Newsom's Free-Phone Giveaway Funded by Nonprofit Tied to Ex-Staffers Sparks Questions

California Governor Gavin Newsom has launched an eyebrow-raising initiative by sending cellphones to CEOs of major California companies, complete with his personal number pre-programmed. The goal? To "connect more directly with business leaders in the state," according to his spokesperson, Izzy Gardon.

Newsom’s office began rolling out these phones last November to some of the top 100 companies in the state. The twist? The initiative is funded not by taxpayers but by the California State Protocol Foundation, a nonprofit with deep ties to the governor. Two of its three board members are former Newsom staffers. The foundation operates similarly to presidential inaugural committees, funding business trips and other initiatives for governors without dipping into public funds.

While Newsom’s team touts the initiative as fostering valuable interactions between the governor and business leaders, the project comes at a time when California’s business climate is under scrutiny. High costs and regulatory hurdles have already prompted major companies like Chevron, Oracle, and Tesla to relocate their headquarters to more business-friendly states like Texas.

The foundation funding these phones has a murky track record. Charity watchdog group Charity Navigator gave it a poor rating, citing concerns like a high liabilities-to-assets ratio, lack of financial transparency, and no formal whistleblower or document retention policies. The principal officer of the foundation, Steve Kawa, is a seasoned Democratic strategist and former chief of staff to Newsom during his tenure as San Francisco mayor. Other board members include Jim DeBoo, another Democratic strategist, and Matina Kolokotronis, the COO of the Sacramento Kings NBA team.

The phones themselves fall under California’s public disclosure laws, meaning any communications on them could be subject to public records requests. This could potentially open a Pandora’s box of transparency issues, especially given the foundation's somewhat shadowy operational history.

It’s worth noting that this isn’t the foundation’s first rodeo. It has previously funded Newsom’s international trips, including visits to El Salvador in 2019 and to Israel and China in 2023. While such efforts are framed as cost-saving measures for taxpayers, the nonprofit’s lack of robust governance invites skepticism.

Efforts by Fox News Digital to reach the California State Protocol Foundation for comment were unsuccessful.