Treasury Secretary Scott Bessent took aim at California Governor Gavin Newsom during a speech at the World Economic Forum this week, focusing on Newsom’s economic record, his presence in Davos alongside Alex Soros, and his handling of issues such as homelessness, budget deficits, and pandemic-era policies.
Bessent remarked, “Very, very ironic that Governor Newsom, who strikes me as Patrick Bateman meets Sparkle Beach Ken, may be the only Californian who knows less about economics than Kamala Harris.”
Bessent seized on Newsom’s attendance at Davos with billionaire Alex Soros to highlight what he described as the governor’s hypocrisy during the pandemic, stating, “He’s here this week with his billionaire sugar daddy, Alex Soros. And the Davos is a perfect place for a man who when everyone else was on lockdown, when he was having people arrested for going to church, he was having $1,000 a night meals at the French Laundry.”
Newsom drew attention for criticizing world leaders for failing to stand up to President Donald Trump, saying, “It’s time to buck up, it’s time to get serious and stop being complicit. It’s time to stand tall and firm and have a backbone … I can’t take this complicity, people rolling over. I should have brought a bunch of kneepads for all the world leaders.” His comments were praised by Soros, who posted on X: “Great catching up with the real star of the 2026 World Economic Forum, my friend Gavin Newsom.”
Bessent framed Newsom’s presence in Davos as emblematic of misplaced priorities. “He is here hobnobbing with the global elite while his California citizens are still homeless. Shame on him,” Bessent noted.
The Treasury Secretary linked Newsom’s economic record to widespread dysfunction in California. “He was asked to give a speech on his signature policies, but he’s not speaking because one of his economic policies brought outward migration from California, a gigantic budget deficit, the largest homeless population in America, and the poor folks in the Palisades who had their homes burned down.”
The Treasury Secretary presented the administration’s response to Governor Newsom’s failed leadership. “I can tell my message to Governor Newsom is: ‘The Trump administration is coming to California.’ We are going to crack down on waste, fraud and abuse,” Bessent said. His declaration echoed President Trump’s recent Truth Social announcement that “The Fraud Investigation of California has begun.”
Bessent’s remarks come as the Trump administration intensifies its scrutiny of alleged fraud and mismanagement in several Democrat-led states. California is one of five states where $10 billion in federal childcare and family assistance funding has been frozen amid investigations into widespread fraud.
The Department of Justice has indicted Newsom’s former chief of staff, Dana Williamson, on 23 counts related to conspiracy, fraud, and obstruction of justice. According to the Department of Government Efficiency, California was responsible for $305 million of a reported $382 million in fraudulent unemployment payments since 2020.
The federal crackdown includes the Department of Justice’s creation of a new division to enforce fraud laws nationwide, following a rollout detailed by Vice President JD Vance. While the division’s initial focus is Minnesota, the administration has launched separate federal investigations into alleged fraud within California’s welfare, education, and unemployment programs.
In closing, Bessent questioned Newsom’s fitness to govern: “He is too smug, too self-absorbed, and too economically illiterate to know anything.”
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