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RELEASE: Governor’s Budget Fails to Protect Progress, Put Families First

State Leaders Must Reject Cuts and Raise Revenues to Continue Building a More Equitable Future

 
Pasadena and Sacramento, CA — May 14, 2025  — Statement attributable to Shimica Gaskins, President & CEO, End Child Poverty California, joined by Irene Kao, Executive Director, Courage California.

Today, Governor Gavin Newsom released his May Revision Budget. Compared to the January proposed budget, which projected a small surplus, the May Revision estimates a $12 billion deficit, driven by a significant drop in state revenues fueled largely by tariffs and other harmful policies pushed by the federal administration. 

Last year’s budget agreement was historic in rejecting failed austering and not closing the deficit on the backs of working families and the most vulnerable Californians experiencing poverty.  This budget proposes deeply disappointing ongoing cuts to critical programs that would undermine the state’s progress toward a more equitable California. State leaders must understand the real human consequences of these proposed cuts, the opportunity to raise revenues including tax breaks that benefit the wealthiest corporations, and the imperative to build on last year’s successful blueprint to achieve a just budget despite facing a deficit.

“We dare to imagine a future in which every child is valued and free.That future depends on leaders who choose care over cuts and equity over austerity,” said Shimica Gaskins, President and CEO of End Child Poverty California. “California, the 4th largest economy in the world, has the resources—we need lawmakers to lead with courage and compassion, and to invest in the well-being of the children and families who make this state strong.”

“Californians are dealing with the harmful realities due to Trump’s tariff war, mass deportations, and cuts to our public infrastructure, while also facing detrimental threats from proposed Republican cuts to Medicaid, SNAP, and other vital social safety net services, said Irene Kao, Executive Director of Courage California. Courage California calls on Governor Newsom and state legislators to balance the budget with revenue-producing solutions instead of further burdening lower-income and working-class families. California leaders have an obligation to protect our most vulnerable communities and ensure that corporations and the wealthy, who are currently enjoying tax cuts under MAGA leadership, pay their fair share to keep all Californians healthy, safe, and economically secure.”

The budget includes deep cuts to vital anti-poverty programs and supports, including: 

  • Health for All, including to freeze adult enrollment and institute co-pays;
  • HOPE Accounts: removing $50 million – one-half – the amount available for this ground-breaking intervention to help reverse the racial wealth gap, supporting foster youth and children bereaved by COVID;
  • In Home Supportive Services: capping overtime that will put parents in the untenable position to care for their children without pay;
  • Child Care: removing the Cost of Living Adjustment (COLA) to already underpaid providers;
  • Foster Youth: triggers critical rate restructuring on the availability of future revenues, and reducing Emergency Child Care Bridge funding by nearly half;
  • Food for All: triggers the expansion on funding availability in spring 2027. It is critical to continue the Food for All expansion, including to ensure our state-funded program is developed to protect the privacy of Californians against federal threats. 

The revised budget also makes important investments in children and families, including: 

  • CalWORKs: we are grateful for the modest but important reforms to streamline the program which will help remove barriers and improve families’ ability to engage in education and work. Any savings from these changes must be reinvested in the program, and we urge the final budget to include additional reforms on sanctions, supportive services, and a family-centered flow.
  • CalWORKs & SSI: like in 2024-25 the budget protects core cash grants and COLAs
  • School Meals: the budget continues California’s first-in-the-nation program preventing hunger, stigma, and debt in the lunchroom. 
  • SUN Bucks: the budget maximizes this federal program to fight summer child hunger.

At a time when Congress and the federal Administration are looting the public good, California must continue to lead. Federal policymakers threaten to weaken or end healthcare, food, and other basic needs programs that support pathways from poverty to jobs and the California Dream. Even worse, their plans for billionaire tax breaks will exacerbate already unacceptable wealth and racial inequities: white households get nearly 90% of any corporate tax break. 

California lawmakers must choose: raise revenues or abandon the promise that ALL Californians deserve a chance at the California Dream. Now the 4th largest economy in the world, California’s healthy economy could not be achieved without the people who live and work here. State leaders must ensure that Californians get a chance to stay housed, stay fed, stay healthy and that they see a thriving future for their families & children here in the Golden State. Political will is needed to fulfill the more equitable future we know is possible.  

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