Overview
- The administration counts roughly $42–43 billion in market gains linked to the AI boom, a key assumption critics call risky.
- The proposal trims $1.55 billion from state operations and deletes about 6,000 long-vacant positions while boosting education and health spending and proposing a $200 million EV rebate plus $2.1 billion in Proposition 4 climate projects.
- Health funding would add $2.4 billion to Medi-Cal without a commitment to replace federal reductions, with as many as 3.4 million residents potentially losing eligibility under recent policy changes.
- Full Medi-Cal coverage would end for refugees and certain legal-status immigrants, preserving emergency services and saving an estimated $786 million.
- The plan makes only interest payments on a roughly $21.3 billion federal unemployment loan, shifting growing costs to employers under federal rules as negotiations move toward a May revision and a mid-June deadline.