Tom Steyer’s $200 Million Gubernatorial Campaign and Critics’ Concerns

Tom Steyer, the billionaire progressive, has poured an unprecedented $200 million into his campaign for governor of California. Many of his prominent supporters are, interestingly enough, expressing fatigue over the large sums involved in these high-stakes elections.

During a media call on Tuesday, just a week ahead of the June 2 primary, state Senator Henry Stern (D-Los Angeles) ironically critiqued the influence of money in politics. He suggested that hedge fund billionaires, like Steyer, might “level the playing field” by spending their fortunes to gain election.

“Honestly, I’m tired of it too. I wish I could win, but my aim is to reform California law,” Stern shared.

Steyer’s spending includes significant amounts on social media influencers and extensive advertising within and outside of California.

Stern criticized the attacks from large oil companies directed at Steyer but acknowledged that the oil industry may have had to fight back financially due to the immense amounts Steyer is investing in his campaign.

“Do you think that triggered their response? Absolutely,” Stern said. “I don’t think they would have reacted the way they did if they didn’t feel threatened.”

Steyer’s campaign finance strategy, which appears to exploit existing loopholes, raises questions about repeating history. Before dedicating himself to environmental activism, Steyer made his wealth through the fossil fuel industry with Farallon Capital and had previously invested in private prisons, though he later retracted his justification for those choices.

According to Stern, it’s crucial not to impose “moral purity tests” during elections because people can evolve. “I think he himself would admit that he has flaws. We all make mistakes, and I’m sure he wishes he could change some things,” Stern commented.

The gubernatorial race has heated up following the collapse of former Rep. Eric Swalwell’s campaign in April amid serious allegations, allowing former California Attorney General Xavier Becerra and Steyer to rise in the polls among Democrats. Meanwhile, former Fox News host Steve Hilton seems to have a firm hold as the leading Republican candidate.

Only the top two candidates from the primary will move on to the November runoff.

Steyer’s engagement of paid social media influencers—who some claim did not make it clear they were compensated for political content—has stirred controversy in the ongoing campaign. Steyer aims to spotlight Becerra’s close ties with the oil industry.

Attorney General Rob Bonta mentioned that his office is “investigating” claims regarding candidates paying influencers without appropriate disclosure. Bonta noted that this issue largely falls under the jurisdiction of the Fair Political Practices Commission.

“Unlike other complaints, we’re looking into what role we should take and whether we need to act,” Bonta explained.

The FPPC has begun examining Steyer’s spending on online content creators, as some reportedly deleted posts after inquiries arose regarding the nature of their promotional content.

A state law enacted in 2023 mandates that online creators disclose if they are being paid to support or oppose political candidates.

According to a campaign memo obtained by The Sacramento Bee, Steyer’s team reportedly offered creators $10 per video, with bonuses tied to the views each video received.

The memo also instructed the creators to publish three to four videos weekly that aligned with Steyer’s platform, including issues like taxation of the wealthy, climate change, and reducing corporate influence. It suggested avoiding direct references to Steyer or his gubernatorial campaign while acknowledging public concerns about his billionaire status, lack of electoral experience, and past investments.

Kevin Liao, a spokesperson for Steyer’s campaign, denied any wrongdoing and asserted that payments for content are reported in campaign financial disclosures. He added that creators collaborating directly with the campaign were informed of their disclosure requirements.

“Creators earn a living by creating content,” Liao noted. “We believe in compensating people for their time and work.”

As the campaign heads into its final week, additional millions are expected to flow into this record-setting contest.