The Brief

For decades, Californians have generally said that immigrants, who make up more than a quarter of the state’s population and a third of its labor force, are beneficial to the state and its economy. But budget instability and concerns about rising costs are spilling into a debate over the controversial and expensive policy of allowing low-income immigrants without legal status to receive state-funded health coverage.

Now, Democrat Xavier Becerra and Republican Steve Hilton present a stark choice to voters in the race to be the next governor at a moment when public support for the state’s generous safety net is starting to fray.

Both frame the choice as an economic one.

Becerra, former secretary of Health and Human Services under President Joe Biden, has said it would be “foolish” to exclude the poorest immigrants from routine care and push them into expensive emergency rooms on the taxpayer’s dime. Hilton, a conservative commentator backed by President Donald Trump, has promised to eliminate their coverage and has echoed national Republicans who have skewered California’s expansions to bolster their claims of fraud and abuse in the Medicaid program.

With voters nationwide worried about inflation and the rising cost of living, some Californians might feel less inclined to provide full healthcare coverage to those lacking legal status. What the state does next could have profound implications for its healthcare system and sprawling economy.

Over the past decade, California lawmakers used state dollars to expand Medi-Cal, offering all low-income residents comprehensive coverage regardless of immigration status. But enrollment surpassed initial projections, as did the cost. Medi-Cal coverage of immigrants without legal status costs the state roughly $10 billion a year, according to California’s nonpartisan Legislative Analyst’s Office, more than double the initial estimates.

California lawmakers and Democratic Gov. Gavin Newsom, who championed the program, have approved major rollbacks of benefits for those residents. They said the state can’t afford ballooning healthcare costs amid massive federal cuts from the GOP tax-and-spending law known as the One Big Beautiful Bill Act; the California Health and Human Services Agency projected up to 3.4 million Medi-Cal enrollees could lose coverage and the state could lose more than $30 billion a year in federal funding under the law, causing major disruptions in the safety net health program.

Medi-Cal’s budget for the 2026-27 fiscal year is $217 billion, and the program serves more than 14 million Californians.

Meanwhile, many legal U.S. residents and citizens have seen their health premium payments skyrocket this year after Congress let enhanced federal Affordable Care Act subsidies expire at the end of December.

As the state grappled with a deficit last year, a majority of likely voters in California said — for the first time in nearly a decade — that they opposed providing health insurance to immigrants without legal status, according to a poll by the Public Policy Institute of California.

“The state faces major challenges, and healthcare is one of the major expenditures,” said Mark Baldassare, PPIC survey director. “People have become more selective about how they want to see those limited healthcare dollars spent.”

Hilton, running on a platform of affordability and lowering taxes, has seized on the sentiment, casting health coverage for immigrants without legal status as deeply unfair and a direct threat to the state’s ability to help citizens.

“Stop taking money from California taxpayers who can barely afford their healthcare to give free healthcare to citizens of other countries who shouldn’t even be here,” Hilton said in a Facebook video the morning of the June 2 primary.

In campaign stump speeches, Hilton promised to use the savings to lower healthcare costs for other Californians without detailing how. Hilton did not respond to requests from KFF Health News for comment.

“Their messaging is very, very simple: It’s an us vs. them,” said Roger Salazar, a Democratic political consultant who represents a coalition of healthcare advocates who argue providing coverage to people who can’t afford it strengthens the workforce and, as a result, the economy. “It’s just a question of convincing the average voter that it’s much better economically.”

A son of immigrants, Becerra for decades pushed to extend safety net benefits in Congress and has made a similar pitch in his campaign for governor. He did not respond to requests for comment.

“Immigrants, whether documented or not, work hard. They pay taxes, and sometimes they get injured on the job or their children get sick,” Becerra said during a debate in May. “It would be foolish to tell a family that they don’t have access to the pediatrician or the family doc.”

Becerra, who could become California’s first elected Latino governor, objected last year when Newsom and legislative leaders decided to freeze Medi-Cal enrollment for adults without legal status, cut benefits, and impose monthly premiums.

"Stop treating coverage as a budget variable that expands in good years and contracts when revenue dips,” Becerra wrote in May in response to an Orange County Register candidate questionnaire. He has vowed to pursue new, steady revenue to fund basic services, such as by upping taxes on corporations and the wealthiest Californians.

In 2023, California was home to about 2.3 million people without legal status, representing roughly 8% of the state’s labor force, according to the Pew Research Center. And 1 in 5 California children live in a family that includes at least one member without legal status, according to the California Department of Education. Healthcare economists say giving people access to preventive healthcare saves taxpayers money in the long run by keeping the workforce healthy and relieving pressure on an overburdened system.

That, Baldassare said, wasn’t a hard argument to make during the covid pandemic, when immigrants were celebrated as essential workers and the link between individual well-being and public health was more obvious.

