Full Breakdown
Allegations of Misused California Cannabis Tax Funds
2/13/2026, 8:14:44 AM
Overview of the Allegations
California gubernatorial candidate Steve Hilton has alleged that $370 million in state funds, intended for substance abuse programs, were misappropriated to support Democratic voter mobilization efforts. This claim stems from an investigation conducted by Hilton's unofficial group, CAL DOGE, which asserts that these funds, sourced from the California Cannabis Tax Fund, were distributed to various organizations that allegedly bolster the Democratic voter base.
Details of the Fund Misallocation
According to CAL DOGE, the funds were controlled by Elevate Youth California, which was responsible for allocating taxes raised from cannabis sales under Proposition 64 to substance abuse education programs. Instead, the group claims that the money was funneled to 517 organizations, with an average grant of $700,000. Notable recipients included Young Invincibles, which reportedly received $1 million for "civic engagement" initiatives, and the Jakara Movement, which was allocated $350,000 for "Sikh youth empowerment and voter registration." Additionally, Asian Refugees United, part of the Asian Americans for Civil Rights and Equality network, received $800,000 for "LGBTQ+ Asian Storytelling."
Broader Implications
Hilton and his running mate, Herb Morgan, have suggested that their findings indicate a larger issue of "fraud, waste, and abuse" within California's state programs, estimating a total of $250 billion in misappropriated funds. Hilton emphasized the urgency of addressing these issues, stating that CAL DOGE's work aims to expose corruption and facilitate immediate action upon their election.
Official Statements & Responses
In a statement, Hilton remarked, “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.” He expressed confidence that the revelations from CAL DOGE would significantly impact the upcoming election, stating, “There is much more to come from CAL DOGE and its work will play a huge part in ending 16 years of Democrat one-party rule this November.”
Criticism & Opposition
As of now, the organizations implicated, including Elevate Youth California, Young Invincibles, the Jakara Movement, and Asian Refugees United, have not publicly responded to the allegations. The lack of commentary from these groups raises questions about the validity of the claims and the potential for further investigation into the matter.
What's Next
The CAL DOGE team, which includes investigators and citizen journalists, plans to continue its investigation into the alleged misuse of state funds. The outcomes of these inquiries may play a significant role in shaping the political landscape in California leading up to the November elections.
