Gov. Gavin Newsom’s proposal included a $228.9 billion general fund that would rely on $17 billion in reserves

California Gov. Gavin Newsom has proposed a $322 billion budget without a deficit, a welcome change after two years of significant budget shortfalls in the nation's most populous state.

Newsom’s outcomes on both homelessness and gas prices point back to his ineffectiveness as a leader and his inability to solve problems.

But the budget Newsom announced Monday is mostly a placeholder as California waits to see if incoming President Donald Trump will follow through on threats to revoke billions in federal dollars, which could force lawmakers to make painful cuts to essential programs.

California Gov. Gavin Newsom (D) on Monday proposed a $322 billion budget that he said would be “balanced” and without deficits — marking a significant turnaround after two years of shortfalls. Newsom delivered a “top-line” version of the 2025-2026 budget proposal at a Monday press conference,

Gov. Gavin Newsom has proposed a $322 billion budget without a deficit, a welcome change after two years of significant budget shortfalls in the nation's most populous state.

Gavin Newsom has proposed a $322 billion budget without a deficit, a welcome change after two years of significant budget shortfalls in the nation's most populous state. But the budget Newsom announced Monday is mostly a placeholder as California waits to see if incoming President Donald Trump will follow through on threats to revoke billions in federal dollars,