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Newsom Unveils Final State Budget Proposal Amid Deep Federal Spending Cuts

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Gov. Gavin Newsom addresses the media during a press conference unveiling his revised 2026-27 budget proposal at the Capitol Annex Swing Space in Sacramento on May 14, 2026. (Miguel Gutierrez Jr., CalMatters)

Gov. Gavin Newsom unveiled his eighth and final budget proposal today, with a possible presidential bid on the horizon and a crowded field of candidates jockeying to succeed him. His proposal is fully balanced, seeking to offset significant federal spending cuts, but does not introduce major new spending.

After opening with sharp criticism of the president’s agenda and promoting California’s economic strength, Newsom laid out several targeted proposals including help for Californians facing higher Affordable Care Act premiums and Medi-Cal cuts, tax relief for new businesses and increased funding for K-12 education and universities.

Marisa and Guy are joined by KFF Health News senior correspondent Angela Hart to unpack the details of Newsom’s plan and what it signals about his priorities in his last stretch as governor.

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