| | | | |  | | By Tyler Katzenberger and Dustin Gardiner | | Presented by |  | | | PROGRAMMING NOTE: We’ll be off for Thanksgiving on Thursday and Friday but back to our normal schedule on Monday, Dec. 2. WHO SAID IT? Test your knowledge of new lawmakers, win POLITICO swag! We’ve been reaching out to the large class of newly elected state lawmakers about what’s topping their to-do lists this year — Match their names and responses in the quiz below. We’ll announce the winner at our new member reception on Dec. 2. RSVP here.
|  Fairshake, a cryptocurrency-backed PAC, is facing private fury from Democrats angry about its spending for Republicans in competitive California House races. | Hans Lucas/AFP via Getty Images | THE BUZZ: CRYPTO CLASH — Democrats in Congress are sorting through the wreckage after the cryptocurrency-backed PAC Fairshake spent millions of dollars backing Republican candidates in competitive California House races. For some in the party, crypto’s earthquake of an entrance into the political area signals it’s time to fold the emerging industry into Democratic ranks. But others are still seething over what they saw as a thinly veiled bid to aid Republicans’ efforts to maintain control of the House. Concerns about spending reached the highest levels of leadership, according to a senior Democratic congressional leadership aide granted anonymity to speak candidly. “I’m not sure how you could engineer a set of decisions to spend this much money and end up with all of the same friends you had before and no new ones, but they managed to do it,” the aide said. Of particular concern was Fairshake’s $5 million boost for Republican incumbent Reps. — Michelle Steel, David Valadao and Mike Garcia, each of whom ran in California battleground districts key to the House majority. Valadao won his race, Garcia lost, and Steel currently trails Democrat Derek Tran. “Definitely people feel burned about it, very much so,” a Democratic strategist who was granted anonymity to speak candidly told Playbook. “If your goal is to get everybody pro-crypto, you don't start screwing with the majority.” That’s not quite the impression the industry was going for. Nationwide, Fairshake and other crypto-aligned PACs spent on a wide range of candidates, including progressive Democrats and Republicans who bashed the Biden administration for limiting the technology. Multiple industry leaders who spoke with Playbook said it was imperative to draw bipartisan support for crypto in Congress as they fight to advance its standing in the financial sector, build trust among consumers and crack down on the potential for fraud. “Crypto is all about making everyone equal … there's something very progressive about that,” said Konstantin Richter, CEO of blockchain service provider Blockdaemon. “I think we need to do a much better job of explaining it.” Josh Vlasto, a spokesperson for Fairshake and its affiliates, said the group’s “core strategy” was to support “pro-crypto" candidates and oppose “those who played politics with jobs and innovation.” “We ran a national strategy,” Vlasto told Playbook, “not one based on the internecine interests [of] a particular state political party.”
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Rep. Ro Khanna (D-Calif.) on Capitol Hill in July. | Francis Chung/POLITICO | But even as some Democrats fume privately, prominent California lawmakers are maintaining their support for the state’s homegrown and lucrative tech sector. If anything, it seems crypto groups’ funding avalanche has some Dems rushing to engage with the industry. Rep. Ro Khanna, whose district includes the heart of Silicon Valley, said crypto was “here to stay” and called for “smart regulation” last week on POLITICO’s Morning Tech podcast. Another Bay Area lawmaker, Rep.-elect Sam Liccardo, told Playbook he would endorse legislation aimed at stabilizing cryptocurrency value. “There is a broader concern in tech about regulatory approaches that has brought — too many, in my view — to the Republican Party for remedy,” Liccardo said. “As a party, I think there’s much we can do consistent with our progressive values to reassure those in the tech industry, including crypto, that the Democratic Party is ready to support an innovation economy in a responsible way.” Even those burned by millions in spending from crypto-aligned PACs signaled openness to the industry’s policy asks in statements to Playbook. A spokesperson for Tran — the Democrat who as of Monday evening held a narrow lead in an Orange County race where Fairshake spent $2.8 million backing his opponent, Steel — said he “looks forward to continuing to work with the crypto and block chain industry to democratize finance.” Outgoing Rep. Katie Porter, a famed finance-industry critic whom Fairshake spent $10 million opposing in California’s 2024 Senate primary, struck a similar note. “Despite the spending against her in the campaign, Katie hasn’t wavered in her support for blockchain technology and is committed to ensuring California remains a global leader in finance and technology,” Porter spokesperson Jordan Wong said in a statement. GOOD MORNING. Happy Tuesday. Thanks for waking up with Playbook. You can text us at 916-562-0685 — save it as “CA Playbook” in your contacts. Or drop us a line at dgardiner@politico.com and tkatzenberger@politico.com, or on X — @DustinGardiner and @TylerKatzen. WHERE’S GAVIN? Nothing official announced.