But Medi-Cal costs to cover roughly 1.4 million immigrants have ballooned, according to the latest estimates from the Department of Health Care Services. Because only some lawfully present immigrants are eligible for federal Medicaid benefits, states like California that cover other populations must do so exclusively with state funding.

California’s budget experts have warned that maintaining full Medi-Cal coverage for immigrants without seeking additional revenue would destabilize the state’s long-term fiscal outlook.

In a legislative hearing last year, Republican Assembly member Carl DeMaio questioned whether California taxpayers would prioritize the expansions, saying he doubted “illegal immigrant healthcare in the general fund would be at the top of their list.”

After lawmakers approved the spending reductions, support for immigrant health coverage dropped, Baldassare said. Democratic lawmakers and Newsom agreed to delay several Medi-Cal cuts until July 2027, leaving decisions for the next governor.

David Hayes-Bautista, who has spent his career studying the economic contributions of Latinos and immigrants, said Californians without legal status have higher labor force participation and tend to work in industries and occupations that don’t offer employer-based health insurance. As a result, many resort to Medi-Cal, saddling the state with the healthcare costs instead of employers.

“California, as a state, has the world’s fourth-largest GDP, which is true thanks to Latinos,” said Hayes-Bautista, director of the Center for the Study of Latino Health and Culture at UCLA. Without contributions from Latinos, many without legal status, it drops to eighth place, about the size of Italy’s economy, he added.

Immigrant advocates hope to have a more vocal champion in Becerra, the favorite to become governor in a state where Democrats outnumber Republicans nearly 2-to-1.

“He will fight, he will push back, he will do all that he can,” said state Sen. María Elena Durazo, a former labor leader who has championed the immigrant healthcare expansions. “That’s the most we could expect.”

This article first appeared on KFF Health News and is republished here under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Most Southern California renters continue to struggle to find housing they can afford. An important — and for some, possibly life-changing — option opened up on Monday for low-income residents.

The Los Angeles County Development Authority (LACDA) began accepting applicants for its waitlist for public housing for a limited time.

Tracie Mann, the chief of programs for LACDA, said the waitlist was last open in April 2024.

“We need to refresh the list, get new families who are interested in applying, not only to our family sites, but also to our senior sites,” she said.

Mann said she expects more people to apply now because of the sharp rise in the cost of living.

“We know that housing is a serious need here within the region of Los Angeles County, and having LACDA in a position to be able to offer public housing units to those most in need is just so… critical,” she said.

The rent in these county-owned and managed units is generally capped at 30% of a household’s gross income. That limit helps families build savings, said  Justin Fitzsimmons, a lawyer with the Legal Aid Foundation of Los Angeles.

“It is a really valuable resource and can be a great opportunity for people to be able to build wealth in this economy and set up their generations in the future,” he said.

Orchard Arms is a public housing property with 183 units in Valencia. It's reserved for seniors.

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Courtesy Los Angeles County Development Authority

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It’s common, Fitzsimmons said, to see clients come to his office for legal help after a life event, such as an accident or major illness that has depleted their savings.

"Public housing is a really wonderful opportunity for a person to help to weather those events that life throws your way," he said.

The waitlist application window opened at 8 a.m. Monday and is set to close at 5 p.m. Wednesday, Sept. 16.

Here’s who qualifies and how to apply

To qualify, families must be earning significantly less than the median income in L.A. County. There are different tiers, Mann said, including 30% and 50% of that median income.

People in L.A. County will fall below the 50% threshold if they earn up to $58,300 per year. Families of four will meet the cutoff if they earn no more than $83,300 per year.

Follow this link for more information about how to apply. If you’ve already registered with LACDA, you can apply at this link.

South Bay Gardens is a public housing property with 100 units in South Los Angeles.

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Courtesy Los Angeles County Development Authority

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You can seek help with your application by calling LACDA at (626) 586-1522 from 8 a.m. to 5 p.m., Monday through Friday.

LACDA staff also helps people complete their online applications in person at their offices in Alhambra. Their address is 700 W. Main St., Alhambra.

Location, location, location

LACDA oversees public housing on 68 properties for more than 6,600 residents. The agency is opening up wait list registration at only 16 of those sites. Thinking about which location to apply to is important because if you apply to a location and you don’t accept the unit that you’re offered, you will be removed from the waiting list until it opens back up.

People leave public housing units for various reasons, Mann said, such as moving outside the county, finding another apartment or facing eviction. She said LACDA’s public housing program averages 300 vacancies per year. Wait times can be months or longer, depending on vacancies at each property.

Applications for the smaller properties will be capped at 1,000 applications, and their waitlists will close early if that threshold is reached before Sept. 16.

You can find more information about the 16 sites opening their waitlists at this link.

