Overview

• CalPERS, the nation’s largest public pension fund, recovered to $539 billion after losing $25 billion due to Trump-imposed tariffs in early April.
• Governor Gavin Newsom proposes reallocating $1.6 billion from voter-approved Medi-Cal physician pay and $500 million from family planning programs to address a $12 billion budget deficit.
• Doctors, hospitals, and clinics oppose the healthcare fund diversions, arguing they violate voter intent and harm critical services.
• Newsom plans to extend California’s cap-and-trade program through 2045, redirecting $4.8 billion from it to wildfire prevention and high-speed rail projects, drawing criticism from environmental advocates.
• The Legislative Analyst’s Office projects a $14 billion deficit and cautiously supports Newsom’s spending cuts as appropriate measures.