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Newsom outlines $248.3 billion budget, housing and education priorities in final State of the State
Summary
Governor Gavin Newsom used his final State of the State to propose a $248.3 billion general fund budget, highlight $42.3 billion in additional revenue, and lay out priorities including record per-student funding, homelessness and housing investments, public safety grants and major infrastructure projects.
Governor Gavin Newsom delivered his final State of the State address to a joint convention of the California legislature on Sept. 12, 2025, asking lawmakers to approve a $248.3 billion general fund budget that he said includes $42.3 billion more in revenues than forecasters expected and funds expanded education, homelessness and housing, infrastructure and climate resilience initiatives.
Newsom framed the address around a contrast with federal policies, saying state action has protected schools and hospitals and defended residents’ access to services. He emphasized California’s economic strengths—citing the state’s share of global research and ‘‘half of America’s unicorn companies’’—and urged the Legislature to reauthorize and extend tax-credit programs aimed at keeping industries and jobs in state.
On education, Newsom said tomorrow’s budget he would submit would include a record $27,418 per student and fully fund universal transitional…
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