Gov. Gavin Newsom (D) on Thursday gave his final State of the State address, in which he boasted about the state’s economic achievements, framed California as a counterweight to the Trump administration, but glossed over shortcomings on homelessness and healthcare.
The speech is typically used for laying out a governor’s legislative agenda and budget priorities for the year. Newsom, who will be termed out of office this year and is thought to be eyeing a 2028 presidential run, also used the moment to portray himself as a national leader ready to take on President Donald Trump.
TRUMP WARNS OF JANUARY GOVERNMENT SHUTDOWN OVER OBAMACARE
“We face an assault on our values unlike anything I’ve seen in my lifetime,” Newsom said. “The federal government, respectfully, it’s unrecognizable, protecting the powerful at the expense of the vulnerable. Their credo seems to be about fear – fear of the future, fear of the stranger, fear of change.”
He added that California was offering a “model” for other Democrat-led states opposing the executive actions of the president.
FOUR TAKEAWAYS FROM HOUSE OVERSIGHT’S HEATED MINNESOTA FRAUD HEARING
“We’re not retreating. We’re a beacon,” he said. “The state is providing a different narrative and operational model, a policy blueprint for others to follow. This state, these people, this experiment in democracy, belongs not to the past, but it belongs to the future.”
Newsom also spent time defining his legacy, touting prescription drug price reductions and investments in renewable energy. He also highlighted California’s economy as the fourth-largest in the world and a financial powerhouse in his address to lawmakers in Sacramento.
“Every year, the declinists, the pundits and critics suffering from California Derangement Syndrome look at this state and try to tear down our progress,” Newsom said. “But we know the truth. California’s success is not by chance — it’s by design.”
Despite being one of the largest economies in the world, the two-term governor is entering his final year in office with a projected $18 billion budget deficit, setting the stage for policy fights and tough fiscal decisions as he begins to close out his tenure.
Last year, Newsom blamed the deficit on Trump, but the governor’s critics argued he was shifting the blame to mask the fact that his administration had an almost $100 billion budget and had exhausted it long before last January, when devastating wildfires hit Los Angeles, and Trump was inaugurated.
KAI TRUMP WANTS DEMOCRATS AND REPUBLICANS TO ‘MEET IN THE MIDDLE’
California also has the nation’s highest unemployment rate outside Washington, D.C. Its housing costs have continued to soar, and affordability issues are widespread. The state’s electric and gas rates are among the highest in the country, and entire communities affected by the wildfires are only now in the early stages of rebuilding. Newsom highlighted the rising cost of homes, but blamed corporate investors, whom he accused of “snatching” them up, “by the hundreds and thousands at a time.”
“These investors are crushing the dream of home ownership and forcing rents too damn high for everybody else,” he said. “I think it’s shameful that we allow private equity firms in Manhattan to become some of the biggest landlords here in our cities in California. It’s time to tackle that issue,” he said to applause.
The governor also addressed homelessness, a large public safety concern in the state. Newsom claimed the number of unsheltered people on his watch had declined, but again blamed local officials he accused of dragging their feet.
“So I say this with love and respect to the counties, no more excuses,” he said. “It’s time to bring people off the streets and out of encampments and into housing. No more excuses.”
Homelessness has long been a political albatross for Newsom, haunting him not only during his tenure as governor but also as mayor of San Francisco. Since 2019, the state has provided grants to local governments to control their homelessness crises. Newsom has said he wants cities and counties to meet benchmarks for passing ordinances and increasing shelter capacities. But despite spending billions of dollars on the problem, homelessness hasn’t improved as much as he had hoped.
Two decades ago, Newsom, who was running to be mayor of San Francisco, claimed, “I own this” crisis. That declaration has followed him ever since and is likely to be used against him if he runs for president.
GOLDEN STATE EXODUS: CALIFORNIA RANKS DEAD LAST IN STATE-TO-STATE MIGRATION FOR SIXTH STRAIGHT YEAR
In his speech, Newsom also brought up CARE Courts, courts that have the power to bring people with severe mental illness off the streets and into treatment. Noncompliance by counties would lead to fines, and participants who failed the treatment program could be forced into involuntary treatment in locked facilities. However, the state has rarely mandated treatment and has not handed down a single fine to a county for failing to provide services to CARE participants.
Thursday is the first time Newsom has delivered the State of the State to lawmakers in person since 2022. He said at the start of his speech that he does not like giving formal speeches because his dyslexia makes it difficult for him to read from a teleprompter live. In the past, he’s submitted a written address to lawmakers.