California’s race for governor is heating up — and Republican candidate Steve Hilton has ignited controversy with explosive claims about how hundreds of millions in cannabis tax revenue have been spent.
Hilton and his running mate for state controller, Herb Morgan, say their independent watchdog effort — dubbed “CAL DOGE” — has uncovered what they describe as widespread misuse of funds from the California Cannabis Tax Fund. According to their findings, approximately $370 million intended for substance abuse prevention and youth programs was instead routed to organizations allegedly engaged in political advocacy aligned with Democratic interests.
The funds in question stem from Proposition 64, the 2016 ballot measure that legalized recreational marijuana in California. A portion of cannabis tax revenue is earmarked for youth education, prevention, and treatment programs related to substance abuse. The money is administered in part through Elevate Youth California.
Hilton’s team claims that 517 organizations received grants averaging roughly $700,000 each. Among those cited were nonprofits such as Young Invincibles, the Jakara Movement, and Asian Refugees United.
According to CAL DOGE’s assertions:
- The Jakara Movement received $350,000, which Hilton’s team alleges supported Sikh youth empowerment and voter registration efforts.
- Young Invincibles was awarded approximately $1 million, which the group claims was used for civic engagement initiatives.
- Asian Refugees United reportedly received $800,000 for LGBTQ+ Asian storytelling programming.
Hilton argues that these expenditures stray from the intended purpose of combating substance abuse and instead contribute to building what he calls a political infrastructure favoring Democrats.
“In seven days of work, CAL DOGE has already uncovered more fraud than Gavin Newsom and his regime have done in their seven years in power,” Hilton said in a statement, pledging further revelations.
Hilton and Morgan broadly claim to have identified as much as $250 billion in “fraud, waste and abuse” across major California programs, though detailed documentation of that figure has not yet been publicly released.
The CAL DOGE initiative describes itself as a team of “investigators, tech advisors, and citizen journalists.” Its director, Jenny Rae Le Roux, previously ran in the 2021 gubernatorial recall election.
The organizations named in Hilton’s allegations have not publicly responded. Elevate Youth California, Young Invincibles, the Jakara Movement, and Asian Refugees United did not immediately comment when contacted by media outlets.
