Steve Hilton announced the first findings from the newly formed California Department of Government Efficiency, led by Jenny Ray LaRue, alleging large-scale fraud involving state funds.

Speaking outside the California Department of Tax and Fee Administration, Hilton said the new department had begun examining financial activity within state agencies and tracking alleged misuse of taxpayer money.

“Welcome everyone. We are here outside the California Department of tax defeat administration. This is where your money goes. This building is where your money goes into the Democrats bottomless money pit,” Hilton said.

“And today we are making the first announcement at the new California Department of government efficiency, run by Jenny Ray LaRue, our first findings of the massive amount of fraud that's going on in California.”

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Hilton referenced a prior estimate released weeks earlier, which he said projected at least $250 billion in fraud statewide.

“Our estimate, as you may remember, that we put out a few weeks ago, at least $250 billion of fraud in California,” Hilton said.

“And today, we're announcing our first findings since we got to work in Cal DOGE just a few weeks ago, just a couple of weeks ago, and here it is. It's a classic.”

According to Hilton, investigators identified $370 million from cannabis tax revenue that he said had been diverted from its intended purpose.

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“The Democrats are taking hundreds of millions of dollars, three 70 million we've tracked so far from the cannabis tax that voters pass as an initiative that the money that tax that comes from taxes from cannabis sales is supposed to go for substance abuse help, instead, is being siphoned off to Democrat political front organizations in hundreds of tiny grants that are hard to track for things like voter registration, nothing to do with substance abuse,” Hilton said.

He argued that the funds were redirected into political activity rather than public programs.

“This is exactly what happens money that is supposed to be for one purpose to help the public siphoned off into a Democrat slush fund to help entrench their political power,” Hilton said.

Hilton also cited previous allegations involving fire relief funding.

“We saw it with fire aid. $100 million there supposed to help fire victims ended up going into things like voter registration, exactly as we are detailing here today,” he said.

He described the situation as the result of long-term one-party control in the state.

“It is absolutely scandalous. This is what you get after 16 years of one party rule, total corruption, total arrogance. They think they can get away with it forever. No more. They're not going to get away with it,” Hilton said.

Hilton said federal authorities are involved in identifying and prosecuting fraud and that the new California Department of Government Efficiency is positioned to continue that work.

“We have the federal administration finding the fraud, prosecuting the fraud, and now we have our California Department of government efficiency, a government in waiting, ready to stop the fraud in its tracks right here in California, and the first step towards that is finding out where it is, and that's what we're announcing today,” Hilton said.

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