Kevin McCarthy calls Gavin Newsom's leadership a 'failure,' warns California is on 'downward slope'

EXCLUSIVE-Former House Speaker Kevin McCarthy pointed to outmigration from California as evidence of what he described as Gov. Gavin Newsom's failed leadership of the Golden State in an interview with Fox News Digital on Friday.

"What a failure," McCarthy said. "You look at how many people left the state, you look how people look at the state, you look at the homelessness, you lool [sic] the major corporations that are generating income here have left. We're on a downward slope."

California has led the nation in outbound migration for six years, according to U-Haul. Several corporations, including Chevron, Tesla and Charles Schwab, also moved their California headquarters to other states.

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When asked whether he believes a Republican could be elected governor in the deep-blue state, McCarthy said it is not off the table due to California's unique jungle primary system where the top two candidates compete against each other regardless of political party.  

"If Republicans were smart, and they powered on the idea, we could actually come out of the primary with only two Republicans," he explained. "It's not any sure thing, but it's a unique strategy that can work. It's not fighting with one another; it's generating more people to come because it's an open primary."

McCarthy went on to assess the 11 candidates vying to replace Newsom, who is term-limited, seven of whom recently participated in a debate in San Francisco on Feb. 3.

The former speaker argued Rep. Eric Swalwell, D-Calif., is not capable of being the next governor, while naming Democratic candidate and San Jose Mayor Matt Mahan as one who could "rise up."

"You look at the Democrats - so many running and so many who are not qualified," McCarthy said. "Like, Eric Swalwell is not qualified to be governor. He's not qualified to actually run for governor."

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McCarthy went on to discuss the GOP's midterm tactics as Republicans begin to outline a strategy for defying the odds in the elections, which are historically difficult for the party in the White House.

While speaking at Harvard University in November, McCarthy explained how the MAGA pull Trump benefited from in the 2024 election does not transfer to his Republican counterparts.

"People think you can just have what President Trump has. No, he's earned it. He's earned through a lot of years," he said. "He's taken on people before, so they see that strength behind it. You can't just be anointed. You have to earn where you go."

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The former speaker noted infighting within the GOP, criticizing congressional Republicans for wasting key time in having the majority during the government shutdown.

"They're turning over the floor to Democrats - that's a bad sign," McCarthy said. "They're fighting among themselves."

He added the record-length government shutdown was a mistake that gave away "two months" of a two-year majority. Republicans are clinging to a tiny advantage in the House right now, and oddsmakers say Democrats are likely to retake control in November.

McCarthy stressed that Republicans must celebrate their political wins in order to have a better chance in the midterms, citing border security as one example.

"When they secured the border, why didn't you go to the border? Why didn't you show people, all these people aren't coming across anymore, that it's safe," he said.

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McCarthy said Republicans must show Americans what they've accomplished ahead of the 2026 midterms.