Connect with us

Politics

Taxes, program cuts and Newsom’s legacy on the line in budget negotiations

Published

on

Taxes, program cuts and Newsom’s legacy on the line in budget negotiations

One of Gavin Newsom’s top goals as he winds down his final year as California governor is to leave the state with a balanced budget.

After years of the state spending more money than it brings in, it’s Newsom’s last opportunity to fix a chronic deficit or dump the problem on the next governor.

How far he goes to solve the state’s structural spending imbalance will define his legacy as a steward of trillions in taxpayer dollars. As a potential candidate for president in 2028, he could also have a political incentive to do as little as possible.

“Any cuts you make are going to cause people to scream,” said Darry Sragow, a veteran Democratic strategist. “Any increases in taxes are going to cause people to scream and in terms of what’s best for a presidential run, it would be nice if people weren’t screaming.”

As California’s 40th governor, Newsom expanded publicly funded healthcare to income-eligible undocumented immigrants, increased state-subsidized child-care slots and provided free meals for schoolchildren among a wishlist of progressive wins since he took office in 2019.

Advertisement

His achievements have helped struggling Californians live in an increasingly unaffordable state and given him bona fides to tout to voters if he launches a bid for the White House.

But the state could never afford to pay for existing services and the new programs that Newsom and Democratic lawmakers enacted, according to an analysis of ongoing state spending since before the pandemic released by the Legislative Analyst’s Office last week.

Spending from the state’s principal operating fund has grown about $100 billion since Newsom’s first full fiscal year in office in 2019-20, mostly due to the growing cost of existing programs that he inherited. State spending has outpaced California’s strong revenue growth by about 10%, creating a perennial budget shortfall — a structural deficit — that Newsom and the Democratic-led Legislature solve with largely temporary fixes each year.

Instead of making across-the-board program cuts or raising taxes to align spending with revenue, Democrats have tapped into reserves designed to preserve social services for the state’s most disadvantaged communities during economic downturns.

While the California economy remains stable and state revenue has increased, Newsom and lawmakers have taken $12.2 billion from the rainy day fund. Democrats have borrowed $28 billion more from other state funds to cover their spending in recent years, according to the LAO.

Advertisement

“Taken together, these trends raise serious concerns about the state’s fiscal sustainability,” Legislative Analyst Gabriel Petek wrote in a review of Newsom’s January budget proposal.

Fiscal watchdogs have warned that the spending trends will leave California in a precarious position if the stock market tanks and tax receipts bottom out.

Personal income taxes are driving higher-than-expected revenue now, which analysts attribute to an artificial intelligence boom on Wall Street, and suggest the state could have no deficit in the upcoming year. In January, the Newsom administration anticipated significant operating deficits in the years ahead: $27 billion in 2027-28, $22 billion in 2028-29 and $23 billion in 2029-30.

The LAO, the Legislature’s nonpartisan fiscal advisor, said the state has already solved $125 billion in budget problems over the last three years with mostly short-term solutions.

“This issue is really whether they’re going to take seriously the structural deficit that is several years in the making now, where the spending has outpaced revenue, and to address that, they’re going to either have to make some fairly deep cuts or raise revenue and or both,” said former state Controller Betty Yee, who worked as a budget aide under Gov. Gray Davis and recently dropped her own campaign for governor. “But they have to be real. I think resorting to these one-time solutions has really exacerbated the problem.”

Advertisement

How Newsom wants to address the state’s financial challenges will be revealed on May 14 when he is expected to present his revised budget plan in Sacramento. His January budget proposal did not include any significant reductions or cuts to programs.

H.D. Palmer, a spokesperson for the California Department of Finance, said the governor is looking to solve the budget problem with more than a temporary fix.

“Although he is still finalizing his proposal that he’ll put forth to the Legislature, as he has said, he wants those solutions to be durable, and he wants them to have an impact beyond a single fiscal year,” Palmer said.

To stabilize California’s budget, Democrats will probably have to raise taxes or fees to generate new revenue and cut programs, according to the LAO. At least 40 cents for every dollar in revenue is dedicated to education under the state Constitution, requiring policymakers to find between $30 billion and $60 billion annually in additional revenue to cover projected shortfalls in 2027-28 and beyond if relying on new taxes alone.

