The California State Legislature rejected Gov. Gavin Newsom’s proposed funding cuts to the UC in its June 9 revision of the state budget.

The legislature passed a state budget amounting to $325 billion Friday, rejecting Newsom’s proposed cuts of $129.7 million to the UC. The legislature and Newsom must negotiate a final budget by June 27.

In the subcommittee budget report, legislators cited concerns including wildfire recovery in Los Angeles, the threat of a potential recession, and the federal government’s unpredictable policies on tariffs and university funding as reasons for maintaining the spending.

“The uncertainty of the present moment affects almost every aspect of the state budget,” the report said. “A reckless federal government threatens funding for research institutions that drive the economy and innovation.”

The state will face a budget deficit greater than $20 billion in the 2026-27 fiscal year, affecting the state’s capacity to fund the UC, Ian Klein, a senior fiscal and policy analyst at the California Legislative Analyst’s Office, said.

“As the University faces continued funding uncertainty from the federal government, we ask the Legislature and Governor to forgo all cuts to UC’s budget,” a UC Office of the President spokesperson said in an emailed statement. “A cut of any size to our budget means campuses will make painful choices this fall with impacts that will be felt across the state.”

Legislators also rejected Newsom’s proposal to reduce funding for the Middle Class Scholarship Program, a scholarship awarded to low-to-middle-income undergraduate students attending a UC, California State University or California Community College. They made a one-time allocation of $405 million to the Middle Class Scholarship Program and gave an ongoing $513 million to the state’s general fund for middle class students.

Legislators also allocated an additional $300 million to the Cal Grant program, which awards grants that do not have to be paid back to California residents

The budget also impacts UC enrollment targets. The state directed the UC to increase in-state enrollment by 1,510 across UCLA, UC Berkeley and UC San Diego by 2029-30, with financial backing from the state.

However, the ongoing $31 million in funding for the Plan to Limit Nonresident Enrollment was deferred in the legislature’s budget.

The budget also outlines about $5.7 million in reimbursement funding for the UCLA Powell Library Seismic Renovation project, the library’s reconstruction to withstand earthquakes. The funding was distributed from eight university bonds.

Katherine Newman, the UC Provost and executive vice president of academic affairs, urged Newsom in a Sacramento Bee op-ed June 10 to not reduce the University’s budget.

“California’s future is interlinked with the UC system,” Newman wrote. “That’s why the California Legislature should prioritize investing in the university system.”