Politics
Trump claims Democrats want to use federal funds to give undocumented residents healthcare. That’s misleading
SACRAMENTO — Though raging thousands of miles to the east, the entrenched stalemate in Washington over federal spending and the ensuing government shutdown has thrust California’s expansive healthcare policies into the center of the pitched, partisan debate.
The Trump administration and the Republican leaders in Congress continue to use California, and the benefits the state has extended to eligible immigrants regardless of their legal status, as a cudgel against Democrats trying to extend federal subsidies for taxpayer-funded healthcare coverage.
President Trump claimed recently that Democrats “want to have illegal aliens come into our country and get massive healthcare at the cost to everybody else.” Democrats called Trump’s assertion an absolute lie, accusing Republicans of wanting to slash federal healthcare benefits to Americans in need to pay for tax breaks for the wealthy.
“California has led the nation in expanding access to affordable healthcare, but Donald Trump is ripping it away,” California Gov. Gavin Newsom said.
In return for their votes to reopen the government, Democratic leaders in Congress want to reverse Medicaid cuts made in Republicans’ tax and spending bill passed this summer and continue subsidies through the Affordable Care Act, a program long targeted by Republicans. The subsidies, which come in the form of a tax credit, help lower health insurance costs for millions of Americans.
Can immigrants in the country illegally enroll in federal healthcare programs?
No. Undocumented immigrants are ineligible for Medicaid, Children’s Health Insurance Program or Medicare, or coverage through the Affordable Care Act, according to KFF, an independent health research organization.
Rep. Kevin Mullin (D-South San Francisco) held a virtual town hall last week in which he highlighted the “misinformation” about immigrants and healthcare.
“I just want to be completely clear that federal funding does not pay for health insurance for undocumented immigrants, period,” Mullin said.
Jessica Altman, executive director of Covered California, said the debate is really over “who can benefit from the federal dollars that are flowing to all states, including California,” to help lower costs for health insurance.
Covered California serves as a marketplace exchange for state residents seeking healthcare insurance under the Affordable Care Act, widely known as Obamacare, allowing them to select from name-brand insurance providers and choose from a variety of coverage plans. The vast majority of Californians receive federal subsidies to lower their premiums, including many middle-income families who had become eligible when Congress expanded the financial assistance in 2021.
Those expanded subsidies will expire at the end of the year, and Democrats are demanding that they be extended as part of any deal to reopen the government before they vote in favor of what is known as a continuing resolution, or a temporary funding bill to keep the federal government running.
“From the very beginning, undocumented or illegal — whatever terminology you want to use — individuals were never eligible for those tax credits, never eligible for those cost-sharing reductions, and in fact, and not even eligible to come onto a marketplace and buy coverage if they paid the full costs,” Altman said.
California does offer state healthcare coverage for undocumented immigrants
Through Medi-Cal, the state’s version of the federal Medicaid program, some medical coverage is offered, regardless of immigration status. The majority of that money comes from the state.
H.D. Palmer, deputy director for external affairs at the California Department of Finance, said the cost to provide Medi-Cal to undocumented immigrants in the current fiscal year is just over $12.5 billion.
State money accounts for $11.2 billion and the remaining difference is reimbursed with federal funding because it’s used to cover emergency services, Palmer explained.
“Under current law, hospitals that receive Medicaid are required to provide emergency care, including labor and delivery, to individuals regardless of their citizenship status,” he said. “That goes back to a budget law that was approved by Congress in 1986 and signed by President Ronald Reagan.”
The 1986 law is called the Emergency Medical Treatment and Active Labor Act, and allows for emergency healthcare for all persons.
Some Republicans have raised other concerns about the state’s use of managed care organization taxes.
The MCO tax is a federally allowable Medicaid funding mechanism that imposes a tax on health insurance providers that charge fixed monthly payments for services and is based on the number of people enrolled in plans each month. The revenue from the tax can then be used to support Medicaid expenditures with federal matching funds.
Critics say California exploits a so-called loophole: By increasing the MCO tax, and subsequently bringing in more matching federal funds, California can then put more of its own state money toward healthcare for undocumented immigrants.
“We are bringing in all those additional federal dollars and then reallocating other money away so that we can provide about $9.6 billion for Medi-Cal for undocumented and illegal immigrants,” said Assemblymember David J. Tangipa (R-Fresno). “The MCO tax was never supposed to be weaponized in that process.”
White House officials also contend that California could not afford to put resources toward benefits for undocumented immigrants if it had not received the extra federal money — a claim Newsom disputes.
