McCarthy Blames Newsom for Corporate Exodus, Cites Chevron Relocation

McCarthy Blames Newsom for Corporate Exodus, Points to Chevron

Former House Speaker Kevin McCarthy tells Fox News Digital that California Governor Gavin Newsom’s tenure is a “failure,” arguing the state is on a downward slope marked by outmigration, homelessness and corporate departures. McCarthy cites U-Haul data showing six years of outbound migration and points to several companies, including Chevron, Tesla and Charles Schwab, as examples of firms that relocate headquarters out of California. He frames those moves as evidence that voters and donors are reassessing the governor’s stewardship as preparations for the 2026 gubernatorial campaign begin.

Chevron Cited as Symbol of California’s Corporate Flight

McCarthy singles out Chevron among the corporations that leave California, using the energy major as a focal point for debates over the state’s business climate and regulatory posture. For an oil and gas company with long-standing operations and infrastructure in the state, relocation of corporate functions becomes a high-visibility sign of friction between large energy firms and state policymakers on issues ranging from permitting to emissions regulations and taxation. The move of executive and administrative headquarters is presented as a response to a policy and legal environment that companies perceive as increasingly inhospitable to large-scale fossil-fuel operations.

Industry executives and analysts say such relocations carry consequences beyond headline geography: they affect local employment in corporate roles, influence where senior managers concentrate investment decisions, and shape interactions with state regulators and community stakeholders. McCarthy argues these exits diminish California’s ability to attract and retain corporate leadership, which in turn erodes the state’s competitiveness for capital-intensive energy projects that require stable long-term planning. The Republican former speaker frames Chevron’s departure as emblematic of a broader trend that could alter the distribution of corporate influence and energy-sector investment across U.S. states.

Political Math and the 2026 Governor’s Race

McCarthy stresses that California’s jungle primary system leaves an opening for an opposition candidate, saying a Republican victory is not impossible if conditions favor one, and that corporate relocations and migration trends are metrics voters and donors are watching closely.

Broader criticisms McCarthy reiterates include ongoing disputes between Newsom’s administration and the Trump administration, persistent concerns about homelessness and public safety, and worries that without policy shifts the combined effects of population loss and corporate moves will continue to shape political narratives going into the 2026 election cycle.