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Governor Newsom unveils revised 2025–2026 State budget

Governor Newsom unveils revised 2025–2026 State budget
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BAKERSFIELD, Calif. (KERO) — Governor Gavin Newsom unveiled California’s $322 billion revised budget, addressing a projected $16 billion revenue shortfall while prioritizing education, healthcare, housing, and climate resilience.

  • Governor Newsom announced a $322 billion revised budget for 2025–2026 amid a projected $16 billion revenue shortfall.
  • The plan includes continued support for undocumented adults in Medi-Cal, but freezes new enrollment and adds monthly premiums.
  • Education, housing, and climate initiatives remain top funding priorities despite economic constraints.
  • California is suing the Trump administration over tariffs, citing negative impacts on the state’s economy.

BROADCAST TRANSCRIPT:

On Wednesday, Governor Gavin Newsom announced the 2025–2026 revised budget plan. I'm Madi Vollmer Ybnrh, and here are some of the key highlights from the announcement.

Governor Newsom unveiled a $322 billion state budget plan for 2025–2026. Despite a $363 million surplus, the state faces a projected $16 billion revenue drop. However, he adds that California is the 4th largest economy in the world.

The governor also says that the State of California is suing the Trump administration over tariffs, which he claims are negatively impacting the state's economy. "We’ve gone from 145% tariffs, to 80%, and now 30%. If you started at thirty, it would have a jaw-dropping impact on the economic future of this state." Newsom said.

Another challenge in the budget is healthcare coverage for undocumented adults. Newsom says he’s not cutting the program, but under the revised plan, most undocumented adults will no longer be able to enroll. For those already in the program, he’s proposing a monthly premium to help offset costs.

"As it relates to our expansion population, there are some adjustments for seniors and for the undocumented population that we are trying to right-size based on the budgetary constraints." he said.

Newsom addressed many other challenges in the state, including prioritizing educational funding, combatting homelessness and affordable housing, and tackling climate change and environmental resilience. He added that he’s proud of the work that has been accomplished.

"We went from a $3 trillion economy to a $4.1 trillion economy. This nation and state have grown, and as a consequence, we've taken a different approach to our investments. We're also trying to reconcile a lot of the challenges we face." He said.

As California moves forward with these adjustments, all eyes will be on how the revised budget affects residents, businesses, and the state's overall economic health.

Now that we've seen the revised budget, much still remains uncertain as to how local budgets will be impacted.


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