Gavin Newsom blames Donald Trump for California budget woes — what he said
Gov. Gavin Newsom turned to a familiar playbook as a Democratic resistance fighter by attributing California’s budget woes to President Donald Trump’s tariff policies, even as he told reporters he was not solely blaming the White House or its commander-in-chief.
On Wednesday, Newsom unveiled a $322 billion budget for the fiscal year starting July 1 that included a $12 billion deficit and $16 billion hit to the general fund over the next fiscal year, which the Governor’s Office blamed on a “Trump slump” induced by the president’s volatile tariffs and expected federal cuts to Medicaid.
“California is under assault,” Newsom said. “The United States of America, in many respects, is under assault because we have a president that’s been reckless in terms of assaulting those growth engines, has created a climate of deep uncertainty. And, certainly, has California in his sights.”
He went on to accuse Trump of eroding the rule of law, “assaulting” democratic institutions and called the Department of Government Efficiency a “complete failure.” In a memo obtained from his office ahead of the May revise, Newsom attributed the general fund’s $16 billion hit to a mix of declines in the stock market, and less business and personal income tax revenue than expected, all driven by tariffs.
“The Trump administration’s tariff policies weakened the U.S. and California’s economic outlook and led to a decrease in the stock market in April 2025,” the memo read. “These factors had a direct negative impact on California tax revenues beginning in 2025 and reversed the positive cash trends seen to date. Together, they result in a $16 billion reduction in estimated revenue.”
Newsom told reporters on Wednesday he had not spoken to the president in “a few weeks,” nor had the administration responded to his recent barrage of podcast episodes, a lawsuit, and a Fox News ad warning that the tariffs imperiled California’s recent victory of being labeled the fourth-largest global economy.
“I’m not blaming the president for the deficit. Someone else might be, you might be, but that’s not what I’m doing,” Newsom said. “I’m directly attaching estimated significant dollars of revenue loss to the actions.”
Republican strategist Rob Stutzman said Newsom’s scapegoating of Trump belied the fact that California’s deficit has dogged lawmakers for years, and that Trump had once again on Sunday lowered the tariffs on Chinese goods to 30% from 145%.
“California’s problems are of their own making. Spending has exploded under this governor,” Stutzman said. “To blame tariffs for the deficit is like blaming a heart attack on the cheeseburger you ate last week, instead of the ones you’ve been eating for the last seven years.”
Roger Hartley, the dean of the University of Baltimore’s College of Public Affairs, said the tariffs presented an opportunity for Democratic governors like Newsom to “present a good story” for their bases.
“Newsom can, in fact, place some blame on the (tariffs) shutting down of supply chains, and on fewer goods coming into the U.S,” Hartley said. And, with government layoffs of federal workers and canceling of university research grants, “he’s (Newsom) certainly got a point if he can point to specific points.”
The budget did not score Newsom many points with his Democratic allies. Immigration and labor advocates lambasted his proposal to pause Medi-Cal enrollment for undocumented residents, which he defended as a way to “level-set” the state insurance plan as it faces funding shortfalls.
“Limiting access to health care based solely on where someone is born flies in the face of California’s values and undermines our collective health as a state,” said SEIU California President David Huerta. “We can’t be healthy as a state if we allow hardworking Californians, farm workers, janitors, caregivers, food service workers, and others, to fall into the ranks of the uninsured.”
Jodi Hicks, the head of Planned Parenthood Affiliates of California and a consistent Newsom ally, blasted his proposal to slash funding for reproductive care the same day Congress debated cutting funding for the national organization.
“The @CAgovernor just proposed 1/2 BILLION in cuts to repro(ductive heath care) and will effectively defund Planned Parenthood in CA, the same morning Republicans debated defunding PP nationwide in Congress,” Hicks said on X.
“Happy to go on his podcast and explain why this devastates women’s health in his state.”
This story was originally published May 14, 2025 at 3:12 PM with the headline "Gavin Newsom blames Donald Trump for California budget woes — what he said."