President Trump’s cuts to healthcare are adding to the problem.

Advertisement

HR 1 will add $1.4 billion in state costs to the general fund. Newsom’s January budget proposal did not include a plan to help millions of low-income Californians who are expected to lose access to healthcare under the federal cuts.

To temper those cuts in California, other groups proposed a new tax on billionaires that appears poised to qualify for the November ballot.

Spearheaded by Service Employees International Union-United Healthcare Workers West, the initiative would apply a one-time 5% tax on taxpayers with assets exceeding $1 billion. If approved by voters, the tax would generate roughly $100 billion, which would fund healthcare programs.

The measure has divided unions and Democrats at the state Capitol.

Newsom has criticized the initiative, citing concerns that increasing taxes on the wealthy will have the opposite intended effect and drive the highest earners out of California. Under a progressive tax structure, the state budget is dependent on income taxes paid by the ultra-rich on earnings largely from capital gains.

Advertisement

Larry Page and Sergey Brin, the co-founders of Google, have already purchased residences in Florida, along with others looking to escape the tax if it goes through in November. Billionaires launched their own ballot measure campaign to undercut the tax proposal.

State lawmakers are also considering avenues to raise revenue, which include repealing a “water’s edge” tax break. Under the change, multinational companies would no longer be allowed to shield the income of their foreign subsidiaries from state taxes. California loses about $3 billion in revenue from the tax break each year.

In its budget plan released in April, the state Senate proposed a new fee on the largest corporations in the state to provide $5 billion to $8 billion annually for Medi-Cal.

The upper house said 42% of Medi-Cal enrollees are full-time workers who are not enrolled in their company’s healthcare plan because their wages are low enough to qualify for state-subsidized healthcare. As a result, corporations aren’t paying for healthcare for many of their employees and instead taxpayers are picking up the bill through Medi-Cal.

SEIU California, the powerful state union council representing over 700,000 workers, endorsed the plan. The union said Trump’s tax policy will reduce corporate taxes by $900 billion, while 3 million Californians lose healthcare.

Advertisement

“In this urgent moment, California’s workers need to see our leaders show us what they’re made of,” said Tia Orr, executive director of SEIU California. “The Senate is showing the courage to demand corporations pay their fair share, rather than making working people pay with their lives.”

The change is being described as a more politically palatable “fee” and not a tax.

“We explored multiple revenue options, and this was the one that felt more narrow, it felt more focused, and it also felt like it was directly going for the subsidy that’s being lost because of the Trump HR 1 cuts,” said Senate President Pro Tem Monique Limón (D-Goleta), who leads the upper house of the Legislature.

Limón said her caucus believes it’s important to address potential revenue streams because of the depth of federal healthcare reductions.

“If we don’t address the structural deficit, we are looking at severe cuts,” she said. “You are looking at people without health insurance. You are looking at hospitals closing down. You are looking at medical providers not being able to take more patients. You are looking at our emergency rooms over capacity, with not enough medical providers. I mean, you’re looking at a place that’s really, really, really difficult, and we feel like we have to, at least, look at what are viable options that are conditional on these cuts coming.”

Advertisement

Newsom has not commented publicly on the Senate’s plan. As governor, he’s been reluctant to embrace new taxes and fees.

Newsom could reject all the proposals for new taxes or fees and continue what he’s done before: take advantage of higher-than-expected tax collections, shift funds around, delay program implementation and borrow money to knock the deficit down to zero, or forecast a surplus, for his last budget year that begins July 1.

If he doesn’t take on California’s larger budget imbalance, then the problem would be the next governor’s to solve. A stock market crash, or economic recession, could force his successor to make drastic cuts across the board with limited reserves to support programs.

Kicking the can again would cement Newsom’s fiscal legacy as a governor who championed bold headline-making policies that bolstered the safety net for low-income Californians, but who failed to provide a solution to pay for his agenda.

“Not only has he not come up with a plan, he has pretended we don’t need one,” said Patrick Murphy, a professor of public affairs at the University of San Francisco.

Advertisement

Newsom’s interest in running for president could seemingly discourage him from slashing the budget and raising attention to the state’s financial woes, Sragow said. Newsom is setting himself up as a potential front-runner for his party. He has said he remains undecided about officially launching a 2028 campaign.

