President Donald Trump’s tariff policies are projected to cut California’s tax revenue by $16 billion in the next fiscal year, Governor Gavin Newsom’s finance department said in a memo. The 4% drop in revenue from a previous estimate is largely due to a stock market downturn last month after the president announced his sweeping tariff campaign on April 2,

California receives over $15.7 billion in transportation grants and $20.6 billion in homeland security grants annually. The funding could be in jeopardy under an administration policy.