- Gov. Gavin Newsom proposes expanding CalRx, a state-run drug program, to stockpile abortion pills (mifepristone) and other critical medications to counter federal restrictions and supply shortages.
- Plummeting tax revenues, federal tariff policies, a Medi-Cal funding gap, and wildfire-related tax deferrals have worsened the state's fiscal crisis, with potential further strain if Medicaid costs shift to states.
- The move to secure abortion medications aims to protect reproductive rights amid nationwide legal challenges, while budget negotiations grow tense due to funding uncertainties.
- Newsom warns of slower economic growth, rising unemployment and inflation, forcing tough spending adjustments as California navigates its worst budget shortfall in years.
California Gov. Gavin Newsom is pushing forward with a budget proposal that would allow the Golden State to stockpile brand-name and generic drugs, including critical medications like the abortion pill mifepristone, in response to potential federal interference and supply shortages.
The 2025 to 2026 May Revision plan, announced in a press release from the governor's office, seeks to expand the authority of CalRX, a state-run prescription drug program, to ensure affordable access to abortion medications. It also seeks to expand the CalRx initiative, which currently focuses on manufacturing low-cost generic drugs, to include brand-name medications.
This move would allow California to secure affordable supplies of critical drugs, including those at risk of shortages; counteract politically motivated restrictions on medications like mifepristone, a key abortion drug under legal threat in conservative-led states; and strengthen the ability of the state to protect reproductive healthcare access amid nationwide attacks on abortion rights.
"Prescription drug prices are out of control and we're shining a light on hidden costs – while also giving CalRX more tools to respond to supply chain disruptions, market manipulation or politically motivated abortion restrictions," declared Newsom, a Democrat. (Related: Supreme Court ruling on use of abortion pill could impact November elections.)
California faces deepening budget crisis as deficit could reach $20 billion
The move comes as California grapples with a budget shortfall that could balloon to $20 billion or more, marking a dramatic reversal from the state's $100 billion surplus just two years ago. This deficit, now estimated at $73 billion, has been fueled in part by plummeting tax revenues, federal policy shifts and economic turbulence.
In early January, the California Department of Finance already projected a modest surplus for the year. However, Newsom and legislative leaders now face growing financial uncertainty as they navigate budget negotiations. Plummeting tax revenues, including shortfalls from some of the state's wealthiest residents, along with President Donald Trump's tariff policies, a looming Medi-Cal funding gap and deferred tax payments from wildfire victims in Los Angeles have left California in a precarious fiscal position.
"We're going to be trying to pass a shell of a budget," said one lawmaker, referring to the deficit projections. "They're just fake numbers, because we just don't know."
Newsom acknowledged California's worsening fiscal outlook during a press conference in April, estimating the state's budget deficit at roughly $38 billion. He then confirmed the economic downturn, stating that his revised budget would account for a "downgrade in California's economic outlook," marked by declining GDP, rising unemployment and persistent inflation.
"All of those things will [lead to] slower economic growth, less capital gains revenue and a significant … change in our projections as it relates to revenue collection and an adjustment to our baseline spending," he said at the time.
Read more stories like this at Abortions.news.
Watch this 2023 video about the U.S. Supreme Court restoring access to the mifepristone abortion pill.
This video is from the Pool Pharmacy channel on Brighteon.com.
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1 month ago
I'm betting this focus on abortion RX by Grewsome is distraction, to get anti-abortion crowd riled up.
This is about the HORMONES & PUBERTY BLOCKERS for Transsexual Agenda pushing on kids. CA will be the final sanctuary for the Transs pervs and the "gender dysphoric" kids on RX.