California Gov. Gavin Newsom announced a budget proposal that would scale back Medi-Cal coverage for low-income undocumented immigrants. Medi-Cal is the state's free healthcare program for low-income residents.

(Reuters) -California Governor Gavin Newsom on Wednesday will announce a budget proposal to scale back a free healthcare program for low-income undocumented migrants, his office said, citing an expected $16 billion dent in state revenues from President Donald Trump's tariffs.

Newsom will seek to stop undocumented adults from enrolling in a state-run health insurance program as California faces a $16 billion deficit due in part to tariffs.