Newsom and Lawmakers Finalize Budget Deal Balancing Cuts and Service Protection

California’s Governor Gavin Newsom and state legislators have ratified a $321.1 billion budget for the fiscal year 2025–26, addressing a $46.8 billion deficit through various measures including cuts and revenue modifications. Newsom endorsed the spending plan on June 27, following prolonged discussions that highlighted disagreements over environmental reforms, education resources, and healthcare access for undocumented individuals. “This budget embodies our core values by safeguarding public education and expanding healthcare access,” Newsom articulated. While essential programs like education and healthcare for Black Californians are upheld, stringent new Medi-Cal regulations restrict access for undocumented adults and low-income seniors. The budget deal emerged as legislative leaders tied the Governor's approval to the advancement of housing reform bills. Senate leaders characterized the budget as “tough but prudent,” acknowledging the tough choices made. Despite criticism from Republicans over accounting practices and insufficient funding for critical initiatives, the budget endeavors to safeguard crucial public services while addressing fiscal realities, balancing immediate needs against long-term stability concerns.