'Adulting matters': Gavin Newsom contrasts California's revised budget to Trump's policies

California Governor Gavin Newsom took shots at President Donald Trump after unveiling a revised 2026-27 state budget proposal aimed at eliminating the state’s projected deficit over the next two years. Touting his policies, Newsom claimed it was the Republicans who "ruin budgets" and Democrats always "balance them", referring to the widening of the National Deficit since Trump took office. 

According to the governor's office, the revised proposal includes a $1.8 billion reduction in General Fund spending and projects, no deficit this budget year, the next budget year, and no structural deficit through July 2028. The administration claimed the proposal cuts California's long-term operating imbalance by more than half for the 2028-29 budget and represents the state's efforts to stabilize finances. Taking to X, Newsom announced, "You won’t hear this on Fox News: California just released a balanced budget that wipes out the deficit this year AND next — while protecting health care and safety nets."

The proposal includes several investments and policy initiatives, including a $300 million investment to help maintain healthcare affordability after the Affordable Care Act subsidies expired, a 50% tax cut for new small businesses, and a $5 billion Student Support and Professional Development Discretionary Block Grant, which Newsom called the largest in the state's history. "Meanwhile, Trump ADDED $2.4 TRILLION to the federal deficit with his “Big Beautiful Betrayal.” Republicans ruin budgets. Democrats balance them. Adulting matters," Newsom added in his post. The administration further shared that the proposal doesn't include significant new ongoing General Fund spending commitments, as it focuses on fiscal restraint, long-term sustainability, and safeguarding the state from future economic volatility.

The comments come as recently, the U.S. national debt crossed the $39 trillion mark for the first time after hitting the $38 trillion mark just last October. The pace of debt accumulation and deficit widening has alarmed many watchdogs and academic economists who are calling it “unsustainable,” according to Fortune. Furthermore, the ​Congressional Budget Office, in its February 2026 outlook, projected that the federal deficit will reach $1.9 trillion this year and swell up to $3.1 trillion by 2036 under current law. This is happening as Trump's One Big Beautiful Bill extended big tax reductions for individuals, including large deductions for tips, overtime, auto loans, and for companies. The bill also provides 100% immediate expensing for acquiring or developing plants, equipment, and software.

At the same time, the legislation significantly increased spending for immigration control and defense. While the Committee for Responsible Budgeting predicts that Congress will soon step in and renew the OBBBA tax cuts and spending measures, an estimate from Fortune shows that the provision will raise total deficits by $5.5 trillion over the next decade, if they remain the same. While the Trump administration long argued that the sweeping tariffs would cover the cuts, expenses, and reduce the deficit, they were struck down by the court, and now the administration is on the hook to issue refunds. While Trump moved to replace the tariffs, experts estimate that the burden of the added costs will fall back on traditional revenue streams and borrowing.