Sacramento – Governor’s office Gavin Newsom said Trump’s pricing policies would reduce state revenues in California by $ 16 billion until next year.
Despite individual income tax and corporate corporate tax receipts, which represents $ 6.8 billion above projections until April, the Newsom administration provides that global income will be lower than what they could have been from January 2025 to June 2026 due to the economic impact of Trump prices.
The governor published the new information, which his team nicknamed the “Flump Trump”, on the eve of the presentation of his budgetary plan revised in 2025-26, seeking to blame the president for the expected income deficit of California. His office did not publish any additional figures on the state budget.
Newsom is expected to project a deficit of California on Wednesday in the coming year, Medi-Cal costs go beyond expectations, including its signature policy aimed at providing free health coverage to low-income undocumented immigrants. The new shortfall is added to 27.3 billion dollars in financial appeals, including $ 16.1 billion in discounts and a withdrawal of $ 7.1 billion from the State rainfall fund, which legislators and the governor have already agreed to do in 2025-26.
The deficit marks the third consecutive year that Newsom and legislators have been forced to reduce spending after having devoted more money to the programs that the State did not have to spend. Bad projections, the cost of the hot air balloon of democratic policy promises and a reluctance to make long -term sweeping discounts added to the deficit at a time when the governor regularly praises the place of California as the fourth economy in the world.
Trump has implemented a series of prices on all imported products, higher taxes on the products of the goods of Mexico, Canada and China, and specific samples from products and materials such as cars and aluminum in April. The president fell from some of his prices, but Newsom alleges that policies and economic uncertainty will lead to higher unemployment, inflation, downward projections of GDP and capital gains income for California.
California put legal action last month by arguing that Trump does not have the power to impose prices on itself. On Tuesday, the State said that it would request a preliminary injunction to freeze the prices before the Federal Court.
California Daily Newspapers
