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"Regulating AI is winning issue for Democrats, but their own party leaders are too complicit with Silicon Valley to use it," said one observer.
Polls show that a majority of US voters—and especially Democrats—want more robust guardrails on artificial intelligence, but Democratic governors' silence on President Donald Trump's directive banning states from regulating AI has some observers asking if lobbying by the powerful industry is to blame.
Sludge's David Moore and Donald Shaw reported Friday that tech titans including OpenAI and Meta last week sent a small army of lobbyists to meet with attendees of the Democratic Governors Association’s annual meeting, held this year at the swanky Biltmore Hotel in Phoenix.
According to the report, lobbyists and governors—some of whom "are teasing White House bids in 2028 or rumored to be in the mix"—gathered for a closed-door meeting. California Gov. Gavin Newsom, Michigan Gov. Gretchen Whitmer, Kentucky Gov. Andy Beshear, and Maryland Gov. Wes Moore were among those who reportedly met with the lobbyists.
Trump signed an executive order trying to prevent states from regulating AI and following through on the safety laws they enacted, but there was little public pushback from Democratic governors.AI lobbyists descended on the DGA winter meeting last weekend in Phoenix, per a list we obtained:
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— David Moore (@davidrussellmoore.bsky.social) December 12, 2025 at 11:15 AM
The meeting preceded Trump's Thursday signing of an executive order aimed at limiting states' ability to regulate rapidly evolving AI technology. The order directs the US Department of Justice to establish an AI Litigation Task Force empowered to sue states that enact “onerous and excessive" AI regulation. The edict also threatens to withhold federal funding from states that implement AI regulations that the Trump administration finds objectionable.
Democratic governors have been relatively muted on the order, especially given the overwhelming support for regulation of AI—which many experts say poses threats to humanity that may equal or outweigh its benefits—across the political spectrum.
As Moore and Shaw wrote:
While Democratic governors were silent, their Republican counterparts have been loudly arguing for months against the federal government preempting state AI policies. In June, 17 Republican governors sent a letter to Senate Majority Leader John Thune [R-SD] and House Speaker Mike Johnson [R-La.] warning them against preempting their states’ protections on AI use. Over the past couple months, a trio of Republican governors—Spencer Cox (Utah), Ron DeSantis (Fla.), and Sarah Huckabee Sanders (Ark.)—continued to make known their opposition to the Trump administration’s executive order.
Newsom, who many observers believe is eyeing a 2028 White House run, especially disappointed proponents of AI safeguards last year when he vetoed what would have been the nation's strongest AI safety regulations.
It's not just Democratic governors—congressional Democrats have increasingly partnered with an industry expected to soon be worth trillions of dollars. Some Democrats, like Rep. Josh Gottheimer of New Jersey, are personally invested in AI stocks. The AI industry also made record contributions to political campaigns during the 2024 cycle.
Other Democrats, including some who may have their sights set on higher office—notably Congresswoman Alexandria Ocasio-Cortez of New York—advocate stronger guardrails on AI development.
The public is worried about AI. Regulating AI is winning issue for Democrats but their own party leaders are too complicit with Silicon Valley to use it. www.thenation.com/article/poli...
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— Jeet Heer (@jeetheer.bsky.social) December 12, 2025 at 7:24 AM
"Voters want the party to get tough on the industry. But Democratic leaders are following the money instead," Jeet Heer, national affairs correspondent for The Nation, wrote Friday.
Citing voters' desire for stronger regulation, Heer argued that "Democrats have a tremendous opportunity to use the AI backlash for wedge politics," adding that "it's a way to win back working-class voters who are already disillusioned with the GOP and Trump."
"For more than five months, the Trump administration has held California National Guard troops hostage as part of its political games," said California's attorney general. "But the president is not king."
In a win for Democratic California Gov. Gavin Newsom, state Attorney General Rob Bonta, and the residents of Los Angeles, a federal judge on Wednesday ordered President Donald Trump to stop deploying the National Guard in the nation's second-largest city.
