Newsom’s Prop 50: A Pay-to-Play Power Grab

Newsom’s Proposition 50, to redraw California’s House maps, is bankrolled by millions from Netflix’s Reed Hastings, CTA, SEIU, and the California Labor Federation.

⏱️ 7 min read

California’s Proposition 50 isn’t just another ballot measure — it’s a case study in pay-to-play politics. Millions from Netflix’s Reed Hastings, the California Teachers Association, SEIU, and the California Labor Federation are fueling Newsom’s redistricting power grab, while those donors cash in on taxpayer-funded favors — a cycle Californians can’t ignore.

Proposition 50: A Political Springboard

Gavin Newsom isn’t just pushing Proposition 50 to tilt congressional districts toward Democrats—he’s building a national platform as the party’s chief Trump critic, eyeing the 2028 presidential nomination.

When Republicans in Texas, spurred by Trump, threatened to redraw maps mid-decade to cement their edge, Newsom saw an opening. He’s pitching Prop 50 as a defense of democracy, but the millions flowing from loyal allies tell another story: this is about influence, not ideals.

California’s ballot measure system, with no caps on individual donations, invites big money to dominate. The early cash surge from insiders like Reed Hastings, the California Teachers Association (CTA), SEIU, and the California Labor Federation (CLF) shows Newsom’s network in action, trading hefty checks for policy favors that hit taxpayers hardest.

The Donors Fueling Newsom’s Ambition

Netflix: Corporate Backer

Reed Hastings, Netflix’s co-founder and executive chairman, dropped $2 million into Prop 50. His history with Newsom runs deep—$3 million to crush the 2021 recall and over $64,000 to the California Democratic Party during Newsom’s campaigns. Hastings calls it a stand for fair elections, but his company’s cozy state ties suggest other motives.

Netflix projects have already secured nearly $70 million in California film and TV tax credits this year, including a $50 million allocation and another $20 million for a feature film. With $750 million authorized and only a third allocated, Netflix stands to gain even more.

CTA: Public Employee Powerhouse

The ultra-liberal California Teachers Association has thrown in at least $3 million to support the measure, according to Associated Press reporting. They’ve been Newsom’s financial muscle, maxing out at nearly two million for his gubernatorial runs and adding nearly another couple million to the 2021 anti-recall effort. Through PACs, they’ve funneled millions more to bolster Newsom’s allies — and secured policies that put union interests ahead of students.

The Power of Organized Labor

Besides the CTA, the other giants in Organized Labor are also heavily invested: SEIU contributed $1 million, and the California Labor Federation (CLF) added another $1 million. SEIU and its affiliates spent roughly $5.5 million to defend Newsom during the 2021 recall (directly and indirectly), while CLF, the umbrella for non-government unions, has shaped the governor’s agenda. Together, those contributions have made sure Newsom puts union leaders first.

And it doesn’t stop there. The Newsom Recall Committee itself — the very committee built to save his governorship in 2021 — has given $2 million to the Yes on 50 campaign. You can be sure that some of that money came straight from these same special-interest donors, a shell game that funnels money through political action committees to keep it moving.

And these initial contributions are just the start of the pay-for-play pile-on. Expect checks from Native American tribes, utilities, the prison guards’ union, other labor groups, and possibly anyone with a major bill on the governor’s desk in the days and weeks ahead.

Quid Pro Quo: Taxpayers Pay the Price

These donations aren’t charity—they’re transactions.

Netflix has reaped nearly $70 million in film and TV tax credits this year alone, with hundreds of millions more available under the state’s $750 million program.

CTA’s loyalty has paid dividends. During COVID, the union successfully urged Gov. Newsom to shut down schools early — and California became one of the last states in the nation to reopen classrooms, a delay that served union interests but hurt students and families. At the same time, the CTA has enjoyed massive increases in education funding year after year, and holds carte blanche over curriculum, shaping standards to fit union priorities over students. More recently, Newsom delivered padded retirement benefits and a 2025 grant program with a one-time $300 million infusion for student teacher stipends — a windfall that could grow into recurring costs.

SEIU has scored big as well. The union secured a $25-an-hour minimum wage for healthcare workers, expanded Paid Family Leave through SB 951, retention bonuses, and a permanent expansion of paid sick leave. And a pervasive influence over most legislation.

CLF has enjoyed its share of wins too. The group pushed through AB 288, creating a state “right to organize” when federal protections fall short. And perhaps the biggest prize of all came earlier: AB 5, signed by Newsom in 2019, which forced many independent contractors to be reclassified as employees — making them subject to union drives and boosting labor’s power. And let’s not forget their “win” of requiring prevailing union wages in housing construction.

And labor’s appetite is endless — there’s always another bill waiting to give them more. For example, CTA is pushing AB 84, piling new audits and mandates onto charter schools to cripple non-union competition. CLF, meanwhile, is sponsoring a raft of bills designed to fight off innovation — from proposals making it harder for retailers to reasonably use self-checkout kiosks, to restrictions aimed at preventing businesses from adopting AI tools to streamline decision-making.

If Educated About the Corruption, It Impacts the Vote on Prop 50

A Harper Polling survey conducted August 25–27 for the United States Justice Foundation reveals a tight race, with 51.9% of Californians backing Prop 50 when it’s framed as a counter to Trump-driven Republican gerrymandering. But when voters hear about the corruption baked into this mid-decade redistricting scheme, support takes a significant blow.

Last Friday I wrote a column breaking down that survey, which showed how strongly voters react when Prop 50 is framed in terms of political corruption. With both sides preparing to spend immense sums on this fight, the outcome may ultimately hinge on whose messaging proves more persuasive.

So, Does It Matter?

Proposition 50 isn’t just about maps—it reveals a system where influence is bought and sold. Newsom’s reliance on special interest cash distorts priorities, funneling public funds into policies that reward donors while straining budgets. This kind of pay-to-play politics erodes public trust and leaves ordinary Californians picking up the tab.

In a state battered by high taxes and living costs, these transactions fuel inefficiency and cynicism. If we want a government that serves the public, not just the well-connected, we must demand transparency and accountability. Otherwise, democracy becomes a marketplace where the highest bidders rule.

And for Gavin Newsom, Prop 50 is more than a California power grab. It’s the launchpad for his national ambitions — a chance to pose as democracy’s defender while leaning on the same machine that could bankroll his 2028 run.

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Sources

• California Secretary of State / FPPC campaign finance reports, August 2025

• Politico, August 2025 – Reed Hastings’ $2 million donation to Prop 50

• Hollywood Reporter, August 2025 – Netflix awarded $70 million in film and TV tax credits

• Associated Press, August 2025 – CTA contribution of at least $3 million to Prop 50

• CalMatters, October 2021 – Major donors to Newsom’s recall defense

• Los Angeles Times, August 2021 – Newsom’s recall campaign funding

• Associated Press, 2024 – SEIU California political spending exceeding $97 million

• OpenSecrets, 2022 & 2024 – SEIU national political contributions

• California Legislative Information – SB 525 (healthcare wage law), SB 951 (Paid Family Leave), SB 616 (paid sick leave), AB 288 (state right to organize), AB 5 (independent contractor reclassification)

• Politico, March 2025 – CLF sponsorship of AI and labor bills

• California Film Commission, 2025 – Tax credit program allocations

• Harper Polling / United States Justice Foundation survey, August 2025