California's Medi-Cal program is facing a budget shortfall due to higher-than-projected costs associated with increased enrollment numbers, including undocumented immigrants, seniors, and other populations.

California is spending more than it expected on Medi-Cal and Republican lawmakers are pointing to coverage expansions that benefited immigrant households.

California will need to borrow $3.44 billion to close a budget gap in the state’s Medicaid program, Newsom administration officials told lawmakers Wednesday in a letter obtained by POLITICO. The budget pressure will bring fresh scrutiny to the state’s coverage of undocumented immigrants,