Newsom's proposals would make California the first state in the country to help people who earn up to 600% of the federal poverty level. People could get about $100 a month to help pay their health insurance premiums.
The Democratic governor wants to pay for it by making it a law that everyone has to buy health insurance or pay a penalty. The state would use the penalty money to offer the new subsidies.
Newsom discussed the proposal with small business owners in Sacramento on Tuesday.