Tom Steyer

California's Proposition 40 would create the first U.S. tax on billionaires' net worth, but two rival measures, Propositions 41 and 42, contain "poison pill" language that could nullify it even if it wins a majority. Polling shows all three measures drawing majority support, pointing to voter confusion over the ballot language. A billionaire-backed coalition, including Sergey Brin and Eric Schmidt, has bankrolled the opposition, with spending topping $350 million against roughly $34 million raised by supporters, including labor unions like SEIU-UHW. Democrats are split: Bernie Sanders backs Prop. 40 while Gavin Newsom opposes it, favoring a national wealth tax instead. If competing measures both pass, the outcome would likely be settled in court.

California voters will decide in November whether to lift a 1988 ban that bars the state and most local governments from using public funds to finance political campaigns. Proposition 4 would authorize the state and most localities to establish public campaign financing systems for state and local races, similar to programs already used by seven charter cities including San Francisco, Berkeley and Oakland. Candidates would need to meet qualifying criteria, such as securing small-dollar donors or accepting spending caps, to receive funding as grants, matching funds or vouchers.

Supporters, including Gov. Gavin Newsom, the state Democratic Party and good-government groups, argue public financing counters the influence of big private money and could broaden the pool of candidates. Opponents, including Republican lawmakers and some newspaper editorial boards, say taxpayers shouldn't subsidize campaigns and criticize the measure for lacking enforcement specifics, since it exempts the state's campaign finance watchdog from overseeing local programs. Voters rejected similar measures in 2000 and 2010, and recent polling shows continued public skepticism toward Prop. 4.

Sen. Amy Klobuchar is seeking to become Minnesota's next governor, casting herself as a moderate Democrat who can repair the state's reputation and address pandemic-era welfare fraud scandals that Republicans have used to paint Minnesota as a cautionary tale of liberal governance. Klobuchar, who built a national profile during her 2020 presidential run and has served in the U.S. Senate, is widely seen as the favorite in the race.

Her campaign comes as Minnesota Democrats face scrutiny over fraud tied to pandemic relief programs, along with lingering political fallout from the 2020 murder of George Floyd and subsequent unrest in Minneapolis and St. Paul. Klobuchar is positioning herself against more progressive currents within her party, emphasizing pragmatic governance over ideological approaches associated with democratic socialism. The race is being watched as a test of whether centrist Democrats can reclaim ground in a state Republicans have targeted as emblematic of government mismanagement, with implications for broader 2026 gubernatorial and midterm dynamics.

Gov. Gavin Newsom signed AB 1130, giving California campaign finance regulators the power to fine social media influencers up to $5,000 per violation for failing to disclose paid political content, with violations also referable to law enforcement as potential misdemeanors under the Political Reform Act of 1974. California has required disclosure of paid posts about state and local campaigns since 2023 but previously lacked an enforcement mechanism. The bill was one of 13 election-related social media measures Newsom signed as a package aimed at protecting state elections from interference.

Assembly member Marc Berman introduced the bill after reports that campaigns were quietly paying influencers during California's contested gubernatorial primary. Billionaire Democrat Tom Steyer paid numerous creators to post favorably about his campaign across TikTok, YouTube, Instagram and Reddit, many without proper disclosure, prompting complaints to the state's Fair Political Practices Commission against both Steyer and rival Xavier Becerra, who won the primary and will face Republican Steve Hilton in November. The commission has closed one inquiry into Steyer's campaign, though another remains open; Steyer's campaign has called the allegations baseless. Texas has similar rules, and Congress and other states are weighing comparable regulations.

California Gov. Gavin Newsom capped a multi-state "take it back tour" with eight public events across South Carolina, plus stops in Alabama and North Carolina, intensifying speculation about a 2028 Democratic presidential run. In North Carolina, Newsom campaigned for U.S. Senate candidate Roy Cooper in Charlotte and rallied Labor Day weekend crowds in Monroe, urging Democrats to focus on the 2026 midterms rather than 2028. He accused Trump of ruthlessness, corruption and attempting to "nationalize" elections through mail-in voting restrictions, telling supporters it's time to "fight fire with fire." Newsom told the Associated Press a 2028 decision could come before year's end.

Voters and strategists increasingly frame California itself as Newsom's central liability, with critics warning his state's liberal image could hurt him against rivals like Josh Shapiro and Pete Buttigieg. Republicans, including North Carolina Senate candidate Michael Whatley and local officials, mocked the visits with "Wrong Coast" signs and accused him of trying to "California" their states. Newsom's team counters that his progressive record on health care, wages and climate could be an asset in a Democratic primary. South Carolina, hosting Democrats' first 2028 primary, remains a key early proving ground alongside hopefuls like Cory Booker.