California Governor Announces \$12 Billion Budget Crisis, Blames Trump

California Faces \$12 Billion Budget Shortfall: Newsom Blames Trump Policies SACRAMENTO, CA – Governor Gavin Newsom announced a significant \$12 billion budget shortfall for California's 2025-2026 fiscal year. The announcement, made during a press conference on Wednesday, May 14th, 2025, cited economic uncertainty linked to the policies of the previous presidential administration as the primary cause. Newsom's proposed budget, totaling nearly \$332 billion, includes a temporary suspension of state-funded healthcare for low-income immigrants as a cost-cutting measure. "The impacts of these tariffs have yet to be fully felt," Newsom stated, highlighting the economic challenges facing the state. His administration projects that changes implemented to address the new presidential administration's policies will generate \$5.4 billion in savings by the 2028-2029 fiscal year. The budget shortfall has sparked debate among state lawmakers, raising concerns about potential cuts to essential services. The Governor's office is currently working with the legislature to address the deficit and mitigate its impact on California residents. The situation underscores the complex economic challenges facing the state and the ongoing political implications of national policy decisions.