Home>Articles>Governor Newsom Ends $54 Million Department of General Services Contract With Walgreens
Gavin Newsom
CA Gov. Gavin Newsom. (Photo: Kevin Sanders for California Globe)

Governor Newsom Ends $54 Million Department of General Services Contract With Walgreens

Prison Medication, Health Care Supply contract is to end in May

By Evan Symon, March 9, 2023 7:03 am

Governor Gavin Newsom announced on Wednesday that the state will be ending a $54 million contract with Walgreens, the first of likely many state actions against the pharmacy and retail company following an announcement earlier this week that the state would no longer do business with them.

Following Walgreens’ decision last week to no longer sell abortion pills in the 20 states where they are illegal at the state level due to a threatened lawsuit, Governor Newsom fired back by tweeting out “California won’t be doing business with Walgreens or any company that cowers to the extremists and puts women’s lives at risk. We’re done.”

The announcement left many confused on what sort of action California could even take, with most speculating that Newsom would go after state insurance plans and state contracts. However, the speculation ended on Wednesday when Newsom announced that the contract between the California Department of General Services (DGS) and Walgreens to procure specialty pharmacy prescription drugs, primarily used by the California Department of Corrections and Rehabilitation (CDCR) and its correctional health care system, would not be renewed. The DGS specifically notified Walgreens that a planned renewal on May 1, 2023 would no longer be tenable, with the state looking to others to fulfill the contract instead. In total, Walgreens is set to lose $54 million annually from that one contract alone.

“California will not stand by as corporations cave to extremists and cut off critical access to reproductive care and freedom,” said the Governor on Wednesday in a statement. “California is on track to be the fourth largest economy in the world and we will leverage our market power to defend the right to choose.”

While Walgreens has continued to maintain that they are only complying to each individual states laws, other state actions against the company are likely to come soon.

“This was not unexpected,” explained Roger Springer, a former executive with two companies that helped negotiate contracts with local and county governments, to the Globe on Wednesday. “We knew he would eye some of these contracts, and this one with the prisons is something of a starting gun. In one sense, other states, especially deep blue ones, might do the same to contracts they have with Walgreens too. In another sense, it’s sort of like only the first of many things to be taken against them in California.

“They can still dent the company with more contract ends, and more severely, with what they can do with state insurance plans. Walgreens got caught up in a huge national fight over the issue, and they could either complies with the twenty something states that threatened to sue them if they kept selling abortion pills there, or they would have to face what California is doing to them now. Either way, they stand to lose a lot of money and, if this continues, could lose employees and more stores too.

“That $54 million contract is only the beginning. And it’s no picnic for the state either, who now has to scramble to get another contract in place in less than two months, which is easier said than done.”

Other state announcements over cutting ties with Walgreens are expected soon.

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19 thoughts on “Governor Newsom Ends $54 Million Department of General Services Contract With Walgreens

  1. This should serve as a warning to other so-called “private” companies who foolishly choose to do business with the State of California and rely on Gov Gruesome to be sane and stable, never mind fair.
    Interesting that Walgreen’s in recent years —- at least in California —- has gone from a sensibly-run company to one that is “super-woke,” running stupid ads and pushing vaccines, etc., and all that goes with it — e.g. diminishing quality of stores and service and so forth. This is apart from CA policy that has made them a target of ruinous theft leading to widespread closure of stores. If we assume that Walgreen’s management style changed because of a desperate deal with the devil of CA contracts, they must really be stunned that Gov Gav screwed them over ANYWAY. And if compliantly Woke Walgreen’s isn’t compliant enough for the Gov, what pharmacy chain in CA possibly could be?
    Bottom line: Gavin Newsom is a hair-triggered adolescent IDIOT. Worst Governor Ever. As you know..

    1. Amen, ShowandTell.

      Newsom is the extremist. He actually puts a woman’s life at risk for allowing such easy access to this pill. This pill not only can end the life of the pre born but can be dangerous to the mother, most often teens. It can cause profuse bleeding, partial spontaneous birth leading to a trip to the ER. All depending upon when the pill is taken it can lead to serious complications for the woman. Remember all medications have potential risks.
      Women need to have access to a medical professional and they need to do their own research.

      1. No kidding, Cali Girl, and of course that is good advice for women. I doubt very much your average young woman knows the potential medical trauma and harm she is getting into with use of this abortion drug. After all, she has been brainwashed that it’s “all good” and “no problem,” maybe even virtuous.
        Can’t help noticing that Newsom is not just on-board with girls consenting to mutilation/hormones to turn themselves into boys, never mind up-to-9th-month abortion, but is ENTHUSIASTICALLY on-board with it all to the point that his temper goes into overdrive when there is opposition to it. Would we be surprised to learn one day that his personal issues with women are behind a lot of this? Who knows, I sure don’t. But his monstrous stance on all of this is becoming increasingly bizarre.

