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California governor says virus likely to curb state spending

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Posted at 9:00 PM, Mar 24, 2020
and last updated 2020-03-25 00:00:22-04

California's governor is warning the state may have a lot less money to spend because of the coronavirus.

Gov. Gavin Newsom's administration on Tuesday told state agencies that a severe drop in economic activity means they should not expect full funding for new or existing proposals.

That means some of Newsom's most ambitious spending plans could be on hold.

Newsom had wanted the state to start making and selling its own generic drugs. He also wanted the state to expand government-funded health benefits to low-income seniors who are living in the country illegally.

All of those proposals could be on hold.