Kotek is Reluctant to Mirror California Proposal to Reduce Health Care for Undocumented Immigrants

Oregon Gov. Tina Kotek told reporters Monday afternoon she would be very reluctant to follow the lead of her fellow Democrat, California Gov. Gavin Newsom, who last week proposed reducing his state’s spending on health care for undocumented immigrants.

In a May 14 budget message, The New York Times reported, Newsom proposed halting new sign-ups of undocumented immigrants to Medi-Cal, the state’s Medicaid program, next January and begin charging those who receive coverage $100 a month starting in 2027. California currently provides coverage for 1.6 million undocumented immigrants, the Times said.

In Washington, House Republicans working on the federal budget have proposed cutting Medicaid payments to states that, like California and Oregon, provide health care coverage to undocumented immigrants.

Oregon passed a “Cover All People” law in 2021. On July 1, 2023, the Oregon Health Authority began providing health care to any undocumented immigrant who sought it, free of charge. State figures show that the program, “Healthier Oregon,” now covers just over 100,000 people.

Oregon often follows its southern neighbor’s lead on public policy matters, but in this case, the states are not in lockstep.

Kotek said California, which faces a $12 billion deficit (on a budget of $322 billion), is dealing with conditions different from those in Oregon, where state economists just produced a revenue forecast that, while less rosy than the March forecast, still shows a positive balance for the two-year budgeting period.

“I know California has a very significant budget situation, so they are going to have to make some hard choices down there,” Kotek said in response to a question from the Oregon Journalism Project.

The governor also said it would be a mistake for Oregon to make changes based on the general hostility of the Trump administration and Congress to both Medicaid and to undocumented immigrants.

“We cannot overreact or predict what’s going to happen,” Kotek says. “We need to be aware that things could happen, but until something gets passed by Congress, I really can’t have a concrete conversation with lawmakers about how we’re going to handle that.”

Kotek also reiterated the philosophy that has driven Oregon’s Medicaid policies and expansion for decades—that insurance coverage and preventive medicine are better for people’s health and for the state’s finances.

“When someone doesn’t have health insurance, they’re going to still seek health care, often in the emergency department,” Kotek says. “Those costs are either borne by the hospital or borne by other folks who have private-pay insurance. The cost will go somewhere. When everybody is insured, it helps keep costs down and reasonable for everyone.”

This article appears in Source Weekly May 22, 2025.