Progressives Embrace a Billionaire: Tom Steyer Wins Over Skeptics in California Governor's Race

Key facts

• Our Revolution, founded on anti-billionaire principles, endorsed Tom Steyer for California governor.
• Steyer has pumped more than $120 million of his own money into his campaign.
• Former Rep. Eric Swalwell exited the race last month, clearing a lane for Steyer.
• Courage California endorsed Steyer in April, surprising even its executive director Irene Kao.
• Steyer apologized for past investments in private prisons, calling it a 'mistake'.
• Democratic state Rep. Alex Lee, chair of the California Legislative Progressive Caucus, endorsed Steyer in February.
• The all-party primary is one month away, with no clear favorite.

An Unlikely Alliance Forms

When the Bernie Sanders-aligned Our Revolution endorsed Tom Steyer in the unwieldy California governor’s race, the irony of a progressive group founded on an anti-billionaire ethos backing a multibillionaire wasn’t lost on its leader. “If you had asked me a year ago, ‘Oh, are you going to endorse a billionaire for anything? I think that would have been highly unlikely,” Joseph Geevarghese, Our Revolution’s executive director, said in an interview. But Geevarghese said he’d been impressed with Steyer’s policy platform and engagement with liberal groups in the state. “The most energizing and ideologically aligned candidate just happens to be a billionaire,” he said.

Steyer’s Progressive Platform Wins Support

Despite initial skepticism from liberal groups and politicians in the biggest Democratic state in the country, Steyer managed to stay in the conversation with his consistent push for progressive priorities, like single-payer health care, taxing the profits of oil companies and a billionaire tax that is likely to appear on the ballot this fall. Former Rep. Eric Swalwell’s exit from the crowded race last month and the struggles of other progressive candidates — including former Rep. Katie Porter, who’s backed by Sen. Elizabeth Warren — to gain traction helped further clear a lane for Steyer as he pumped more than $120 million of his own money into his campaign.

Skepticism Remains Among Some Allies

Irene Kao, the executive director of the progressive group Courage California, said their endorsement of Steyer in April “came as a surprise to us.” “But a lot of our work has to do with holding corporations and the wealthy accountable — so in some ways, we feel like it is a good thing that voters and people are approaching Tom Steyer in this race with that sort of skepticism and holding him to account, trying to get him to respond to his past investments and to talk about his story and development since then,” Kao said. “But again,” she added, “it is really important for people to be really wary about the wealthy, how they generated their wealth and what they do with it.”

Steyer Addresses Past Investments

Steyer has noted that his hedge fund sold its holdings in the private prison space and that he exited the fund itself in 2012. He has apologized for the investment too, calling it a “mistake” and has run ads responding to the criticism. Democratic state Rep. Alex Lee, the chair of the California Legislative Progressive Caucus, was one of the first state lawmakers to endorse Steyer in February. But even he recalled feeling “skeptical” about Steyer when he heard that he was running. “I’m very sympathetic to voters who are skeptical of voting for a billionaire,” he said.

A Clearer Progressive Lane Emerges

As the field became clearer in recent months, Lee felt like Steyer had firmly taken over the progressive lane among Democrats in the race. The unexpected alliance between progressives and Steyer — a hedge fund founder who’s faced criticism for past investments in controversial spaces like private prisons — has helped vault him into the top tier of a California governor’s race that lacks a clear favorite one month out from the all-party primary. With Steyer’s massive self-funding and a platform that resonates with left-leaning voters, he has become a formidable contender.

What Comes Next for the Race

With the all-party primary just one month away, the California governor’s race remains fluid. Steyer’s ability to maintain his progressive coalition while fending off attacks over his wealth will be tested. The billionaire tax measure, which Steyer supports, could also drive turnout among progressive voters. Meanwhile, other candidates like Steve Hilton and former Rep. Katie Porter continue to vie for support. The outcome will hinge on whether Steyer can convert his financial advantage and ideological alignment into votes.

The bottom line

• Tom Steyer has secured endorsements from progressive groups despite his billionaire status, due to his policy platform and lack of other strong progressive candidates.
• Steyer has invested over $120 million of his own money, helping him rise in a crowded field.
• He has apologized for past investments in private prisons, calling them a 'mistake'.
• The all-party primary is one month away, with no clear frontrunner.
• Steyer’s support for a billionaire tax and single-payer healthcare aligns him with progressive voters.
• Skepticism about his wealth persists among some allies, who urge voters to hold him accountable.