Los Angeles Lakers governor Jeanie Buss is legally contesting her siblings’ plan to sell the family’s remaining 17.8% minority ownership stake in the team to Josh Kushner and Bob Iger, according to a letter obtained Monday by the Associated Press.

ESPN and The Athletic first reported that the siblings had voted to sell the family trust’s remaining interest in the 17-time NBA champion team purchased by their father, Jerry Buss, in 1979. The decision would end Jeanie Buss’ tenure as the Lakers’ governor because that job requires at least 15% ownership of the team.

Jeannie Buss’ attorney, Adam Streisand, wrote to representatives for her five siblings to state that any decision to sell the family trust’s ownership stake could not be “effectuated without approval of the current co-trustees, Jeanie, Janie and Joey Buss.”

The letter further states that the co-trustees “are bound to vote the Los Angeles Lakers, Inc. shares to ensure that the minimum 15% ownership requirement is maintained in order to ensure that Jeanie Buss may remain Controlling Owner. Any attempt by the co-trustees to do otherwise, and any attempt to aid or abet the co-trustees as such, would constitute a breach of trust, breach of fiduciary duty and be in contempt of court.”

Jeanie Buss has been the Lakers’ governor since Jerry Buss’ death in 2013, and she led the family’s decision to sell a controlling stake in the Lakers to Dodgers owner Mark Walter last year at a valuation of $10 billion. Walter, who is under federal investigation for tax issues, abruptly reached a deal earlier this month to flip the Lakers to Kushner and Iger at a valuation of $12.5 billion, another record for a pro sports team.

Venture capitalist Kushner and former Disney CEO Iger are reportedly buying about 65% of the team from Walter. They would own about 83% if they reach a deal with the Buss siblings — and Jeanie Buss would lose the governor role that she had been slated to keep at least through 2030 under the deal with Walter.

Sibling rivalry

The siblings have been in frequent conflict since their father’s death, with Jeanie firing Jim from his job as the Lakers’ head of basketball operations in 2017, followed a week later with a lawsuit against her brothers amid an attempt by Jim and Johnny to oust Jeanie from her role as the Lakers’ controlling owner.

Not all of the six Buss siblings — Jeanie, Jim, Johnny, Janie, Joey and Jesse — were in favor of the deal despite retaining their family trust’s minority ownership stake, and Joey and Jesse were fired from their front-office jobs with the team last November.

The siblings say they voted this month to sell their family’s remaining interest in the Lakers, but Jeanie Buss claims any vote is void. ESPN reported that Jeanie Buss was the only sibling who didn’t support the final sale.

“We have decided as a family to sell the remaining Buss Family Trust shares to the Bob Iger group as part of the ongoing transaction,” the Buss family said in a statement. “We love the Lakers, Laker fans and will continue to support Los Angeles, but it is time to use this opportunity to move on and exit gracefully while we still can.”

In his letter, Streisand said Joey and Jesse Buss have leaked information to ESPN for many years “for the malicious purpose of doing harm to the Los Angeles Lakers so long as Dr. Buss’s chosen successor, Jeanie Buss, carries out her father’s wishes.”

Jerry Buss was a chemist and real estate investor who bought the Lakers, the NHL’s Los Angeles Kings and the Forum arena from Jack Kent Cooke for $67.5 million. The Lakers quickly entered a renaissance in which they became known for their flashy “Showtime” style of play while winning five NBA titles between 1980 and 1988 behind Magic Johnson and Kareem Abdul-Jabbar.

While the NBA and professional sports became increasingly more corporate, the Lakers remained essentially a family business despite their massive profile and steady success. Jerry Buss and the Lakers have employed many of the basketball world’s greatest players and coaches of the past five decades, and Kobe Bryant led the Lakers to five additional championships between 2000 and 2010 before LeBron James added the 17th in 2020.

The sale agreement with Kushner and Iger still must be approved by the NBA’s board of governors, and the process could take months.

Topline:

Cost-of-living: Latinos favored Democrats by 34% when it came to the question about who's better handling cost-of-living. “ It is the economy, cost of living and affordability that is, by a far measure, the issue driving Latino voters and Latino sentiments,” said Mike Madrid, Republican political consultant and founder of the Latino Working Class Project.

More support for Dems? No. This does not mean Latino voters are completely satisfied with how Democrats are running things in California.  "They are just as unhappy with Democrats,” said David Binder, founder of David Binder Research, which helped conduct the poll.

What this means for the gubernatorial race: An overwhelming amount of Latino voters are supporting Xavier Becerra over Steve Hilton, 72% to 24%.  ”If Xavier Becerra wins the election in November, it'll be incumbent upon him to prove that he is also working on behalf of Latino voters and all working class voters to help bring down costs and make things more affordable,” Binder said.