Xavier Becerra plots political future after Biden administration

Health and Human Services Secretary Xavier Becerra’s plans to leave the Biden administration and run for California governor are more advanced than previously known — with hiring discussions and spending further developed than he’s letting on.

Not only has Becerra had conversations over the past weeks about making the move, he or emissaries have approached political firms about standing up a gubernatorial campaign to succeed Gov. Gavin Newsom in 2026, two people briefed on those discussions told POLITICO.

Becerra, a former longtime member of Congress from Los Angeles and California attorney general, also has spent more than $130,000 over the last year for “campaign consultants,” activity that has not previously been reported in the media. The political outreach and payments have occurred even as Becerra has continued to state publicly that he’s solely focused on his Cabinet job in Washington.

Becerra sidestepped questions about plotting for a gubernatorial run in his home state when initially approached by POLITICO. But he did acknowledge the strict legal parameters he’s under in his current role.

“I am secretary of HHS and, by law, I have to be secretary of HHS and nothing else,” he said at a recent event in San Francisco. “So I’m gonna do my job as best I can.”

Becerra’s state committee, funded with the more than $1.5 million balance from his time as attorney general, clearly delineated the consulting expenses, selecting the code “CNS.” Other expenses were listed as “PRO,” for professional services (such as legal and accounting), or for office administrative matters.

A campaign attorney for Becerra’s state committee characterized the $10,000-a-month in payments as for account oversight — not traditional candidate consulting work.

Campaign finance reports reviewed by POLITICO listed the payments as made to the Podesta Group in Washington, D.C., the legendary lobbying and public affairs firm founded by brothers John and Tony Podesta. John Podesta, a senior adviser to President Joe Biden for clean energy, held top jobs in the Obama and Clinton White Houses, while his brother, Tony Podesta, has been one of Washington’s most powerful lobbyists and fundraisers. The fact that Becerra’s committee showed payments to the Podesta Group raised eyebrows from D.C. to Sacramento, given their pedigree and his current role in the Cabinet.

But the attorney for the committee, Becerra for Superintendent of Public Instruction 2030, said that was “a result of a data entry error.” The attorney, Stephen J. Kaufman, said the reports have been amended on the California Secretary of State’s website to reflect the proper payee, Alexis Podesta, of Podesta Company in Sacramento.

“Alexis Podesta has been paid to oversee the committee and manage its operations while Secretary Becerra has been serving in Washington, including payment of ongoing expenses and filing of required campaign reports,” Kaufman said.

Kaufman defended using the code for political consultants because it’s the “most accurate.”

Podesta, who has worked as secretary of a Cabinet agency under two California governors and spent time at The Walt Disney Company and Pacific Gas & Electric Company, has continued to provide committee management services for the first four months of the year and has been paid for those services, Kaufman said.

“To my knowledge, Alexis does not have any communication with the secretary,” he added.

Alexis Podesta confirmed she has not had any contact with Becerra since taking over the committee’s management. The financial arrangement was a continuation from what Becerra was spending before Podesta took over — and further speaks to him keeping his options for running open.

A senior Biden administration official said they were unaware of Becerra’s outreach to campaign operatives and political spending. Asked about the legal implications of his moves, the official added, “good question.”

A White House spokesperson did not answer questions about Becerra.

Cabinet members are prohibited under the Hatch Act from engaging in certain forms of political activity, including “testing the waters” for a future run for office.

Those steps include making campaign expenditures, meeting to plan the logistics and strategy of a campaign or giving others consent to do so, according to advisory opinions from the U.S. Office of Special Counsel.

“Those types of preliminary activities are considered to be part and parcel of a candidacy for political office,” said Delaney Marsco, director of ethics at the Campaign Legal Center.

While the Hatch Act depends heavily on the specific facts and circumstances, Marsco noted that planning campaign logistics would fall under the act. She also observed that Becerra spending $10,000-a-month “would be a very high cost to pay for an administrative, keeping the account open type of thing.”

Becerra previously violated the Hatch Act by expressing support for California Sen. Alex Padilla’s reelection campaign while speaking in his official capacity at the Congressional Hispanic Caucus Institute Annual Awards Gala in September 2022.

Numerous public officials have violated the act, including more than a dozen Trump administration officials before the 2020 presidential election. While the consequences for federal workers could be significant, such as a reduction in grade or even removal, experts said it’s harder to track the results for violations from higher-level officials and Cabinet members because the penalties — in cases they do happen — are handed down by their boss.

Becerra has served since the start of the Biden administration, a tenure that’s been frustrating and at times rocky. POLITICO previously reported that there’s been little expectation among Democrats close to the administration that Biden would seek to bring Becerra back for a second term — or that Becerra would want to stay in the role for another four years.

In recent months he’s ricocheted across the country to discuss health issues crucial to the administration in 2024, especially on the need to protect abortion rights.

At the same time, he has publicly, and to a greater extent privately, spoken in nostalgic terms about his time serving in statewide office in California. He even seemed to bemoan the lack of autonomy inherent in a Cabinet post.

“I do miss being AG,” he said, because as a constitutional officer, “once you get elected and you get your budget, you’re your own boss, and you do whatever you want.

“And as much as I’m the secretary of the department … I still have to wait ‘til I hear from the White House on a number of things.”

After his initial response to the questions about running for governor, Becerra has avoided mentioning the legal constraints he’s under as a Cabinet member while also talking up his own resume and experiences that could make him an attractive candidate for governor.

“I gave up a really good job in California as attorney general to come do this,” Becerra said at a Thursday live event hosted by Semafor, in response to POLITICO’s report. “I am thrilled that the president gave me this chance. I have a great job right now. Period.”

Moments later, during a question about shifting regional power dynamics in California, Becerra observed that while the bulk of the vote is in Southern California, the higher intensity voters are from the San Francisco Bay Area.

“Who knows? It’s gonna be interesting,” Becerra said, before turning attention to himself. “By the way, I’ve lived most of my life in L.A. I was born and raised in Sacramento. So, I like the Giants and I like the Dodgers. And most people say that’s not possible.”