California Gov. Gavin Newsom on May 14 laid out the revised budget for the 2025–2026 fiscal year, compensating for a $12 billion deficit.
During his speech, Newsom said the state anticipates $16 billion in tax revenue losses largely as a result of President Donald Trump’s policies—including tariffs—which he said are attacking California’s “growth engines” and have “created a climate of deep uncertainty.”
“California is under assault,” he said.
“The impacts are being felt disproportionately in the fourth-largest economy in the world.”
Newsom’s revised $322 billion budget includes a Medi-Cal enrollment freeze for illegal immigrant adults, a reduction in home health services, and funding cuts for Ozempic—a type 2 diabetes medication which has increasingly been used for weight-loss—as well as a withdrawal of $7.1 billion from reserves….