Newsom celebrates ranking, tells rivals: 'California harbors more companies than Texas or Florida'

California's economy has reached a staggering $4.25 trillion as of 2025, solidifying its position as a national economic powerhouse. In the first quarter of 2026, the state's Gross Domestic Product (GDP) experienced an annualized growth rate of 3.7%, securing its spot as the second-fastest-growing economy in the United States.

Governor Gavin Newsom seized upon these figures to contrast California's economic performance with that of Texas and Florida, states governed by Republicans. Newsom highlighted that California added approximately 131,500 jobs between the first quarter of 2025 and the first quarter of 2026. In comparison, Florida saw a 1.6% advance, ranking 23rd nationally, while Texas grew by 0.9%, tying for 36th place.

"For years, we have heard the same fairy tale: California's economic model isn't working and Texas or Florida is the future. The facts prove otherwise," Newsom stated, directly challenging the narratives often presented by his political rivals. He emphasized that California leads in monetary growth among the largest state economies, with its output increasing by $44.5 billion in the fourth quarter of 2025, surpassing New York, Texas, and Florida.

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For years, we have heard the same fairy tale: California's economic model isn't working and Texas or Florida is the future. The facts prove otherwise.

Newsom attributed California's economic vitality to strategic investments in "innovation, talent, entrepreneurship, and workers." He contrasted this approach with policies in Republican-led states, asserting that they "demand working families bear a greater tax burden, while California continues to find ways to reduce costs for families."

Since Newsom took office, the state's annual GDP has increased by over $1.18 trillion. The first quarter of 2026 saw an annualized rate of $4.4 trillion in production. The state administration presented California as the world's fourth-largest economy and the primary economic engine of the U.S., leading in technological innovation, advanced manufacturing, and high-tech industries.

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While Republican-led states demand working families bear a greater tax burden, California continues to find ways to reduce costs for families.