California lawmakers are allocating an additional $2.8 billion to Medi-Cal following rising costs, the Sacramento Bee reported April 10.
Gov. Gavin Newsom’s administration said that the unexpected costs within the Medi-Cal program are due to expensive drugs, leftover COVID-19 era flexibilities, and a rising quantity of services provided. California expanded Medi-Cal benefits to all eligible undocumented individuals in 2024, which has cost the state billions more than originally budgeted, according to Politico.
The state funding will be accompanied by $8.3 billion in federal funds, and will be added to $3.4 billion in emergency loan funding the program received earlier in 2025, according to the Bee report.
