California’s $76.5 Billion Fraud Scandal: Steve Hilton Calls for End to 16 Years of Democratic Rule

By Sam Barron | Thursday, 01 January 2026 08:33 PM EST
Steve Hilton, who is running for the Republican nomination for California governor, told Newsmax on Thursday the state is lighting money on fire. A recent state auditor’s report showed there was possibly $76.5 billion in fraudulent spending in the state. The auditor warned that persistent failures in benefit programs, financial reporting, cybersecurity, and water infrastructure could expose the state to billions of dollars in added costs and public safety risks.

In its latest “high-risk” assessment, State Auditor Grant Parks said longstanding problems across the Gov. Gavin Newsom administration have not been resolved and, in some cases, have worsened further. “That was just from eight or nine areas of spending,” Hilton said on “Carl Higbie FRONTLINE.” “It didn’t include the $13 billion they’ll be spending next year on free healthcare for illegal immigrants that the Democrats nationally denied was even possible,” Hilton added. “It doesn’t include another $55 billion that they lost over the course of the pandemic.”

Hilton said under the Democrat Newsom, the state has the highest unemployment rate and the highest poverty rate in the country, “because of their insane policies.” “That’s why we got to kick these people out,” Hilton said. “We’ve had 16 years of one-party rule. It’s a total disaster.”

Next week is the one-year anniversary of the Palisades Fire, and Hilton said Newsom and Los Angeles Mayor Karen Bass are covering up what caused the fire. “Nothing’s been done to address the failings that led to this in the first place,” Hilton said. “The Palisades Fire was totally avoidable, because actually, it was the rekindling of a fire that was there a week before, and they could and should have put it out, but they didn’t. And instead of dealing with any of this, Karen Bass and Gavin Newsom and all the rest of them, they’re just covering it up.”