

Newsom is expected to make a budget presentation Wednesday in which he proposes a rollback of newly established health coverage for undocumented individuals under Medi-Cal, the state's version of Medicaid. It's being framed, as the Associated Press reports, as a necessary budget cut to address the state's deficit, but it falls in line with Newsom's general lean in a rightward direction during this second Trump administration.

Newsom defended the state's program, which is only about a year old, to extend health coverage to the undocumented as recently as March. But facing a $6.2 billion Medicaid shortfall, in addition to the wrath of the Trump team toward all such programs and blue states generally, Newsom is pivoting toward cutting back on Medi-Cal coverage as soon as January.

As the New York Times reports, Newsom's proposal suggests freezing new enrollments by undocumented immigrants, and beginning to charge individuals who are already enrolled $100 per month starting next year. The plan is expected to save the state $5.4 billion by fiscal year 2028-29.

"The cost of the program is more than anticipated. It is unsustainable," said Erika Li, a Newsom budget aide, last month, per the Chronicle. "We are looking at ways to curb those costs."

Newsom, who is widely expected to run for president in 2028, has continued to attack President Trump while still using his new podcast and various recent public statements to signal his push away from progressives and toward centrist — if not center-right — politics. His X account, as a for instance, shows him retweeting coverage by Fox News and the New York Post of his recent rhetoric on banning homeless encampments.

Newsom blames the "Trump Slump" and the president's trade war for lower-than-expected tax revenues in California, hence the need for such budget cuts.

The state Department of Finance has estimated that California will take a $16 billion hit under the currently proposed tariffs.

In a statement, Newsom said today, "The state must take difficult but necessary steps to ensure fiscal stability and preserve the long-term viability of Medi-Cal for all Californians."

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