California spent $1 billion on migrant services under Newsom, City Journal investigation finds

By jenkrausz
updated on April 24, 2026

California taxpayers have funneled more than $1 billion into contracts and funding for organizations that provide services to illegal immigrants since Gov. Gavin Newsom took office, a City Journal investigation reported. The spending, spread across religious charities, legal-aid nonprofits, and activist groups, amounts to a state-level subsidy for mass illegal immigration, one that kept the pipeline flowing even as border communities across the country buckled under the strain.

The figures come from Christopher Rufe, writing in City Journal, and were detailed in a Breitbart report that tied the spending to an estimated 400,000 additional illegal immigrants drawn into the state. Rufe laid out the contracts by name and dollar amount, painting a picture of a state government that didn't just tolerate illegal immigration, it bankrolled the infrastructure to sustain it.

Where the money went

Rufe's reporting identified specific organizations and the scale of their state contracts. Catholic Charities received more than $250 million. Jewish Family Services took in $85 million. The Immigration Institute of the Bay Area collected $23 million. Centro Legal de la Raza received $12 million. And the Coalition for Humane Immigrant Rights Los Angeles, known as CHIRLA, was steered $110 million by the state's Democratic government.

Rufe wrote:

"Since Newsom took office, California has granted massive contracts for migrant-related services: more than $250 million to Catholic Charities; $85 million to Jewish Family Services; $12 million to Centro Legal de la Raza; $23 million to the Immigration Institute of the Bay Area; and more."

Those are not small grants tucked into obscure budget lines. They represent a deliberate, large-scale commitment of public funds to organizations whose work centers on serving people who entered the country illegally. And the money kept flowing, supplemented, the report noted, by federal funding directed under then-DHS Secretary Alejandro Mayorkas during the Biden administration.

The pattern fits a broader record of fiscal choices under Newsom that have drawn scrutiny. A separate investigation alleged California lost up to $280 billion to fraud during his tenure, a staggering figure that raises hard questions about where oversight went.

CHIRLA: from state grantee to anti-enforcement activist

CHIRLA's role stands out. The Los Angeles-based organization didn't just collect $110 million in state funds for migrant services. It also coordinates the L.A. Rapid Response Network, which the report described as tracking ICE raids and taking "direct action to shut down detention centers." In other words, California taxpayers helped fund an organization that actively works to obstruct federal immigration enforcement.

During a wave of protests in Los Angeles, CHIRLA activists agitated on social media, led street demonstrations, and called for a "Summer of Resistance." The group's executive director, Angelica Salas, spoke at a street protest and described ICE operations as a "militarized siege" against illegal immigrants.

Salas declared:

"We are going to stop Trump's terror campaign against our community. We will not stop marching. We will not stop fighting."

That language, "terror campaign," "militarized siege", is not the vocabulary of a neutral social-services provider. It is the rhetoric of political resistance. And it was underwritten, in part, by the taxpayers of California.

Meanwhile, Newsom hasn't limited his spending to service contracts. He signed legislation allocating an additional $50 million specifically to resist the Trump administration, $25 million for the California Department of Justice to pursue lawsuits against the federal government, and $25 million for nonprofit legal groups defending immigrants facing deportation. AP News reported that California filed or joined more than 100 legal actions against the Trump administration during Trump's first term and spent roughly $42 million on those fights, with annual costs ranging from about $2 million to nearly $13 million.

Newsom framed the new funding as necessary to assist legal groups in "safeguarding the civil rights of California's most vulnerable residents." Democratic Assembly Speaker Robert Rivas said, "That is why we are delivering legislation that will allocate resources to defend Californians from this urgent threat."

Felons, fine print, and nonbinding letters

The $50 million package carried another controversy. The Washington Free Beacon reported that California Democrats voted down an amendment that would have explicitly blocked state funds from benefiting illegal immigrant felons. Instead, they issued a letter to the chief clerk of the assembly stating that "none of the funding in SBX1-2 is intended to be used for immigration-related services for individuals with serious or violent felony convictions."

That letter had no teeth. Chris Micheli, a longtime Sacramento lawyer and expert in California legislative procedure, said plainly: "Such a letter does not have any legal or binding effect."

