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Gov. Newsom, California lawmakers are close to reaching budget deal

  • California lawmakers and Governor Gavin Newsom are close to finalizing a $321.1 billion budget deal to address a $12 billion shortfall this fiscal year.
  • The shortfall mainly arises from Medi-Cal cost overruns tied to expanding healthcare coverage for undocumented immigrants, prompting cuts and policy adjustments.
  • The deal maintains full funding for public transit including a $750 million interest-free loan for Bay Area agencies, and allocates $500 million for homelessness prevention grants.
  • State Senator Scott Wiener announced that all proposed reductions to public transportation funding have been eliminated, and the previously agreed-upon $750 million state loan designated for transit agencies in the Bay Area has been preserved in full.
  • The tentative agreement relies on borrowing, state reserves, and funding shifts, while requiring passage of housing reform legislation to expedite construction by July 1.
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23 Articles

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Center
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1
Times of San DiegoTimes of San Diego
+11 Reposted by 11 other sources
Center

Newsom agrees to ease budget cuts as California seeks more time to fix growing deficit

The budget deal between Gov. Gavin Newsom and the Legislature forgoes or delays many of Newsom’s proposed cuts, but the deficit is only likely to grow.

·San Diego County, United States
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Bias Distribution

  • 50% of the sources lean Left
50% Left
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SFist broke the news in on Tuesday, June 24, 2025.
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