California's $6.2 Million Diaper Contract Faces Scrutiny Over Non-Competitive Award

California’s $6.2 million deal with Baby2Baby to provide free diapers was executed without the usual competitive bidding, prompting concerns about favoritism because of the nonprofit’s connection to Governor Gavin Newsom’s wife, Jennifer Siebel Newsom, and a board member of the First Partners Project. The Foundation for Accountability and Civic Trust urged the state auditor, Grant Parks, to investigate compliance with procurement rules and transparency standards.

Although state lawmakers added budget exemptions that legally allowed the non-competitive award, watchdogs argue the arrangement should still be examined for potential waste. The governor’s office later described the process as “competitive in nature,” despite the contract’s official non-competitive label. Additional records reveal the state considered other providers, such as SupplyBank.org, which offered more diaper sizes, but ultimately stuck with Baby2Baby’s limited offering. The issue is part of a broader pattern of contract exemptions in the 2026 budget covering over $1 billion in spending.