California Gov. Gavin Newsom (D) announced a $12 billion deficit Wednesday in the May revision of his state budget proposal, casting blame on the Trump administration for creating an unpredictable economic environment.

The governor spent more than an hour outlining his $321.9 billion state spending proposal for the 2025-26 fiscal year, which includes an $11.9 billion shortfall, as well as a $226.4 billion general fund and $15.7 billion in reserves.

Acknowledging it is a considerable departure from his initial proposal in January, when he offered what was "in essence a balanced budget," Newsom stressed that "the economy of California was humming" with a surge in revenue of $7.9 billion.

"That has significantly changed since the actions of this administration," the governor declared during a Wednesday presentation of his May revisions.

Accusing President Trump of "assaulting" the country's economic growth engines, with his sights set on those of the Golden State in particular, Newsom described "a climate of deep uncertainty."

"California is under assault," he continued. "The United States of America, in many respects, is under assault because we have a president that's been reckless."

Although the revamped budget "does not forecast a traditional recession," the document reflects "changing national conditions" that economists characterize as a "growth recession," or a substantial slowdown in gross domestic product growth, per the proposal.

Shifts in the national outlook have had a knock-on effect on California's economy, particularly due to the considerable volume of commerce that passes through the Golden State's ports, the........

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