SACRAMENTO—On Wednesday, May 14, California Governor Gavin Newsom issued a press release announcing his proposal for healthcare expansion while the state is facing a $12 billion deficit.

California is the home of more Fortune 500 companies than any other state, with the largest economy in the United States, and the fourth largest economy in the world, recently surpassing Japan. In addition, California leads the country in tourism with spending over $157.3 billion in 2024.

Newsom, who has governed California since 2019 is blaming the state’s financial shortfalls on President Trump, referring to the deficit as, “The Trump Slump.”

Governor Newsom and leaders of the California’s Democratic party came to an agreement on January 13, that they would earmark $50 million in legal defense fees to fight the Trump Administration.

On January 19, after Trump took office, he visited Governor Newsom and the devastation caused by California’s wildfires. Trump showed up to help. He insisted that California wave permitting requirements so residents could begin building right away, offered free debris removal by the Army Corps of Engineers saving Californians both time and effort.

Trump has not let up on his stance that he would help California if they dropped their sanctuary state status. He has not fluctuated on that. The U.S. government is not funding cities or states who continue to harbor and protect undocumented individuals who have committed crimes on U.S. soil.

Newsom traveled to Washington DC and signed the first two bills around February 12. One bill was to fight the implementation of tariffs, and the other was an attempt to stop the deportation of criminal illegal immigrants.

On May 7, AG Bonta and Governor Newsom joined the efforts of other Democrat leaders fighting over funding for $5 billion allocated by the previous administration for an emission-free California under the umbrella of The Green New Deal.

U.S. Attorney, and former Secretary of Health and Human Services, Xavier Becerra recently questioned Newsom’s new effort to cap healthcare to migrants under Medi-Cal, California’s free healthcare for undocumented individuals residing in the U.S. illegally.