Gavin Newsom doubles down on request to spare California as Trump eases tariffs
Happy Thursday and welcome to the AM Alert!
TO TARIFF OR NOT TO TARIFF
Gov. Gavin Newsom doubled down on his request last week for world leaders to spare California from a trade war after President Donald Trump temporarily backed off imposing tariffs for 90 days and lowered most countries’ rates to a standard 10%.
“Trump caved. He will change his mind again,” the governor posted online while out of state on vacation. “To our international partners: California is a stable, reliable partner. We want your business.”
Markets rallied Wednesday after Trump said on Truth Social that he would momentarily spare most countries while further jacking up tariffs on China to 125% after Beijing instituted a retaliatory tariff of 84% on U.S. imported goods.
Assembly budget adviser Jason Sisney said the tariffs’ market impacts, combined with the state deficit and looming federal cuts, means California legislators will be unlikely to fund anything above what the governor proposed in his draft January budget.
“In general, the state will face challenges in funding its existing programs, leaving little or no capacity to backfill federal cuts,” Sisney said on Substack. While state general fund revenues have held steady, they mostly rely on numbers from the 2024 economy, stock market and tech sector, which may require the state to overhaul its revenue projections in the May revise or next January, Sisney said.
“If Trump — with his chaotic decision making — reverses course, that could help the situation, but some economic losses may persist due to lack of trust in our national leadership by investors, employers, consumers and other governments.”
MOST STATE VOTERS SUPPORT MEDI-CAL FOR UNDOCUMENTED IMMIGRANTS
Via Nicole Nixon...
Future funding for the already beleaguered Medi-Cal program is uncertain, but a new poll shows 57% of California voters support the state’s move to extend health coverage to all low-income residents, regardless of immigration status.
The David Binder Research survey was commissioned by the California Community Foundation, in partnership with dozens of other nonprofit groups. It was conducted between March 19 and 25, after news broke that Medi-Cal is billions over budget this year.
Gov. Gavin Newsom asked lawmakers for $6.2 billion last month to fund larger-than-expected caseloads and increased pharmacy costs. The shortfall also comes as Congressional Republicans and President Donald Trump eye Medicaid cuts.
“California has provided health care benefits to the undocumented and California voters agree overwhelmingly that that is the right thing to do,” said Miguel Santana, president and CEO of CCF. “This governor and the state Legislature have (been) in alignment with California voters.”
Majorities of poll respondents believe immigrants provide a net-positive to the state and support safety net services like food assistance, family and disability leave, and certain tax credits for people regardless of their immigration status.
The high cost of living and housing was by far one of voters’ top concerns, with 70% naming it in their top two or three issues, followed by homelessness and concerns about Trump’s agenda.
Santana said the survey shows voters “connect the dots” between immigrants and affordability.
“In this case, California voters are very clear that they see immigrants as an important part of California, the economy and our overall well being,” he said.
FIREFIGHTING BILL BREEZES THROUGH SENATE
Via David Lightman...
The Senate easily passed legislation aimed at helping firefighters battle devastating fires.
The Aerial Firefighting Enhancement Act of 2025 would give the Secretary of Defense authority to sell excess Pentagon aircraft and parts to groups that contract with the government to help deliver water and retardant to fight wildfires.
“The bill would help the United States better suppress wildfires by facilitating the acquisition of military excess aircraft, sold at fair market value, for the aerial wildfire suppression fleet. Additionally, the sale of parts would help the United States maintain its existing aerial firefighting aircraft fleet,” said a statement from the bill sponsors, including Sen. Alex Padilla, D-Calif.
“As catastrophic wildfires devastate communities across the country, we need to be smarter and more resourceful in our approach to wildfire suppression,” Padilla, co-chairman of the bipartisan Senate Wildfire Caucus, said in a statement. “Californians saw firsthand the power of our aerial wildfire suppression fleet in putting out the Los Angeles fires as quickly as possible.”
At least 30 people died in the January blazes that ravaged the Los Angeles area. The bill now goes to the House for further consideration.
QUOTE OF THE DAY
“That’s called propaganda, with all respect. That’s propaganda from a president who is a pathological liar.”
— Sen. Scott Wiener, D-San Francisco, in response to remarks from Sen. Shannon Grove, R-Bakersfield, that a pending U.S. House budget bill will not gut Social Security, Medicare or Medicaid.
Best of The Bee:
- How will Trump tariffs affect California Republicans’ congressional races? via David Lightman
- Bernie Sanders, AOC move ‘Fighting Oligarchy’ tour to Folsom, via Lia Russell
- Trump administration revokes visas of Sacramento State international students, via Mathew Miranda