        1. I would not be surprised one bit this has to do with his interpersonal relationships with the opposite sex!

          In the end, many young women will be damaged from this policy.

  2. “Governor Newsom fired back by tweeting out ‘California won’t be doing business with Walgreens or any company that cowers to the extremists and puts women’s lives at risk.'”

    Newsom and the California Democrats at the epitome of “extremists”. Newsom is a far left radical.

    Newsom, why don’t you tell us how much it is costing the California taxpayers to cancel your contract with Walgreens in your hissy fit? I’m sure there is an early termination clause.

    Newsom is not a leader. He is a child. The state is being run by a child.

    1. Besides, Protect Freedom, can Newsom even DO such a thing as unilaterally trash a state contract?
      Just wondering.

      1. He’s a dictator and California is no longer about Californians.
        He is trying to force a company to break the law while manipulating the people of California with laws.

  3. From the Mayo Clinic’s webpage regarding Narcissistic Personality Disorder:

    Symptoms of narcissistic personality disorder and how severe they are can vary. People with the disorder can:

    Have an unreasonably high sense of self-importance and require constant, excessive admiration.
    Feel that they deserve privileges and special treatment.
    Expect to be recognized as superior even without achievements.
    Make achievements and talents seem bigger than they are.
    Be preoccupied with fantasies about success, power, brilliance, beauty or the perfect mate.
    Believe they are superior to others and can only spend time with or be understood by equally special people.
    Be critical of and look down on people they feel are not important.
    Expect special favors and expect other people to do what they want without questioning them.
    Take advantage of others to get what they want.
    Have an inability or unwillingness to recognize the needs and feelings of others.
    Be envious of others and believe others envy them.
    Behave in an arrogant way, brag a lot and come across as conceited.
    Insist on having the best of everything — for instance, the best car or office.

    At the same time, people with narcissistic personality disorder have trouble handling anything they view as criticism. They can:

    Become impatient or angry when they don’t receive special recognition or treatment.
    Have major problems interacting with others and easily feel slighted.
    React with rage or contempt and try to belittle other people to make themselves appear superior.
    Have difficulty managing their emotions and behavior.
    Experience major problems dealing with stress and adapting to change.
    Withdraw from or avoid situations in which they might fail.
    Feel depressed and moody because they fall short of perfection.
    Have secret feelings of insecurity, shame, humiliation and fear of being exposed as a failure.


    1. He fits the bill that is for sure.
      It is disturbing to me that he has made this issue the hallmark of his political career.
      It is just pure evil and the destruction of a sane society.
      Where is the love of humanity?

  4. Newsom is really ramping up the dictator tone in this one, mimicking Justin Trudeau, whats next for the slaves?

    The whole world needs to read up on one very important “whats next” where constitutions in all 194 countries will be forced to take a back seat to whatever the WHO makes up such as another fake health concerns. They are voting to implement this latest lunacy in May and they are betting thier lives on it passing as long as the people dont find out about it and spread the word about it and stop it.

    “…..the WHO [headed by the Bill Gates appointed terrorist Tedros] is working on a series of horrific amendments to their International Health Regulations document. If accepted by member nations, it would allow W.H.O. tyrants and their unseen bosses to preside over a global holocaust in the name of “health”

    Here is a one hour video explaining it all:

  5. Newsom ending California Department of General Services’ $54 million contract with Walgreens by a dictatorial decree is just as shady as Newsom’s no-bid $1 billion N-95 mask deal with newly formed BYD Mask company connected with the CCP. It’s a shame that California doesn’t have an opposition party to investigate and put a stop to Newsom’s abuse of power?

    1. Mario – the CAGOP is out busy begging for donations – they don’t have TIME to investigate and try to put a stop to Dictator Newsom’s “mandates” and hissy-fit edicts….
      Besides, he and Trudeau are vying for “Best Boy” in Herr Schwab’s cabal of globalist tyrants….

    2. Mario I think you are on to something there with that comparison. He makes a unilateral decision about a contract whether he is permitted to do such a thing or not. “I’ll just DO IT, heck with the rules, who’s stopping me?” he says to himself.

  6. This amounts to nothing more than virtue signaling on Newsom’s part. How does this help people – especially people who rely on Walgren’s because it’s the only pharmacy nearby?

  7. Are the other companies like CVS selling abortion pills in states where it is illegal?
    If not, the state must end their relationship with them, too.

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