"The founders designed our government to be a system of checks and balances," wrote US District Judge Charles Breyer, an appointee of former President Bill Clinton. "Defendants, however, make clear that the only check they want is a blank one."
Trump mobilized around 4,000 California National Guard troops in June amid protests against his violent crackdown on undocumented immigrants. Since then, the Republican leader has also pursued deployments in other Democrat-led cities, including Chicago, Illinois; Portland, Oregon; and Washington, DC, where two soldiers were recently shot.
The new ruling from San Francisco-based Breyer comes as the administration was cutting troops in LA from 300 to 100, according to the New York Times.
"Once again, a court has firmly rejected the president's attempt to make the National Guard a traveling national police force."
"Six months after they first federalized the California National Guard, defendants still retain control of approximately 300 guardsmen, despite no evidence that execution of federal law is impeded in any way—let alone significantly," the judge said. "What's more, defendants have sent California guardsmen into other states, effectively creating a national police force made up of state troops."
After ruling in September that Trump's deployment of Marines in Los Angeles violated the 1878 Posse Comitatus Act, the judge on Wednesday blocked the president's federalization of California National Guard troops—but he also halted his own decision until next Monday, allowing for appeals.
Despite the prospect that the Trump administration would continue the court fight, Bonta and Newsom—who is expected to run for president in 2028—welcomed the ruling.
"Once again, a court has firmly rejected the president's attempt to make the National Guard a traveling national police force," Bonta said in a statement. "For more than five months, the Trump administration has held California National Guard troops hostage as part of its political games."
"But the president is not king. And he cannot federalize the National Guard whenever, wherever, and for however long he wants, without justification," the attorney general declared. "This is a good day for our democracy and the strength of the rule of law."
In addition to battling Trump's invasion of LA, Bonta has backed lawsuits filed by Illinois Attorney General Kwame Raoul, Oregon Attorney General Dan Rayfield, and DC Attorney General Brian Schwalb challenging the president's deployments in their cities and filed an amicus brief with the US Supreme Court for the Chicago fight.
"A wealth tax is a big tent policy unless the only people you care about are billionaires," said one progressive organizer.
California Gov. Gavin Newsom, considered by some to be the frontrunner to be the next Democratic presidential nominee, said during a panel on Wednesday that he wants his party to be a “big tent” that welcomes large numbers of people into the fold. But he’s “adamantly against” one of the most popular proposals Democrats have to offer: a wealth tax.
In October, progressive economists Emmanuel Saez and Robert Reich joined forces with one of California's most powerful unions, the Service Employees International Union's (SEIU) United Healthcare Workers West, to propose that California put the nation’s first-ever wealth tax on the ballot in November 2026.
They described the measure as an "emergency billionaires tax" aimed at recouping the tens of billions of dollars that will be stripped from California's 15 million Medicaid recipients over the next five years, after Republicans enacted historic cuts to the program in July with President Donald Trump's One Big Beautiful Bill Act, which dramatically reduced taxes for the wealthiest Americans.
Among those beneficiaries were the approximately 200 billionaires living in California, whose average annual income, Saez pointed out, has risen by 7.5% per year, compared with 1.5% for median-income residents.
Under the proposal, they would pay a one-time 5% tax on their total net worth, which is estimated to raise $100 billion. The vast majority of the funds, about 90%, would be used to restore Medicaid funding, while the rest would go towards funding K-12 education, which the GOP has also slashed.
The proposal in California has strong support from unions and healthcare groups. But Newsom has called it “bad policy” and “another attempt to grab money for special purposes.”
Meanwhile, several of his longtime consultants, including Dan Newman and Brian Brokaw, have launched a campaign alongside “business and tech leaders” to kill the measure, which they’ve dubbed “Stop the Squeeze." They've issued familiar warnings that pinching the wealthy too hard will drive them from the state, along with the critical tax base they provide.
