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California Suspends Hundreds of Spending Bills Over $12 Billion Deficit

Lawmakers froze new spending under the suspense file process to build leverage for Medi-Cal eligibility limits

State senators meet during a suspense file hearing at the Capitol Annex Swing Space in Sacramento on May 23, 2025. (Fred Greaves for CalMatters)

Overview

  • Appropriations committees held 32 percent of 1,098 measures in suspense, effectively shelving hundreds of proposals for the year
  • Suspended bills included expansions of health care services and two GOP crime measures, while 742 other bills advanced, including a revised film tax credit
  • The nonpartisan Legislative Analyst’s Office warns that California faces annual deficits of $10 billion to $20 billion through 2029
  • Gov. Gavin Newsom’s budget plan proposes limiting new Medi-Cal enrollment, notably freezing coverage for adult immigrants without permanent status
  • A Republican-led U.S. House budget package that could cut $700 billion from Medicaid threatens up to $20 billion a year for California and risks coverage for 3.5 million enrollees