California spends $11 billion annually on undocumented immigrant benefits

An investigation by City Journal reports that California spends at least $11 billion annually on programs serving undocumented immigrants and their U.S.-born children. The expenditures include healthcare, cash aid, housing, tax credits, college assistance, and low-cost auto insurance.

A significant portion of this spending is directed toward healthcare. The California Legislative Analyst’s Office estimates that comprehensive Medi-Cal coverage for undocumented residents costs approximately $10 billion annually from the state's General Fund, covering roughly 1.7 million people. Because federal Medicaid generally does not cover full-scope services for undocumented adults, California uses state funds to bridge the gap.

Other programs mentioned include the California Cash Assistance Program for Immigrants (CAPI), which provides monthly cash assistance to low-income, elderly, or disabled noncitizens. Additionally, CalWORKs provides aid to eligible children of undocumented parents, and Section 8 rules allow for prorated rental subsidies in mixed-status households. Changes to eligibility are expected, as most adults without satisfactory immigration status will be unable to newly enroll in full-scope Medi-Cal starting January 1, 2026.