SACRAMENTO, CA (MPG) – On March 21, Assembly Republican Leader James Gallagher (East Nicolaus) announced Assembly Joint Resolution 4, calling for a federal audit of California’s Medi-Cal program as skyrocketing costs put patient care and other state priorities at risk.

“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,” said Gallagher. “Hospitals and providers are struggling to keep their doors open, patients can’t get in to see a doctor, and the state needs billions more just to keep the program running.”

Medi-Cal spending from the state’s General Fund has nearly doubled under Governor Newsom, rising from $21.6 billion to $42.1 billion over six years. Much of that growth is driven by the expansion of Medi-Cal benefits to illegal immigrants—now costing $8.4 billion this year alone - nearly one-quarter of the program’s General Fund budget.

Despite this record spending, the program is facing a $6.2 billion budget shortfall. Newsom’s administration has already borrowed $3.4 billion and is seeking another $2.8 billion bailout just to stay solvent through June.

Meanwhile, the Governor’s budget proposes cuts to other critical programs, including an 8% reduction to University of California and California State University systems, while draining $7 billion from the state’s rainy-day fund.

“This is about priorities,” Gallagher said. “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.”

AJR 4 urges the federal Centers for Medicare and Medicaid Services to audit California’s Medi-Cal program and help restore fiscal stability.

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

Assembly Republican Leader James Gallagher represents California’s 3rd Assembly District, which includes Butte, Glenn, Sutter, Tehama and Yuba counties, and parts of Placer County.