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flag U.S. Treasury Secretary Scott Bessent attacked California Governor Gavin Newsom at Davos, calling him "economically illiterate" amid allegations of fraud and federal aid freezes.

flag At the 2026 World Economic Forum in Davos, U.S. Treasury Secretary Scott Bessent sharply criticized California Governor Gavin Newsom, calling him "economically illiterate" and accusing him of being out of touch with residents amid rising homelessness, a budget deficit, and mass migration. flag Bessent linked Newsom to billionaire Alex Soros, labeled a "sugar daddy," and cited federal investigations into alleged fraud in state programs, including a $305 million fraud figure. flag He also referenced the freezing of $10 billion in federal aid and the indictment of Newsom’s former chief of staff, framing the remarks as part of a broader Trump administration effort to address waste and abuse in Democratic-led states. flag Newsom dismissed the comments, calling them disconnected from reality.

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