California Gov. Gavin Newsom on Wednesday called for his state to scale back healthcare for illegal immigrants in an effort to help balance the state budget that went from having a small surplus in January to being $12 billion in the red by May.

Gov. Gavin Newsom blamed a "Trump slump" for an estimated $16-billion loss in California revenue because of tariffs leading to an overall $12-billion budget deficit.

Gavin Newsom is proposing to close a projected $12 billion state budget deficit by curbing a signature health care program for undocumented immigrants as President Donald Trump’s tariffs and rising health care costs batter California’s finances.

California receives over $15.7 billion in transportation grants and $20.6 billion in homeland security grants annually. The funding could be in jeopardy under an administration policy.

A coalition of state attorneys general filed two new federal lawsuits, this time in the fight to preserve access to funding, including for disaster relief.

Two Democrat-led lawsuits are the latest legal challenge to President Donald Trump’s efforts to deny funding to states with “sanctuary” policies.