“What the president is saying, he’s lying,” Newsom said at a recent event. “Speaker [Mike] Johnson’s lying. They’re lying to the American people. It’s shameful. … I guess they’re trying to connect their displeasure with what California and many other states do with state resources in this space, and that is a very separate conversation.”
California is not alone in offering such healthcare to immigrants in the country illegally
A “small but growing” number of states offer state-funded coverage to certain groups of low-income people regardless of immigration status, according to KFF.
California became the first state in the nation last year to offer healthcare to all low-income undocumented immigrants, an expansion spearheaded by Newsom.
Newsom has since partially walked back that policy after the costs exceeded expectations. Starting in January, most adult Medi-Cal applications will be blocked — although current enrollees can continue to renew — and some adults will be required to pay monthly premiums. Undocumented minors under age 19, who became eligible for Medi-Cal nearly a decade ago, will not be affected by the changes.
The upcoming changes to the state’s policies and the enrollment freeze will help decrease the overall costs, which are projected to fall to about $10.1 billion during the next fiscal year, according to the California Department of Finance.
While the governor’s shift angered his most progressive allies and renewed speculation that he is tacking to the political middle ahead of his expected run for president in 2028, the Democratic-led Legislature approved the Medi-Cal eligibility changes in June.
Public opinion on the issue may also be changing.
Fifty-eight percent of adults in California were opposed to providing healthcare for undocumented immigrants, according to a poll released in June from the nonpartisan Public Policy Institute of California. This was a notable shift, as previous surveys from the institute conducted between 2015 to 2023 showed the majority approved.
Who would lose coverage if the tax credits end and Medicaid cuts aren’t reversed?
Trump’s One Big Beautiful Bill Act, passed by Republicans this summer, ends healthcare subsidies that were extended during the pandemic and makes other cuts to programs. According to the White House, the bill “contains the most important America First healthcare reforms ever enacted.”
“The policies represent a comprehensive effort to address waste, fraud, and abuse to strengthen the healthcare system for the most vulnerable Americans, ensuring that taxpayer dollars are focused on American citizens and do not subsidize healthcare for illegal immigrants,” the White House said in a statement on Oct. 1.
Among other things, the law limits Medicare and other program eligibility to certain groups, including green card holders, effective July 2025. Other lawfully present immigrants, including refugees and asylees, are no longer eligible, according to KFF.
It’s estimated that the eligibility restrictions will result in about 1.4 million lawfully present immigrants becoming uninsured, reduce federal spending by about $131 billion and increase federal revenue by $4.8 billion as of 2034, according to the Congressional Budget Office.
At the same time, a broader group of lawfully present immigrants, including refugees, will lose access to subsidized coverage through the ACA marketplace by January 2027.
Covered California’s Altman estimated that there are about 119,000 immigrants in California who are covered and would lose eligibility for financial assistance.
More broadly, Altman and other healthcare experts predict that healthcare premiums will skyrocket if the ACA tax credits expire.
Politics
Stefanik receives top Jewish award days after announcing New York governor bid at Manhattan gala
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Rep. Elise Stefanik on Monday night accepted the World Jewish Congress’ highest honor, vowing to continue fighting antisemitism and defending what she called “the very Western values that have shaped America” just days after announcing her bid for New York governor.
Speaking before 400 guests at the Museum of Modern Art in Manhattan, Stefanik received the Theodor Herzl Award from Ronald Lauder, the businessman and former U.S. ambassador to Austria under President Ronald Reagan. Established in 2012, the award is considered the World Jewish Congress’ highest honor and recognizes individuals who embody Herzl’s vision for a secure and self-reliant Jewish people.
“I want to thank my friend Ambassador Ronald Lauder for his steadfast leadership and his extraordinary commitment to the cause of Jewish unity and security,” Stefanik said. “Under his leadership, the World Jewish Congress has carried forward Theodor Herzl’s vision — not only of a Jewish homeland, but of a Jewish people strong, self-reliant, and respected among the nations.”
“It is deeply humbling to receive the Theodor Herzl Award from the World Jewish Congress — an organization that, for generations, has stood as the diplomatic voice and moral conscience of the Jewish people across the globe,” she continued. “You have defended Jewish communities in every corner of the world, fought antisemitism in every form, and strengthened the unbreakable bonds between Israel and the global community of free nations.”
KEY TRUMP ALLY JUMPS INTO NEW YORK GOVERNOR’S RACE DAYS AFTER SHOCKING MAMDANI MAYORAL VICTORY
Rep. Elise Stefanik accepted the World Jewish Congress’ Theodor Herzl Award from Ronald Lauder at the Museum of Modern Art in Manhattan on Nov. 10, 2025. (Andrew Harnik/Getty Images)
Stefanik described her fight against antisemitism in Congress and on college campuses, recalling her viral 2023 hearing with the presidents of Harvard, MIT, and the University of Pennsylvania.
