California Democrats displayed contradictory moves this month: the party withheld endorsement from Jane Kim for insurance commissioner after a poor interview and instead backed Ben Allen with a rare 60% endorsement. At the same time, delegates endorsed Proposition 40, a proposed 5% wealth tax on billionaires, despite opposition from Gov. Gavin Newsom and Xavier Becerra. Progressive activists, including Sanders allies, pushed the measure to endorsement after multiple ballots, underscoring a growing rift between establishment and progressive factions.
California Democrats Signal Division Over Socialist Influence As Party Endorses Competing Positions
An image collage containing 2 images, Image 1 shows California Gov. Gavin Newsom speaks at a press conference regarding affordable housing legislation, Image 2 shows California Gubernatorial candidate Xavier Becerra speaking at an election night event
California Democrats are sending mixed signals about the party's direction after a series of high-profile votes that split moderates and progressive activists.
Endorsement Battle: Allen vs. Kim
The party formally endorsed State Senator Ben Allen over former San Francisco Supervisor Jane Kim in the contest for state insurance commissioner. Kim had been considered the frontrunner after finishing well ahead of Allen in the June primary and securing the public backing of Senator Bernie Sanders. But a widely criticized interview in which Kim struggled to outline her qualifications and plans for the office shifted momentum.
California Gov. Gavin Newsom has opposed Proposition 40, the so-called "billionaire tax." Getty Images
Her local paper described the interview as a "disaster," in part because she floated a proposal for a state-run homeowners insurance program critics compared unfavorably to the existing California Fair Plan. That reaction helped Allen secure more than the 60% support required for the party's formal endorsement — a rare and consequential show of backing.
Policy Split: Proposition 40 (The 'Billionaire Tax')
At the same time, California Democrats voted to endorse Proposition 40, a proposed measure that would levy a 5% wealth tax on residents with billionaire-level net worths. The endorsement came despite public opposition from Governor Gavin Newsom and from Xavier Becerra, a potential future statewide leader, both of whom have not mounted aggressive campaigns against the measure.
Aspiring replacement Xavier Becerra has also vocalized his stance against the bill, despite its popularity among Democratic socialists. AFP via Getty Images
Progressive activists, including allies of Senator Sanders, strongly backed Proposition 40. Delegates at the party conference initially fell short of the 60% threshold for endorsement; organizers then held multiple ballots and ultimately recorded the level of support needed. Opponents warn the proposal could prompt some wealthy residents and entrepreneurs to consider leaving the state and argue the initiative — drafted by United Healthcare Workers West (an SEIU local) — is intended to raise health-care funds that would benefit its membership.
What This Means
Party leaders face a choice about identity and strategy: whether to push back on socialist-leaning proposals or to embrace an agenda driven by progressive activists.
The mixed internal outcomes — rejecting Kim while endorsing Proposition 40 — highlight the continuing tensions between establishment Democrats and the party's progressive wing. Observers say those tensions could shape campaigns, fundraising, and policy priorities statewide ahead of upcoming elections.
Key takeaway: The California Democratic Party remains divided, balancing electability concerns and pragmatic governance against a growing progressive movement that is willing to push for structural changes to tax and insurance policy.
Help us improve.
