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Katy's favorite bumper sticker from 1985.

Gov. Gavin Newsom’s Medi-Cal is Insolvent

Newsom’s big money problems can’t be fixed by his vanity podcast

By Katy Grimes, March 14, 2025 2:55 am

“I can’t be overdrawn – I still have checks left,” was my favorite dumb blonde bumper sticker in the 1980’s, and apropos in California today.

California Governor Gavin Newsom’s new vanity podcast project is a diversion to keep attention on what he says rather than what he does. As I said when he announced the podcast, “Newsom is trying to distance himself from himself.”

His record as governor is contemptible. Newsom is so desperate to control the narrative and news surrounding his tenuous job and multiple crises, he admits it: “We need to change the conversation. And that’s why I’m launching a new podcast,” he said on X.

Newsom just confessed Wednesday that California’s Medi-Cal is insolvent. As California Congressman Kevin Kiley noted, “the cost of Newsom’s policy of giving free coverage to every illegal immigrant in the state has ballooned to $9.5 billion, and he’s now asked for a $3.4 billion “loan” just to continue making payments for this month.”

Newsom needs to borrow $3.44 Billion to cover the massive shortfall in Medi-Cal, California’s version of Medicaid, free to low-cost health coverage for low-income individuals and families, “regardless of their immigration status.”

Gov. Newsom expanded Medi-Cal to cover all illegal aliens. The bills are coming due and Newsom is overdrawn – with no checks left.

“That’s the maximum amount California can borrow, and will only be enough to cover bills for Medi-Cal — the state’s Medicaid program — through the end of the month, Department of Finance spokesperson H.D. Palmer told POLITICO.”

Governor Jerry Brown first expanded Medi-Cal to allow illegal alien children in 2016. Newsom expanded Medi-Cal to all illegal aliens residing in the state.

Senate Republican Leader Brian Jones demanded a full hearing on X:

“Typical of the secretive Newsom Administration, they just quietly dropped a damning notification that they are taking a $3.44 BILLION loan to fund free healthcare for illegal immigrants,” he wrote. “The loan is being taken from tax dollars meant for healthcare providers.”

It sounds as if DOGE needs to take a deep dive into California’s Medi-Cal program.

Assemblyman Carl DeMaio said “I uncovered this cost spike 2 weeks ago…and got removed from Budget Committee for exposing it,” on X. “CA Governor asks for emergency $3.4B loan to cover Medi-Cal cost spike for free health care for illegal immigrants.”

Assemblyman Bill Essayli asked in a budget committee hearing, “Is there any limit to how many people can sign up for this new program? It’s an entitlement. So if a million people cross the border tomorrow and come sign up for Medi-Cal, can they do that?”

The response from the State of California: “I don’t believe there is any requirement or lack of requirement.”

Gov. Newsom’s money problems are exponentially exploding:

  • Gov. Newsom needs $3.44 BILLION loan to fund free healthcare for illegal immigrants
  • Newsom spent $24 Billion to “fight homelessness” but only grew their numbers, and no one knows where the $24 BILLION went (hint: non-profits and NGOs).
  • Newsom’s budget deficit is big – between $50Billion and $75Billion
  • Gov. Newsom is trying to get the federal government to loan him $40Billion for LA wildfire cleanup and recovery
  • Newsom’s High Speed Rail project has ballooned to over $130 billion, with only an estimated partial completion somewhere in the late 2030’s. The system still needs $100 billion if it ever links up San Francisco and Los Angeles.
  • California will receive $120Billion in federal Medicaid funds in the coming fiscal year – more in federal Medicaid funding next year than Florida’s entire state budget – and just the increase is more than Nevada’s entire state budget.

But Medi-Cal has the immediate need of $$$$$.

Congress is eyeing potentially dramatic cuts to Medicaid. State Republicans like Assemblyman Carl DeMaio and Senate Minority Leader Brian Jones have been hammering the $8.4 billion price tag for being far higher than the original estimate, critiques that made it all the way to Elon Musk’s posts on X.

DeMaio said today in an email, “illegal immigrants are now receiving 1-out-of-4 dollars for MediCal program” in the state general fund budget!  I will call on Newsom to use emergency powers to immediately suspend the healthcare handouts to illegal immigrants at taxpayers expense before the whole Medi-Cal system collapses.”

