California Governor Gavin Newsom has announced a $12 billion budget deficit, primarily attributing the financial shortfall to tariffs imposed by former President Trump, which are projected to reduce state revenues by $16 billion. As lawmakers brace for this significant budget hole, discussions are ongoing about potential budget cuts and the impact on essential services, particularly in education and healthcare. The governor is set to unveil a revised budget plan that will address these challenges while considering the rising costs associated with health care for low-income immigrants. The state’s fiscal issues are compounded by the recent past as California grapples with economic strain from various sources, including natural disasters and federal policies.