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.
The Supreme Court ruled 6-3 that President Trump could fire independent regulators for any reason. But the justices carved out an exception for the Federal Reserve, preventing the immediate removal of Lisa D. Cook, a Federal Reserve governor.
Politics
Emotion and feelings: How Democratic Socialists’ congressional insurgency could come back to bite them
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Democratic Socialists of America are on the charge, running hot off their wins in the New York Democratic primaries last week. Their victories in multiple Congressional seats – felling both Reps. Adriano Espaillat, D-N.Y., and Dan Goldman, D-N.Y. – signals that the party is ready to move on from the same old, same old.
Espaillat chaired the Congressional Hispanic Caucus. Goldman was a key House staffer during the first impeachment of President Donald Trump.
“Even Dan Goldman’s not good enough for them,” said House Judiciary Committee Chairman Jim Jordan, R-Ohio, on Fox. “That is how radical it’s become.”
Some moderate Democrats are trying to distance themselves from the left.
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The left flank of the Democratic Party has surged to the top of the nation’s most hotly-contested primaries. (Michael M. Santiago/Getty Images)
“That’s not the same brand of politics that we have. We’re not those type of Democrats,” said Rep. Tom Suozzi, D-N.Y., who represents a battleground district.
“There’s a new group of Democratic Socialists who are socialists who are not commonsense Democrats. Who are not interested in getting things done. They’re interested in throwing bombs. Not actually solving problems,” said Rep. Josh Gottheimer, D-N.J.
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Some Democrats are worried how far left candidates command more attention than those in the middle. Rep. Kristen McDonald Rivet, D-Mich., worries that the outsized attention garnered by the left sends the wrong impression to voters.
“What they don’t want is divisiveness. They don’t want screaming and yelling,” said McDonald Rivet.
Mainstream Democrats feel trapped in the middle as the left – specifically the New York City left – wields an outsized media and political megaphone.
“Those candidates would not have won in Virginia where I live,” said Rep. Suhas Subramanyam, D-Va.
Rep. Tom Suozzi, D-N.Y., is among the moderate Democrats trying to distance themselves from the party’s insurgent wing. (Nathan Posner/Anadolu via Getty Images)
Republicans believe they are primed to nationalize the midterms. Republicans can do that by highlighting the extreme views of Democratic Socialists who captured primary victories in New York City. The GOP wants to portray their opponents as veering left.
“These are board-certified communists, right?” asked Sen. Roger Marshall, R-Kan. “They want no police. They want no private property.”
President Trump capitalized on the Democratic outcomes in his home city.
“The Democrat party is in big trouble because this isn’t stopping with New York,” he forecast.
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This shakeup has progressive leaders demanding transformation at the top.
“You’re going to see, I think, people voting for new leadership and to change their representation,” said Rep. Alexandria Ocasio-Cortez, D-N.Y.
The Democratic Party tapped Sen. Elissa Slotkin, D-Mich., to deliver their official response to President Trump’s 2025 State of the Union speech. Slotkin is a moderate who won in a battleground race in 2024 – even as the President prevailed in the Wolverine State. But during an appearance on SiriusXM, Slotkin insists on a Democratic Party management switch.
“If people can’t understand that the game has fundamentally changed and they can’t adapt, then they need to let others,” said Slotkin. “The old models do not work for people.”
House Minority Leader Hakeem Jeffries, D-N.Y., is perceived by Republicans as vulnerable after his preferred candidates failed in their congressional primaries. (Roberto Schmidt/Getty Images)
Republicans believe House Minority Leader Hakeem Jeffries, D-N.Y., is vulnerable after the DSA elected their candidates over his preferred picks in New York City.
“I think Hakeem Jeffries’ friends and neighbors gave him a big middle finger,” said House Oversight Chairman James Comer, R-Ky. “If you lose three elections in your hometown, that’s a pretty big slap in the face.”
He added that Democrats “are going further and further to the left to the point where they are full-blown, card-carrying socialists.”
And then there is the anti-Israel, anti-Jewish, and in some cases, antisemitic take by some of these candidates. Rep. Greg Landsman, D-Ohio, is a moderate Democrat from a swing district. He’s Jewish and one of the most pro-Israel Democrats in the House.
“There are some on the left who use Israel the way that some on the right use immigrants or trans kids as a way to divide. And I think it’s terrible. It’s also just not what voters want us talking about,” said Landsman.
HOUSE DEMOCRAT LASHES OUT WHEN GRILLED ON WHETHER SOCIALIST VICTORIES WOULD THREATEN DEM UNITY
Yours truly tangled with Rep. John Larson, D-Conn. – who once chaired the House Democratic Caucus. I pressed him about what the party would do about some candidates “who are too far to the left.”
“What does that mean? That’s your statement. Did the people of New York vote?” queried Larson.
I assured him that they did.
“Is that democracy?” asked Larson.
“But if some of them are antisemitic,” I countered.
“Is that a democracy?” continued Larson.
“Will you stand by people if they have antisemitic views?” I followed up.
Larson finally addressed my inquiry. His answer crystallized the schism the Democratic Party now faces.
