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California faces unlikely tax revolt amid billions in illegal immigrant healthcare costs

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As California grapples with soaring Medi-Cal costs — including billions spent on healthcare for immigrants without legal status — Gov. Gavin Newsom and Democratic lawmakers have backed a revised health-plan tax in response to new federal restrictions, a move critics warn could shift more costs onto privately insured Californians.

The tax has united an unlikely coalition of doctors and health insurers against him, with critics warning it could make California even more expensive.

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To preserve billions in Medi-Cal financing after Washington tightened the rules governing health-plan taxes used to draw federal matching funds, Newsom backed a redesigned tax that would raise the levy on private health plans beginning in 2027 if federally approved, potentially increasing premiums for their customers. Providing healthcare to illegal immigrants cost California an estimated $12.4 billion in 2025, the Associated Press reported.

When asked if expanding coverage to illegal immigrants created a need for California to raise taxes, Brian Blase, president of the right-of-center Paragon Health Institute, answered with a strong «yes.»

DR. OZ UNVEILS MEDICAID OVERHAUL, CLAMPS DOWN ON $2B FOR ILLEGAL IMMIGRANTS AND MANDATES WORK FOR ABLE-BODIED

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«The One Big Beautiful Bill Act limited California’s ability to target the tax just on Medicaid insurers, so California is proposing to raise the health insurance tax on people that have private coverage … the estimates are that would increase insurance for families by $400 a year,» he told Digital. «That is just because California doesn’t want to deal with its unsustainable spending … there are many people on the program who are not eligible for the program, and that is not even accounting for the fact that California has expanded Medicaid to all unauthorized immigrants in the state.»

California’s attempt to shore up Medi-Cal’s bottom line follows federal changes that will prevent the state from continuing its existing health-plan tax structure after 2026, forcing a redesign of a financing mechanism that has generated billions of dollars for the program.

The California Medical Association and California Association of Health Plans are suing to block the tax increase, not on the grounds that it benefits illegal immigrants, but over allegations that the measure violates voter-approved limits on health-plan taxes and restrictions on how the resulting revenue can be spent. The duo uniting to challenge the tax is notable because doctors and insurance companies often find themselves on opposite sides of healthcare debates.

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Proposition 35, the initiative in question, limits how much California can tax commercial health-plan enrollment, constraining the state’s options as it tries to comply with new federal rules governing the much higher tax previously imposed on Medi-Cal enrollment. The proposition was passed with overwhelming support from Californian voters.

NEWSOM BEGS CALIFORNIANS TO VOTE ‘NO’ ON BILLIONAIRE’S TAX IN FACE OF MASS EXODUS, PITCHES NATIONWIDE TAX HIKE

«California voters passed Proposition 35 and made it law. The state does not get to ignore that law simply because following the law is inconvenient,» California Medical Association CEO Dustin Corcoran said in a statement.

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Health insurers warn the cost of the revised tax could be passed directly on to consumers through higher premiums, estimating an increase of about $100 per person per year. A family of four, for example, could face an additional $400 annually on top of normal rate increases.

Newsom spokeswoman Tara Gallegos said that the governor maintains that his tax increase is not rendered illegal by the proposition.

«The state disagrees with their claims, and we believe the courts will too,» she told Digital of the lawsuit.

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H.D. Palmer, deputy director for external affairs at the California Department of Finance, explained to Digital that the new tax measure was designed to comply with the One Big Beautiful Bill Act. According to Palmer, the state’s current health tax regime may conflict with the bill and that the state is submitting a proposal with two tracks — one that is similar to the current taxing scheme but might run afoul of federal law and another that conforms to the One Big Beautiful Bill Act by shifting costs toward private plans.

CALIFORNIANS FLEEING TO RED STATES ARE DRIVING UP HOME PRICES AND RENTS IN THEIR NEW CITIES, DATA SHOWS

«If the federal government declines to approve the tax that is structured similar to the existing [health plan tax], Proposition 35 may then sunset per current law,» he added.

