Gavin Newsom has been touting himself as the man to lead America, proclaiming California as the model for the nation. Yet, just as his presidential ambitions begin to heat up, that very model is unraveling. Billions in taxpayer dollars remain unaccounted for, federal agents are making arrests, and investigators are closing in.
- Newsom's 2028 presidential prospects are dimming alongside California's declining population. Newsom's prospects
- California spent $24 billion on homelessness, yet the crisis worsened under Newsom’s watch.
- Federal investigations are revealing a web of corruption, fraud, and scandal implicating Newsom’s circle.
When Gavin Newsom took office in 2019, he vowed to transform homelessness from a local issue into a statewide mission. His administration spent a staggering $24 billion on homelessness and housing programs over five fiscal years. To put that in perspective, this expenditure surpasses the GDP of several nations, including Montenegro and Botswana despite California spending. Shockingly, despite this massive investment, homelessness in California actually increased—from 151,000 in 2019 to over 187,000 in 2024, a rise of 24%. Taxpayers essentially funded the growth of the homeless population! If that wasn't enough, California, home to 12% of the U.S. population, accounts for nearly 30% of the nation's homeless. Newsom didn't solve the crisis; he institutionalized it.
The real question is: where did that $24 billion go? California’s state auditor revealed in April 2024 that the state failed to consistently track its homelessness spending and outcomes. In other words, Sacramento has no clue where the money went. Despite pouring billions into the homelessness industrial complex, Newsom’s government couldn’t account for the funds or their effectiveness. Enter the Justice Department's Homelessness Fraud and Corruption Task Force, which has announced federal charges against individuals linked to Los Angeles homeless-service organizations. The operation, involving the DOJ, FBI, IRS, and HUD, uncovered alleged misappropriation of funds, with Michael Young's nonprofit at its center. His organization reportedly received over $100 million in public funds, but Young is accused of misappropriating at least $12 million through shell companies and fraudulent contracts, including spending nearly $50,000 on a luxury vacation to Tahiti and creating a high-end nightclub.
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Newsom’s woes don't end there. His former chief of staff, Dana Williamson, pleaded guilty to federal charges of conspiracy, tax fraud, and making false statements to the FBI, admitting to siphoning $225,000 from a dormant campaign account. Williamson is just one of many: Newsom's public works director is serving time for bribery, his judicial appointee for embezzling, and his former homelessness adviser for corruption. This "circle of corruption" even extends to Newsom's wife. The DOJ is investigating Newsom for allegedly pressuring companies to donate to his wife’s nonprofit in exchange for lucrative state contracts. Companies like AT&T and Comcast made substantial donations and then received massive state contracts. The California Fair Political Practices Commission has already fined Newsom for failing to report millions in these "behested payments." The Feds, however, are treating that fine as smoke while hunting for the fire.
Adding fuel to the fire, Alexis Podesta, a longtime Newsom ally, wore an FBI wire, recording conversations within the Newsom political orbit. And now, a California family that donated millions to Democrat campaigns, including Newsom’s, is facing scrutiny over connections to suspected Chinese spy Fang Fang — the scandal that toppled Eric Swalwell.
What does this all mean? It spells the political demise of Gavin Newsom. His presidential pitch rested on selling California as a national model, but with each new scandal, that model becomes a cautionary tale. His homelessness program squandered $24 billion while homelessness rose. His administration failed to track spending effectively. Federal agents are arresting individuals accused of siphoning millions. His former chief of staff has pleaded guilty to felonies. And Newsom himself is under federal investigation. I've long warned that California’s Democrat machine, built on unchecked power and unaccountable nonprofits, would eventually collapse under its own weight. Now, it’s happening, not because of a Republican ad or partisan spin, but because arrests are being made and guilty pleas are rolling in. Gavin Newsom wants to export California’s model to Washington. But after $24 billion, more homelessness, and a widening circle of corruption, voters might ask: If Newsom couldn’t manage California, why entrust him with the entire nation?
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