California Gov. Gavin Newsom ends $6.2M no‑bid diaper contract with Baby2Baby

Governor Gavin Newsom’s administration released the long‑sought contract for California’s $6.2 million diaper program after months of media pressure. The agreement, signed with the nonprofit Baby2Baby, provides 400 free diapers to each newborn at participating state hospitals. Baby2Baby, whose chief executive sits on the board of a charity founded by Newsom’s wife, was selected despite the contract being recorded as “non‑competitively bid” in state documents.

The Department of Health Care Access and Information disclosed that the deal was awarded after a request for information was sent to 15 organizations, but critics say no true competitive process took place. The contract details show $3.89 million for the diapers themselves, about $750,000 for shipping, $610,000 for warehousing, and $35,000 for communications. An extension worth $12.5 million for the following year has also been noted. Republican lawmakers and watchdog groups have condemned the lack of transparency and warned that using a nonprofit intermediary adds administrative costs.

The release of the contract late on a Friday evening drew further criticism for limiting public scrutiny, with officials defending the selection by citing Baby2Baby’s statewide distribution capacity and partnerships with over 590 California organizations.