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Record-setting outside money pouring into California governor’s race

Corporations, labor unions, tech titans, Native American tribes and other special interests have donated a record-shattering $79.6 million to independent committees focused on swaying the volatile California governor’s race ahead of the June 2 primary.

Many of the largest backers to these committees will have significant business interests in front of the state’s next governor and state agencies, with hopes of either strengthening a candidate aligned with their political priorities or undercutting those who oppose them.

“This is the first time I’ve ever seen IEs [or independent expenditures] have this kind of an impact on a governor’s race,” said veteran GOP strategist Martin Wilson, who has worked on every California gubernatorial contest since 1978 and worked on an outside effort backing San José Mayor Matt Mahan’s 2026 bid for governor. “It’s totally unprecedented.”

Election laws bar independent expenditure committees from communicating or coordinating with campaigns, allowing candidates to emphasize that they have no control over the money that pours into these outside groups. The wall between the two has long been viewed as performative and penetrable.

The greatest amount of outside spending has been directed at attacking billionaire hedge fund founder turned environmental warrior Tom Steyer, a leading Democrat in the race.

Nearly $32.3 million had been donated to opposing his candidacy as of Monday, according to the California Target Book, a nonpartisan political almanac, which tracks independent expenditure committees. Among the major donors are utility giant PG&E, a political action committee sponsored by the California Chamber of Commerce and the California Assn. of Realtors’ independent expenditure committee, which combined have utility, business, property tax and building issues affected by lawmakers and regulators in the state capital.

Independent expenditures supporting Steyer’s bid for governor have been minimal compared with the record-breaking $212 million Steyer has donated to his own campaign as of Monday, according to the California secretary of state’s office. Still, more than $1.4 million of outside money has been spent supporting his bid, largely by the California Nurses Assn., which shares his goal of creating single-payer healthcare.

Expenditure committees linked to Uber, the California Medical Assn., the kidney dialysis company DaVita and the California Dental Assn. contributed nearly $7.3 million to independent efforts backing former Rep. Eric Swalwell (D-Dublin) before he dropped out of the gubernatorial race in April because of sexual assault and misconduct allegations.

Several of those donors then coalesced behind former Biden Cabinet member Xavier Becerra, who was struggling to connect with California voters before he surged to become a front-runner, recent opininon polls show. More than $13 million has been contributed to outside groups backing the former U.S. Health and Human Services secretary.

The outside money has led to flashpoints in the race. Steyer points to corporations backing Becerra, such as a $500,000 Chevron donation to a group supporting him that was reported to state election officials on Thursday.

“The Becerra campaign was running out of gas until the latest half-million dollar influx from Chevron,” said Steyer spokesman Anthony York.

The message echoes a Steyer theme on the campaign trail — that candidates ought to be judged by who is supporting them and who is opposing them.

Becerra accused Steyer of misleading voters because the $500,000 from Chevron went to an independent expenditure committee supporting him that he has no control over. However, Becerra did receive a direct $39,200 contribution from the oil company to his campaign committee in June 2025.

“For him to say that I took the [$500,000] … that’s just an outright lie,” he said in a television interview this weekend. “It pains me to see that candidates for office believe that they have to descend to telling lies in order to gain favor with voters. If that’s what you do as a candidate, what will you do when you’re in the office?”

Steyer’s campaign, which used the Memorial Day weekend to attack Becerra with billboards highlighting high gas prices in Los Angeles and Fresno, said it was disingenuous for Becerra to feign ignorance of how the political system works.

“Chevron is charging Californians record gas prices on one hand and turning right around to spend $500,000 to elect Xavier Becerra with the other,” said Steyer spokesperson Danni Wang. “Now Becerra is playing semantic gymnastics trying to pretend voters are too stupid to understand how dark money in politics works. Californians aren’t buying it.”

Becerra’s campaign argued that such comments are the height of hypocrisy coming from a billionaire whose campaign is funded by his profits from a hedge fund that made investments that are opposed by many voters. Becerra said he continually took on oil companies when he served as California’s attorney general.

“Tom Steyer made his billions off fossil fuels and private prisons, then decided that qualified him to run California,” said Becerra spokesman Jonathan Underland. “He’s now attacking the only candidate in this race who actually held Big Oil’s feet to the fire and beat [President] Trump 100 times as [state attorney general]. The irony would be funny if Tom’s checkbook weren’t so thick.”