“Does calling for the genocide of Jews violate your university’s code of conduct?” she recalled asking what she said was a moral question, not a political one. “I expected them to say ‘yes.’ But one after another after another said, ‘it depends on the context.’ And the world heard. Let me be clear. It does NOT depend on the context.”
She said that exchange “set off a global reckoning and delivered accountability in higher education that we are still just beginning.”
STEFANIK DECRIES HOCHUL AS ‘WORST GOVERNOR IN AMERICA’ IN FIERY 2026 CAMPAIGN LAUNCH
Rep. Elise Stefanik delivered remarks after receiving the World Jewish Congress’ highest honor on Nov. 10, 2025, pledging to continue fighting antisemitism and defending Western values. (Tierney L. Cross/Bloomberg via Getty Images )
Turning to New York, Stefanik said the state “is not just a city and state in crisis — it is the epicenter of the battle for the very Western values that have shaped America.”
“Eighty years after Kristallnacht, we must not stay silent. I will continue to call out Antisemitism. Bigotry. Jew-hatred. Anti-Americanism,” she said. “This moral fight is particularly important in New York — the beloved home to more Jews than anywhere outside of Israel — where antisemitic incidents hit an all-time high last year, the highest count in the nation.”
“My friends, Theodor Herzl’s story is not ancient history,” she said. “That is the spirit I see in this room tonight — the spirit that built Israel, the spirit that has always animated the Jewish people, and the spirit that will save New York.”
STEFANIK TO RELEASE NEW BOOK ON COLLEGE ANTISEMITISM AS SHE EYES BID FOR NY GOVERNOR
Miriam Adelson appeared to throw her support behind Rep. Elise Stefanik, who is running for New York governor, on Nov. 9, 2025, during the Zionist Organization of America’s Justice Louis D. Brandeis Award Dinner in New York. (Dominic Gwinn/Middle East Images/AFP via Getty Images and Chip Somodevilla/Getty Images)
The award comes a day after billionaire philanthropist Miriam Adelson voiced support for Rep. Elise Stefanik’s New York gubernatorial bid during the Zionist Organization of America’s Justice Louis D. Brandeis Award Dinner.
Stefanik, chairwoman of the House Republican Leadership, was honored with the Zionist Organization of America’s Mortimer Zuckerman Maccabee Warrior Award for her efforts to combat antisemitism.
Introducing her at the gala, Adelson lauded Stefanik for confronting university leaders over antisemitism and invoked her late husband Sheldon Adelson’s insistence on moral conviction.
Adelson described Stefanik as “a great leader,” crediting her for defending “the Jewish people, Israel and the Free World.”
Stefanik launched her long-anticipated Republican campaign for New York governor on Friday, entering the 2026 race as she challenges Democratic Gov. Kathy Hochul.
Fox News Digital has reached out to Hochul’s office for a comment.
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Stefanik, who once criticized President Donald Trump during his first presidential run, has since become one of his staunchest defenders in Congress.
Fox News Digital’s Paul Steinhauser contributed to this report.
Politics
Senate approves shutdown deal as Democrats balk at lack of healthcare relief
WASHINGTON — The Senate gave final approval Monday night to a deal that could end the longest government shutdown in U.S. history, sending it to the House, where Democrats are launching a last-ditch effort to block the measure because it does not address healthcare costs.
Senators approved the shutdown deal on a 60-40 vote, a day after Senate Republicans reached a deal with eight senators who caucus with Democrats. The movement in the Senate prompted Speaker Mike Johnson (R-La.) earlier on Monday to urge House members to start making their way back to Washington, anticipating that the chamber will be ready to vote on the bill later in the week.
The spending plan, which does not include an extension of the Affordable Care Act subsidies that are set to expire at the end of the year, has frustrated many Democrats who spent seven weeks pressuring Republicans to extend the tax credits. It would, however, fund the government through January, reinstate federal workers who were laid off during the shutdown and ensure that federal employees who were furloughed receive back pay.
Senate Majority Leader John Thune (R-S.D.) also promised senators a vote in December that would put lawmakers on record on the healthcare subsidies. Thune said in a speech Monday that he was “grateful that the end is in sight” with the compromise.
“Let’s get it done, get it over to the House so we can get this government open,” he said.
Senate Democrats who defected have argued that a December vote on subsidies is the best deal they could get as the minority party, and that forcing vulnerable Republicans in the chamber to vote on the issue will help them win ahead of next year’s midterm elections.
