Governor Gavin Newsom has signed the state budget for 2025, a collaborative effort with Senate President Mike McGuire and Assembly Speaker Robert Rivas. The budget is designed to be balanced and responsible, addressing California’s fiscal health while maintaining its core values. It introduces policies aimed at increasing housing production and affordability across the state.
Governor Newsom stated that despite economic challenges posed by Donald Trump, the budget will help California stand firm and advance further. It focuses on reducing bureaucracy, supporting housing development, preserving essential healthcare services, funding universal preschool education, and cutting taxes for veterans.
Senate President Mike McGuire highlighted the budget’s focus on fiscal restraint and investment in people. He noted record funding for public schools, protection of healthcare access for vulnerable populations, and significant efforts to increase housing availability. He also mentioned enhancements to CalFire teams to improve safety against wildfires.
Assembly Speaker Robert Rivas emphasized the contrast between Trump’s economic policies and the Democrats’ budget plan, which aims to protect California by reducing bureaucracy in housing construction and preserving investments in healthcare, education, and public safety.
The budget includes tax cuts for veterans, reduced class sizes in schools, and free school meals. It maintains crucial medical care programs targeted by Republicans while making historic investments in public education from universal pre-kindergarten to expanded after-school programs.
Additionally, the budget seeks to reduce prescription drug costs by regulating Pharmacy Benefit Managers for increased transparency. It expands CalRx’s authority to acquire branded drugs and address supply disruptions politically motivated.
The budget also supports California’s economy by backing businesses including the state’s film industry. Next week, Governor Newsom will sign additional legislation expanding the film and television tax credit program.
Despite fiscal pressures from Trump’s policies projected to cost $16 billion in General Fund revenue next year according to California’s Department of Finance, this balanced budget aims to protect Californians while reinforcing long-term economic strength.
The Governor announced signing several bills related to various aspects of the state’s governance including human services, education finance, higher education budgets, public safety measures among others.
Governor Newsom’s signature on this state budget hinges on either AB 131 or SB 131 being enacted by June 30th.
