Billionaire Tom Steyer's Shocking Move: Can He Really Oust Newsom and Transform California?

SACRAMENTO, CA., 11/20/25 – In a significant development for California politics, billionaire climate activist and former presidential candidate Tom Steyer has entered the race for governor. His announcement adds a prominent name to a crowded Democratic field that is vying to succeed Governor Gavin Newsom, who is terming out next year.

Steyer, best known for his tenure as the founder of Farallon Capital, a hedge fund managing approximately $42 billion in assets, presents a dual focus in his campaign. He aims to position California as a leader in business and innovation while simultaneously addressing the pressing issue of affordability in the state. “There’s a reason everybody comes here to start businesses — because this is the place that invents the future,” Steyer states in his campaign launch video, underscoring his commitment to maintaining California's status as an economic powerhouse.

However, Steyer's vision could be seen as contradictory, as he also pledges to ensure that corporations pay “their fair share” to help alleviate the high cost of living that many Californians face. He emphasizes, “The Californians who make this state run are being run over by the cost of living. Californians deserve a life they can afford.” This focus on affordability resonates with many voters who feel the pinch of rising housing costs and expensive utilities.

In the launch video, which spans nearly two minutes and features a blend of slick animations and real-world footage of hardworking Californians—from line cooks to ranchers—Steyer articulates his ambitious plans. He promises to “launch the largest drive to build homes that you can afford” in the state's history, pledges to tackle monopolistic utilities that have driven up costs, and aims to lower exorbitant energy prices.

Steyer’s political journey has been marked by his shift from a hedge fund executive to a prominent climate advocate. Through his nonprofit organization, NextGen America, he has championed progressive causes such as climate change mitigation, healthcare reform, and educational equity. Notably, he has invested millions to support initiatives aimed at upholding California's environmental regulations and expanding renewable energy sources.

His recent political activity has fueled speculation about his gubernatorial ambitions. Steyer's nearly $13 million advertising campaign promoting Proposition 50, which successfully passed in a special election earlier this month, hinted at his future plans. This campaign not only aimed to support redistricting reform but also served as a platform for Steyer to position himself as a key player in California’s political landscape.

Despite his wealth and stature, Steyer must navigate a Democratic primary that includes at least six other contenders, such as former Representative Katie Porter, former Health and Human Services Secretary Xavier Becerra, and former Los Angeles Mayor Antonio Villaraigosa. His billionaire status could be a double-edged sword; while he has resources to mount a significant campaign, voters may crave a candidate who resonates more closely with their everyday experiences.

Steyer’s entry into the race signals a larger conversation within the Democratic Party about balancing the needs of business with the urgent demand for equitable living conditions. As he campaigns on the promise of affordability while promoting business innovation, it remains to be seen how effectively he can bridge these two priorities and appeal to the diverse voter base in California.

As the race progresses, Steyer's ability to communicate a cohesive vision that addresses the economic anxieties of Californians while still fostering a vibrant business environment will be critical. His candidacy not only puts climate change and economic reform at the forefront of the gubernatorial race but also underscores the ongoing debate about the future direction of the Golden State.