A Health Insurance Giant Quietly Bankrolls Gavin Newsom’s Partisan Power Grab

A health insurance giant gave half a million dollars to Governor Gavin Newsom’s Ballot Measure Committee, a driving force behind a controversial redistricting effort that would give Democrats even more seats in California.

Blue Shield of California has donated $500,000 to the committee, which backs the “Yes on 50” effort. Californians will vote next week on Proposition 50, which would likely give Democrats five additional seats in Congress.

Reached for comment, Blue Shield of California denied supporting Proposition 50, claiming its donation was not intended for a particular ballot initiative and that it routinely makes bipartisan donations. But Proposition 50  is the only measure on the ballot in California this year.

It’s not surprising that Blue Shield of California would support Proposition 50. The company has called on Congress to extend COVID-era Obamacare subsidies — a $350 billion proposal at the center of the government shutdown debate. Five additional seats would give Democrats the leverage they need to extend these subsidies in the future — ensuring insurance giants continued access to federal funds.

Blue Shield of California claims that it has no position on Proposition 50. But the records tell a different story. 

The company made two payments of $250,000 — one on April 24 and another on July 16, according to the California Secretary of State’s website. California Democrats describe Proposition 50 as “a direct response to a Republican power grab orchestrated by President Trump and state leaders in Texas, who redrew Congressional district lines to gain five more seats in the U.S. House of Representatives.”

Blue Shield of California told The Daily Wire that it has neither made contributions to Proposition 50 nor taken a position on the measure. After The Daily Wire sent Blue Shield receipts of the contributions to Newsom’s Ballot Measure Committee, and pointed out that the official California voter guide lists “Governor Newsom’s Ballot Measure Committee” under the “For” section of Proposition 50, it said the donations came before Newsom’s intentions were known. 

The company said it “made its contributions in April and July 2025 — months before the Governor announced his redistricting initiative or amended the committee to support Proposition 50.”

A look at the Proposition 50 timeline belies that claim. 

On July 3, the Texas Tribune reported that people in Newsom’s orbit had signaled his willingness to counter any redistricting in Texas with a similar move in California to offset potential Republican gains. On July 9, Texas Gov. Greg Abbott announced a special session that included redistricting legislation.

Blue Shield of California made its second contribution a week later. On August 14, Newsom officially announced a special election for the ballot measure. 

Given that Blue Shield of California has not taken a public position on Proposition 50, and claims it has not donated to the measure, The Daily Wire asked which ballot initiative it believed it was supporting when contributing to“Governor Newsom’s Ballot Measure Committee, and whether they were concerned their donation was being used for the “Yes on 50” campaign.

The company did not respond to the follow-up question. 

In its initial response, Blue Shield noted that it regularly makes bipartisan political contributions to “advance our mission of delivering high-quality, affordable health care for all Californians.”

Again, a closer look at Blue Shield’s donations casts doubt on that claim.

The two $250,000 contributions to Newsom’s initiative were by far the largest this year, with dozens of other contributions ranging from $1,900 to $50,000. Among them, the company donated $50,000 to the California Democratic Party and $20,000 to the Lesbian, Gay, Bisexual & Transgender Caucus Leadership Fund, which primarily supports Democratic candidates.

In June, the Blue Shield of California Foundation awarded the governor’s office a $200,000 grant for an “evaluation design for the California Racial Equity Commission framework.” The foundation is funded “entirely by contributions from Blue Shield of California,” their website states.

About three weeks after making the second donation, Blue Shield of California called on Congress to extend Affordable Care Act tax credits, which are currently at the center of the ongoing government shutdown.

Obamacare tax credits lower the monthly premiums people pay for coverage in state and federal Marketplaces, according to Blue Shield. The Marketplace sends the tax credits directly to insurance companies, according to its website.

These tax credits have always been available to the poorest Americans. But during the coronavirus pandemic, Congress temporarily expanded eligibility for these subsidies. The extended credits were set to expire this year. Democrats’ fight to make them permanent — a move the Congressional Budget Office says would cost $350 billion over a decade — led to what, as of this writing, is the second-longest government shutdown in history.

In an August 5 letter, Blue Shield of California warned that if Congress fails to extend the credit, “the cost of health insurance will skyrocket, with typical American families forced to pay hundreds or even thousands of dollars more each month to keep their coverage.”

Blue Shield reported that its premiums will increase by an average of 9.3% in 2026. In 2025, the company reported its premiums increased by an average of 8%. 

House Majority Leader Steve Scalise told The Daily Wire that Democrats are “holding the American people hostage over free health care for illegal aliens and bailouts for insurance companies.”

“And now, these same insurance companies, who are complaining that they need billions in taxpayer bailouts while they raise premiums on struggling families, are turning around and spending half a million dollars to fund Gavin Newsom’s political ambitions instead of decreasing the premiums they chose to increase,” Scalise said.

“We strongly support the extension of the advanced premium tax credits to protect our members’ access to affordable health care,” Blue Shield told The Daily Wire.

Brittany Madni, Executive Vice President of the Economic Policy Innovation Center, told The Daily Wire that it is “no surprise Blue Shield of California doesn’t want to admit to their role in this subsidy scam.”

“I’m not sure what’s worse: outright contributing half a million dollars to Governor Newsom’s Prop 50 campaign or blindly handing it over to use in his slush fund,” Madni said.

Madni said the company is “playing the game Obamacare set the rules for while American patients can neither afford nor access care.”

More than half of likely voters are expected to vote for Proposition 50, a poll released this week found. On Tuesday, Newsom announced they had raised enough money to pass Proposition 50 and told supporters, “You can stop donating.”