California's Budget Relief: Newsom Signs Agreement to Fight Rising Deficit

California Governor Gavin Newsom has reconsidered some proposed reductions to healthcare programs within a newly negotiated state budget, yet he will proceed with plans restricting services for undocumented immigrants amid a rising deficit. The $321 billion expenditure proposal is set for legislative approval this week, just ahead of the fiscal year commencing July 1. As healthcare expenses surge, coupled with a struggling economy impacted by tariffs and looming federal budget cuts, officials face a daunting $12 billion shortfall impacting California's fiscal planning. Although discussions continue regarding provisions that facilitate housing project development, Newsom emphasizes the necessity of legislative finalization. While the governor's budget earlier sought significant healthcare cuts to stabilize finances, the agreement postpones many proposals due to calls for alternatives to reduce revenue gaps exceeding $20 billion annually. Enrollment restrictions in Medi-Cal for undocumented adults will commence in January, reflecting ongoing financial realities amidst this budgetary landscape.