California’s new budget, signed by Gov. Gavin Newsom on Thursday, expands health care for illegal immigrants and includes a penalty for people who do not purchase health insurance.

The provisions were among several measures in the $214.8 billion operating budget that Newsom signed before the midnight deadline. It is the largest in the state's history, according to the Los Angeles Times.

Gov. Gavin Newsom holds up he $215 billion 2019-2020 state budget he signed in Sacramento, Calif., Thursday, June 27, 2019. This is Newsom's first state budget since becoming governor. (AP Photo/Rich Pedroncelli)

California lawmakers were at odds over how far to go providing government-funded health care to illegal immigrants. Newsom last month proposed providing $98 million a year to cover low-income illegal immigrants between the ages of 19 and 25. A more extreme state Assembly’s bill proposed covering all illegal immigrants over the age of 19 living in California – a proposal that would cost an estimated $3.4 billion.

The budget also seeks to address the state’s crippling housing shortage and mounting homelessness. California’s governor and legislative leaders agreed on a plan to reward local governments who make it easier to build housing faster and punish those who don’t.

Local governments that don’t comply with these housing requirements will face potential fines of up to $600,000 a month.


The bill marks Newsom’s first signed budget since taking office in January. Its passage was largely aided by a $21.5 billion surplus that ensured there was plenty of money to spend on his priorities.

The Associated Press contributed to this report.