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California has faced a mass exodus of people and businesses over the past decade, with the cost of living being one of the chief reasons individuals cite for leaving the Golden State. One analysis found that almost 10 million people moved from California to other states between 2010 and 2024, while just over 7 million moved to California from elsewhere in the country during the same period.

The state’s exodus has raised concerns about its financial outlook, with the departure of higher-income residents potentially reducing tax revenue for a state heavily dependent on income taxes.

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Supreme Court offers support for Catholic preschools challenging state funding requirements

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The Supreme Court’s conservative majority offered clear support Tuesday for Catholic preschools that claim Colorado’s taxpayer-funded program improperly excludes them by unconstitutionally intruding on their religious rights.

At issue is whether those private education institutions that deny admission to children of LGBTQ+ parents violate state anti-discrimination laws, and can therefore be denied a generally applicable public benefit.

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It is the latest high-profile religious rights appeal to reach the high court in recent years, several of them originating from Colorado.

CATHOLIC SCHOOLS, BANNED RIFLES AND ‘CLIMATE LAWFARE’: BLOCKBUSTER FIGHTS AWAIT SUPREME COURT

In a lively two-hour oral argument, the justices debated competing interests involving both religious liberty and a state’s interest in ensuring equal opportunity for gay and lesbian parents.

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«I’m hard-pressed to think that, given those [Catholic] teachings, that any homosexual family is going to choose to go to one of these schools, but that should be their choice, not your choice to exclude them,» said Justice Sonia Sotomayor to the lawyer for the plaintiffs. «That’s what you’re asking for… You want an official statement by the State that I will subsidize you with public money even though – because I have a right to reject children.»

ANDREA PICCIOTTI-BAYER: COLORADO’S UNIVERSAL PRESCHOOL REVIVES VILE ANTI-CATHOLIC LAWS

But Justice Brett Kavanaugh said the state’s motives, however well-intentioned, are promoting a kind of conformity that is not constitutionally permissible.

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«Why not seek the win/win?» Kavanaugh asked the attorney for the state. «There are plenty of opportunities to respect the rights of the religious believers and respect the ability of LGBT parents to find among the 2,000 [Colorado] schools an appropriate fit for their children.

«It seems like this is a would-be solution in search of a problem that is unnecessary to create this clash,» he added. «There’s an ability for everyone to go to the school, a good school that’s a fit for them, and respect religious rights.»

Colorado established a Universal Preschool Program (UPK) in a 2020 ballot measure, distributing public funds for participating schools, with the requirement they «provide eligible children an equal opportunity to enroll and receive preschool services regardless of race, ethnicity, religious affiliation, sexual orientation, gender identity, lack of housing, income level, or disability.»

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Two Catholic parishes sued, arguing the policy targets their sincerely held beliefs about same-sex marriage.

The archdiocese in the state manages 34 preschools, with a policy to only admit students from ​families who support Catholic ideology, including on same-sex relationships and gender identity.

They seek exemptions to the Colorado law, arguing their exclusion is a form of religious discrimination in violation of the First Amendment.

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The Trump administration has signaled its support of the religious plaintiffs.

The state counters its public benefit conditions are neutral and generally applied to every preschool.

It provides a $6,300 annual benefit per child for up to 15 hours a week of preschool, with money coming from a tobacco tax.

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Officials told the nine-member bench that religious schools are free to participate but must abide by nondiscrimination laws, similar to those affecting low-income and disabled students.

As part of its review of the Colorado dispute, the high court will decide whether to narrow a 36-year-old precedent that religious practices do not create exemptions from broadly applicable laws.

The First Amendment states, «Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof.»

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The Supreme Court in prior decades had focused on the first part, ensuring a constitutional separation of church and state, when disputes over religious rights reached the public sphere.

But the current conservative bench in the past few years — led by Justice Samuel Alito — has trended toward favoring religious institutions raising «free exercise» claims.

