Treasury Secretary Bessent And Newsom Clash At Davos Summit

At the 2026 World Economic Forum in Davos, Switzerland, a political drama unfolded that quickly reverberated across the United States and beyond. U.S. Treasury Secretary Scott Bessent, representing President Donald Trump’s administration, launched a scathing critique of California Governor Gavin Newsom, igniting a war of words that showcased not only personal animosity but also deep ideological divides over the future of American economic leadership.

Bessent’s remarks, delivered with characteristic bluntness, set the tone for what would become one of the most talked-about confrontations at the summit. He described Newsom as “Patrick Bateman meets Sparkle Beach Ken”—a biting reference that combined the image of a superficial, psychopathic character from American Psycho with the glitzy, empty-suit aesthetic of a Barbie doll’s companion. According to California Globe, Bessent did not stop there, accusing Newsom of being “too smug, too self-absorbed and too economically illiterate,” and quipping, “Governor Newsom, who strikes me as Patrick Bateman meets Sparkle Beach Ken, may be the only Californian who knows less about economics than Kamala Harris.”

The Treasury Secretary’s criticisms were not merely personal. Bessent contrasted the Trump administration’s “America First” economic policies—deregulation, tax cuts, and tariffs—with what he called Newsom’s “failed policies” in California. He pointed to fiscal chaos, rampant homelessness, and government malfeasance as hallmarks of Newsom’s tenure. “I was told he was asked to give a speech on his signature policies, but he’s not speaking because what have his economic policies brought?” Bessent jabbed, according to California Globe. He also referenced Newsom’s association with billionaire Alex Soros at Davos, a detail that quickly lit up social media and spawned a flurry of memes.

The economic critique was pointed and specific. Bessent highlighted California’s $37 billion homelessness initiative since 2019, a program that, despite its staggering investment, has failed to stem the crisis. Audits have revealed inadequate tracking of funds and widespread mismanagement. Adding to the woes, a nationwide scandal involving $5.8 billion in fraudulent rental assistance payments surfaced, with money distributed to deceased or ineligible recipients. In San Francisco, the Department of Homelessness and Supportive Housing reportedly awarded $87 million in contracts to non-compliant nonprofits, some of which are under FBI investigation for fraud.

California’s economic challenges extend beyond homelessness. The Employment Development Department (EDD) became an epicenter of fiscal disaster during the pandemic, with unemployment fraud estimated between $30 billion and $54 billion. According to California Globe, these losses were the result of inadequate safeguards and oversight, with fraudulent payments even reaching prisoners and out-of-state claimants. Experts have even suggested that laundered proceeds from this fraud may have ended up funding North Korea’s nuclear program. Despite these staggering losses, former Labor Secretary Julie Su, a Newsom appointee, forgave $32.6 billion in related federal debt, shifting the burden to taxpayers. The state auditor has repeatedly flagged the EDD as “high-risk” for fraud, part of a broader $76 billion in waste, fraud, and abuse across eight agencies under Newsom’s administration.

Bessent also focused on the state’s economic climate for businesses, pointing out that wasteful spending and anti-business regulations have driven entrepreneurs out of California. Iconic chains like In-N-Out Burger have relocated headquarters, citing what they describe as impossible policies and politically driven lockdowns that disrupted operations. Newsom’s $50 million legal slush fund, intended to “Trump-proof” California, is now tied up in 37 lawsuits, a move critics say reflects a political vendetta rather than genuine governance.

Public safety and environmental management were also in Bessent’s crosshairs. Newsom’s policies since 2019 have led to a significant decrease in prison populations, which, according to critics, has exacerbated vandalism and theft in California’s cities. The governor’s environmental initiatives, including a high-profile partnership with Kenya, have been criticized for prioritizing global pollution cuts over immediate local needs like wildfire prevention. Notably, the Pacific Palisades fire was attributed to bureaucratic issues and environmental regulations that prevented necessary ground clearings.

Adding a layer of personal controversy, revelations surfaced about a bronze bust of Newsom installed in San Francisco City Hall in 2018. As reported by California Globe, the sculpture was funded partly by companies tied to Newsom, raising questions about the use of “behested payments”—donations solicited by politicians to third-party causes. Newsom’s spokesperson denied that the governor personally funded or proposed the bust, insisting it was an independently proposed effort supported by private donors. Still, the episode feeds into a broader narrative of vanity and self-promotion that Newsom’s critics have seized upon.

Newsom, for his part, did not let the attacks go unanswered. At Davos, he dismissed Bessent’s remarks as personal and petty, saying, “The Treasury secretary talked about a Barbie doll. It was as if he was reading a diary, and had just broken up with someone. I mean, it was a secretary of the Treasury using valuable time, yesterday, on the world stage.” According to Nexstar Media, Newsom also spent much of his time at the forum criticizing President Trump, calling his address “remarkably boring” and “insignificant.”

The exchange took place against a backdrop of heightened political tension. Newsom, widely seen as a front-runner for the 2028 Democratic presidential nomination, used his platform at Davos to urge European leaders to resist what he termed “T-Rex” Trump, calling for firmness and backbone in the face of U.S. policies he opposes. “It’s time to stand tall and firm and have a backbone. I can’t take this complicity, people rolling over,” Newsom told a reporter, as cited by Fox News. The White House, meanwhile, criticized Newsom for “undermining the United States on the world stage” and urged him to focus on fixing California’s problems.

President Trump himself weighed in, reflecting on a relationship with Newsom that has soured over time. “He and I had a very good relationship—really close to the word exceptional—but now we seem not to,” Trump said, according to Reuters. Despite the acrimony, Trump added, “We’re going to help the people in California. We want to have no crime. I know Gavin was here. I used to get along so great with Gavin when I was president. Gavin is a good guy.”

As the dust settles from this high-profile clash, the implications for California—and for the national political landscape—are far from clear. Bessent has promised that the Trump administration will crack down on the waste, fraud, and abuse that he says have plagued California under Newsom’s watch. For Newsom, the episode is both a challenge and an opportunity: a chance to defend his record on the world stage and to sharpen his profile ahead of a possible presidential run. For observers, it’s a vivid reminder that the battle for America’s economic and political future is being waged not only in legislatures and boardrooms, but also in the global spotlight of places like Davos.