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California Shares Top Spot for Poverty Amid Speculation on Newsom’s 2028 Plans

California Shares Top Spot for Poverty Amid Speculation on Newsom's 2028 Plans

California and Louisiana Share Highest Poverty Rate in 2024

A recent analysis reveals that California and Louisiana have the highest poverty rates in the country for 2024, both at 17.7%. This conclusion comes from the California Budget and Policy Center, which notes some “specific improvements” from 2023 based on new census data. Despite Governor Newsom’s significant investments in public welfare programs, millions of residents still find themselves in poverty, while homelessness continues to increase amid whispers about his potential bid for the White House in 2028.

The analysis states that approximately 7 million Californians lacked the resources to meet their basic needs last year, a number comparable to the populations of major cities like Los Angeles and San Diego. It also highlights that nearly two million individuals in California are experiencing deep poverty, a term indicating severe economic hardship. Deep poverty is defined here as households with total resources below 50% of the supplemental poverty measure threshold.

The report uses US Census data to support its findings, arguing that California’s poverty rates have not shifted substantially from 2023 to 2024. However, it points out a striking rise since the historic low of 11% recorded in 2021. Since 2022, California and Louisiana have been at the top of the chart for supplemental poverty measures. Interestingly, national poverty levels dipped by 0.4% between 2023 and 2024, with the national rate remaining steady at 12.9%.

The analysis indicates that vulnerable groups, including children and minorities, are particularly affected. In fact, child poverty in California rose by about 18.6% in 2024. Most families are feeling the squeeze from housing costs, which are intensifying the hardships faced by many, especially those already dealing with systemic barriers.

Notably, Governor Newsom’s office has not replied to inquiries regarding this situation. Some energy policy experts have criticized recent changes he backed, suggesting that they do not adequately address the housing crisis and instead merely adjust environmental laws to boost affordability. Meanwhile, despite a reported investment in battling homelessness, the analysis highlights potential cuts to welfare funds and programs over recent years.

One program Newsom championed is the 2022 Care Court initiative, aimed at helping Californians with untreated mental health and substance use disorders by mandating treatment through the court system. However, after three years and $160 million spent, fewer than 550 people have benefited from it, raising questions about its effectiveness.

Interestingly, a recent Emerson University poll has positioned Newsom as a leading Democratic candidate for the 2028 presidential race.

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