A government ethics group on Monday, July 13, asked California State Auditor Grant Parks to examine a $6.2 million diaper contract promoted by Gov. Gavin Newsom. The request targets the state’s selection of Los Angeles nonprofit Baby2Baby and its handling of procurement records.
The Foundation for Accountability and Civic Trust, known as FACT, asked California’s state auditor to review the contract’s pricing, approval and political connections. No state audit had been publicly announced as of July 13.
Newsom unveiled the Golden State Start program in San Francisco on May 8. The initiative will provide free diapers to families leaving participating hospitals after a baby’s birth.
Audit request targets procurement.
FACT Executive Director Kendra Arnold alleged that California has not provided sufficient information to demonstrate that the award was fair or economical. Her letter asked Parks to examine how Baby2Baby was selected and whether personal relationships influenced the decision.
Those claims remain allegations. No court, legislative committee, or state auditor has found that Newsom, First Partner Jennifer Siebel Newsom, or Baby2Baby acted improperly.
California exempted the program from its standard competitive contracting process. State officials have said they still invited diaper banks, manufacturers, and other organizations to submit proposals.
Officials told lawmakers that the state reviewed 15 submissions before choosing Baby2Baby. The agency then conducted interviews and negotiated with the nonprofit.
However, the complete scoring materials have not been available for independent review. Those files could identify the bidders, proposed prices, evaluation criteria, and reasons Baby2Baby received the contract.
Democratic state Sen. Caroline Menjivar questioned the arrangement during a legislative hearing in June. She said the vendor’s connections created poor optics and pressed officials about the contracting exemption.
Republican state Sen. Tony Strickland has focused on cost. He has argued that consumers can find diapers at major retailers for about 16 cents each, close to the state’s claimed contract price.
Nonprofit connections face examination.
Baby2Baby co-CEO Norah Weinstein serves on the board of the California Partners Project, a nonprofit co-founded by Siebel Newsom. Baby2Baby has said Weinstein receives no pay for that service and that the relationship did not affect the contract.
The connection does not establish favoritism. It has increased pressure on the administration to disclose how evaluators addressed possible conflicts and scored competing proposals.
Baby2Baby’s other co-CEO, Kelly Sawyer Patricof, has made political donations. FACT included those contributions in its audit request, but political giving alone does not prove a contract was improperly awarded.
An audit could determine whether decision-makers disclosed their relationships with Baby2Baby or affiliated organizations. It could also examine whether independent officials reviewed the final selection.
The administration maintains that Baby2Baby has the manufacturing capacity, storage network, and hospital partnerships needed to operate the program statewide. The nonprofit already distributes diapers and other essential products through hospitals and community organizations.
Costs extend beyond the contract.
The Baby2Baby agreement covers about 40 million diapers for approximately $6.2 million. That equals 15.5 cents per diaper when manufacturing, warehousing, and direct implementation are included.
California’s total program spending is higher because it also covers staffing, administration and planning. The enacted budget provides $7.4 million this year and $12.5 million for the 2026-27 fiscal year.
The combined two-year allocation reaches $19.9 million. Earlier claims that the state was paying roughly 50 cents per diaper combined two years of funding but used only the first year’s diaper total.
Retail comparisons also have limits. A store price does not include statewide storage, inventory management, hospital coordination, or delivery.
A clearer comparison would examine the prices submitted by every organization seeking the contract. That review cannot occur until California releases the competing proposals and evaluation materials.
Nearly two months after Newsom announced the partnership, key contract documents remained unreleased. Requested materials included the signed agreement, scope of work, scoring sheets, procurement packet, and vendor award documents.
The delayed production has become a central part of the controversy. State officials have acknowledged that the materials are public but said they needed additional time to collect and review them.
Hospital distribution moves forward.
Golden State Start is scheduled to begin in the summer of 2026. Families will receive 400 diapers at discharge, without completing an application or passing an income test.
The first phase will prioritize hospitals serving large numbers of Medi-Cal patients. Officials plan to add hospitals and birthing centers as the program expands.
Baby2Baby will manage procurement, warehousing, inventory, and hospital deliveries. The diapers will carry the Golden State Start name alongside Baby2Baby branding.
Newsom has presented the initiative as an affordability measure for new parents. His administration argues that immediate access to diapers can reduce financial pressure and support infant health.
Critics have not challenged the basic need for diapers. Their objections focus on the vendor selection, program costs, political relationships, and delayed disclosure of public documents.
Audit decision remains pending.
FACT’s request does not automatically launch a state investigation. The auditor conducts reviews authorized under California law or approved through the Legislature’s Joint Legislative Audit Committee.
Lawmakers could seek a formal audit, demand procurement files through oversight hearings, or limit future contract extensions. A review could also determine whether the contracting exemption was justified.
The program remains active, and California has not suspended the Baby2Baby agreement. The next major updates will be the release of the procurement records and a public decision on whether the state will open an audit.
