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Gov. Newsom, California lawmakers are close to reaching budget deal

  • California’s Legislature and Governor Gavin Newsom are nearing an agreement on a $321.1 billion state budget plan that aims to address a projected $12 billion deficit.
  • After weeks of discussions, the budget agreement aims to address deficits resulting from overspending, increased Medi-Cal expenses, and previously underestimated costs related to providing health services for 1.6 million undocumented immigrants with limited income.
  • The deal protects public transit funding by reversing proposed cuts and includes a $750 million interest-free loan for Bay Area agencies, $500 million for homelessness programs, and expands the film tax credit to $750 million.
  • The governor proposed spending $1.3 billion to raise base provider rates, calling it "consistent with the rules," while the California Medical Association criticized fund diversions as a violation of voter trust.
  • The budget requires passing housing reform legislation by Monday, freezes new undocumented adult enrollment starting January 1, 2026, and relies on tapping reserves and borrowing but signals ongoing financial challenges.
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Times of San DiegoTimes of San Diego
+10 Reposted by 10 other sources
Center

Newsom agrees to ease budget cuts as California seeks more time to fix growing deficit

The budget deal between Gov. Gavin Newsom and the Legislature forgoes or delays many of Newsom’s proposed cuts, but the deficit is only likely to grow.

·San Diego County, United States
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  • 44% of the sources lean Left, 44% of the sources are Center
44% Center
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SFist broke the news in on Tuesday, June 24, 2025.
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