On May 14, Gov. Gavin Newsom presented his revised 2025–26 state budget, a $321.9 billion proposal designed to close a projected $11.9 billion deficit while maintaining core investments in education, health care, and behavioral health. During a 90-minute presentation, Newsom started by touting California’s status as the world’s fourth-largest economy before laying out fiscal adjustments needed to guide the state through what he described as an “uncertain and volatile” climate. 

On May 14, Gov. Gavin Newsom presented his revised 2025–26 state budget, a $321.9 billion proposal designed to close a projected $11.9 billion deficit while maintaining core investments in education, health care, and behavioral health. During a 90-minute presentation, Newsom started by touting California’s status as the world’s fourth-largest economy before laying out fiscal adjustments needed to guide the state through what he described as an “uncertain and volatile” climate.