Full Breakdown
Tech-Backed Money Floods California Legislative Races
By Drooid · · How we work
Core Event: Massive Independent Expenditures Ahead of the General Election
Since January, two new tech-backed political action committees have become the dominant spenders in California’s state legislative contests. Grow California, financed by cryptocurrency investor Chris Larsen and venture capitalist Tim Draper, has poured more than $20 million into independent ads. California Leads, backed by Meta and Google, has contributed close to $14 million. A third group, Legislative Action PAC, funded by Google, AT&T, and oil-and-gas companies, has spent at least $6 million supporting Republican candidates since April. These out-of-state and corporate funds target both “purple” districts and intra-party contests in safely Democratic districts.
Background & Context
California law permits unlimited independent expenditures that are not coordinated with campaigns. This framework has attracted large sums from unions and businesses, already exceeding $100 million in the current cycle—more than the total spent in 2024. Tech-sector money is being used to influence policy on issues such as rent control and AI regulation.
Key Figures & Groups
- Grow California – Founded by Larsen and Draper; counters union spending.
- California Leads – Backed by Meta and Google; promotes “real-world solutions.”
- Legislative Action PAC – Republican-aligned; funded by Google, AT&T, oil-and-gas firms, and the California Chamber of Commerce.
- Legislative Action Victory PAC and Legislative Bipartisan Action PAC – Offshoots; together have spent about $6 million on Republican candidates.
Data & Statistics
- Grow California: > $20 million spent.
- California Leads: ? $14 million spent.
- Legislative Action PAC (and affiliates): >= $6 million spent on Republicans.
- Top nine competitive races (CalMatters analysis of spending since the June 2 primary) show independent expenditures from $2.6 million to $5.8 million per contest. Notable examples:
- Assembly District 68 – $5.6 million between David Penaloza (D) and Jessie Lopez (D).
- Senate District 24 – $5 million between John Erickson (D) and Brian Goldsmith (D).
- Assembly District 47 – $4.7 million between Greg Wallis (R) and Leila Namvar (D).
- Senate District 26 – $4.6 million between Sara Hernandez (D) and Sarah Rascón (D).
- Assembly District 12 – $3.8 million between Eric Lucan (D) and Jackie Elward (D).
- Party contributions: The California Democratic Party and county committees have provided over $1.5 million to Ida Obeso-Martinez (D) and $4.8 million to Sen. Melissa Hurtado (D).
Timeline
- June 2: CalMatters identifies the nine most expensive general-election contests based on cumulative spending from the primary through mid-September.
Official Statements & Responses
State party organizations note their financial support for candidates facing well-funded outside groups. The Democratic Party disclosed contributions exceeding $1 million to several challengers, emphasizing a strategy to counterbalance corporate-backed independent expenditures. Republican-aligned business coalitions describe their spending as a means to preserve “pro-business” policies in districts where rent-control measures are gaining traction.
What’s Next
Independent expenditures are expected to continue through the November general election, with both parties and outside groups likely to intensify advertising in the final weeks. Post-election reporting will be needed to assess the impact of these tech-sector funds on California’s legislative composition.
