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Newsom Unveils $350B Deficit-Free Budget, Adds Digital Services Tax

5/16/2026

Summary

Story summary

Newsom showed U.S. President Donald Trump and Treasury Secretary Scott Bessent as “Dumb and Dumber” characters.
He unveiled a $350 billion budget with no deficit for his final and next year and set aside $9.7 billion in a holding account.
The plan adds a sales tax on digital software/cloud services, raises $1 billion in year one, and allocates $300 million for health subsidies, $5 billion for teacher-training grants, and $100 million for Los Angeles wildfire homeowners.

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Story summary

Newsom showed U.S. President Donald Trump and Treasury Secretary Scott Bessent as “Dumb and Dumber” characters.
He unveiled a $350 billion budget with no deficit for his final and next year and set aside $9.7 billion in a holding account.
The plan adds a sales tax on digital software/cloud services, raises $1 billion in year one, and allocates $300 million for health subsidies, $5 billion for teacher-training grants, and $100 million for Los Angeles wildfire homeowners.