DHS Criticizes Newsom as California Seeks to Raise Ambulance Reimbursements by ~382% Amid Medi‑Cal Debate

The Department of Homeland Security (DHS) has highlighted new California data showing a steep rise in taxpayer‑funded ambulance reimbursements and used the figures to criticize Governor Gavin Newsom’s expansion of Medi‑Cal benefits for undocumented immigrants.

California Department of Health Care Services data show average state‑funded ambulance reimbursements rose from $339 per transport in 2022 to $1,168 in 2024. The state has requested two additional increases from the Centers for Medicare & Medicaid Services (CMS) that would raise the rate to $1,597 in 2025 and $1,637 in 2026 — roughly a 382% increase from the 2022 level.

Federal Response and Political Context

DHS officials, citing these figures, have renewed criticism of state policies that extend Medi‑Cal and federally matched Medicaid services to undocumented residents. DHS Assistant Secretary Tricia McLaughlin told Fox News Digital that federal agencies are exploring measures to ensure Medicaid benefits are preserved for eligible beneficiaries and to identify undocumented immigrants receiving public benefits. McLaughlin’s statements included strong language characterizing recent federal migration trends.

“President Trump consistently promised to protect Medicaid for eligible beneficiaries,” McLaughlin said. “To keep that promise after Joe Biden flooded our country with tens of millions of illegal aliens, CMS and DHS are exploring an initiative to ensure that illegal aliens are not receiving Medicaid benefits that are meant for law‑abiding Americans.”

California has announced policy changes in response to rising costs. In May, Governor Newsom said the state would freeze new Medi‑Cal enrollments for undocumented adults beginning in 2026 and would charge a premium for current undocumented beneficiaries starting July 2027. Newsom had proposed a $100 monthly premium, but the state assembly reduced that to $30 in the enacted budget.

How Reimbursements Are Funded

DHS has also pointed to the role of intergovernmental transfers (IGTs) in boosting the state’s Medicaid spending. Under IGT arrangements, counties and public hospitals can transfer funds to the state, which the state then counts as Medicaid spending and uses to draw federal matching dollars. Critics say this practice can inflate reported Medicaid spending and push up reimbursements for publicly financed services, including ambulance transport. DHS alleges the mechanism effectively increases federal taxpayer exposure to state Medicaid spending; California officials have not directly attributed the higher ambulance rates to care for undocumented residents.

Data from the California health department do not explicitly link the reimbursement increases to services for undocumented immigrants. Still, DHS and some federal officials argue the state’s large undocumented population helps explain why California is a focal point for scrutiny.

Legal and Political Fallout

The Department of Justice has separately sued over certain California measures that expand benefits for undocumented residents, including in‑state college tuition. Federal and state officials continue to debate data sharing, eligibility verification, and the scope of federally matched benefits.

Fox News Digital reached out to Governor Newsom’s office for comment and did not receive an immediate response. The figures cited here come from the California Department of Health Care Services and CMS requests filed by the state.