Sacramento, California - California Governor Gavin Newsom eviscerated President Donald Trump's economic record during the launch of his newly revised state budget proposal on Thursday.

Newsom took a victory lap on Thursday, announcing a revised 2026–2027 state budget proposal that fully eliminates California's deficit not only this year and next year, but also through July 2028.

To do this, the latest budget delivers a $1.8 billion reduction in general spending while still providing new investments in childcare, education, healthcare, housing, clean energy, and public safety.

"California is proof that fiscal discipline and progressive values go hand in hand," Newsom said in a statement released on Thursday.

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"We're balancing the budget, eliminating the deficit, cutting spending, and building reserves – all while protecting healthcare, education, and essential services for Californians."

Newsom, who announced the new budget in a triumphant press conference on Thursday while straddling charts showing California's booming economy, used the opportunity to attack Trump's economic record.

The move was a somewhat transparent bid to position himself for a potential presidential run in 2028 by touting his economic record and the failures of the current administration in Washington.

"We have a president who doesn't give a damn about the economy," Newsom said, pointing to the war in Iran, Trump's unilateral tariff policy, and his purported war on innovation.

"We've seen this president declare multiple wars in the last 15 or so months," Newsom said. "He's declared war on innovation, we'll establish that, certainly a war on affordability, and yes, of course the war – not the excursion – the war in Iran."

"President Xi is celebrating Donald Trump's budget, no wonder he had a wonderful first day in China," Newsom said, referring to Trump's recent trip to Beijing.