After 2 years of shortfalls, California governor proposes $322B budget with no deficit

TURLOCK, Calif. (AP) — California Gov. Gavin Newsom has proposed a $322 billion budget without a deficit, a welcome change after two years of significant budget shortfalls in the nation’s most populous state.

But the budget Newsom announced Monday is mostly a placeholder as California waits to see if incoming President Donald Trump will follow through on threats to revoke billions in federal dollars, which could force lawmakers to make painful cuts to essential programs. About a third of California’s budget relies on funding from the federal government, including tens of billions of dollars to provide health care services. Trump takes office on Jan. 20, and Newsom must sign the final budget by the end of June.

California lawmakers already opened a special session to consider giving a fresh $25 million to Attorney General Rob Bonta’s office to defend against or take on potential legal challenges from the Trump administration. Fights are likely between California and Washington, D.C., over climate policy and immigrant rights. State senators have also proposed additional funding to provide free legal services to immigrant communities.

Continued at: https://apnews.com/article/california-billions-2025-budget-gov-newsom-trump-419a6f75bfbfed26a76fe21870ac37e6