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State records sharpen fight over Newsom’s Baby2Baby diaper deal

CBS California says newly released state files back its reporting on a disputed no-bid diaper contract, despite a correction demand from Newsom’s office.

Frankie Delgado

By Frankie Delgado · News Reporter

4 min read

State records sharpen fight over Newsom’s Baby2Baby diaper deal
Photo: CBS News

California released records on the Baby2Baby diaper contract at 5:34 p.m. on July 17, CBS California reported, 66 days after the outlet requested them and six hours after it published an investigation into the deal.

About 30 minutes later, Gov. Gavin Newsom’s office sent CBS an email seeking corrections and saying the coverage included misrepresentations and factual errors about the Golden State Start initiative, according to CBS California.

CBS said it reviewed the governor’s office’s claims against state budget papers, bill language, legislative analyses, Legislative Analyst’s Office reports and the records released by the state.

The contract was coded non-competitive

Newsom said on camera that the Baby2Baby deal went through a competitive bidding process, CBS reported. His office later said the governor was referring to a process that was competitive in nature, with 15 applicants reviewed on factors including diaper cost, implementation cost and distribution capacity.

State records reviewed by CBS tell a narrower story. The state’s contract database labeled the agreement “NON-COMPETITIVELY BID,” and the request-for-information document said it was “Not a Solicitation” and that pricing would not be treated as a bid or proposal, according to CBS.

CBS reported that California’s formal competitive bidding rules require published evaluation criteria, scoring, notice to losing bidders and protest rights. The Baby2Baby deal was made legal through a budget exemption from that process, CBS reported.

The newly released records did not include scoring sheets, evaluation criteria or rankings, according to CBS. The outlet also reported that state documents gave conflicting respondent counts of 11, 14 and 15.

A “Finalists Recommendation” document said the agency met with all RFI respondents or organizations representing them, CBS reported. At least one respondent told CBS it never received a meeting.

The records delay is still disputed

The governor’s office denied that the administration delayed records to hide documents, saying extensions were needed so lawyers could process the requests, according to CBS.

CBS said it reported a timeline, rather than a motive. The records request was filed May 12, and CBS reported that the state took 24 days to determine whether the records were public and disclosable, then extended its own deadlines three times.

The files were released July 17, 66 days after the request and 70 days after Newsom publicly announced the contract, according to CBS.

Diaper bank funding got messy

Newsom’s office also challenged CBS’s statement about the governor’s 2025 budget funding the free diaper program at the expense of traditional diaper banks.

The office said the final 2025 budget included $7.4 million for the Diaper Access Initiative and a $7.4 million one-time increase for diaper banks. It also said the final 2026 budget gave diaper banks $16.5 million, more than the $12.5 million for the diaper access initiative, according to CBS.

CBS said it updated a summary bullet to make clear that Newsom’s 2025 budget proposal cut existing diaper bank funding, while lawmakers later restored money for diaper and food banks and separately added funding for the governor’s program through a later budget bill.

According to CBS, the Legislative Analyst’s Office recommended supporting existing diaper banks, and lawmakers removed the governor’s diaper program from the June 2025 budget before later adding $7.4 million for it with an exemption from competitive bidding and Department of General Services oversight.

CBS also reported that the governor’s 2026 budget again did not include diaper bank funding, and lawmakers later added the $16.5 million allocation.

Other claims remain on the table

The governor’s office said a CBS reference to diaper banks being able to bid came from an earlier budget hearing before the final budget, according to CBS.

CBS reported that the administration told lawmakers on May 20, 2025, that diaper banks could compete through an RFP process. That was five days after the RFI response window had closed, and the state never issued a formal RFP, according to CBS.

The outlet said it updated its reporting after the records release, including links to the contract, the records timeline and the governor’s office’s post-publication statement.

This story draws on original reporting from CBS News.