The justices have separately backed a Colorado baker, mental health counselor and website developer, who all challenged the state’s anti-discrimination policies.

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The oral arguments Tuesday seemed to divide along ideological lines.

Conservative justices focused on the «free exercise» claims by the Catholic parishes that state requirements for receiving public benefits amounted to religious discrimination.

«Explain what the difference is between [explicitly excluding Catholic schools] and then choosing to impose a condition that you know that those schools will be unable to agree to?» said Justice Amy Coney Barrett.

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But Justice Elena Kagan cited the court’s prior cases, which she said affirmed the idea «you can’t treat religious institutions differently.»

«That’s not the principle that’s at issue here,» Kagan said. «The principle at issue here is: Do you have to treat them better?»

Chief Justice John Roberts asked tough questions of both sides and his vote could prove determinative. At one point, he expressed skepticism that recent rulings favoring the rights of religious schools over similar claims should also prevail in the current petition.

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«The law in those cases, in each of them, expressly discriminated against religious schools on its face,» Roberts told Reaves. «That’s not the case here,» suggesting Colorado’s law may be applied fairly across the board.

The current dispute was brought by plaintiffs including St. Mary Catholic School.

Erika Nagle, whose children attend the Littleton facility, told Digital that two of her children were denied access to the state’s preschool funding program, leaving her family to cover additional education expenses.

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«We are being excluded from this benefit because we are Catholic,» Nagle said in an interview with Digital. «And so in a state that preaches inclusion, they are actively going out of their way to exclude a huge chunk of people because of our religious beliefs.

«We have had two preschools in the archdiocese that have been closed down,» she added. «The state is dangling a carrot over here, incentivizing people to leave their faith, to abandon the Catholic education that they want.»

The Becket Fund for Religious Liberty represented the plaintiffs in court, arguing the state’s policies are having severe consequences, with enrollment at archdiocesan preschools falling 20% and two schools shuttered.

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The state counters that religious entities like Catholic Charities, at least three dozen Christian schools, one Muslim and three Jewish schools continue to participate in the preschool funding program.

«Colorado welcomes religious preschools» to its program, state attorney Helen Norton told the high court. «The only thing Colorado asks is that they comply with the same conditions that every publicly funded preschool must meet, religious and secular alike.»

The case is St. Mary Catholic Parish v. Roy (25-581), with a ruling expected by next spring.

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Mike Arana, el prodigio de la Rivera Hernández que lleva el sueño de Honduras a su segundo Mundial juvenil

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Mike Arana, jugador de Real España, tiene 17 años y se prepara para disputar su segundo Mundial juvenil con Honduras, después de convertirse en el futbolista más joven en debutar con la selección absoluta del país. El joven nacido en la colonia Rivera Hernández de San Pedro Sula aspira a que su carrera le permita comprar una casa para sus padres, relató en una entrevista para Diario Diez.

El futbolista marcó un doblete en el triunfo de Real España sobre Juticalpa FC el pasado fin de semana. Ese rendimiento se suma a sus goles en la Liga Nacional y a una trayectoria que comenzó cuando tenía tres años, en las calles de la colonia 6 de Mayo, dentro de la Rivera Hernández.

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Marvin Arana y Marilyn Meléndez son padres de cuatro hijos, y Mike es el menor. Los vecinos ya advertían su capacidad con la pelota: de niño pedía botines de fútbol antes que autos de juguete y esperaba terminar el jardín de infantes para ponerse el uniforme de la selección hondureña que usaba su hermano mayor, aunque le quedara grande.

Su madre dejó de hacer trenzas a niños y niñas de la comunidad, una tarea que realizaba desde su adolescencia, para acompañarlo a partidos y entrenamientos. “Para llegar a la meta hay que luchar. Todo es sacrificio”, afirmó Marilyn.

Más de 400 goles en las categorías infantiles

La formación de Arana comenzó en la Academia Centuriones y continuó en Pumas, donde conoció a “Chico” Bruck. Bruck se ofreció a recogerlo y llevarlo de regreso a su casa todos los días para que no faltara a los entrenamientos.

