Gov. Gavin Newsom on Wednesday outlined his administration’s latest version of the 2025-26 budget plan, better known as the May revise. He blamed President Donald Trump and called for changes to the state’s Medi-Cal program to help address the state’s roughly $12 billion estimated shortfall.

In his state budget presentation later this morning, the governor will push for the new limits on the program his office estimates could save taxpayers billions.

State Sen. Akilah Weber Pierson anticipates that California's sprawling Medicaid program, known as Medi-Cal, may need to be dialed back after Gov. Gavin Newsom releases his latest budget, which could reflect a multibillion-dollar deficit.

Costs have forced the state to “take corrective action that balances fiscal responsibility while preserving core tenets of key investments.”

California is staring down an $12 billion budget deficit, Gov. Gavin Newsom said Wednesday. The Democratic governor shared the number as he laid out his nearly $322 billion state spending plan for the upcoming fiscal year.