Steel Steered $1.2 Million Pandemic Meals Contract to Firm That Prints Her Campaign Mailers, Records Show

Records reviewed by LAist show that Rep. Michelle Steel, while serving as an Orange County supervisor in 2020, directed a $1.2 million taxpayer-funded pandemic meals contract to a marketing and printing company that was also producing her congressional campaign mailers. The contract called for dinners for needy seniors in her district at about $24 per meal.

The money came from federal pandemic relief funds. In June 2020, the five county supervisors gave themselves authority to distribute funds to feed needy seniors and people with disabilities in their own districts. Each later awarded $1.2 million for meals running into early 2021. The procedure they created allowed those decisions to be made without public votes or competitive bidding.

The meals program returned to the spotlight last week, when District Attorney Todd Spitzer announced a plea deal with Andrew Do, who resigned as supervisor the same day. Spitzer called the funding method a "horrible mistake by the board" that led to a "lack of oversight." Prosecutors say Do admitted taking more than $550,000 in bribes tied to the program and pleaded guilty in federal court to conspiracy to commit bribery. No other current or former supervisors have been accused of misusing meal funds.

LAist's review of all five districts' contracts found the cost per meal varied widely. Steel's District 2, which then included Huntington Beach, Costa Mesa, Fountain Valley and Stanton, was the most expensive by far. Her vendor, DTN Tech, received $1.2 million between early August 2020 and late January 2021. By comparison, District 3 paid about $11 per meal through a nonprofit, District 4 paid under $8 through Meals on Wheels, and District 5 paid about $7.50 per frozen meal through 2-1-1 Orange County. Meals in Steel's district were available for pickup only, while the other districts' contracts required home delivery.

DTN had no previous record of providing government-funded meals, according to the county's contract databases. An audit DTN commissioned this year noted the company had "not previously received government awards." The audit was submitted in May 2024 after the county warned in February that the required review was three years overdue. It found no deficiencies in how DTN followed the contract, though such audits do not assess whether prices were reasonable or the vendor was fairly chosen.

Federal Election Commission data show DTN has received more than a third of Steel's campaign printing spending since 2019, including over $120,000 in printing and mailing work in 2020, the same period as the meals contract. LAist also found that at least two-thirds of the public money DTN paid for meals went to restaurants that are DTN printing clients. DTN used the maximum 10% of the contract, about $120,000, for administrative costs.

Steel's campaign spokesperson, Lance Trover, said she chose DTN for its logistics and event management experience and because it was an existing, vetted county contractor, adding that other vendors "were already receiving existing funds." He said the campaign paid full market rates for mailers and that the only link between them and the meals was DTN providing both services. In a statement, Steel said her goals were to ensure people were fed and to assist restaurants. DTN CEO Serena Nguyen said the company provided hot dinners from reputable restaurants, one later recognized by the Michelin guide, and wanted "quality over quantity." DTN distributed 49,762 meals, averaging $24.11 each.

Steel is running for reelection in California's 45th Congressional District against Democrat Derek Tran in one of the nation's most competitive and expensive House races. DTN's earlier work for the county came in 2018, when Steel's staff hired it to print taxpayer-funded mailers during her reelection campaign, a move most of her colleagues criticized at the time.