As a Democrat from California, his opponents would automatically label him as financially irresponsible and tax-happy. Calling out the massive budget problem on the horizon, raising taxes and making painful cuts will give them ammunition.

“There’s a long list of things that he’s going to be charged with, and this is likely to be one more,” Sragow said. “But I guess the question is, is he going to be charged with a political misdemeanor or a political felony?”

Former state Sen. Steve Glazer said Newsom is standing on political quicksand either way. State budget projections are based on assumptions about the future that often don’t bear out, leaving his choices exposed to criticism that he went too far, didn’t do enough, and everything in between.

“Whatever the governor decides to do in his May revise and in his final budget, it’s fraught with political risks, because it can be manipulated so easily by all sides,” Glazer said.

Advertisement

If Newsom ignores the spending problem, his successor could blame him for California’s financial woes when they take office in January and provide their own outlook of the state’s fiscal future. At the time, Newsom could be trying to convince America to make him the nation’s next president.

Murphy said Newsom has championed major policies and been reluctant to back off them later when revenue doesn’t pencil out.

In terms of spending, he’s governed similarly to the men who led California before him, with the exception of Jerry Brown, who cut programs to reduce a deficit he inherited in his second stint in the governor’s office and left Newsom with a surplus.

“It’s not all that different than most of the governors have done, which is finding it very hard to say no and finding it very hard to take on a tough choice of going to the ballot to ask for more money or raise taxes,” Murphy said.

On taxation, Newsom is perhaps most similar to former Gov. George Deukmejian, who opposed general tax increases for most of his administration.

Advertisement

Deukmejian left a budget disaster for his successor, Gov. Pete Wilson. Deukmejian publicly claimed he passed a balanced budget in his final year and blamed an economic downturn for the problems Wilson encountered.

When Wilson announced a record $13-billion budget deficit early in his first year in office in 1991, he said the Persian Gulf War, an economic downturn and natural disasters added to a structural deficit in the budget.

The Legislature and Deukmejian, Wilson said, had “papered over” the problem.

Advertisement
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Politics

Michigan Democrat Mallory McMorrow drops out of Senate race weeks before primary

Published

on

Michigan Democrat Mallory McMorrow drops out of Senate race weeks before primary

NEWYou can now listen to Fox News articles!

Mallory McMorrow announced Sunday that she is suspending her campaign for the U.S. Senate in battleground Michigan.

The Michigan state senator’s decision leaves her party’s primary as a two-way race between moderate Rep. Haley Stevens, who is backed by longtime Senate Democratic leader Sen. Chuck Schumer and the establishment, and former Wayne County Health Department Director Abdul El-Sayed, a left-wing candidate endorsed by progressive champions Sen. Bernie Sanders of Vermont and Rep. Alexandria Ocasio-Cortez of New York

McMorrow’s name will remain on the ballot for the Aug. 4 primary as ballots have already been printed and distributed to absentee voters, according to Bridge Michigan.

The eventual Democratic nominee will face off in the midterms with former Republican Rep. Mike Rogers, who is on a glide path to the GOP nomination, in a crucial midterm race to succeed retiring Sen. Gary Peters, a Democrat. 

Advertisement

MICHIGAN SENATE CANDIDATE ABDUL EL-SAYED TAKES HEAT FOR KHAMENEI COMMENTS, HASAN PIKER EVENT

Michigan state Sen. Mallory McMorrow speaks on the first day of the Democratic National Convention in Chicago on Aug. 19, 2024. (Andrew Caballero-Reynolds/AFP via Getty Images)

The seat is a top Republican target and is a must-hold for the Democrats as they aim to win back the Senate majority from the GOP, which currently controls the chamber 53-47. The leading nonpartisan political handicappers rate the Senate race in Michigan as a toss-up.

In a video posted on X announcing her decision, McMorrow did not provide a specific reason for ending her campaign. She instead thanked her staff and supporters for helping build what she described as a campaign powered by small-dollar donations and no corporate PAC money.

But McMorrow, who has seen her national profile expand in recent years and was running as a progressive in an ideological space between El-Sayed and Stevens, suspended her campaign amid faltering polling numbers and fundraising that weren’t keeping pace with her two main rivals.