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A los siete años, el jugador viajó solo a Miami tras recibir una invitación para disputar un partido. Marilyn recordó que dudaba de permitirle el viaje por su edad, pero su hijo le respondió: “Sí mamá, yo me voy”.

El delantero aspira a comprar una casa para sus padres, Marvin Arana y Marilyn Meléndez, como retribución al acompañamiento recibido desde sus primeros entrenamientos, cuando era niño, en San Pedro Sula. (Imagen retomada de Diario Diez)

El zurdo fue máximo goleador en las categorías U-8, U-10, U-14, U-18 e Intermedia, con más de 400 goles en el fútbol infantil. Cristóbal Bu, técnico hondureño y uno de sus mentores, detalló que Mike convirtió 90 goles en U-8 y 89 en U-9.

“Hubo un partido donde él metió 19 goles con siete años. Luego con la edad de 12 años lo pasamos a jugar a la U-14 y aún en la 14 fue campeón de goleo”, contó Bu al diario. Más tarde pasó a U-16 a los 14 años y volvió a liderar la tabla de anotadores; en dos torneos de Intermedia fue goleador con 16 y 18 tantos.

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Los propietarios de equipos de categorías menores ofrecían refrigeradores, juegos de sofás, estufas y otros electrodomésticos a la familia para obtener los documentos del jugador y registrarlo en sus clubes. Sus padres mantuvieron su recorrido deportivo en las instituciones donde se formó.

Arana nació en su casa, no en un hospital. Marilyn entró en trabajo de parto mientras estaba enojada con Marvin y no le avisó que su segundo hijo varón estaba por nacer; cuando Mike llegó al mundo, ella le pidió que buscara a una partera para cortar el cordón umbilical.

El sueño de retribuir el esfuerzo familiar

El joven es conocido en su barrio como “Lamine Yamal”, un apodo ligado a su admiración por el futbolista del Barcelona y a las similitudes que los vecinos encuentran en su manera de jugar. Durante la conversación con Diario Diez, su madre le dijo: “Vos sos mi Lamine Yamal, hijo. Con goles o sin goles, vos sos el mejor de aquí y nadie me lo quita de la cabeza”.

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Los padres del jugador rechazaron electrodomésticos ofrecidos por dirigentes que buscaban fichar al atacante. (Imagen retomada de Diario Diez)

La prioridad de Arana no está asociada a los lujos que suele imaginar para un futbolista profesional. “Comprarles una casa a mi mamá y a mi papá, porque sé todo el sacrificio que han hecho por mí”, expresó.

Marvin Arana trabajó como técnico en electricidad y su hijo adquirió curiosidad por los aparatos eléctricos al verlo en ese oficio. Mike suele desarmar objetos en su casa durante su tiempo libre, aunque después intenta volver a armarlos.

Hace cinco años, su padre dejó en pausa el trabajo de electricista para ser bombero en una gasolinera de San Pedro Sula. Allí trabaja de lunes a sábado entre las 6:00 y las 14:30, y explicó: “De aquí sale el apoyo para mi familia, aquí luchamos”.

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El seleccionador nacional, José Francisco Molina, los entrenadores que acompañaron los primeros pasos del jugador y quienes lo dirigieron en Real España han señalado que Arana posee condiciones para seguir creciendo en el fútbol hondureño.

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ASRA NOMANI: Muslim reformers reject ‘fire will rise’ warning if El-Sayed loses as ‘Jihad First’

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American Muslim reformers are torching political commentator Wajahat Ali after he warned that «the fire will rise» and people will be «radicalized» if Democratic candidate Abdul El-Sayed loses his Michigan Senate bid, saying his language echoes a «Jihad First» intimidation rhetoric used by religious tyrants before elections in the Middle East.