| | | | A message from Food & Water Action: Will Gov. Newsom side with the oil and gas industry or Californians after the “worst gas leak in US history?" In 2015, the Aliso Canyon Gas Storage Facility released 100,000 tons of methane and toxic chemicals, endangering public health. Governor Newsom vowed to shut down Aliso Canyon, but his Public Utilities Commission appointees voted to expand it. The PUC will decide Aliso Canyon’s future on December 19th. Learn more. | | | |  | WHO SAID IT? | | ROOKIE CLASS QUIZ — We've been asking new lawmakers the same question: If you could accomplish one thing in your first year, what would it be? Six assemblymembers-elect and two incoming state senators responded — Patrick Ahrens (Silicon Valley Democrat), Carl DeMaio (San Diego Republican), Jeff Gonzalez (Imperial County Republican), John Harabedian (Pasadena-area Democrat), Maggy Krell (Sacramento-area Democrat) and Catherine Stefani (San Francisco Democrat) from the Assembly — and, in the Senate, Steven Choi (Orange County Republican) and Suzette Martinez Valladares (Santa Clarita Republican). Match those eight names with their below responses and email your guesses to tkatzenberger@politico.com. Include your full name for a chance to win!
- "To strengthen the promise of community colleges as a key driver of our state’s economic success."
- "To make Republicans a viable, effective voice of opposition, and to inflict consequences on the Democrat supermajority, such that they have to moderate and work in a more bipartisan fashion."
- “Figure out how to be in three places at once!”
- “I have a day-one bill that’s very important. It shores up access to medication abortion for Californians in anticipation of potential threats from the federal government or other states.”
- “I want to pass meaningful legislation that curbs gun violence, protects women’s health and safety, and addresses the housing crisis because I’m committed to building a safer and more affordable California for all."
- “Advocate for meaningful legislation that’s community centered and reaches across the aisle.”
- “Cutting costs. From groceries to gas, electricity to rent, I’m focused on making life more affordable for every Californian.”
- "California is a beautiful state, but heavy taxes and regulations make it difficult to live and do business here. My hope is we can begin to reduce some of these burdens on our residents and businesses so more Californians can begin to afford the Golden State dream once again.”
| | | | Want to know what's really happening with Congress's make-or-break spending fights? Get daily insider analysis of Hill negotiations, funding deadlines, and breaking developments—free in your inbox with Inside Congress. Subscribe now. | | | | | | | CA vs. TRUMP | | |  A coalition of advocacy and civil rights groups wants California Gov. Gavin Newsom to further protect California from potential privacy issues posed by President-elect Donald Trump's incoming administration. | Damian Dovarganes/AP | FIRST IN PLAYBOOK: TRUMP-CRYPTION — A coalition of more than a dozen human rights and data privacy groups is asking Gov. Gavin Newsom to protect Californians’ sensitive digital information from threats posed by President-elect Donald Trump, according to a letter shared exclusively with Playbook. The letter is endorsed by groups including antitrust nonprofit The Tech Oversight Project, the California LGBTQ Health & Human Services Network and progressive nonprofit NextGen California. It cites Trump’s inflammatory rhetoric toward immigrants and minority groups as “a clear signal” that his administration will try to demand sensitive information from law enforcement agencies and data brokers for “surveillance, criminalization, and denial of essential services.” “California has the opportunity to serve as a safe haven,” the letter reads. “We urge you to take immediate action to stop the flow of Californians’ personal data from flowing out-of-state.”
| | ELECTION RESULTS | | | 
State Sen. Josh Newman conceded his reelection bid to Republican Steven Choi yesterday. | Rich Pedroncelli/AP | THAT’S A WRAP — State Sen. Josh Newman yesterday conceded his Orange County race to former GOP Assemblymember Steven Choi after an election dominated by a nasty battle with powerful labor union AFSCME 3299, which represents 30,000 University of California employees. As we’ve previously reported, AFSCME 3299 targeted Newman, a vulnerable Democrat, after he didn’t support a bill that would have amended the state constitution to protect UC worker rights. Senate President Pro Tem Mike McGuire, who called AFSCME’s move “morally bankrupt,” shared an X post reacting to Newman’s concession that said the senator “isn’t just a colleague, he’s a dear friend to many of us.” “He’s truly one of the best,” McGuire wrote. “This State is stronger thanks to Senator Newman’s hard work, courage and tireless service. Orange County is a better place due to Senator Newman’s vision and leadership.” — Lindsey Holden TRAN DECLARES — Tran was leading Steel by 581 points late Monday in the fierce contest for an Orange County House district. He declared victory Monday night, despite the fact that the Associated Press had not called the race and Steel had not conceded. Steel’s campaign declined to comment.
