Gavin Newsom is proposing to close a projected $12 billion state budget deficit by curbing a signature health care program for undocumented immigrants as President Donald Trump’s tariffs and rising health care costs batter California’s finances.

Gov. Gavin Newsom's budget plan walks back his promise to provide free healthcare to undocumented immigrants, caps overtime for in-home support service workers and reduces Medi-Cal benefits for Californians.

California Governor Gavin Newsom unveiled a budget proposal that aims to close a $12 billion deficit, marking the third consecutive fiscal year in which state lawmakers need to plug significant shortfalls.