On Monday, Ali drew fire on X when he wrote: «If, God forbid, Abdul loses, this will be a watershed moment in Democratic politics. The fire will rise. It’s over. People will be radicalized against corporate, pro-Israel Dems. There will be a reckoning. If, when, he wins, it will be a watershed moment. And that reckoning will still come.»

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After facing backlash, Ali posted another message Tuesday morning, expressing no regrets and instead scolding critics for alleged bigotry. «Ah, that Islamophobia and anti-Arab bigotry are so pure and naked,» Ali wrote. «People are just coming out in the open about how they’ve always felt. Great. Please, be honest. Just share the ugliness with the world so we can all see.»

Ali didn’t respond to a request for comment from Digital.

Reform-minded Muslim leaders aren’t buying Ali’s rhetoric.

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The divide with Muslim reformers reflects a broader fissure within American Muslim politics: between establishment organizations and leaders who accept political Islam, or Islamism — the idea that religion should shape government and political life — and reform-minded critics who challenge orthodoxy, reject anti-Israel and anti-Western rhetoric and support secularism, including the separation of mosque and state.

«What Wajahat Ali said on the eve of elections is actually the language we’ve seen Islamists use before elections in countries in the Middle East, including Egypt,» Dalia Ziada, an Egyptian Muslim reformer and critic of political Islamism, told Digital.

«The threat is usually: If you don’t choose us, this will lead to radicalization, and this will lead to violence,» added Ziada, who is Washington, D.C., director at the Institute for the Study of Global Antisemitism and Policy. «Maybe we need to expect troubles coming up.»

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EL-SAYED’S PAST MUSLIM BROTHERHOOD COMMENTS RAISE RED FLAGS AS HE EYES POWERFUL ROLE

Soraya Deen, a Muslim reform activist, attorney and co-founder of the Los Angeles Women’s Multifaith Alliance, said Ali’s language shouldn’t be treated as a routine social-media outburst.

«His words are deeply troubling,» Deen told Digital. «His warning that ‘the fire will rise,’ that people will be ‘radicalized,’ and that a ‘reckoning’ is coming deserves serious scrutiny.»

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«Losing an election is not a license for radicalization,» added Deen, . «We must reject intimidation, political extremism and the politics of perpetual grievance.»

EX-DSA MEMBER RIPS ABDUL EL-SAYED AND WARNS FAR-LEFT ADOPTING POLITICS OF FOREIGN TERROR ORG

Dr. Zuhdi Jasser, a Muslim reformer and founder of the American Islamic Forum for Democracy, said Ali’s comments reflect what he describes as a «Jihad First» lens for viewing political conflict.

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«Wajahat Ali, like Abdul El-Sayed, proves yet again their decades of anti-American Islamist obsession and the ‘Jihad First’ lens through which they view every cultural, social, military and political conflict,» said Jasser, who is running for Congress as a Republican candidate in Arizona’s 4th Congressional District.

Jasser’s comments were directed at what he described as the political rhetoric surrounding El-Sayed’s campaign. The reformers didn’t accuse Ali of belonging to an Islamist organization. Their criticism focused on language they said resembles tactics used to pressure voters by warning that rejecting a candidate could produce violence or radicalization.

EL-SAYED TRIES TO MAKE PEACE WITH JEWISH DEMOCRATS BUT DRAWS LINE AT DUMPING HASAN PIKER

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Ali’s comments came as El-Sayed’s campaign draws support from a wide network of Muslim advocacy groups, Palestinian activist organizations, progressive groups, labor organizations and political influencers.

A Digital review of campaign endorsements, public statements and voter-mobilization efforts identified 70 Muslim groups and influencers supporting El-Sayed’s political orbit one way or another. The records include formal endorsements, campaign-listed support, voter mobilization and public amplification. Not every organization has the same relationship with the campaign.

They include CAIR Action, Americans for Justice in Palestine Action, Bangladeshi Americans for Political Progress, Emgage Action and the US Campaign for Palestinian Rights. El-Sayed’s official website includes endorsements from «Muslims for Abdul,» the Yemeni American Michigan Democratic Caucus, the Michigan Bangladeshi American Democratic Caucus and Palestinian American political operative Linda Sarsour’s MPower Action, among others.

