Courtesy of State of California
Newsom greets California congresspeople after his speech on Jan. 8.In an hour-long State of the State address on Jan. 8, Gov. Gavin Newsom summarized California’s progress, tackling mainstream issues from the Trump administration’s increasing contempt toward California to education funding to the ongoing housing crisis. The address was Newsom’s seventh and last as governor.
Newsom, 58, started his speech lightheartedly, joking about his 960 SAT score and struggles with dyslexia alongside his childhood spent on the American River along the silhouette of California.
While Newsom covered a wide range of topics, he failed to reach a certain level of depth on any singular issue. Other critical issues remained overlooked or glossed over.
He offered a warning, saying, “I’ll say things that may be piercing to some of you — it’s not intended to demean; not intended to divide, but I’m speaking from my heart.”
Working with Washington
Newsom summarized the situation in Washington to be “purposeful chaos emanating from 1600 Pennsylvania Ave.” He emphasized California’s efforts to work against the Trump administration via lawsuits and bills for disaster relief, medical research and childcare.
Newsom specifically called out the “appalling silence of so many good people” and called for more action to be taken against Trump’s policies to undermine California’s climate, infrastructure and housing policy.
In a separate issue, what wasn’t mentioned in the address was Newsom’s online attacks against Trump that have come in the form of memes and tweets politically targeting him.
Newsom didn’t hint at a potential 2028 presidential run either — a connection that has been hypothesized by many onlookers.
Research and development with a rural touch
As many governors have in the past, Newsom highlighted California’s unique research and development culture, pointing out that the state is home to 15% of global R&D and 50% of the world’s unicorn tech companies. The UC system, he pointed out, added five Nobel laureates this year, a third of the nation’s total contribution to the prestigious pool of scholars.
On the growth of AI, which Newsom jokingly referred to as a “genie out of the bottle,” he emphasized the importance of regulation and guardrails to ensure sustainable innovation and growth. He touted California’s research atmosphere and laws, which have been replicated across the nation in states like New York.
With a unique touch, Newsom pointed out the success of less-visible California groups: farmworkers in Salinas and Modesto have been key to strengthening California’s base in agriculture.
These groups have been affected by California’s new High-Speed Rail plan, which aims to cut commute times in the Central Valley by building a new rail line. While Newsom touted these benefits, he failed to mention the lands California has seized from farmers using eminent domain, and the out-of-pocket costs farmers have faced in trying to recoup lost yields. What he also failed to respond to was the extensive timeframe of the rail: Seed funding began in 2008, but the project isn’t predicted to be finished until 2038.
Hope for housing and living
California has long been criticized for its high housing and living costs. Last year, the legislature passed a bill to raise the minimum wage for fast-food workers to $20/hr, far higher than in states like Alabama, South Carolina and Tennessee, where the minimum wage is $7.25/hr. For progressive taxation, Newsom earned a standing ovation as he cited Plutarch: “The imbalance between the rich and the poor is the most fatal of all ailments.”
On housing, Newsom pointed out the failure of local counties in combating homelessness and called for more work at the state level to be done. He has signed 61 housing reform bills, and California’s overall unsheltered homeless population dropped to 9%, whereas the national homeless population has increased by 18%. Pointing out the faults of “Manhattan landlords” who control rent for young homeowners, Newsom lauded projects like Homekey, which moved 72,000 people off the streets by converting hotels and motels into permanent housing.
On a household level, Newsom calculated that the average family will save $18,000 a year with $60 billion in rebates for energy through his adjustments to the state’s tax code, though wildfires have caused insurance and energy costs to rise. Benefits like paid and family leave have expanded, with families expecting at least 90% of their regular wages on leave.
Unmentioned was California’s $3 billion budget deficit for this fiscal year and the $18 billion budget deficit predicted for 2026-2027. The deficit has potential for long-term, severe harm: Higher interest rates, future inability to allocate state funds and greater inflation are all perceived risks garnered from high debt. In other words, Newsom’s high spending may generate social and economic benefits, but will make it more difficult for future governors and legislators to allocate resources.
Ever-essential education
Though federal spending on education has fallen in recent years, California’s spending on the subject has risen to nearly $250 billion, with the state expending approximately $27,000 per student, reducing class sizes, expanding summer school and improving school meals.
Last year, Newsom signed a cell phone ban bill into law to reduce children’s mental health struggles, with the bill set to go into full effect by this July. Regarding the bill, he said, “If you don’t agree, you’re not a parent.”
Interestingly, Newsom pointed out the rising loneliness of boys at school. Statistics he cited found that boys are twice as likely to be homeless, one in every seven men doesn’t have a single friend and half of young men haven’t asked a woman out on a date in-person.
New initiatives like the Men’s Service Challenge aim to employ more teens and young adults as tutors and mentors. Along the same line of service, the College Corps Program reduces tuition costs for students in exchange for 450 hours of service.
Apprenticeships in California have exceeded predictions, too: Surpassing the goal of 500,000 apprenticeships in skilled labor by 2029, California now boasts a grand 600,000 apprenticeships.
Humbling healthcare companies
In California, approximately 6% of the population is uninsured, and 370,000 are subsidized through healthcare. In line with previous efforts, a new California brand of generics has launched, with insulin capped at $11. This was a major reduction from the price private companies have charged of nearly $500, and less than former President Joe Biden’s Inflation Reduction Act cap of $35.
The model of state-sponsored generics is a model that ought to be replicated across the country, with about 38.4 million people in the U.S. grappling with a type of diabetes. This is a model that is also scalable only if the federal government assists.
Furthermore, under Prop 1, passed through a ballot measure in 2024, 70% of new treatment beds have been approved in the last 18 months. Over $1 billion has been approved in mental health funding, especially critical to supporting healthy school environments.
Other miscellaneous issues
California has dedicated over $267 million to crime suppression, which has led Oakland to have the lowest homicide rate since 1967 and San Francisco to have the lowest rate since 1954. Highway patrol has also been expanded and armed with 1,000 new officers.
On climate change, Newsom, who himself visited COP30 in Brazil, called out Washington’s increasing ignorance of global efforts to curb warming. California has eliminated all use of coal-fired energy. While the U.S. brought zero official delegates to COP30, China brought over 800, and they are now controlling supply chains for green tech, including 70% of electric vehicles.
In regard to the fire season, Newsom honored the survivors of the Palisades and Altadena fires, which razed over 48,000 acres in less than a month last January, with 16,000 structures compromised and 31 lives lost.
To close his speech, Newsom emphasized California’s commitment to persistence despite the lack of support from Washington, with a new rebuilding fund to bridge the gap between insurance payouts and the cost of rebuilding.
“California has never been about perfection. It’s about persistence, the courage of our convictions and the strength to embody them,” he said. “That’s the California way.”