“I’m against antisemitism, if that’s your question,” Larson declared.
Rep. John Larson, D-Conn., got into a heated exchange with Fox News’ Chad Pergram over the views of some likely members of his party’s next freshman class. (Bill Clark/CQ-Roll Call, Inc via Getty Images)
The fact that Democrats are now facing this debate robs them of valuable time on economic issues.
Landsman argued that voters would prefer candidates to stick to groceries and the price of gas.
Gottheimer echoed Landsman on kitchen table subjects.
“We should be focused on ways to actually solve problems like that. Not coming in here and using tea party tactics and trying to divide up the country and pray to socialist ideals,” said Gottheimer.
So what is the party to do?
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“They’re our nominees. We’re going to support them. We’re going to welcome them. They’re going to be part of our caucus and we’re going to unite behind Leader Jeffries,” said Rep. Robert Garcia, D-Calif., the top Democrat on the Oversight panel.
But that doesn’t address the fissures. It doesn’t address how voters may perceive the party. And it doesn’t establish if these new Democratic nominees will work on behalf of the party to raise money and advocate for Democrats across the board. Or, will they become professional bomb throwers – ala what the right has endured for a while.
“It’s going to be a lot harder to get things done when you get more and more extreme candidates who are here because they’re interested in political celebrity. They are interested in fighting. They’re interested in making points,” asserted Rep. Dusty Johnson, R-S.D.
Republicans have had an abysmal week themselves – President Donald Trump and Sen. Bill Cassidy, R-La., for instance, got into a shouting match over Iran. (Chip Somodevilla/Getty Images; Tyler Kaufman/Getty Images)
Republicans suffered through an absolutely abysmal week. House GOP leaders had to yank multiple bills off the floor and send lawmakers home early because of internal disputes. President Trump and Sen. Bill Cassidy, R-La., got into a shouting match about Iran. And the president even threatened to veto a bipartisan housing bill. President Trump then refused to sign the bill at the Capitol, despite his aides touting the bill and House Republicans tricking out Statuary Hall for a signing ceremony.
The President characterized the housing bill as “a yawn.”
But the Democrats’ internal fractures may have superseded any internecine fighting among Republicans.
“While it’s not been a great week for Republicans, I think it’s been a much worse week for Democrats because of these primary elections,” observed Rep. Mario Diaz-Balart, R-Fla.
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Democrats will certainly run on economic issues and capitalize on statements by the President about basic issues like housing. But will a genuine policy debate outweigh fears about progressives nationwide?
Emotion and feelings rule in politics. And it could be a problem for Democrats if Republicans appropriate what happened in New York and Xerox it onto battleground districts across the country.
Anthropic teamed up with California to get more state workers to use its artificial intelligence assistant Claude as part of an effort to leverage technology to make the government more efficient.
Gov. Gavin Newsom, who announced the partnership on Monday, said state agencies will be able to access Claude at a 50% discount. Free training and other assistance will also be available to the workers. California’s local governments will also get the same discount under the agreement.
Government workers can use Claude to draft and summarize documents, analyze information and do other tasks.
Anthropic, an AI company based in San Francisco, has a version of its AI assistant for government clients that provides more security than what it provides other consumers.
The new partnership shows how AI is playing a bigger role at work as tech companies market their tools as ways to complete tasks more quickly. Last year, San Francisco made Microsoft 365 Copilot Chat, which is powered by OpenAI’s model, available to nearly 30,000 city employees.
Still, the rise of automation at work has heightened concerns that people will lose their jobs. There are also worries that there are not yet adequate guardrails in place to mitigate data privacy and security risks.
Anthropic and the governor said that they’re focused on the responsible use of AI.
“AI should not replace the human work of government; it should help our workers move faster, solve problems more effectively, and deliver better results for Californians,” Newsom said in a statement.
The remarks didn’t appear to comfort union leaders.
“Wow. Look local government, the Gov is giving you a 50% off coupon to give up your residents’ private data, outsource your jobs to big tech. Isn’t that cool? Because California basically invented AI slop!” said Lorena Gonzalez Fletcher, president of the California Federation of Labor Unions, AFL-CIO, in a post on X.
Anthropic has faced political hurdles as it pushes to get more companies and government agencies to use its products.
Most notable, it’s sparred publicly with the Trump administration, which ordered the company to cut off foreign access to its most powerful AI systems this month.
The Trump administration cited potential national security risks, but Anthropic disagreed with the findings. Last week, tensions decreased after the U.S. government gave Anthropic permission to restore access to its AI model Mythos to certain clients.
Valued at nearly $1 trillion, Anthropic has also signaled it plans to become a publicly traded company.
California has already started using Claude more in state government to develop tools to get the public to engage more in AI policy discussions and assist state workers, the governor’s office said in its news release.
State agencies, including the Department of Motor Vehicles, are also using AI to reduce wait times and improve customer service.
“As state employees, our goal is to provide our fellow Californians with the best possible service,” Government Operations Agency Secretary Nick Maduros said in a statement. “To do that, we need to make sure our teams have access to the best modern tools, including Claude and other emerging technologies.”
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