California Gov. Gavin Newsom announces $12 billion budget deficit
Briefly

California is facing a $12 billion budget deficit, which Governor Gavin Newsom attributes to economic uncertainty caused by fluctuating federal tariff policies and a volatile stock market. This deficit challenges Newsom's ambitious state spending plan, which totals nearly $322 billion. One proposal includes freezing enrollment in state-funded health care for undocumented immigrants starting in 2026, largely due to increased costs and the economic climate. The governor's efforts to maintain universal health care initiatives for low-income individuals are being tested against budget realities as expenditures exceeded initial projections by $2.7 billion.
California's $12 billion budget deficit is attributed to economic uncertainty, federal tariffs, and reliance on capital gains tax revenue. Difficult decisions ahead for Gov. Newsom.
Newsom's proposed enrollment freeze for state-funded health care for immigrants stems from high costs and economic challenges. This reflects his struggle to maintain liberal policies amid budget pressures.
Read at ABC7 Los Angeles
[
|
]