CA Governor Candidate Steve Hilton on Why California is Destroying Itself & How a Republican Can Win

Steve Hilton on California’s Affordability Crisis and His Republican Run for Governor

Episode guide Published All-in With Chamath, Jason, Sacks & Friedberg 1 hr 8 min

概览

This All-In interview centers on Steve Hilton’s campaign for governor of California, with the hosts asking how a Republican candidate can win in a heavily Democratic state and what policies he would use to reverse California’s affordability, housing, energy, education, crime, and homelessness problems.

Hilton frames his argument around a broad diagnosis: California’s government has become too expensive, too captured by unions and special interests, too hostile to business and building, and too ineffective at delivering basic outcomes. He presents himself as a change candidate whose personal background, Thatcher-era political formation, and California policy work shape a pro-worker, pro-growth platform.

The discussion moves from biography into policy mechanics: tax cuts, spending reductions, alleged fraud and waste, legislative constraints, housing regulation, energy permitting, school accountability, prison capacity, addiction treatment, mental health infrastructure, and the electoral math required to reach the top two and then win a 2026 general election.

分段落总结

[00:00] Introduction and Personal Background

[事实] The hosts introduce Steve Hilton as a Republican and a British-born candidate for governor of California who is leading or polling strongly in the Republican field.

[事实] Hilton describes his parents as Hungarian refugees from communism and says his stepfather fled Hungary in 1956 as a teenager after the Soviet invasion.

[事实] He recounts growing up in a working-class immigrant family in Brighton, attending Oxford, working in business and politics, advising David Cameron in 10 Downing Street, and later moving to the United States because of his wife Rachel Whetstone’s technology career.

[事实] Hilton says he became a naturalized U.S. citizen and renounced his U.K. citizenship because he wanted people to know he was “all in.”

[05:00] Political Formation and California Parallels

[事实] Hilton says Margaret Thatcher’s rise during Britain’s 1970s economic and labor unrest shaped his political outlook.

[事实] He argues that California today resembles the U.K. of the 1970s because of union dominance, high taxation, economic sclerosis, overregulation, and difficulty building.

[事实] He identifies work, enterprise, freedom, and opposition to communism as major influences on his worldview.

[推测] Hilton uses the Thatcher comparison to frame California as a state needing a sharp political and economic reset rather than incremental management.

[08:35] Tax Plan and Affordability

[事实] The hosts summarize Hilton’s tax proposal as no California state income tax on income under $100,000 and a 7.5% flat tax above that threshold.

[事实] Hilton says the plan is both “pro-worker” and “pro-growth,” aimed at helping working Californians squeezed by gas, electricity, housing, insurance, and other costs.

[事实] He says the $100,000 threshold is relevant because in many California counties that income level can still be considered low income.

[事实] Hilton says about 7 million households would benefit from the under-$100,000 state income tax reduction.

[事实] He says the plan would reduce revenue by about 18.5%, or roughly $60 billion, and would bring the budget back toward pre-pandemic levels.

[15:00] Spending, Deficits, and CalDOGE

[事实] Hilton argues California’s post-pandemic budget expansion has been baked into the baseline and is fiscally irresponsible, especially while the state is using reserves to cover deficits.

[事实] He says he created “CalDOGE,” the California Department of Government Efficiency, to examine published spending data and estimate fraud, waste, and abuse.

[事实] Hilton says he is running with Herb Morgan for state controller and emphasizes that the controller can audit organizations receiving state funds and stop funds when improper spending is suspected.

[事实] Hilton claims CalDOGE found examples involving climate mitigation funds, cannabis tax funds, and Project Homekey homelessness spending.

[事实] He estimates fraud, waste, and inefficiency at $425 billion over five years, or about $80 billion per year.

[20:26] Governing Through a Democratic Legislature

[事实] The hosts point out that a governor would need to work through a Democratic-controlled legislature and could not unilaterally impose large tax and spending changes.

[事实] Hilton acknowledges that tax changes require the legislature but argues there may be room for agreement on affordability proposals.

[事实] He says Democratic candidate Katie Porter publicly said she liked or would borrow the first-$100,000-tax-free idea.

[事实] Hilton argues that electing the first Republican governor in 20 years would change Sacramento’s political dynamic and could loosen constraints on Democratic legislators who privately recognize the system has gone too far.

[推测] The discussion highlights that Hilton’s policy agenda depends not only on winning office but also on creating enough voter pressure or bipartisan cover to move legislation.

[24:00] Business Climate and the Risk of Exodus

[事实] Hilton says Democrats may diagnose affordability and overregulation correctly but mostly propose more of the same solutions.

