JUST IN: Gov. Gavin Newsom Blames Trump For California $12 Billion Shortfall
As Gov. Gavin Newsom unveiled a revised 2025-26 budget Wednesday, he blamed a “Trump slump” from President Donald Trump’s tariffs and other economic moves as the major factor in increasing the state’s deficit by another $12 billion.
“California is under assault,” Newsom told reporters at a budget briefing, declaring that Trump’s actions had created “a climate of deep uncertainty.”
“Washington’s imposition of tariffs has driven a downgrade in both the economic and revenue forecasts,” the revised budget declares. “Combined with increased expenditure growth above the governor’s (January) budget — most notably in Medi-Cal — the state must now close an estimated shortfall of $12 billion to balance the budget and provide for a prudent discretionary reserve. This will require difficult but necessary decisions to reduce ongoing expenditure growth to maintain budget resilience and stability for critical state programs.”
Critics of Gov. Gavin Newsom’s (D-CA) proposed 2025-2026 budget are pushing back on claims that President Donald Trump is to blame for the $12 billion shortfall and say the leader has been overspending revenues he erroneously declared the state had for the past three years.
They argue that Newsom shifting the blame on Trump for the state’s financial woes is part of a highly orchestrated plan to mask that Newsom’s office claimed the state had an almost $100 billion surplus — and blew through it — long before January, when devastating wildfires hit Los Angeles and Trump was inaugurated.