On May 14, California Gov. Gavin Newsom released his revised California state budget for the 2025-26 fiscal year. In the 2025-26 May Revision, Newsom proposed a new 3% funding cut to the University of California’s budget — a decrease from January’s proposal of 7.95% — and modified initial estimates for annual state revenue and spending for the remainder of the fiscal year. 

Since the initial proposal in January, Newsom — along with the California Legislature — has continued to revise the budget based on updated financial and economic projections. The May Revision is the latest version of the state budget, which is not yet finalized. In June, the state legislature must vote on and pass the budget bill to confirm it.

Under the initial proposal, the state was set to cut an estimated $396.6 million from the budget allocated to the UC system. The May Revision proposes a cut of $129.7 million, totaling the UC’s budget at $10.8 billion. 

Due to this change, this year, the UC system will be funded through $4.85 billion from the state General Fund and $5.7 billion from tuition and fee revenues. The UC system will also be receiving $31 million from the General Fund in FY 2027-28 to increase undergraduate housing availability; these funds were originally planned for FY 2025-26 but have been delayed due to the anticipated budget deficit.

Newsom’s funding cuts to the UC campuses aim to resolve California’s projected 2025 $12 billion budget deficit. These cuts follow the Trump administration’s executive orders earlier this year, which have threatened vital financial support for the National Institutes of Health and UC research facilities.

A yearly California state budget is released every January, and the May revision of the budget is shared before May 14. May Revisions serve to update initial January estimates of revenue and spending throughout the year. The Department of Finance proposes initial changes for budget revisions in April, and the governor determines the final changes released in the annual May Revision. 

In a letter from the UC Office of the President, President Dr. Michael Drake expressed gratitude toward the governor and the changes to the state budget regarding the UC system.

“We are deeply grateful to Gov. Newsom for recognizing the value of the University of California’s contributions to our state in the May Revise,” he said. “This is a challenging budget year for California, and our state leaders are facing very tough choices.”