California Gov. Gavin Newsom | Nick Ut/AP Photo Newsom proposes Medicaid benefits for undocumented senior citizens

SACRAMENTO — Gov. Gavin Newsom is proposing that California provide Medicaid benefits to undocumented senior citizens, setting up another high-stakes standoff with President Donald Trump over health and immigration.

It also marks a major development in the governor's push to create a universal health care system for California. The proposed Medi-Cal expansion would cost $80.5 million in the upcoming budget year, and eventually $350 million annually at full implementation, according to the budget released Friday.


"We're doing big things," Newsom said.

The change comes after California last year extended Medi-Cal to undocumented adults up to age 26, drawing criticism from conservatives and the White House. Trump has repeatedly attacked California and Newsom, saying last year, "The Democrats want to treat the illegals with health care and other things better than they treat the citizens of our country."

Newsom has dismissed the president's attacks. He also suggested Friday that it is part of a universal health care approach that ultimately saves money.

"It is the right thing morally and ethically," he said. "It is also the financially responsible thing to do."

The state general fund would cover the majority of the cost — $320 million of the $350 million annual cost — with the federal government kicking in some money for emergency services. The proposal would expand the state's low-income health program to 27,000 undocumented immigrants age 65 and older in the first year alone, according to Newsom administration projections.

Enrollment and costs could grow in future years as undocumented immigrants age into the program.

It fulfills a commitment Newsom made to state Sen. Maria Elena Durazo (D-Los Angeles), who sought the expansion through legislation last year, but put her bill, CA SB29 (19R), on hold after receiving a promise from the governor to fund it in the 2020-21 budget.