In a notable shift from previous policies, three Democratic governors—Gavin Newsom of California, JB Pritzker of Illinois, and Tim Walz of Minnesota—are implementing measures to freeze or cut government-funded health care coverage for undocumented immigrants.
The proposals have surfaced in response to significant budget shortfalls experienced within these states, stemming from ambitious plans aimed at expanding health care services to immigrants without legal status.
These changes also highlight a larger debate within the Democratic Party surrounding immigration, an issue that adversely affected the party in the last election cycle and one that continues to be capitalized on by President Donald Trump and the Republican Party.
The initiatives, which aim to contract health care provisions for undocumented immigrants, have sparked discontent among progressive factions and immigrant rights advocates. They warn that the party risks alienating its base, especially as nationwide protests against Trump’s deportation plans intensify.
In Minnesota, a bill was passed by both chambers of the Legislature to eliminate state-funded health care for undocumented adults. This bipartisan effort garnered support in the Republican-controlled House and Democratic-controlled Senate as part of efforts to balance the state budget. Governor Walz is expected to sign the bill.
This new legislation would revoke the eligibility of undocumented adults for MinnesotaCare, the state-funded health insurance program designed for low-income residents. This represents a significant reversal for Walz, who secured the expansive eligibility during a pivotal 2023 legislative session when Democrats held full control.
Importantly, the bill permits continued enrollment for undocumented children in the program.
Meanwhile, in California, Governor Newsom announced a budget proposal last month that seeks to restrict health care benefits previously afforded to undocumented immigrants. This marks a stark pivot from his prior commitments to universal health care coverage for all residents, irrespective of immigration status.
In his 2025-26 budget plan, Newsom proposed freezing enrollment for undocumented adults seeking comprehensive coverage under Medi-Cal, the state’s Medicaid program. His administration clarified that these changes would affect only new applicants over the age of 19, ensuring that current enrollees would not lose their coverage.
Additionally, starting in 2027, a new $100 monthly premium will be instituted for adults aged 19 and older with “unsatisfactory immigration status.” Newsom has cited runaway costs resulting from larger-than-anticipated enrollment in Medi-Cal as factors necessitating these changes, alluding to a multibillion-dollar budget shortfall exacerbated by Trump’s tariffs.
In Illinois, the governor’s office anticipates the discontinuation of the Health Benefits for Immigrant Adults program, which serves over 30,000 low-income undocumented adults. Pritzker’s recent budget, which received approval from the Democratic-controlled Legislature last month, included a proposal to eliminate this health care program effective July 1.
Like California, Illinois found its initial health care program far costlier than expected since its inception in 2021.
While California, Illinois, and Minnesota recalibrate their budgets through these cuts, proposed federal legislation backed by President Donald Trump aims to drastically reduce Medicaid funding for states offering health care coverage to undocumented immigrants. Trump’s administration has also made moves, including an executive order, targeting undocumented immigrants’ access to government assistance programs.
In light of these developments, a spokesperson for Newsom expressed hope that the proposed changes would limit enrollment without severing existing coverage. They conveyed that the administration is merely capping enrollment rather than cutting people off from vital care.
Similarly, Pritzker’s office framed recent budget adjustments as necessary actions to address economic realities significantly impacted by Trump and the Republicans, with emphasis on balancing the state budget.
Governor Walz, while discussing Minnesota’s legislation, acknowledged the complex negotiations involved in reaching a budget agreement with Republican lawmakers, stating, “No one got everything they wanted.”
Despite the compromises made, backlash from progressives and immigrant advocacy groups has been notable, with critics arguing that such policy shifts threaten to undermine the overall health care system.
Tanya Broder, a senior counsel for health and economic justice policy at the National Immigration Law Center, urged state leaders to not retreat from their earlier progressive positions. Broder emphasized the importance of ensuring access to health care for all communities, arguing that the health of immigrants directly impacts the general public’s well-being.
Broder stated, “Immigrants pay billions of dollars in federal, state and local taxes, yet many are excluded from critical health care programs. Terminating state coverage for immigrants will compromise our collective health, as well as the health care infrastructure that serves all of us.”
Some progressives are expressing concerns that the governors’ decisions reflect a broader pivot to the center or right on immigration, fueled by polling showing immigration as a persistent strength for Trump in political discourse.
Jennifer Driver, a senior director at the State Innovation Exchange, argued that the current actions reinforce a narrative framing undocumented immigrants as detrimental to communities, suggesting that these decisions could backfire among the party’s core supporters.
“There’s a miscalculation in believing that moving toward the center will attract support instead of enraging the Democratic base,” Driver noted.
While some strategists caution against drawing premature conclusions about a significant ideological shift among Democratic governors, they acknowledge the fiscal pressures triggered by the Trump administration’s policies.
Jeff Blodgett, a Democratic strategist from Minnesota, highlighted the acute concern among states regarding their budgets due to federal actions, stating, “The Trump administration is squeezing the hell out of states.”
As the governors navigate their immediate fiscal challenges, their decisions could impact their long-term political futures, especially with the 2028 presidential election in mind.
The balancing act of addressing urgent state budget issues while maintaining support from progressive constituents poses a formidable challenge for governors like Newsom, Pritzker, and Walz as they position themselves on the national stage.
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