Billionaire activist Tom Steyer joins race to succeed Newsom as California governor

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Tom Steyer, the billionaire climate activist and businessman who unsuccessfully ran for president in 2020, is the latest Democrat to jump into California’s crowded gubernatorial field.

His two core promises — which could appear at odds — are to preserve the state’s status as a hub for business and innovation while also lowering California’s cost of living by making corporations pay “their fair share,” he said in a video message.

The nearly two-minute campaign launch film, which intersperses sleek graphics with footage of line cooks, ranchers and manufacturing workers on the job, encapsulates those dueling themes.

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“There’s a reason everybody comes here to start businesses — because this is the place that invents the future,” Steyer says near the start of the video. “I never want to lose that spark.”

Steyer made his fortune as the founder of Farallon Capital, a hedge fund headquartered in San Francisco that currently manages about $42 billion in assets. After selling his stake in the company in 2012, Steyer started NextGen America, a liberal nonprofit that supports progressive positions on issues such as climate change, immigration, health care and education. The group also launched a labor-aligned super PAC to fund races nationwide.

His activism through NextGen America has elevated Steyer’s profile in recent years from little-known hedge fund manager to global climate activist and Republican antagonizer. He has spent millions to pass progressive ballot measures to uphold California environmental laws, raise taxes on tobacco to fund health care and push states to invest in more renewable energy.

Gov. Gavin Newsom terms out next year. At least six other Democrats are running to replace him, including former Rep. Katie Porter, former Health and Human Services Secretary Xavier Becerra and former Los Angeles Mayor Antonio Villaraigosa.

While a billionaire former financial executive might be at odds with a party base hungry for a more relatable fighter, he’s attempting to appeal to everyday Californians by spotlighting the issue that most people say is their top priority — affordability.

“The Californians who make this state run are being run over by the cost of living,” Steyer says later in the video. “Californians deserve a life they can afford.”

Steyer also promises to “launch the largest drive to build homes that you can afford” in state history, rein in monopolistic utilities that have driven up costs and “drop our sky-high energy prices.”

Steyer’s nearly $13 million advertising blitz in support of Proposition 50, the congressional redistricting plan that voters approved earlier this month via special election, led many California political insiders to speculate that he would launch another bid for governor.

He alluded to his gubernatorial ambitions when he launched a controversial advertisement that, rather than amplify the Yes on Prop. 50 campaign’s message of checking the Trump administration’s power, touted his own calls to impeach and resist President Donald Trump.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.