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California Faces $12 Billion Deficit Amid Medi-Cal Crisis

5/22/2025

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Summary

Story summary

California is grappling with a staggering $12 billion budget deficit, largely driven by soaring Medi-Cal costs for undocumented immigrants. Governor Gavin Newsom points to external pressures like federal tariffs, while critics contend that his spending choices are at the heart of the crisis. Urgent negotiations for a revised budget plan are set to unfold by June 15.

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Story summary

California is grappling with a staggering $12 billion budget deficit, largely driven by soaring Medi-Cal costs for undocumented immigrants. Governor Gavin Newsom points to external pressures like federal tariffs, while critics contend that his spending choices are at the heart of the crisis. Urgent negotiations for a revised budget plan are set to unfold by June 15.