Sacramento (Calif.), May 15, 2025
California is facing a 12 billion dollars deficit that Gov. Gavin Newsom wants to help close by freezing enrollment in a state-funded health care programme for immigrants.
It is the state-funded health care programme assistance for immigrants living in California without legal status.
Newsom announced the deficit and his plans to cover it Wednesday as he outlined his nearly 322 billion dollars state spending plan for the upcoming fiscal year.
Beyond higher-than-expected Medicaid spending, Newsom blamed broad economic uncertainty, including federal tariff policies and a volatile stock market. California relies heavily on revenue from a tax on capital gains.
Newsom, a Democrat, highlighted California’s contributions to the U.S. and world economy and said President Donald Trump’s economic policies could reduce state revenues by 16 billion dollars in the coming years.
