After a last-minute adjustment to include reforms to housing and infrastructure demanded by Gov. Gavin Newsom, the California 2025 state budget has now been agreed by the Legislature and signed off by the governor on June 30.
The state budget for the 2025–2026 fiscal year, which starts on July 1, amounts to $322 billion in total spending, while closing a $12 billion deficit and projecting a $21 billion structural deficit.
SB101, the main bill included in the budget, meanwhile, earmarks dollars for items such as diapers for newborns and a high-speed rail project, as well as other expenses.
The revised budget reallocates $1 billion per year through 2045 from the cap-and-trade program to fund the more than $100 billion high-speed rail project….