Advertisement

McMorrow also pledged to fully support whichever Democrat wins the primary and faces off with Rogers, who is running for the Senate for a second straight cycle and lost in 2024 to now-Sen. Elissa Slotkin by a razor-thin margin.

“So here’s what we do next. Every day through November 3rd. We win this Senate seat and send Mike Rogers back to Florida for good,” she said. “Whoever wins this primary on August 4th will have my full support.”

MICHIGAN DEMOCRATIC SENATE CANDIDATE CLAIMS ISRAEL ‘JUST AS EVIL’ AS HAMAS

Rep. Haley Stevens, D-Mich., speaks during the House Democrats’ news conference in the Capitol on Feb. 6, 2025. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

Following McMorrow’s announcement, Stevens praised her fellow Democrat by calling her an “important voice” for policies that benefit Michigan families. 

Advertisement

Stevens then argued that she is the strongest Democratic candidate to win the primary and defeat Rogers in November. 

“As we enter the final month of the primary election, I’m excited to continue to make my case to Michiganders why I’m the strongest Democrat to defeat Mike Rogers this November, lower costs, protect manufacturing jobs, and stand up to Trump’s abuses of power.”

MAMDANI-BACKED SOCIALISTS LOOK TO TAKE NEW YORK PLAYBOOK NATIONWIDE AFTER PRIMARY VICTORIES

Abdul El-Sayed, speaks before Sen. Bernie Sanders and takes the stage at Mumford High School on May 3, 2026, in Detroit, Michigan. (Sarah Rice/Getty Images)

In his statement, El-Sayed praised McMorrow for having the “courage” to challenge what he described as a rigged political system, accusing Democratic Party insiders of spending millions to influence the primary. While he did not name specific groups, the remarks appeared to reference corporate PACs and party leaders such as Senate Minority Leader Chuck Schumer, D-N.Y., who has endorsed Stevens. 

Advertisement

He then invited McMorrow’s supporters to join his progressive movement to combat big money in politics and defeat the political establishment. 

“Throughout this campaign, Senator McMorrow showed what it looks like to fight back against politics that rigs the system against too many of us. While we have policy disagreements, I never questioned whether Senator McMorrow would fight for a better America for my daughters and hers,” he said. 

“The same party insiders she had the courage to challenge have been bullying anyone who opposes their chosen candidate. After spending $30 million to drown Senator McMorrow and me out, they’re now spending even more to attack me. It’s everything we are standing up against.”

“I welcome her supporters to our movement to stand up against money in politics, to put money back in pockets, and pass Medicare for All. We cannot allow the establishment to decide our nominee for us.” 

U.S. Sen. Bernie Sanders (I-VT) stands with Senate candidate Abdul El-Sayed after speaking at Mumford High School on May 3, 2026 in Detroit, Michigan. (Sarah Rice/Getty Images)

Advertisement

El-Sayed, who, if elected would make history as the nation’s first Muslim senator, is an epidemiologist who unsuccessfully ran for governor as an insurgent candidate in 2018. He has made support for “Medicare-for-all” a major component of his campaign.

El-Sayed also calls for abolishing ICE, and he’s a vocal critic of Israel in its war with Hamas. He has characterized Israel’s actions in Gaza as “genocide” against Palestinians. And El-Sayed, who served as a top surrogate on Sanders’ 2020 presidential campaign, has also vowed not to accept PAC donations.

Schumer and the party establishment view Stevens as more electable than El-Sayed, who has sparked controversy with his past comments. They worry that El-Sayed as the party’s nominee would jeopardize the Democrat-controlled Senate seat by pushing the party too far to the left in a state that President Donald Trump carried two years ago.

Meanwhile, Stevens has been backed by millions in super PAC spending, including big bucks from Israel-aligned groups.