Mahan, a moderate Democrat, has benefited from $21.7 million in spending by outside groups backing him, while $570,000 has been spent by independent committees opposing him, according to the Target Book. The donors who supported his bid are a who’s who of Silicon Valley, including venture capitalists Michael Moritz and L. John Doerr, Stripe Chief Executive Patrick Collinson and Sun Microsystems co-founder Vinod Khosla. Other notable donors include billionaire real estate developer Rick Caruso, who unsuccessfully ran for Los Angeles mayor in 2022, as well as Griff Harsh V, the son of billionaire Meg Whitman, the unsuccessful 2010 GOP gubernatorial nominee turned Democrat who once led EBay.

Despite that generous support, Mahan remains mired in the single digits in the polls. On Wednesday, billionaire Netflix co-founder Reed Hastings received a refund of $1 million he had donated to one of the independent expenditure committees supporting Mahan’s bid.

Hastings said he had not requested the money to be returned to him.

“I’m voting for Matt Mahan. I didn’t ask for any refund and they shouldn’t have done it,” he posted on X on Saturday. “Go Matt.”

Matt Rodriguez, a spokesman for the Back to Basics committee backing Mahan, said that he believes Mahan’s standing in the race is a reflection of a number of factors — an underwhelming contest as well as Mahan’s January entry into it and the fact that he was not well known statewide.

“He got in a little bit late and it was a big climb … with an apathetic electorate,” Rodriguez said. “Politics is all about money and timing — both the amount of time and being there at the right time.”

Mahan’s priorities, such as housing and homelessness improvements he oversaw in San José, had an impact on the campaign, the Democratic strategist said.

“Democrats have to perform, and if we are going to perform, we have to have results,” he said.

The only other candidate who saw seven figures in independent expenditure spending was Republican Steve Hilton, a former Fox News commentator who has been endorsed by Trump and is the leading GOP candidate in the race. More than $1.8 million has been spent opposing Hilton and $13,750 was spent supporting him.

SEIU California donated $250,000 to opposing gubernatorial candidates. Oscar Lopez, the union’s political director, said it has opposed Hilton, Mahan and Republican Riverside County Sheriff Chad Bianco.

“Each of these candidates represents a serious threat to the wages, rights and dignity of California’s working people,” Lopez said.

Hilton said the spending against him represents Democratic recognition of him as a threat.

“They know that they’re vulnerable. The Democratic machine understands they’ve got weak candidates and a terrible record,” he said in an interview. “They see me as outsider and change agent. The only argument they have — if you can call it an argument — is to endlessly repeat the words Trump and MAGA.”

Outside spending has grown exponentially after a voter-approved 2000 California ballot measure limited how much donors can contribute directly to candidates. For the current election, it’s $78,400 for the primary and the general election in the governor’s race.

But donors can contribute unlimited amounts to outside groups, which are formally called independent expenditure committees. Though such donations were already legal in California, they greatly increased in the state and across the nation after the U.S. Supreme Court’s 2010 Citizens United decision that said limits on independent political spending by corporations, unions and other entities violated 1st Amendment free speech protections.

“It has been a steady increase in the amount of money going to outside groups,” said Rick Hasen, a professor of law and political science at UCLA.

In California, independent expenditure groups set a record in 2010 when they spent about $25 million supporting then-gubernatorial candidate Jerry Brown. Largely union money, it was spent in the summer after the primary and was viewed as critical to stalling self-funding Republican billionaire Meg Whitman’s campaign. Brown ultimately won the race by 13 percentage points.

In the 2018 gubernatorial primary, records were once again broken by more than $26 million of outside spending, with former Los Angeles Mayor Antonio Villaraigosa being the biggest beneficiary. Charter school backers spent nearly $16 million on unsuccessful efforts to boost his campaign.

In addition to an enormous financial advantage over campaign committees, outside groups have the ability to trumpet highly provocative adversarial attacks without the candidate they support being blamed for the often controversial messaging.

“IEs are as free to go as negative as they want without that negativity boomeranging back to hurt the candidate,” said Thad Kousser, a political science professor at UC San Diego.

While communication between candidate campaigns and independent committees is forbidden, these rules are commonly circumvented using legal but obvious methods. One called “red boxing,” which Becerra employed earlier this year, literally puts messages inside red-lined boxes on candidate websites that their campaign strategists would like to see outside groups highlight.

“There are technical rules that prevent certain types of communication, but it’s easy enough to communicate in public and be on the same page on messaging,” Hasen said.

