Newsom bets on federal reprieve to bridge California’s looming budget gap
TL;DR
Gov. Gavin Newsom is counting on a federal extension of California’s MCO tax on Medi-Cal to cover about $1.1 billion in revenue for the coming budget year; without a six‑month reprieve, the state could face a larger hole as AI-driven revenue remains uncertain and federal rules tighten on how the tax is used.
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