California Reaches Budget Deal to Address $46.8 Billion Deficit

Newsom and lawmakers agree on cuts, reserve funds, and emergency declaration to stabilize finances.

The budget includes $16 billion in cuts, impacting housing, prisons, and healthcare wages.
$1 billion in grants for homelessness prevention will continue with added accountability measures.
Business tax breaks are paused, and tax credits are capped, raising nearly $15 billion in revenue.
The budget delays $550 million for broadband expansion and $5.5 billion in school funding.
A stalemate remains over the use of managed care organization tax proceeds for Medi-Cal.