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Newsom Returns to Capitol for Final State of the State Address

The address comes as California confronts a projected $18 billion deficit.

Overview

  • The speech is scheduled for 10:30 a.m. PT inside the State Capitol and will stream live, marking his first in-person address there since the pandemic.
  • California’s Legislative Analyst projects an $18 billion budget gap, with warnings the shortfall could grow in coming years.
  • Housing and homelessness are expected focal points as audits question outcomes from large spending and critics fault the slow rollout of CARE Court.
  • Energy reliability is in the spotlight following plans to close Valero’s Benicia refinery in April, with Valero saying it will keep supplying Northern California through imports.
  • Analysts are watching for national messaging aimed at President Trump and 2028 signals, and Newsom is set to release his proposed state budget on Friday.