California Governor Gavin Newsom has shared a new state budget plan for the 2025–26 year. The plan shows a $12 billion gap between what the state will earn and what it needs to spend. This is a big problem caused by many things. One big cause is trade problems linked to President Donald Trump. Another cause is rising costs in health care.
The total budget Gavin Newsom shared is $322 billion. That is a lot of money, but it is not enough to cover all expenses. The state must make tough choices to close the gap. These choices will affect many people and programs in California.
One big change in the budget is about health care. California has a program called Medi-Cal. It helps low-income people get medical care. The new budget plans to stop new enrollment of undocumented adults in Medi-Cal starting January 2026. This means some people will not get new health care help. Also, people already on the program will have to pay $100 a month. The plan also cuts coverage for some weight-loss medicines. These moves are meant to save about $5 billion by 2028–29.
These health care changes have caused worry. Groups that help immigrants say these cuts hurt many people. Some lawmakers also say the cuts go against California’s promise to offer health care for all.
The arts will also feel the budget pinch. The budget plan wants to stop giving $11.5 million to the Performing Arts Equitable Payroll Fund. This fund supports many small arts groups, especially in the San Francisco Bay Area. Without this money, many arts groups may have to lay off workers or even close. Artists and community leaders are worried about what this means for culture and jobs.
Despite these cuts, Newsom’s budget still puts money into some key areas. For example, the budget supports universal pre-kindergarten programs. This means all children will have a chance to attend preschool. The budget also expands free school meals for students. Spending per student in schools will go up too. These moves aim to help children learn and grow.
The budget also puts money into housing. California faces a big housing problem with not enough homes for everyone. Newsom wants to keep building more houses. The plan also funds behavioral health programs to help people with mental health issues.
Another important part of the budget is about water. California faces many problems with water supply. The budget wants to speed up the Delta Conveyance Project. This project will update water systems to better store and manage water. This is very important as the state deals with climate changes.
Newsom’s budget plan has sparked many talks among leaders in the state. Some support the choices he made. Others want to find different ways to fix the budget gap. The state lawmakers must work together to decide the final budget by June 15. It will not be easy.
This budget will affect millions of Californians. Many people are watching to see how it will change health care, schools, housing, and the arts. Governor Newsom says these are hard times but the state will find a way to keep moving forward.