AOC JOINS BERNIE SANDERS IN BACKING SENATE CANDIDATE OPPOSED BY SCHUMER

Advertisement

Former Rep. Mike Rogers, seen speaking with Fox News Digital, is on a glide path for the 2026 Republican Senate nomination in Michigan, as he campaigns for the Senate a second straight time. (Paul Steinhauser – Fox News )

The National Republican Senatorial Committee (NRSC), in a statement reacting to McMorrow’s move, pointed to the burgeoning battle between the far left and the establishment for the future of the Democratic Party.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP 

“Bernie Sanders’ radical socialist flank is completely taking over the Democrat Party. It is now up to Chuck Schumer to combat Abdul El-Sayed’s clear momentum and get Haley Stevens over the finish line in their messy primary,” NRSC Regional Press Secretary Samantha Cantrell argued in a statement.

Greg Manz, the Michigan GOP senior communications adviser, said in a statement that “Michigan’s Senate Democrat primary has shifted from a three-car pileup to a head-on collision.”

Advertisement

Continue Reading

Politics

Inside the California ICE detention boycott over $18 coffee grounds, $21 tampon boxes

Published

on

Inside the California ICE detention boycott over  coffee grounds,  tampon boxes

Immigrants detained at two federal facilities in California have launched a boycott in protest of increasing and, in their view, burdensome prices at the facilities’ commissaries for items including tampons, coffee and soup.

The Times reviewed a grievance letter and spoke with three detainees who are involved in the boycott at the California City Detention Facility, about 80 miles east of Bakersfield, and at the Golden State Annex in McFarland.

More than 300 detainees are estimated to have signed grievance letters sent recently to facility administrators, according to advocates with the California Collaborative for Immigrant Justice.

Both facilities are operated by private prison corporations — the California City facility by Tennessee-based CoreCivic and the Golden State Annex by Florida-based GEO Group.

Ryan Gustin, public affairs director for CoreCivic, said the company cares for people at the facility safely, humanely and with dignity while their cases proceed. He said the facility provides three nutritious meals per day and accommodates religious, therapeutic and cultural diets, and that commissary items are a supplement.

Advertisement

Proceeds from commissary sales, per the facility’s contract, are put into a detainee welfare fund, Gustin added. Those funds are used to buy electronics or recreational or educational items.

“We regularly collaborate with our outside commissary vendor and government partners to review and set commissary item pricing that is reasonable,” he said. “It’s important to note that the commissary program is not a profit mechanism.”

The Times also reached out to the Department of Homeland Security and GEO Group for comment.

Detainees are provided certain essentials, such as food and soap, free of charge, but many also purchase items at commissary stores that are of better quality or otherwise unavailable.

Detainees said shampoo and other hygiene items sometimes run out for days and that meals are small or exacerbate diabetes and other health issues. One detainee said the facility provides a pint of milk twice a week and that he has never received fresh fruit.

Advertisement

“The three daily meals that CoreCivic provides at California City Detention Facility are the bare minimum to keep a person alive,” they wrote. “Because of this, charging inflated prices on necessities is considered price gouging and profiteering against vulnerable incarcerated population who have no ability to refuse or shop elsewhere.”

The detainees said an 8-ounce jar of Folgers instant coffee costs $18 at the California City facility, a single instant ramen soup is 75 cents and a box of 40 tampons costs nearly $21.

At Walmart, the same Folgers coffee costs $8.97, Maruchan chicken ramen soup is 50 cents and 40 Tampax tampons are $12.19.

U.S. Immigration and Customs Enforcement detains immigrants for civil purposes. Detention is meant to facilitate removal proceedings but is not meant to be punitive.

Detainees are paid $1 per day under a voluntary work program for cleaning or cooking. Many detainees rely on money from family and friends.

Advertisement

In their grievance letter, the detainees called the markups an unacceptable business practice with no apparent limit. They said they view the situation as an example of captive market exploitation and economic coercion.

The detainees requested a review of commissary pricing by facility leaders, a comparison of prices with prison industry standards, an immediate reduction in prices of essential items and the implementation of reasonable price caps. They also requested an increase in the portions of daily meals, including meals meeting religious requirements, which they said are particularly small.

In May, the California State Senate passed a bill that would prohibit the excessive markup of products sold at private detention centers, limiting prices to 35% above the vendor cost. Existing California law already limited such markups in state prisons.

“It’s just a cycle of unnecessary exploitation,” said Sen. Steve Padilla (D-Chula Vista), who wrote the bill, which is now in the Assembly. “If someone is under contract, they should engage in ethical business practices.”

