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Newsom Uses Final State of the State to Cast California as Trump Counterweight

The address set up a budget fight over a roughly $18 billion shortfall.

Overview

  • Newsom said new state data show a 9% decline in unsheltered homelessness, citing expanded CARE Court and Proposition 1 investments.
  • He proposed moving the Department of Education under the governor‑appointed State Board of Education, previewing record per‑student funding and universal after‑school care.
  • The governor pledged to target large institutional buyers of single‑family homes, arguing investor activity is pricing out would‑be homeowners and pushing up rents.
  • He emphasized California’s legal fights with the federal government, noting more than 50 lawsuits and claiming they preserved $168 billion in withheld funds.
  • His budget plan is due Friday, with the Legislative Analyst’s Office estimating a $17.7 billion deficit that will shape spending choices and negotiations.