Tom Steyer's Self-Funded Bid for California Governor Sparks Corporate Counterattack

Billionaire former hedge-fund manager Tom Steyer has entered the California gubernatorial race, spending about $130 million of personal money on TV ads that call for a wealth tax, utility breakup, and single-payer health coverage. His ad volume has dominated the airwaves, prompting a wave of corporate-funded counter-ads.

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California passed single-payer health bills in 2006 and 2008, but Gov. Arnold Schwarzenegger vetoed them as “socialized medicine.” Since Democrats took the governor’s office in 2011, similar proposals have stalled, often blocked by medical-industry lobbyists. Steyer backs CalCare, a universal system, and the California Billionaire Tax Act, a ballot measure that would levy a one-time tax on the state’s 200 richest residents to fund health services.

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Steyer’s main rivals are Xavier Becerra, who accepted Chevron’s maximum campaign donation, and Republican Steve Hilton, a former Fox News host endorsed by Donald Trump. Gov. Gavin Newsom opposes the billionaire tax, as do Google co-founder Sergey Brin and former chairman Eric Schmidt. Endorsements for Steyer include Rep. Ro Khanna, the California Nurses Association, and Senator Bernie Sanders.

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California’s DISCLOSE Act requires broadcasters to list top ad funders. Data reveal corporate donors behind negative ads that call Steyer a “corporatist” profiting from past fossil-fuel and private-prison investments. Steyer’s own ads stress long town-hall Q&A sessions, which have drawn praise from progressive activists.

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Five recent polls show a split field: three place Becerra ahead of Steyer and Hilton; two put Hilton first with Steyer second. The June 2 jungle primary will advance the top two vote-getters to the November general election, regardless of party.

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Steyer’s campaign argues that a wealth tax and universal health care are needed to curb corporate influence and expand coverage. Becerra’s office, cited by KQED, says private-sector solutions better serve Californians. Newsom’s administration reiterates opposition to the billionaire tax, warning it could deter investment.

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Corporate lobbyists warn Steyer’s election could dismantle profit-driven structures. Negative ads funded by these interests accuse him of profiting from past hedge-fund activities. Critics also cite his support for Prop 39 (2012), which closed a corporate tax loophole for green-job funding.

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• “they’re attacking progressive Democrats every chance they get” — Tom Steyer campaign video

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• “not talking more forcefully” — Phrase used in Steyer’s critique of Democratic leadership

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• “socialized medicine,” — Arnold Schwarzenegger’s description of single-payer health proposals

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• “class traitor” — Commentary on Steyer’s potential governance style

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The June 2 primary will decide if Steyer reaches the November general election against a Republican challenger. Ongoing ad spending, DISCLOSE-Act disclosures, and new polls will shape the final two-candidate field.

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