At Wednesday's New York Times DealBook Summit, Andrew Ross Sorkin asked Newsom about his opposition to the wealth tax idea, comparing it to a proposal by recent New York City Mayor-elect Zohran Mamdani, who pledged to increase the income taxes of New Yorkers who earn more than $1 million per year by 2% in order to fund his city-wide free buses, universal childcare, and city-owned grocery store programs.
Mamdani's proposal was met with a litany of similar warnings from Big Apple bigwigs who threatened to flee the city and others around the country who said they'd never move in.
But as Robin Kaiser-Schatzlein explained in October for the American Prospect: "The evidence for this is thin: mostly memes shared by tech and finance people... Research shows that the truth of the matter is closer to the opposite. Wealthy individuals and their income move at lower rates than other income brackets, even in response to an increase of personal income tax." Many of those who sulked about Mamdani's victory have notably begun making amends with the incoming mayor.
Moreover, the comparison between Mamdani's plan and the one proposed in California is faulty to begin with. As Harold Meyerson explained, also for the Prospect: "It is a one-time-only tax, to be levied exclusively on billionaires’ current (i.e., 2025) net worth. Even if they move to Tasmania, they will still be liable for 5% of this year’s net worth."
"Crucially, the tax won’t crimp the fortunes of any billionaire who moves into the state next year or any later year, as it only applies to the billionaires living in the state this year," he added. "Therefore... the horrific specter of billionaire flight can’t be levied against the California proposal."
Nevertheless, Sorkin framed Newsom as being in an existential battle of ideas with Mamdani, asking how the two could both represent the Democratic Party when they are so "diametrically opposed."
"Well, I want to be a big-tent party," Newsom replied. "It's about addition, not subtraction."
Pushed on the question of whether there should be a "unifying theory of the case," Newsom responded that “we all want to be protected, we all want to be respected, we all want to be connected to something bigger than ourselves. We have fundamental values that I think define our party, about social justice, economic justice.”
"We have pre-distribution Democrats, and we have re-distribution Democrats," he continued. "Therein lies the dialectic and therein lies the debate."
Polling is scarce so far on the likelihood of such a measure passing in California. But nationally, polls suggest that the vast majority of Democrats fall on the "re-distribution" side of Newsom's "dialectic." In fact, the majority of all Americans do, regardless of party affiliation.
Last year, Inequality.org examined 55 national and state polls about a number of different taxation policies and found:
A billionaire income tax garnered the most support across party identification. On average, two out of three (67%) of Americans supported the tax including 84% of Democrats, 64% of Independents, and 51% of Republicans.
In national polls, a wealth tax had similarly high levels of support. More than three out of five Americans supported the tax including 78% of Democrats, 62% of Independents, and 51% of Republicans.
That sentiment only seems to have grown since the return of President Donald Trump. An Economist/YouGov poll released in early November found that 72% of Americans said that taxes on billionaires should be raised—including 95% of Democrats, 75% of independents, and 48% of Republicans. Across the board, just 15% said they should not be raised.
Support remains high when the proposal is more specific as well. On the eve of Mamdani's election, despitre months of fearmongering, 64% of New Yorkers said they backed his proposal, including a slight plurality of self-identified conservatives, according to a Siena College poll.
Many observers were perplexed by how Newsom proposes to maintain a “big tent” while opposing policies supported by most of the people inside it.
"A wealth tax is a big tent policy unless the only people you care about are billionaires," wrote Jonathan Cohn, the political director for Progressive Mass, a grassroots organization in Massachusetts, on social media.
"Gavin Newsom—estimated net worth between $20 and $30 million—says he's opposed to a billionaire wealth tax. Color me shocked," wrote the Columbia University lecturer Anthony Zenkus. "Democrats holding him up as a potential savior for 2028 is a clear example of not reading the room."