| | | | A message from Food & Water Action:   | | | | | CLIMATE AND ENERGY | | |  California Gov. Gavin Newsom is taking a shot at Donald Trump and Elon Musk with a new electric vehicle tax credit proposal. | Brandon Bell/Getty Images | NO LOVE FOR TESLA — Newsom took a big stand today against Trump — and his friend-turned-foe Elon Musk — when he announced California would fill the void for its residents if the president-elect axes federal funding for EVs. Read more in last night’s California Climate. Newsom's move is already ruffling feathers, even among fellow Democrats. Khanna in an X post Monday asked that the governor "not play politics with keeping manufacturing in California" and said it "would be foolish to exclude Tesla." Musk, for his part, called the EV proposal "insane."
| | TOP TALKERS | | | | 
This Jan. 23, 2002 file photo shows Hunter's Point Shipyard photographed from Bayview in San Francisco. | AP | RADIATION EXPOSED — The first installment of a six-part investigative report, published yesterday by the San Francisco Public Press in partnership with the Guardian finds that more than 1,000 servicemembers and staff were exposed to potentially harmful levels of radiation at Hunters Point Naval Shipyard in San Francisco between the 1940s and 1960s. Parts two through six are scheduled for release in early December. SPECIAL SESSION NOTES — Ann O’Leary, former chief of staff for Newsom, told the Sacramento Bee the Legislature’s special session to defend against a Trump presidency is more than “a PR stunt” in an interview published yesterday. The state needs to act faster than before to protect its agenda on climate, immigration and more, she said, given “the aggressiveness of the Trump team is going to be much greater” in his second term.
| | | | Policy Change is Coming: Be prepared, be proactive, be a Pro. POLITICO Pro’s platform has 200,000+ energy regulatory documents from California, New York, and FERC. Leverage our Legislative and Regulatory trackers for comprehensive policy tracking across all industries. Learn more. | | | | | | | AROUND THE STATE | | — California farmers who voted for Trump could see their industry’s workforce decimated if the president-elect follows through on his promise of mass deportations. (Los Angeles Times) — Robert F. Kennedy Jr. was on the losing side of California vaccine fights. Now, Trump wants him in his cabinet. (CalMatters) — California’s commercial crab season is delayed, again, in the name of protecting whales. (KQED) — Placer County sheriff’s officials recovered the bodies of two people believed to be fishermen swept away in the North Fork American River near Auburn this past weekend, one of which is potentially the relative of a California state lawmaker. (Sacramento Bee) — Lottery draws and a not-so-glamorous swing space: Inside orientation for new members of California’s congressional delegation. (Los Angeles Times) — French Laundry chef Thomas Keller is closing one of his top-ranked Wine Country restaurants. (San Francisco Chronicle)
| | | | A message from Food & Water Action: Will Gov. Newsom side with the oil and gas industry or Californians after the “worst gas leak in US history?" In 2015, the Aliso Canyon Gas Storage Facility released 100,000 tons of methane and toxic chemicals. SoCalGas’ disaster forced thousands to evacuate their homes to avoid further exposure to cancer-causing benzene and other chemicals.
SoCalGas took four months to seal the gas leak. Families near Aliso are still suffering the consequences. Instead of shutting it down like Gov. Newsom promised, the PUC allowed Aliso to expand by 3,000%, perpetuating the public health threat.
Over 150 organizations have come together to call for a shutdown of Aliso by 2027, but the PUC is considering kicking the can down the road instead of protecting communities. Gov. Newsom and allies should stand with families, not SoCalGas’ profits. On December 19th, the PUC will decide the future of Aliso Canyon. Learn more. | | | | | PLAYBOOKERS | | BIRTHDAYS — Bart Reed … Dennis Ross … Art Shell BELATED B-DAY WISHES — (was Monday): Rep. Jimmy Gomez (D-Calif.) (5-0) … Lee Dunn … Colin Crowell … Alexandra Givens … Allie Strom … (was Sunday): DHS Secretary Alejandro Mayorkas … Tyler Goodspeed of the Hoover Institution … Ronald K. Alberts ... Jared Cohen … Robin Lyons … (was Saturday): Geoff Morrell … Amy Schatz of Glen Echo Group … Terry Tornek ... Elliot R. Wolfson … Jenna Lloyd-Randolfi … (was Friday): Scarlett Johansson WANT A SHOUT-OUT FEATURED? — Send us a birthday, career move or another special occasion to include in POLITICO’s California Playbook. You can now submit a shout-out using this Google form. CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here. Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Rebecca Haase to find out how: rhaase@politico.com.
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