Newsom opened by drawing a deeper line in the sand between California and Washington, which earned him a standing ovation. "This border emergency is nothing more than a manufactured crisis and California will not be a part of this political theater," Newsom said.
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He went on to take a startling stance on the long-term viability of high-speed rail, saying it's too costly to continue as planned but not going so far as to pull the plug on it completely. "Right now there simply isn't a path to get from Sacramento to San Diego let alone San Francisco to L.A. I wish there were. However we do have the capacity to complete a high-speed rail between Merced and Bakersfield," Newsom said. Republican leaders praised his plan.
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State Senate Republican leader Shannon Grove said, "I think that was very responsible and like I said he's very responsible in some of the things he brought forth."
RELATED: Gavin Newsom pulling hundreds of National Guard troops from border
But fellow Democrats held out hope the entire rail project would stay alive. Phil Ting, assemblyman from San Francisco, said, "He talked about getting that Central Valley link done first and I hope once that's done the Fresno to San Jose link comes next. It's so important."
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The governor's vision for California included an emphasis on housing to get at homelessness saying the housing crisis is quickly becoming a public health crisis. "Get me a good package on rent stability and I will sign it," the governor said.
He also pledged to have a stability plan put in place by April on the PG&E bankruptcy but offered no specifics.