Gavin Newsom's 2028 Problem, Shady 'Housing' Deals, and Other Commentary

The California governor's path to the 2028 Democratic nomination, concerns over fraud in homeless housing projects, and more analysis on the latest political news.

Published on Feb. 5, 2026

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This commentary piece from the New York Post editorial board discusses several political issues related to California Governor Gavin Newsom. It examines Newsom's potential path to the 2028 Democratic presidential nomination, concerns over fraud and mismanagement in California's homeless housing projects, and other legal and economic topics in the news.

Why it matters

Newsom is seen as a rising star in the Democratic party, and his political future could have major implications for the party's direction. The allegations of fraud and mismanagement in California's homeless housing programs also raise questions about government accountability and the efficacy of these types of initiatives. The commentary provides insight into key political dynamics and controversies at the state and national level.

The details

The piece first discusses Newsom's potential 2028 presidential run, noting that while he is the "undeniable front-runner" for the Democratic nomination, his lack of experience in a competitive general election could be a weakness. It then delves into concerns over fraud and mismanagement in California's homeless housing projects, specifically citing the case of Shangri-La Industries and its alleged embezzlement of over $2 million in taxpayer funds. The commentary also touches on a legal case involving protesters disrupting a church service, as well as analysis of the Federal Reserve and the potential nomination of Kevin Warsh to lead it.

  • In February 2026, the New York Post editorial board published this commentary piece.

The players

Gavin Newsom

The current governor of California, who is seen as a potential frontrunner for the 2028 Democratic presidential nomination.

Cody Holmes

The former CFO of Shangri-La Industries, who is accused of embezzling more than $2 million in taxpayer funds intended for homeless housing construction.

Kevin Warsh

A former Federal Reserve governor who is being considered for the role of Fed chair, known for his views on restoring discipline and focus on price stability at the central bank.

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What they’re saying

“Gov. Gavin Newsom is the 'undeniable front-runner' for the 2028 Democratic nomination, largely because of his uncanny 'ability to be everything to — well, not quite everybody, but every Democrat.'”

— Ruy Teixeira, Columnist (The Free Press)

“'For California Gov. Gavin Newsom and Los Angeles Democrats,' Shangri-La 'stands for a hellish homeless housing nightmare' and 'eye-popping fraud.'”

— Susan Crabtree, Columnist (Real Clear Politics)

“'Yes, Don Lemon, arrested for joining agitators in a 'coordinated takeover-style attack' on Cities Church in St. Paul had 'a constitutional right to report' there. But the protesters 'violated' the congregants' right to the ' 'free exercise' of their faith'.”

— William McGurn, Columnist (The Wall Street Journal)

What’s next

The judge in the Shangri-La Industries case is expected to rule on whether Cody Holmes will be allowed bail on Tuesday.

The takeaway

This commentary highlights the political challenges facing Gavin Newsom as he eyes a potential 2028 presidential run, as well as ongoing concerns over fraud and mismanagement in California's homeless housing programs. It also touches on broader legal and economic debates, underscoring the complex and multifaceted nature of the political landscape.