As the Senate prepared to vote on the deal Monday, Sen. Chuck Schumer of New York, the Democratic leader of the chamber, continued to reiterate his opposition to what he called a “Republican bill.” Schumer, who has faced backlash from Democrats for losing members of his caucus, said the bill “fails to do anything of substance to fix America’s healthcare crisis.”
House Minority Leader Hakeem Jeffries (D-N.Y.) speaks to reporters about the government shutdown.
(Mariam Zuhaib / Associated Press)
Thune’s promise to allow a vote in the Senate does not guarantee a favorable outcome for Democrats, who would need to secure Republican votes for passage through the chamber. And the chance to address healthcare costs will be made even harder by Johnson, who has not committed to holding a vote on his chamber in the future.
“I’m not promising anybody anything,” he said. “I’m going to let the process play out.”
House Minority Leader Hakeem Jeffries (D-N.Y.), meanwhile, told reporters that House Democrats will continue to make the case that extending the subsidies is what Americans are demanding from elected officials, and that there is still a fight to be waged in the chamber — even if it is a long shot.
“What we are going to continue to do as House Democrats is to partner with our allies throughout America is to wage the fight, to stay in the Colosseum,” Jeffries said at a news conference.
Some Republicans have agreed with Democrats during the shutdown that healthcare costs need to be addressed, but it is unlikely that House Democrats will be able to build enough bipartisan support to block the deal in the chamber.
Still, Jeffries said the “loudmouths” in the Republican Party who want to do something about healthcare costs have an opportunity to act now that the House is expected to be back in session.
“They can no longer hide. They can no longer hide,” Jeffries said. “They are not going to be able to hide this week when they return from their vacation.”
Democrats believed that fighting for an extension of healthcare tax credits, even at the expense of shutting down the government, would highlight their messaging on affordability, a political platform that helped lead their party to victory in elections across the country last week.
If the tax credits are allowed to lapse at the end of the year, millions of Americans are expected to see their monthly premiums double.
In California, premiums for federally subsidized plans available through Covered California will soar by 97% on average next year.
Senate Majority Leader John Thune answers questions Monday about a possible end to the government shutdown after eight members of the Democratic caucus broke ranks and voted with Republicans.
(J. Scott Applewhite / Associated Press)
California’s U.S. senators, Adam Schiff and Alex Padilla, were among the Democrats who voted against the deal to reopen the government because it did not address healthcare costs.
“We owe our constituents better than this. We owe a resolution that makes it possible for them to afford healthcare,” Schiff said in a video Sunday night.
Some Republicans too have warned that their party faces backlash in the midterm elections next year if it doesn’t come up with a more comprehensive health plan.
“We have always been open to finding solutions to reduce the oppressive cost of healthcare under the unaffordable care act,” Johnson said Monday.
Republican Sen. Rand Paul of Kentucky, for one, supported an expeditious vote to reopen the government but insisted on a vote to eliminate language from the spending deal he said would “unfairly target Kentucky’s hemp industry.” His amendment did get a vote and was eventually rejected on a 76-24 vote Monday night.
With the bill headed to the House, Republicans expect to have the votes to pass it, Johnson said.
Any piece of legislation needs to be approved by both the Senate and House and be signed by the president.
Speaking to reporters in the Oval Office on Monday, President Trump said he would support the legislative deal to reopen the government.
“We’re going to be opening up our country,” Trump said. “Too bad it was closed, but we’ll be opening up our country very quickly.”
Trump added that he would abide by a provision that would require his administration to reinstate federal workers who were laid off during the shutdown.
“The deal is very good,” he said.
Johnson said he spoke to the president on Sunday night and described Trump as “very anxious” to reopen the government.
“It’s after 40 days of wandering in the wilderness, and making the American people suffer needlessly, that some Senate Democrats finally have stepped forward to end the pain,” Johnson said. “Our long national nightmare is finally coming to an end, and we’re grateful for that.”
Politics
Video: Senate Moves Closer to Ending Shutdown
new video loaded: Senate Moves Closer to Ending Shutdown
transcript
transcript
Senate Moves Closer to Ending Shutdown
Eight senators broke from the Democratic caucus and agreed to a deal giving Republicans the 60 votes they needed to end the government shutdown. The measure still needs to be voted on in both chambers of Congress.
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“The yeas are 60 and the nays are 40.” “From the truly precarious situation we are in with regard to air travel, to the fact that our staffs have been working without pay for a full 40 days now, all of us, Republicans and Democrats, who support this bill know that the time to act is now.” “I must vote no. This healthcare crisis is so severe, so urgent, so devastating for families back home that I cannot, in good faith, support this C.R. [continuing resolution].”
By Shawn Paik
November 10, 2025
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