Priya Patel, an attorney at the California Collaborative for Immigrant Justice, represents people who have been detained at both facilities. She said that during legal service consultations, the topic of commissary pricing frequently comes up.

Advertisement

“The higher the prices get, the higher of an impact the conditions have on people and the more difficult it becomes to fight their cases,” Patel said.

The collaborative is one of the organizations that brought a lawsuit last year alleging inadequate medical care, as well as insufficient clothing, food, water and outdoor recreation time, at the California City facility, which can hold more than 2,500 people. The lawsuit remains ongoing; in March, a U.S. district judge in San Francisco appointed an external monitor to ensure the facility provides “constitutionally adequate health care.”

The lawsuit describes multiple commissary-related issues. For example, it says the facility doesn’t provide headphones for tablets, making private phone calls — including privileged calls with attorneys — impossible unless the detainee can afford to purchase headphones from the commissary.

“One detained person has difficulty walking and standing for extended periods of time without shoes that provide arch support,” the complaint says. “He arrived at California City with appropriate shoes to accommodate his mobility disability, which were approved as an accommodation at a prior ICE facility. California City staff confiscated those shoes and instead provided him with plastic, orange sandals.”

“Several weeks after staff confiscated his shoes, he had an appointment with a doctor at California City,” it continues. “The doctor told him … to buy different shoes from commissary to accommodate his foot condition.”

Advertisement

Gustin disputed those accounts, saying that detainees are given headphones at intake and that attorney calls typically take place in private booths. He said that the company provides orthopedic footwear for any detainee with a medical provider’s order, and that he couldn’t review the case detailed in the complaint without specifics.

A contract between CoreCivic and ICE for the California City facility, dated April 1, 2025, says that the contractor must provide notice of any price increases and that “any revenues earned in excess of what is required for commissary operations shall be used solely to benefit aliens at the facility.” A 2019 contract between GEO Group and ICE for Golden State Annex and two other facilities in California includes the same language.

Alfredo Parada Calderon, 52, has been detained at the California City facility since September. He said commissary prices were already high before they increased around mid-June.

Parada Calderon said he asked an ICE officer why the prices had increased so much. The officer said he wasn’t aware of the change but that the vendor is Keefe Group, which supplies commissaries at prisons and immigrant detention centers across the country.

Detainees in his dormitory submitted a grievance about commissary prices, Parada Calderon said. The answer was vague.

Advertisement

“They’re blaming it on inflation,” he said.

Parada Calderon said his family sends him about $100 per month for commissary items, which he spends on packets of crackers, coffee, soups, soap, shampoo, deodorant and chips.

“Enough is enough,” he said. “It’s a horrible enough place to be in and you guys are making it even more horrible, not just for me but for my family. The detainees want to be heard and this is the only option we actually have — a peaceful protest.”

Tommaso Bardelli, a researcher at New York University who studies mass incarceration, said the families of most people in prison are working class and may sacrifice their electricity bill or credit card payment to send money to their incarcerated relatives. The money they send no longer pays for small luxuries, he said, because prisons have over the years reduced how much they spend per person on necessities such as food.

Bardelli published a research article in 2022 about inequality within prison commissary stores. Commissaries are often now the difference between starving and having a semi-normal diet, he said.

Advertisement
Continue Reading

Politics

Expert who fled Cuba warns of ‘vicious cycle’ that will lead to ‘communists in double digits’ in Congress

Published

on

Expert who fled Cuba warns of ‘vicious cycle’ that will lead to ‘communists in double digits’ in Congress

NEWYou can now listen to Fox News articles!

A national security expert who fled to the U.S. from Cuba is warning that one “vicious cycle” currently dominating American politics could lead to “communists in double digits” serving in Congress.

Mike Gonzalez, a senior fellow at the Heritage Foundation who fled communist Cuba in the 1970s, said in an interview with Fox News Digital that the socialist “threat is real now.”

Gonzalez likened this trend to a “takeover of a host body, the Democratic Party,” saying, “It’s being taken over by body snatchers and they’re not able to mount any defense of it whatsoever even if they wanted to.”

Under the current political environment, Gonzalez predicted, “We’re going to get communists in double digits in the House of Representatives at least, there’s no doubt of that.”

