Newsom agrees to ease budget cuts as California seeks more time to fix growing deficit

GOV. GAVIN NEWSOM BACKED OFF some of his proposed cuts to health care programs in a state budget deal he reached with legislative leaders late Tuesday, but California will move forward with his plan to limit services to undocumented immigrants as the state faces a growing deficit.

The $321 billion spending plan is expected to go before the Legislature for approval later this week, ahead of the July 1 start of the fiscal year. With health care costs rising faster than expected, the state economy battered by new tariffs and further federal funding cuts looming, officials confronted a $12 billion shortfall that has forced difficult conversations about California’s spending.