Gov. Gavin Newsom said California’s budget is facing a $16 billion deficit that he blames on tariffs. He’s proposing to save $5 billion by pausing a Medi-Cal expansion to immigrants.

Gavin Newsom is proposing to close a projected $12 billion state budget deficit by curbing a signature health care program for undocumented immigrants as President Donald Trump’s tariffs and rising health care costs batter California’s finances.

California Gov. Gavin Newsom Wednesday unveiled his May budget revision, blaming the state’s $11.9 billion shortfall on a “Trump slump." The Democratic governor said $10 billion of the shortfall is from lower projections for capital gains tax revenue due to stock market declines.