In the final days of May, corporate funds continued to flow into political action committees backing Xavier Becerra and attacking Tom Steyer, highlighting the high-stakes battle for the California governor's office.
A Crossroads for Democrats
Democrats face a crucial decision in the California governor's race. The next governor of deep-blue California will almost certainly be a Democrat, but the ideological direction remains uncertain. Establishment favorite Xavier Becerra represents a traditional, corporate-friendly approach, while billionaire progressive Tom Steyer offers a sharp departure from the status quo.
Becerra: The Establishment Choice
Becerra, who has served as attorney general and secretary of health and human services, embodies the party's mainstream. Critics argue he would maintain the rutted road of corporate-friendly liberalism that has dominated the state party. Under Democratic control for the past 15 years, state budgets have often failed to protect low-income Californians, with 7 million people living below the poverty line and high child poverty rates amid Silicon Valley's boom.
Steyer: A Progressive Challenger
Steyer, a billionaire hedge fund operator turned activist, promises to upend corporate power and deliver a sustained progressive jolt. He vows to raise taxes on corporations and billionaires, provide free education from pre-K to college, stop masked ICE agents, and ensure healthcare for all. His campaign has drawn support from progressives and younger voters tired of the party's corporate ties.
Key Differences and Controversies
Policy differences between Becerra and outgoing Governor Gavin Newsom are scant. While Steyer supports a one-time billionaire tax, Becerra fears capital flight—a concern Newsom has echoed, though studies show such flight is largely a myth. Steyer has spent a record-shattering $200 million on ads, drawing from his $2.4 billion wealth. His past investment in private prisons has drawn criticism, but he expresses remorse and emphasizes his work for rehabilitative justice.
Amar Shergill, former chair of the California Democratic Party's Progressive Caucus, calls Steyer a game changer who owes no favors to the corporate Democratic establishment. In contrast, he says Becerra is a go-along Democrat who hedges his bets on progressive policies.
Corporate Influence and Outside Spending
Corporate funds have poured into anti-Steyer groups. DaVita Kidney Dialysis gave $500,000, while McDonald's, Chevron, and California Resources Corp each contributed half a million. Outside groups reported spending $79 million, with the committee California Is Not For Sale—funded by the state Realtors association, Chamber of Commerce, PG&E, and electrical workers' union—spending $32 million on ads opposing Steyer. Steyer has vowed to challenge PG&E's monopoly to lower electricity bills.
Healthcare Battle
Congressman Ro Khanna, a prominent Steyer supporter, highlights Steyer's commitment to single-payer healthcare. Becerra, who previously supported single-payer, has backed away and received endorsement from the California Medical Association after stating he is not supportive of single-payer.
Proxy War for 2028
The Becerra-Steyer clash also serves as a proxy war for the 2028 Democratic presidential nomination. Newsom's political apparatus is working to elect Becerra, as a Governor Steyer could upend Sacramento and compete for national headlines. Khanna's presidential ambitions are also tied to Steyer's success.
Israel and Aipac
Steyer has pushed beyond the Democratic mainstream on Israel, denouncing Aipac and vowing not to back down despite $25 million in attack ads. This stance could shake up the state party's power structure and send constructive shockwaves through the national party.
Progressive Support
Karen Bernal, former chair of the state party's Progressive Caucus, says Steyer has validated the grievances of progressives and younger voters. She argues that continuing to alienate the party's base is a losing strategy against Trump and the corporatocracy. Norman Solomon, director of RootsAction, echoes this sentiment, noting that a Steyer victory could send positive shockwaves through the Democratic party.
