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.

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.

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.