LIVE: Gavin Newsom holds FINAL "State of the State" address

Newsom frames California as a 'beacon' and 'operational model' that actively resists and counteracts federal policies, particularly those enacted by the Trump administration. He highlights California's 52 lawsuits against federal executive overreach, which preserved $168 billion in federal resources for schools, hospitals, and seniors. He also criticizes federal cuts to food assistance, military deployment in cities, and funding for medical research and disaster response.

Newsom states, 'The federal government, respectfully, it's unrecognizable. Protecting the powerful at the expense of the vulnerable.' He cites 52 lawsuits and the preservation of '$168 billion in illegally frozen federal resources.'

Newsom asserts that California's economic success, including being the world's fourth-largest economy, is 'not by chance, it's by design' due to intentional policy choices. He points to 18% of global R&D investment, half of America's 'unicorn' companies, and a new 'Jobs First' economic development blueprint tailored to regional strengths (e.g., clean energy in San Joaquin, biotech in San Diego).

Newsom highlights '18% of the world's R&D invested right here in California. One half of America's unicorn companies... are in the great state of California.' He mentions the 'Jobs First' economic development blueprint.

California's tax system is presented as a model of fairness, asking high-income residents to pay more without disproportionately burdening lower earners. Newsom contrasts this with 'regressive tax states' like Texas and Florida. He also champions the state's nation-leading minimum wage increases for fast food workers ($20/hour) and healthcare workers ($25/hour).

Newsom states, 'There are 11 states... that tax their middle wage earners more than the state of California. There are 16 states... that tax their low wage earners more than California taxes its high wage earners.' He notes the $20/hour minimum wage for fast food and $25/hour for healthcare workers.

The state's budget includes record per-student investment ($27,418), fully funding universal Transitional Kindergarten (TK) and expanding community schools. Beyond academics, California has implemented nation-leading online safety laws for children and a 'men's service challenge' to address the struggles of young men, including mental health and social isolation.

Newsom announces a 'record-breaking $27,418 per student' and 'fully funds our brand new grade TK for all.' He also mentions the 'nation's first rules for responsible, ethical, and safe use of AI' and the 'men's service challenge.'

California has enacted significant housing reforms, including the strongest statewide renter protections and 61 new bills to streamline development. To combat high costs, the state has tripled the earned income tax credit, expanded paid sick and family leave, and launched the Cal-RX generic drug label, offering insulin pens at $11. He also calls for action against institutional investors driving up housing costs.

Newsom cites 'the strongest statewide renter protections in the United States of America' and '61 housing reform bills.' He highlights the 'Cal-RX program' and the 'insulin pen at just $11.'

Newsom reports a 9% reduction in unsheltered homelessness in California in 2025, the first drop in 15 years, attributing it to programs like HomeKey and Care Court. In public safety, the state has invested $267 million in local law enforcement, deployed crime suppression teams, and added 1,000 new CHP officers, resulting in double-digit crime decreases and record-low homicide rates in major cities.

Newsom states, 'unsheltered homeless... dropped almost double digits, 9% last year.' He also notes 'doubledigit decreases in crime overall in the state of California' and record-low homicide rates in Oakland, LA, and San Francisco.

California is positioned as a global leader in climate action, with its economy running on 100% clean energy for parts of nine out of ten days and having ended the use of coal-fired power. The state is also addressing climate-related financial risks by requiring insurers to lower premiums for home hardening upgrades and working to stabilize the insurance market.

Newsom claims, 'the fourth largest economy in the world using 100% clean energy for at least a part of nine out of 10 days' and 'California finally ended its use of any coal fired power.' He mentions being the 'first state... to require insurers to lower insurance for home hardening upgrades.'