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13 thoughts on “Gov. Gavin Newsom’s Medi-Cal is Insolvent

  1. California’s budget problems are a preview of our national budget problems if the Democrats and radical judges stop Elon and DOGE from making necessary cuts. One out of four dollars going to illegals immigrants? My understanding is that Newsom counts on federal reimbursements to make his plans work. California desperately needs an adult to stop this madness.

  2. NEWSOM’S THEME SONG: Stephen Sondheim’s “I Feel Pretty,” from West Side Story. Check the lyrics and see if it doesn’t fit. This asshat is beyond redemption!

  3. Ahh, so the new firestorm begins.
    Most of us that have paid attention knew the fraudster was without clothes!
    The Emperor Has No Clothes!
    He thought he would use a slight of hand card trick by “reimagining” himself through a stupid podcast, all while everything comes tumbling down!
    Carl DeMaio is the young hero who pointed and redirected our attention back to Newsom. Carl DeMaio exposed the evidence.

    Where will Newsolini run to? His buddy that occupied the White House for the past 4 years will not be able to funnel him gold bars or “emergency fire relief aid” to bail him out!

    Unfortunately we are left with the dine and dash Governor’s bills and a deteriorating, medical system in this state.
    Again the dude has no shame!
    A piece of advice for our dear leader, Newsolini, roll up your sleeves, not for a photo-op but to get back to work at the Capitol! Or better yet, RESIGN!

    1. Cali Girl, maybe Newsom can solve the Medi-Cal crisis by putting recently unemployed Julie Su in charge. She did such a great job when she ran the EDD.

      1. Sure why not, @FedUp!
        Let the wild dogs run!
        I am sure Katy’s favorite bumper sticker is Julie Su’s life motto.😏

  4. It should be obvious to any Globe reader KG, that YOU are no “dumb blonde”. The insolvency of Medi-Cal was predictable given the backdrop of other financial fiascos of the Newscum administration – EDD and the “high-speed” rail to nowhere are well documented by the Globe. The FBI should also look into Medi-Cal waste, fraud and abuse. Kash Patel can start with the deal that was signed with Kaiser to service Medi-Cal. Here is an example from a recent X post:

    “Foxy @FoxyMaroon Jan 22
    I had medical issue in 2024 necessitating 3 different MRIs and found myself denied by Kaiser Medicare Advantage to even book an appointment with the Neurologist who had ordered the MRIs to discuss findings. I was told that due to State of CA slow paying illegal immigrant Medicaid services Kaiser had to put entire Neurology Department in largest Northern CA Trauma Center on part time work days due to cash flow problems. Face to face appointments were being booked 3 months out. I was simply denied the ability to speak to my neurologist even by phone. The impact of unlimited illegal immigration in CA with full Medicaid benefits denied me as a retired white CA Medicare patient the ability to book a neurology consult after THREE CONSECUTIVE BRAIN AND SPINAL COLUMN MRIs.”

    Newscum signed a backroom sweetheart deal with Kaiser to service Medi-Cal patients which is where the illegals are being sent. My niece works for Kaiser. She said the company is now trying to find more young healthy patients to pay premiums and cover the cost of servicing illegals.

    https://californiaglobe.com/articles/lets-make-a-deal-newsom-admin-inks-backroom-deal-with-kaiser-for-statewide-medi-cal-health/

  5. If the voting laws are not changed back to the way they were in the ’80s this will never change.
    Please put your anger and disgust towards that effort.
    Action speaks louder than words.

  6. Insolvency was the GOAL. Demonrats expand government relentlessly to implement the Cloward-Piven plan. We are seeing the fruit of their evil seed. Trump is back just in time to rescue the country from the hell they has planned for us.

  7. My medical appointments are at a northern California Kaiser. Parking in the past was easy. Kaiser built a multi level garage a few years back – parking now is hard to find, even with the new structure. Seems as if this Kaiser has at least five times the number of patients it once had just a few years ago. I have learned to “moo” when I go to Kaiser as I am now just part of its gigantic herd.

  8. Medic-Cal is just the tip of the iceberg in California’s budget deficit. And Califronians want to elect another Democrat governor?

  9. I guess Newsom’s “chickens have come home to roost.” Finally! Well, the last of the chickens, anyway, the ones that cause disaster and collapse, that is.
    Newsom should “go blonde,” and as soon as possible, because as amazing as it may seem, he REALLY DOES think what the dumb blonde of the joke thinks, that “he can’t be overdrawn because he still has checks left!” Unbelievable but true!

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