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ABDUL EL-SAYED REPORTEDLY CALLED HASAN PIKER WARNING HIS RHETORIC WAS ‘COSTING’ VOTES

The broader coalition supporting El-Sayed includes Democratic Party organizations and Democratic Socialists of America chapters, as well as online commentators and political figures including Hasan Piker, Linda Sarsour, Rep. Ilhan Omar and Rep. Rashida Tlaib.

The organizations and individuals have overlapping priorities, including opposition to U.S. support for Israel, demands for an arms embargo or cease-fire, support for Palestinian activism, criticism of Democratic moderates and efforts to mobilize Muslim and progressive voters.

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The coalition’s critics have described it as a «red-green» alliance involving «red» left-wing political organizations and «green» Muslim advocacy groups.

«Their red-green ‘Jihad First’ filter — threatening fire and radicalization — is simply an unmooring of their own dreams to live the jihad of Islamism and destroy the American dream and everything for which it stands,» Jasser said. «Patriotism is not in their vocabulary.»

TRUMP SAYS ISRAEL WILL STOP RECEIVING $4B IN US AID BY YEAR’S END, CAN STILL BUY WEAPONS

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For Ziada, the significance of Ali’s post lies in the suggestion that an election loss could trigger radicalization.

«Muslims like Wajahat Ali are just using the political movement backing Abdul El-Sayed as a staircase to bring them to the power of a chair they want to claim,» Ziada said. «Once they get there, they don’t care what they may have promised. And if they don’t get there, they will turn it into fire.»

Ziada also criticized El-Sayed’s campaign rhetoric about Israel, comparing what she described as repeated attacks on Israel to political tactics used by leaders in the Middle East. Tuesday morning, President Donald Trump announced that he would cut off $4 billion of aid to Israel, one of the network’s demands, designed to isolate the nation.

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«The demonization of Israel that we saw very prominently in the campaign of El-Sayed is a tactic that we saw Middle Eastern dictators resorting to every now and then,» Ziada said.

«Whenever they are stuck with economic issues or politics, they just bring up the ‘Israel is bad’ card,» she added. «Again, he is just copying dictators in the Middle East.»

Jasser said the episode should prompt Muslim voters and Democratic leaders to examine the language used by political influencers who claim to speak for Muslim communities.

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«Any honest Muslim who reads that post will see ‘Jihad First’ and everyone else be damned, including patriotic Muslims,» Jasser said.

Ali has emerged as a prominent media figure over more than two decades, writing for and appearing on outlets including The Daily Beast, The New York Times, CNN and The Guardian. He also hosted programming for Al Jazeera America.

His political activism began after the Sept. 11, 2001, terrorist attacks, when he became involved in campus protests at the University of California, Berkeley. He later worked with Democratic operative Faiz Shakir, who became campaign manager for Sen. Bernie Sanders’ 2020 presidential campaign, at the Center for American Progress, a nonprofit established by former Clinton administration chief of staff John Podesta.

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Ali has continued to weigh in on Israel, Democratic Party strategy and Muslim political activism, regularly drawing fire. Earlier this year, in a broadcast with former MSNBC host Joy Reid, the two decried «weak White mean» in a heated anti-Trump rant.

Most recently, Ali hosted a speaker who criticized Democratic House Speaker Hakeem Jeffries for receiving political contributions from the American Israel Public Affairs Committee, calling him an «AIPAC monkey.» The smear drew cries of racism against Jeffries, who is Black.

Now, Muslim reformers are scolding Ali for making comments that seem to threaten voters with «fire,» a «reckoning» and a «radicalized» citizenry if his preferred candidate loses.

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Deen said the response to an election should be political disagreement, not warnings of unrest.

«Losing an election is not a license for radicalization,» Deen said. «We must reject intimidation, political extremism and the politics of perpetual grievance.»



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