California Faces Fiscal Challenges Amid $159M Federal Allocation for Migrant Services
The federal government has provided $159 million in FEMA funding to support humanitarian services for noncitizen migrants in California since 2023, according to federal grant data analyzed by The Center Square.
These funds have fueled debates about California’s sanctuary state policies, financial priorities, and the sustainability of its programs under president-elect Donald Trump, who opposes funding services for undocumented immigrants.
Since becoming a sanctuary state in 2017, California has enacted policies such as allowing individuals with criminal convictions that may affect immigration status to petition for resentencing. The state is home to an estimated 1.9 million undocumented immigrants, according to Pew Research.
California’s taxpayer-funded healthcare for undocumented immigrants, expanded in recent years, costs $4 billion annually to cover an additional 700,000 individuals.
Scaling that cost to include the full undocumented population could raise the expense to $11 billion per year. With a $47 billion gap closed through cuts, delays, and budget shifts this year, the state may face difficult decisions between raising taxes or reducing services.
FEMA Grants and Local Challenges
In 2023, California received $48 million in Shelter and Services Program (SSP) grants, with $35 million allocated to Catholic Charities of the Diocese of San Diego.
By 2024, SSP funding for California rose sharply to $111 million, including $41 million to Catholic Charities of San Diego, $22 million to Jewish Family Service San Diego, $22 million to the City of Los Angeles, $20 million to San Diego County, and $6 million to Riverside County.
The rise in federal funding aligns with a significant increase in illegal border crossings into California, which jumped from nearly 300,000 in 2022 to 514,000 in 2023 and an expected 625,000 in fiscal year 2024. This surge follows a border crackdown in Texas, redirecting migration routes westward.
Los Angeles, which received $22 million in SSP grants in 2024, is expediting a sanctuary city ordinance to prohibit city employees from cooperating with federal immigration enforcement.
Mayor Karen Bass emphasized the need for urgency, stating, “Immigrant protections make our communities stronger and our city better.” However, the city faces financial strain, recently taking out an $80 million loan to cover lawsuit payments.
Sanctuary State Policy Criticism
California’s SB 54, signed into law by former Governor Jerry Brown, limits state and local law enforcement’s cooperation with federal immigration authorities. Critics argue that these policies have complicated efforts to detain and deport individuals with serious criminal histories.
Newport Beach Mayor Will O’Neill recently highlighted a U.S. Coast Guard interception of a boat carrying 21 undocumented immigrants, including individuals from Russia and Uzbekistan. O’Neill criticized SB 54 for restricting local law enforcement’s ability to assist federal agencies in such cases.
He noted that Orange County recently released over 1,000 inmates with ICE detainers, with 238 rearrested for crimes such as assault, battery, and robbery.
Expanding Benefits Amid Fiscal Uncertainty
At the start of 2024, all undocumented immigrants in California became eligible for taxpayer-funded healthcare despite ongoing healthcare shortages.
Lawmakers also proposed expanding deportation defense funding to include individuals convicted of violent felonies and introducing $150,000 no-down-payment home loans for undocumented immigrants.
While Governor Gavin Newsom vetoed the housing program, citing limited funding, California’s escalating budget constraints have sparked concerns about the state’s ability to sustain such initiatives.
A report from the state’s nonpartisan Legislative Analyst’s Office last week hinted at deeper fiscal challenges as preliminary budget analyses loom. These developments underscore the mounting tension between California’s progressive policies and its financial realities.
