Chico Times

Assembly Republican Leader James Gallagher has introduced Assembly Joint Resolution 4, advocating for a federal audit of California’s Medi-Cal program. The resolution comes in response to rising costs that threaten patient care and other state priorities.

“Medi-Cal is supposed to protect our most vulnerable, but Gov. Newsom’s decision to expand the program to illegal immigrants has added costs that are just unsustainable,” Gallagher stated. He further highlighted the struggles faced by hospitals and providers, as well as the difficulties patients encounter in accessing medical services.

Under Governor Gavin Newsom, Medi-Cal spending from the state’s General Fund has increased significantly from $21.6 billion to $42.1 billion over six years. The expansion of benefits to illegal immigrants accounts for a significant portion of this increase, costing $8.4 billion this year alone—almost one-quarter of the program’s General Fund budget.

Despite these expenditures, Medi-Cal faces a $6.2 billion budget shortfall. To address this gap, Newsom’s administration has borrowed $3.4 billion and seeks an additional $2.8 billion bailout to maintain solvency through June.

The financial strain on Medi-Cal is prompting proposed cuts in other critical areas, such as an 8% reduction in funding for the University of California and California State University systems, along with a withdrawal of $7 billion from the state’s rainy day fund.

“This is about priorities,” Gallagher emphasized. “While Californians struggle to access care, the state keeps throwing money at a program that’s deep in the red. We need accountability before it collapses completely.”

Assembly Joint Resolution 4 calls upon the federal Centers for Medicare and Medicaid Services to conduct an audit of California's Medi-Cal program in hopes of restoring fiscal stability.

“Taxpayers deserve answers,” Gallagher asserted. “We should be protecting care for low-income families, seniors, and the disabled – not blowing billions with no plan in sight.”

James Gallagher serves as Assembly Republican Leader representing California's 3rd Assembly District covering Butte, Glenn, Sutter, Tehama, Yuba counties, and parts of Placer County.