California Gov. Gavin Newsom is seeking a $3.4 billion loan from the general fund to help a shortfall in the state Medi-Cal healthcare program.

California Gov. Gavin Newsom’s Medi-Cal system is seeking a $3.4 billion taxpayer bailout after spending $9.5 billion this year on noncitizen immigrant health care. A new report also highlighted how California “launders” national taxpayer funding to cover its Medi-Cal bills and is enabled by federal law.

Higher-than-expected costs for low-income health insurance are opening a debate about the extension of Medi-Cal to undocumented immigrants.