Gov. Gavin Newsom said California’s budget is facing a $16 billion deficit that he blames on tariffs. He’s proposing to save $5 billion by pausing a Medi-Cal expansion to immigrants.

Gov. Newsom walks back signature program that provided medical safety net to 1.6 million undocumented immigrants.

Gavin Newsom on Wednesday proposed that California roll back health care for immigrants without legal status, saying the state needed to cut benefits for some to maintain core services across the board.

Weight loss drugs Ozempic and Wegovy would no longer be covered by California’s health insurance for low-income people under the governor’s proposal.

In his state budget presentation later this morning, the governor will push for the new limits on the program his office estimates could save taxpayers billions.

Gov. Gavin Newsom on Wednesday outlined his administration’s latest version of the 2025-26 budget plan, better known as the May revise. He blamed President Donald Trump and called for changes to the state’s Medi-Cal program to help address the state’s roughly $12 billion estimated shortfall.

State Sen. Akilah Weber Pierson anticipates that California's sprawling Medicaid program, known as Medi-Cal, may need to be dialed back after Gov. Gavin Newsom releases his latest budget, which could reflect a multibillion-dollar deficit.