California lawmakers on Friday are scheduled to vote on a budget that pares back a number of progressive priorities, including a landmark health care expansion for low-income adult immigrants without legal status, to close a 12 billion deficit.
It's the third year in a row the nation's most populous state has been forced to slash funding or stop some of the programs championed by Democratic leaders. This year's 321 billion spending plan was negotiated by Democratic Gov. Gavin Newsom and legislative leaders.
He's expected to sign the budget Friday. But Newsom and lawmakers are still negotiating another deal to make it easier to build housing, and the budget will be void if that agreement isn't reached by Monday.
The budget avoids some of the most devastating cuts to essential safety net programs, state leaders said. They mostly relied on using state savings, borrowing from special funds and delaying payments to plug the budget hole.
California also faces potential federal cuts to health care programs and broad economic uncertainty that could force even deeper cuts. Newsom in May estimated that federal policies - including on tariffs and immigration enforcement - could reduce state tax revenue by 16 billion.