California’s Era of Unrelenting Crisis
Since Gavin Newsom took office in January 2019, California has endured one of the most expensive and turbulent periods in state history. Wildfires, storms, floods, and the COVID-19 pandemic have together generated nearly $1 trillion in total damages, losses, and economic fallout.
While some of these disasters were natural, others were worsened by poor management and political decisions. Fire prevention projects went unfinished, unemployment fraud drained state funds, and storm preparedness lagged behind years of warnings. The result is a state struggling to recover — both economically and socially — after years of cascading crises.
Wildfires: California’s Most Expensive Ongoing Disaster
California’s wildfires have long been part of its natural landscape, but under Governor Newsom, they’ve reached unprecedented scale and cost. Between 2019 and 2025, wildfires have caused an estimated $300 billion in total damages, making them the largest single source of loss.
Key Events and Costs:
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2019 – Kincade Fire: Burned 78,000 acres in Sonoma County, destroying hundreds of homes and forcing mass evacuations.
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2020 – August Complex “Gigafire”: Became the first fire in state history to exceed 1 million acres.
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2021 – Dixie Fire: Consumed 963,000 acres and destroyed the entire town of Greenville, costing an estimated $45–55 billion.
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2025 – Los Angeles Wildfire Outbreak: The Palisades and Eaton fires devastated hillside neighborhoods from Malibu to Pasadena, causing up to $275 billion in economic losses.
Despite record budgets for CAL FIRE, fire prevention goals were consistently missed. State audits found that only a fraction of the promised forest-thinning and fuel-clearing projects were ever completed. In 2019, Newsom announced a plan to treat 90,000 acres of high-risk forest annually. By 2021, only about 11,000 acres had been treated — roughly 12% of the target.
Critics say the state prioritized emergency firefighting over prevention. CAL FIRE’s budget grew to more than $3.3 billion per year, but suppression costs consistently exceeded funding for vegetation management. The imbalance has left forests overloaded with dry fuel, ensuring that future fire seasons will remain catastrophic and costly.
COVID-19: The $200 Billion Policy Disaster
While wildfires burned the hills, the pandemic scorched California’s economy. The COVID-19 crisis cost the state and its residents over $200 billion in direct and indirect losses.
The $32 Billion EDD Scandal
At the height of the pandemic, California’s Employment Development Department (EDD) was overwhelmed by millions of unemployment claims. Instead of tightening verification systems, officials loosened them — allowing over $32 billion in fraudulent claims to be paid.
Investigators later found that scammers used fake names, stolen identities, and even the names of prison inmates to collect benefits. It became the largest case of taxpayer fraud in state history, dwarfing losses from any single natural disaster.
Thousands of legitimate claimants waited months for payments, while criminals cashed in. Despite early warnings from auditors and law enforcement, the Newsom administration failed to implement modern ID verification tools until after the fraud exploded.
Small Business Collapse
California’s lockdowns were among the strictest and longest in the nation. While large corporations like Amazon and Costco stayed open, small retailers and restaurants were forced to shut down for months. By 2021, more than 40,000 small businesses had permanently closed, wiping out local economies across Los Angeles, San Francisco, and San Diego.
Economic research suggests small business closures and lost revenue accounted for $20–25 billion in losses statewide. Restaurants alone saw more than 30% fail to reopen. Critics say California’s “one-size-fits-all” restrictions punished small employers while giving special treatment to politically connected industries.
School Closures and Lost Learning
California also led the nation in keeping public schools closed. Districts like Los Angeles Unified remained remote for nearly 18 months — long after other states reopened safely. Meanwhile, Newsom’s own children attended private in-person classes.
A Stanford University study found that California students lost the equivalent of a full academic year of progress, particularly in low-income communities. Economists estimate the long-term economic impact of that learning loss could exceed $1 trillion nationwide, with California among the hardest hit.
The combination of economic shutdowns, learning losses, and administrative fraud made the pandemic one of California’s most expensive man-made disasters.
Storms and Floods: Billions Lost to Neglect
After years of drought, California swung to the opposite extreme. Between 2022 and 2024, back-to-back atmospheric river storms pummeled the state, overwhelming levees and flooding towns from the Bay Area to San Diego.
The 2023 Pajaro River levee failure in Monterey County inundated thousands of homes, displacing farmworker communities and causing more than $7 billion in losses. A state audit later revealed that the levee had been on the federal repair list for over a decade but never upgraded.
In early 2024, additional atmospheric rivers hit Southern California, causing $11 billion in damages and triggering multiple FEMA disaster declarations.
The state’s share of the costs — about $1 billion — came through emergency repair programs, debris removal, and its required 18.75% match for FEMA’s Public Assistance funds. But the real cost fell on residents: uninsured property damage, lost crops, and disrupted transportation totaled more than $20 billion.
