US EditionNewsom announces $12B deficit in revised California budget proposal
- Governor Gavin Newsom announced a revised California budget on Wednesday showing a $12 billion deficit for the upcoming fiscal year.
- The deficit stems from higher Medicaid spending, economic uncertainty, and reduced tax revenues linked to federal tariffs and stock market volatility.
- To address the shortfall, Newsom proposed freezing new Medi-Cal enrollment for undocumented adults starting in 2026 and cutting spending on health programs and in-home care services.
- His $322 billion spending plan anticipates saving $5.4 billion by 2029 and highlights a projected $7.8 billion loss in tax revenue alongside potential $25 billion tariff costs affecting over 64,000 jobs.
- Newsom opened budget negotiations with lawmakers amid uncertainty over their response and continued to attribute fiscal challenges to federal policies impacting California's economy.
109 Articles
109 Articles
Here is how California Gov. Gavin Newsom plans to address a $12 billion budget shortfall
California would scale back state Medicaid coverage for immigrants without legal status, eliminate coverage for certain weight loss drugs and use money from a key climate program to help fund state fire response under a $322-billion budget proposal announced Wednesday by Gov. Gavin Newsom.The Democratic governor’s plan aims to fill a projected $12 billion budget hole he attributed to the Trump administration’s economic policies, a volatile stock…
May Budget Revise 2025-2026 Grows to $322 Billion, with $12 Billion Deficit – California Globe
Governor Gavin Newsom unveiled his revised 2025-2026 budget on Wednesday, proposing a $12 billion deficit in California alongside his $321.9 billion budget. In his speech, and later in a statement, Newsom primarily blamed President Donald Trump for the $12 billion shortfall, calling it the “Trump slump.” Newsom said that tariffs disruption, market volatility, and a decline in international tourism that have directly resulted in a staggering $16 …
The Mercury news
East Bay TimesNewsom blames California’s $12 billion budget shortfall on tariffs, Medi-Cal spending on immigrants
Gov. Gavin Newsom said two factors are largely to blame for a $12 billion budget shortfall facing California: expanding health care to immigrants without legal status, and Trump's tariffs.
California Gov. Newsom outlines $12 billion deficit and freeze on immigrant health care access
California is facing a $12 billion deficit that Gov. Gavin Newsom wants to help close by freezing enrollment in a state-funded health care program for immigrants living in California without legal status.
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