Advertisement

BILL MAHER’S DIRE MIDTERM ELECTION WARNING TO DEMS AFTER ‘REALLY CRAZY’ SOCIALISTS WIN PRIMARIES

Members of the Democratic Socialists of America gather outside of a Trump owned building during a May Day rally in New York City in 2019. (Spencer Platt/Getty Images)

Over the course of a year, New York City elected a socialist mayor, Zohran Mamdani, while three of his endorsed socialist congressional candidates — Brad Lander, Claire Valdez and Darializa Avila Chevalier — defeated establishment Democrats, including two incumbents. On the other side of the country, Seattle elected a socialist mayor, Katie Wilson. Just this week, Colorado congressional candidate Melat Kiros defeated 15-term Democratic incumbent Rep. Diana DeGette, further illustrating socialists’ ability to topple entrenched party figures.

While these politicians identify as socialist, Gonzalez pointed out that to the authors of the communist manifesto, Karl Marx and Friedrich Engels, “there was no difference between socialism and communism, they were interchangeable.”

“These people are communists, and when you catch them unawares, they actually say, ‘Oh, yeah, I know we want communism,’” he said.

Advertisement

According to Gonzalez, the widespread success of socialist candidates in races across the U.S. is due to several factors, including the breakdown of immigrants assimilating to American culture, increased hatred of the U.S. and even White guilt combined with a real affordability crisis in cities like New York.

“A very important component of this and one that conservatives sometimes forget is that a lot of these votes are White votes, White young kids who have come in from the suburbs, who feel guilty about a number of things,” he explained.

SOCIALISM GOES WEST AS DSA-BACKED CHALLENGER OUSTS LONGTIME DEMOCRAT

New York City Mayor Zohran Mamdani speaks during a primary-night watch party for NYC Congressional candidate Claire Valdez at 99 Scott Studio on June 23, 2026 in the East Williamsburg neighborhood of the Brooklyn borough in New York City. (Michael M. Santiago/Getty Images)

“They have gone to very expensive Ivy League schools and they’re trying to make a living in New York City without being a banker. And you can’t make a living in New York City if you’re not a banker, sorry, you’re going to have an affordability crisis.”

Advertisement

This, Gonzalez said, makes socialist promises of handouts, such as free tuition, free bus fares and public-run grocery stores, an easy sell.

“So, they end up voting for this. This is a very bad vicious cycle that is taking place and that is going to produce communism in this country if we’re not careful.”

Meanwhile, Neetu Arnold, a young immigrant to the U.S. who now works as a policy analyst for the Manhattan Institute, emphasized that the socialist trend is not just isolated to cities like New York but becoming increasingly prevalent in cities across the U.S.

“The rise in the socialism in America, it’s going to shape our politics. I think it’s going to make things more extreme,” Arnold said in an interview with Fox News Digital.

DSA CO-CHAIR PUSHES BACK ON SOVIET UNION COMPARISONS, WANTS PRISONS TO BE ‘LESS NECESSARY’

Advertisement

Members of the Party for Socialism and Liberation filmed children supporting the regime in Iran, during a protest on Saturday, March 7, 2026, in Washington, D.C. (Asra Q. Nomani/Fox News Digital)

“What the socialist candidates have tapped into are real frustrations and grievances, but the solutions that they’re offering is essentially more government involvement rather than trying to address the underlying problems,” she explained. “What a lot of younger people are finding out is that it’s not that easy to get housing. They’re in student debt, they are struggling to find stable jobs, and so the things that they were promised are not necessarily coming true.”

SIGN UP TO GET THE POLITICS NEWSLETTER

As a naturalized U.S. citizen, Arnold said she hopes both sides of the political aisle recognize that “socialist policies are a threat to the American way of life.”

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Advertisement

“In this country we value merit, we value wealth, and the ability to move upward in this society,” she said. “I’ve seen my life change before my eyes by being here in this county, by having the opportunities that I did, and that I saw for my family, and I think that was only possible because of free markets and the opportunities that we had in this country.”

“Socialist policies essentially restrict what we are able to do,” Arnold continued. “So, I do take it seriously and I hope that Democrats, Republicans, they all take the rise of socialism seriously.”

Advertisement
Continue Reading
Advertisement

Trending