The Financial Fallout
The cumulative impact of California’s disasters under Newsom is staggering. From 2019 through 2025:
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Wildfires: ≈ $300 billion
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COVID-19 pandemic: ≈ $200 billion
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Storms and floods: ≈ $75 billion
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Other losses (droughts, earthquakes, recovery costs): ≈ $25 billion
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Indirect and long-term economic impacts: ≈ $375 billion
Total Estimated Damages: ≈ $975 billion to $1 trillion
Roughly $50–60 billion of that total came directly from state spending, including CAL FIRE budgets, unemployment fraud, storm-recovery costs, and small-business grants. The federal government covered about $20 billion through FEMA, SBA, and disaster aid. But most of the burden — more than $800 billion — fell on residents and the private sector in the form of destroyed property, lost income, and higher costs of living.
Missed Prevention and Oversight
The pattern is clear: California has spent far more reacting to disasters than preventing them.
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Fire-prevention projects remain years behind schedule.
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Levee upgrades and stormwater systems have lagged decades behind federal warnings.
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Unemployment systems remain outdated despite record fraud losses.
State budgets have ballooned, but accountability has not. Even as California spends billions on emergency management, the core systems that could prevent or contain disasters remain neglected.
Gavin Newsom’s Presidential Ambitions Face a Harsh Reality
Governor Gavin Newsom has hinted at national aspirations, positioning himself as a polished, progressive leader ready for the presidency. But his record in California tells a very different story — one defined by massive spending, record losses, and repeated failures to deliver on promises of competence and reform.
Since taking office in 2019, Newsom’s administration has overseen nearly $1 trillion in cumulative disaster and economic losses — the costliest period in California history. Wildfires have grown larger and deadlier, the COVID-19 response drained billions in fraud, and the state’s once-stable budget is now back in deep deficit.
A State on Fire and in Debt
Under Newsom’s leadership, wildfire prevention fell far behind promises. In 2019, he pledged to treat 90,000 acres of high-risk forest each year to reduce fuel buildup. Three years later, audits showed less than 12% of that goal was met.
Meanwhile, firefighting budgets soared. CAL FIRE spending climbed to over $3.3 billion per year, but those funds went mostly to emergency suppression — not prevention. The result: megafires like the Dixie Fire in 2021 and the Los Angeles firestorm of 2025, which together caused hundreds of billions in damages and destroyed entire towns.
Newsom’s environmental and regulatory red tape has made it harder, not easier, to thin forests or maintain defensible space. Federal and local agencies have frequently accused Sacramento of blocking or delaying essential fuel-reduction projects.
COVID-19: A Billion-Dollar Blunder
The pandemic revealed even deeper weaknesses in Newsom’s leadership. His administration presided over the largest unemployment-fraud scandal in U.S. history, losing more than $32 billion in taxpayer money to criminals and fake applicants.
At the same time, California’s lockdown policies were among the strictest and longest in the country, devastating small businesses. More than 40,000 permanently closed, while corporate giants grew stronger. Schools stayed closed for over a year in many districts, leaving students behind academically — even as Newsom’s own children attended private classes in person.
Despite all that pain, California’s COVID-19 mortality rate ended up nearly identical to the national average, calling into question whether the extreme restrictions accomplished much at all.
The COVID Surplus That Vanished
In 2021, Newsom boasted of a $97 billion budget surplus, calling it proof of California’s fiscal strength. Just three years later, the state faces a $45 billion deficit — a swing of more than $140 billion.
Analysts at the Legislative Analyst’s Office say the surplus was exaggerated, based on temporary revenue spikes from Silicon Valley’s boom years. Instead of saving for future downturns, Newsom launched short-term spending programs and mailed out $9 billion in “inflation relief” checks right before his re-election campaign.
When the economy cooled, the money was gone — and California was back in the red.
The Disconnect Between Image and Reality
Newsom’s image as a slick communicator and telegenic executive contrasts sharply with the results on the ground. Behind the photo ops and talking points, Californians are paying the price:
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A population decline of 800,000 since 2020
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Skyrocketing homelessness despite billions in spending
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And a public increasingly skeptical of Sacramento’s priorities
To many, his rumored presidential ambitions sound detached from reality — a political climb built on a crumbling foundation.
A Symbol of Overreach
Perhaps nothing captured California’s COVID-era contradictions better than the arrest of a lone surfer in Malibu in April 2020. The man was handcuffed by sheriff’s deputies for paddling out into the ocean — entirely alone — during the state’s stay-at-home order.
The image of an empty beach, a solitary surfer, and police officers enforcing an arbitrary rule became a national symbol of overreach. It reflected how the state’s lockdowns often punished ordinary citizens while insiders and politicians bent their own rules.
Meanwhile, just months later, Newsom himself was photographed dining maskless at the French Laundry, one of the most exclusive restaurants in the world — underscoring the double standard that defined his pandemic leadership.
The Bottom Line
Gavin Newsom may talk like a future president, but his record reads like a warning label. Over six years, California has suffered massive fires, economic upheaval, government waste, and a steady exodus of residents.
If leadership is judged by results, Newsom’s tenure offers plenty of lessons — most of them costly.
He’s campaigning on the idea that he can do for America what he’s done for California. That should give voters pause.
