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Newsom defends California amid high cost of living criticism on CNN

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CNN host Dana Bash chided Gov. Gavin Newsom, D-Calif., on California’s affordability crisis on Sunday, citing a couple who fled to Nashville to escape the state’s high costs. He confronted.

“California has the highest cost of living in the country,” Bash told Newsom. “The state’s prices are 11% higher than the national average. We actually went out to dinner here in Nashville last night. We met a couple from California. They moved from California because they couldn’t afford the rent or even buy a house and start a family.”

Bash spoke with Newsom in a wide-ranging interview for “State of the Union.” During this interview, the governor faced questions about his book “The Young Man in a Hurry.”

“Yes, we’ve had hundreds of thousands of people move to California. We’ve seen population growth in the last two, three years. As you know, we’ve gone from a bottom-six economy to the fourth-largest economy in the world. And we now dominate every major industry, from artificial intelligence to quantum and robotics. We dominate agriculture. [agriculture]. We are superior in forestry. We dominate manufacturing,” Newsom countered.

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Bavaria, Munich: US Governor of California Gavin Newsom attends the 62nd Munich Security Conference on February 14, 2026. (image alliance via Marijan Murat/Getty Images)

Bash said people are struggling to meet needs in the state, and Newsom argued they’re pushing for “$11 insulin” and universal health care.

He said California has the highest minimum wage for health care workers and fast food workers and argued that the state “subsidizes more than 300,000 child care slots.”

“So we’re looking at it from both sides. So we have a parent agenda that expands paid sick leave and extends paid family leave to eight weeks, all to support families, address living costs, and address the economic crisis that goes back literally 70 years in California for a reason,” he said.

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But the governor acknowledged California’s housing challenges.

“We are as stupid as we want to be on housing and can’t get out of the way. This explains in more ways and more ways what is wrong with our state. And finally, we have moved forward with historic housing reforms that even our worst critics, including some on the left like my friend Ezra Klein, recognize are the most progressive and perhaps most effective reforms in a generation.” he said.

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Newsom speaks at school

California Governor Gavin Newsom speaks at a press conference after touring the newly opened Ruby Bridges Elementary School in Alameda, California. (Justin Sullivan/Getty Images)

If Newsom decides to run for president in 2028, questions about California’s policies will be a major focus.

A University of New Hampshire Research Center poll released Thursday found that former Transportation Secretary Pete Buttigieg He was at the top of the list of potential 2028 Democratic presidential candidates.

Newsom and Representative Alexandria Ocasio-Cortez of New York ranked second with 15% of the votes, while Democratic 2024 candidate former Vice President Kamala Harris and Senator Mark Kelly of Arizona also ranked second with 10% of the votes.

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