Among the major donors in the 2026 campaign are the California Chamber of Commerce, PG&E, the California Assn. of Realtors, the Laborers Pacific Southwest Regional Organizing Coalition PAC, the Pechanga Band of Indians, the California Nurses Assn., and corporations and leaders or founders of companies such as Meta, Google and Uber.

Californians for the People, an outside committee that has spent nearly $32.3 million opposing Steyer, is the most well-funded independent expenditure committee this year. Among it’s largest donors is JOBSPAC, a group sponsored by the California Chamber of Commerce, that has donated nearly $11.8 million to the effort.

“CalChamber is participating in an independent expenditure campaign because voters deserve to know more about Mr. Steyer,” said John Myers, a spokesman for the chamber. “His policy promises will cost billions, driving investment out of California and worsening the state’s affordability crisis.”

The Pechanga Band of Indians has spent $1.5 million on pro-Becerra efforts.

“Secretary Becerra has stood with Indian Country for decades and understands Tribal sovereignty,” said Pechanga Chairman Mark Macarro. “When tribal healthcare was on the line, he was there. This experience comes from a lifetime of public service, not a checkbook.”

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Here’s what to watch for in Tuesday’s California governor debate

Contenders in the race to be California’s next governor will meet on stage Tuesday night for the second of three planned debates before the June 2 primary.

Last week’s meet-up in San Francisco didn’t provide the fireworks or memorable moments the candidates, and many voters, were hoping for — but it did manage to remind us all that ballots will hit mailboxes in coming days and decisions must be made.

Ahead of the forum at Pomona College in Claremont, a trio of our Times columnists — Gustavo Arellano, Mark Z. Barabak and Anita Chabria — weigh in with a cheat sheet on what to look for, what to expect and why it matters.

Chabria: I’ll start us off with the obvious — let’s hope Tuesday gives us at least one breakout candidate who comes with some fire and vision.

After last week’s debate, there was lots of social media posturing about who won and who trolled whom the best. But as one of the six people who actually watched, I can tell you it was mostly bland with no clear winner.

That’s in large part because many of the Democrats have only slivers of daylight between their policies, and ditto for the two Republicans.

So my hope is that at least a single candidate ups their game and comes to voters with not just attacks, but something that inspires, something that sets them apart. This far into the race, that hope is slim, but I’m keeping it alive.

What are your hopes and dreams — and maybe fears — going into this?

Barabak: I know I sound like a broken record. (Google it, kids.) Anita, you and I, in particular, have gone round and round on this one. But I don’t feel a particular need for inspiration from the guys and gal that are running for governor. If I want inspiration, I’ll go back and reread the Rev. Martin Luther King Jr.’s “Letter From Birmingham Jail.” Or listen to a Grateful Dead show from May of ’77.

Give me someone who can work with the Legislature, and as difficult as it may be, President Trump, to get stuff done.

Pursue a “California First” agenda, to borrow a phrase. Put voters and their interests ahead of ego, careerism and personal ambition. Start by pledging, if elected, to serve a full four-year term and not run for president so long as they’re serving as governor.

Of course, that kind of promise can be broken. (See then-Gov. Pete Wilson, who made that vow when he sought reelection in 1994, then turned around and — unsuccessfully — sought the White House in 1995.)

At least we’d have them on the record.

Arellano: I’m all for this morass of democracy. A small part of me wants two Republicans to make it into the general election because the California Democratic Party deserves a meteor-like extinction event. No GOP statewide elected official since Schwarzenegger. Supermajority in Sacramento for most of a decade.

And what do they have to show for their one-party rule? This.

But then I hear Chad Bianco and Steve Hilton mewl, and I’m suddenly hoping alongside Anita that someone vanquishes their foes with an unassailable vision. Problem is, I think all the candidates have reached their ceiling. The only one who has any chance of showing us something new is Xavier Becerra, who needs to drop his Dudley Do-Right shtick for a second and channel the inner cholo we all know is in him.

Instead, he was at a fundraiser in Fullerton over the weekend with professional Latinos — you should’ve been kicking it with my cousins in Anaheim who were watching their Dodgers slaughter the Cubs, loco, because they’re the ones who’ll make or break you.

Chabria: How the first potential Latino governor is failing to excite Latino voters is exactly what I’m talking about. If you don’t give voters something to be excited about, they don’t vote, and our fragile democracy needs every voter it can get.