So Democrats rejected a binding prohibition, then replaced it with a wish expressed on paper. The distinction matters. Without a legal guardrail, nothing prevents the money from reaching organizations that serve illegal immigrants with felony records. The clarifying letter is a political fig leaf, not a policy safeguard.

This kind of gap between rhetoric and reality has become a recurring feature of governance under Newsom. California Democrats sat on a $2 billion budget miscalculation for months before it went public, another case where the numbers told one story and Sacramento told another.

What life looks like on the ground

The human cost of subsidized mass migration doesn't land on the governor's desk. It lands on the people who share neighborhoods, housing, and labor markets with hundreds of thousands of new arrivals.

Mission Local reported from San Francisco in March on the housing pressures facing illegal immigrants, pressures that inevitably ripple outward to everyone competing for the same scarce apartments. The outlet profiled Carmelo, a 43-year-old from Mexico's Yucatan region who arrived in the United States three years ago and works at a grocery store on 16th Street. He searched for nearly six months before finding a room through a friend of a friend of his nephew. He now shares an apartment with three others and pays $2,950 total.

Carmelo told Mission Local:

"Here we are. There isn't another option."

The report also described one immigrant family from El Salvador that crammed 15 people into a two-bedroom unit in San Francisco's Excelsior neighborhood during the pandemic. These are not stories of prosperity. They are stories of overcrowding and desperation, conditions that affect not only the immigrants themselves but every renter, every neighbor, every school and clinic in those communities.

Data provided by the Manhattan Institute in New York, cited in the report, pointed to roughly 2 million illegal immigrants living in California, a population larger than the entire city of San Francisco. That population doesn't exist in a vacuum. It shapes housing costs, wages, public services, and the daily lives of lawful residents who never voted for any of it.

Newsom's frequent absences from the state have themselves become a point of contention. Travel records showed 229 days spent outside California since 2023, raising questions about who is minding the store while the bills pile up.

The wage question

One of the clearest downstream effects of mass illegal immigration is wage suppression, a reality that economists across the spectrum acknowledge but that California's political leadership has little incentive to discuss. RestaurantBusinessOnline.com reported on January 23 that federal deportation efforts were already affecting labor markets. The outlet cited Oxford Economics projections showing wages rising 3.7 percent in the current year and accelerating to 5.6 percent by 2027 as the labor supply tightens.

For workers in restaurants, construction, agriculture, and other industries where illegal immigrants concentrate, those numbers represent real money. The logic is straightforward: fewer workers competing for the same jobs means employers have to pay more to fill them. California's billion-dollar migrant subsidy worked in the opposite direction, expanding the labor pool and holding wages down for the very communities Democratic leaders claim to champion.

Newsom's record has drawn scrutiny from multiple angles. Even his party's own grading of his homelessness record has been challenged when measured against the actual numbers on the ground.

The incentive structure

The report framed the spending as part of a broader political economy. Nonprofit organizations that receive hundreds of millions in state contracts have every reason to advocate for more immigration, their funding depends on it. Activist groups like CHIRLA, flush with public money, turn around and mobilize against the very federal enforcement that would reduce their client base. Democratic politicians who approve the contracts benefit from an expanding constituency that depends on state services and the organizations that deliver them.

None of this is accidental. It is a system that feeds itself, and the people who pay for it are California's taxpayers, renters, and working-class residents who absorb the costs without sharing in the political benefits.

The open questions are significant. The report did not identify the specific state programs, budget lines, or contract documents underlying the spending figures. The exact time period covered by the $1 billion total and the 400,000-migrant estimate remains unclear. Those gaps deserve answers, from Sacramento, from the governor's office, and from the organizations that cashed the checks.

When a state spends a billion dollars to make life easier for people who broke the law to get there, and then spends another $50 million fighting the federal government for trying to enforce that law, the question isn't whether the policy is generous. The question is who it's generous to, and who gets stuck with the tab.

About jenkrausz

Real Talk. Daily.

No spin. No fluff. Just the hard truth. served straight. Every morning, we cut through the noise and deliver what really matters to hardworking Americans. No agendas. No media games. Just real talk you can trust.