California Gov. Gavin Newsom said the state will begin producing insulin to make it more affordable for people in the state.

"Nothing epitomized market failures more than the price of insulin," Newsom said. "Many Americans spend $300 to $500 per month for this life-saving drug. California is now taking matters into our own hands."

The state's budget allocates $100 million for the initiative.

Newsom said $50 million will go toward developing low-cost insulin products and the other $50 million will go toward a California-based manufacturing facility.

Newsom added that the facility will create high-paying jobs and strengthen the supply chain for the drug.

"In California, we know people should not go into debt to receive life-saving medication," Newsom said.

According to the Centers for Disease Control, 1 in 10 Americans have diabetes.