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California Budget Deal Protects Funding Amid $12 Billion Deficit

6/26/2025

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Summary

Story summary

California Governor Gavin Newsom has struck a budget deal with the Legislature, staving off cuts despite a looming $12 billion deficit. The $321 billion plan safeguards funding for public transit and universities, while freezing Medi-Cal enrollment for undocumented adults. It also introduces tax credits for affordable housing and sets a goal to close a fifth state prison by October.

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Story summary

California Governor Gavin Newsom has struck a budget deal with the Legislature, staving off cuts despite a looming $12 billion deficit. The $321 billion plan safeguards funding for public transit and universities, while freezing Medi-Cal enrollment for undocumented adults. It also introduces tax credits for affordable housing and sets a goal to close a fifth state prison by October.