Governor Newsom has signed a balanced state budget aimed at closing a $12 billion deficit while implementing tax cuts for veterans, fully funding free school meals, and addressing housing and job creation. However, the budget deal has faced significant scrutiny due to a controversial provision that ties state spending to housing construction, as well as cuts to health care access for undocumented immigrants. Despite the fiscal challenges and a deferral of major spending cuts, California lawmakers have crafted a budget that preserves educational funding and seeks to balance various interests. The budget has sparked debates on its implications for housing reform, environmental policies, and immigrant rights.