But if we are forced to vote on nuance, let’s do it informed. Here are some questions I hope these candidates have to answer:

For San José Mayor Matt Mahan, funded in the mega-millions by tech bros, it’s not enough to promise to regulate artificial intelligence, or billionaire influence, for that matter. Tell us what those regulations look like and tell us how you reconcile your own politics with those of big donors such as Joe Lonsdale, co-founder of Palantir, who has called Gen Z the “loser generation.”

For billionaire investor Tom Steyer, who has said he will reform Proposition 13 (which limits property taxes) for corporate land owners: What assurances do homeowners have that they won’t be next?

For former Rep. Katie Porter, polling third among Democrats, the clock is ticking — is there a point where you will drop out and endorse a fellow candidate if you can’t break through? Same-ies for state schools superintendent Tony Thurmond and former L.A. Mayor Antonio Villaraigosa, who are included in this debate but polling in the single digits.

And I agree with you, Gustavo, Becerra is coming across as resolutely bland, but to Mark’s point, he’s using that to position himself as drama-free and experienced. So in an era when fraud and abuse are the words of the day, how does Becerra explain not catching fraud in his own office?

Mark and Gustavo, what are the topics you hope candidates will be grilled on?

Arellano: Slight correction, Anita — California already had a Latino governor: Romualdo Pacheco, the lieutenant governor who replaced Newton Booth in 1875 when the latter became a U.S. senator. Pacheco — a Latino Republican! — served all of 10 months before becoming a Congress member.

See, Californians? Political musical chairs is as much a part of our state as free-spending oligarchs — but enough about Steyer.

Issues? Immigration, of course. I want each one to address the state’s undocumented immigrants for 90 seconds in whatever matter they choose. Water: Believe in climate change or not, but our supply is shrinking faster than the gubernatorial chances of Thurmond. And since I believe that the more random the question, the more you learn about who a candidate truly is: What’s the best song about California, and why? Anyone who says “California Girls” or “California Gurls” deserves disqualification, even if both songs rock.

Barabak: Not an issue, per se. What I’d like to see is a bit of backbone.

The next governor is going to have to make some tough decisions, especially around spending priorities and/or cuts to the state budget. Inevitably, the next governor is going to make some people unhappy. And I’m not talking about just those members of the opposite party, or folks who didn’t vote for them.

So I’d like each of them to name an issue where, for the good of the state, they’re willing to take on their friends and allies, knowing they’ll be displeased. If you’re a Democrat, name something you would do that would, say, tick off organized labor. And for Republicans Bianco and Hilton, what’s an area where you’re willing to say to Trump, “Sir” — the president imagines everyone bowing and calling him sir — “you’re dead wrong about this and California needs to go its own way, whether you like it or not.”

Arellano: Good luck seeing any candidate buck their masters. I think we need to lower our expectations way, way, well, lower. So a simple question to conclude: Who needs to do the most tonight besides Mahan’s beard? I think it’s my fellow Orange Countian, Katie Porter. She’s now to the right of Steyer and left of Becerra, which means she needs to peel off supporters from both of them and grab undecideds if she wants to advance. Not sure how she can pull that off — but if anyone can bring necessary fire, it’s her.

Chabria: Porter definitely has a lot on the line.

One standout moment for her, Steyer or Becerra — good or bad — could tilt this very-much-undecided race — not so much because people will be watching, but because it will fuel the social media and advertising sure to follow. These next two debates are high-stakes, not just to avoid a Biden performance, but to do something, anything, that fires up momentum.

Politics ain’t beanbag, as the old saying goes, and it’s time to bring the heat. So in the spirit of Gustavo’s song request, I’ll leave it with these lyrics from the Rivieras (or the Ramones, if you prefer): We’re out there having fun, in the warm California sun.

Barabak: Not to be the pooper at the party but I think we shouldn’t overstate the import of tonight’s debate. For one thing, as Anita suggested, the audience will be exceedingly small — minuscule, even, relative to the state’s 23 million registered voters.

We know, from experience, that most folks will take away what they do based not on the debate itself but rather the coverage of it and whatever soundbites, memes, chatter and advertising it produces — and that’s only to the extent people are paying attention.

So, yes, what’s said and done in Pomona, will matter some. But we’re still five weeks away from election day, and I suspect many folks will be waiting at least another week or three to start focusing on the race and finally make up their minds.

I’ll end with something that Jerry Garcia sang: All good things in all good time.

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