[事实] He argues that higher taxes on businesses and high earners would drive jobs, investment, and wealth creation out of California.

[事实] He cites conversations with business owners who say they are close to leaving the state because new industrial and technology-related facilities are being built elsewhere.

[事实] He gives an example of a Southern California HVAC duct manufacturer that may move closer to semiconductor and AI-related construction outside California.

[推测] Hilton’s business argument links affordability to job creation, suggesting that household relief and business competitiveness are inseparable in his campaign narrative.

[28:04] Housing Costs, CEQA, and Union Power

[事实] Hilton says housing is the clearest example of California’s structural problems because union power, litigation, and climate rules all converge there.

[事实] He argues California is not building enough housing and that the same construction project can cost two or three times more in California than in neighboring states.

[事实] He says building codes, EV charging requirements, energy-efficiency mandates, CEQA litigation, project labor agreements, and prevailing wage rules all add cost.

[事实] The hosts mention that Texas has no equivalent to CEQA and has far lower per-door fees, while California has higher rents and slower housing growth.

[事实] Hilton says he tried to advance a ballot initiative to cap impact fees and remove CEQA’s private right of action but failed to qualify it in time.

[35:21] Why Housing Reform Stalls

[事实] Hilton recounts meeting a legislator who said his housing proposal would be transformational but could not support it publicly because unions would oppose it.

[事实] He says the legislator told him, “the unions run this place.”

[事实] Hilton argues that recent CEQA exemptions promoted by Gavin Newsom still preserve union requirements through project labor agreements and prevailing wages.

[事实] He says Newsom’s statewide political donations show major support from government unions, trial lawyers, and non-government unions.

[推测] This section presents California housing policy as a capture problem rather than a purely technical zoning or environmental policy problem.

[37:51] Gas Prices, Oil Production, and Climate Policy

[事实] The hosts ask why gasoline in California can cost far more than in other states despite California having oil reserves.

[事实] Hilton says California imports nearly 80% of the oil it uses, while it used to produce most of what it consumed in-state.

[事实] He says California has gone from about 40 refineries to seven and now imports oil by tanker because there are no oil pipelines into California.

[事实] Hilton argues California climate policy has shifted production abroad, including to sources such as Iraq and South America, while still relying heavily on fossil fuels.

[事实] He says much of the California gasoline premium is regulatory rather than purely tax-driven.

[42:26] Permitting and Energy Production

[事实] Hilton says California oil production has been restricted largely through permitting decisions by CalGEM rather than by statute.

[事实] He argues a governor could change energy policy quickly by appointing pro-energy officials who issue permits for maintaining wells, sidetracking, and drilling in existing fields.

[事实] Hilton says his rule would be that as long as California uses oil and gas, it should use its own oil and gas instead of importing it.

[事实] He says industry conversations suggest California could double production every two years under a supportive regulatory framework.

[推测] Hilton’s energy plan relies heavily on executive control of agencies, making it one of the policy areas he portrays as less dependent on legislative approval.

[45:16] Education Outcomes and School Accountability

[事实] The hosts ask why California schools are moving backward and how teacher compensation could be tied to student outcomes.

[事实] Hilton says California spends about $27,000 per student per year and still gets poor results, with less than half meeting basic English and reading standards and about 35% meeting math standards.

[事实] He blames the teacher unions’ control of the public school system and says their pandemic reopening demands reflected broader political goals rather than student interests.

[事实] Hilton supports school choice as a long-term structural reform but says it will be difficult in California because teacher unions influence Democratic legislators.

[事实] He points to Mississippi’s use of phonics, third-grade reading benchmarks, grade retention after extra help, and visible school and teacher grading as practical reforms California could adopt.

[50:57] Crime and Prison Capacity

[事实] The hosts ask about violent crime, property crime, underreporting, and the sense that laws are not enforced in major California cities.

[事实] Hilton says California is good at passing laws but bad at enforcing them, citing the legislature’s passage of 1,118 bills in one session.

[事实] He says Proposition 47’s theft threshold was overturned by Proposition 36, which passed in 2024 with about 70% support, but argues it is not being properly implemented.

[事实] Hilton identifies prison closures under Jerry Brown and Gavin Newsom as a major cause of pressure on county jails and “catch and release” policing.

[事实] He says he would stop and reverse prison closures, increase capacity, and take rehabilitation seriously to reduce recidivism.

[56:16] Homelessness, Addiction, and Mental Health

[事实] Hilton says homeless encampments are already illegal and argues local governments have legal authority to remove them, especially after Grants Pass v. Oregon in 2024.

[事实] He says he would give local governments time to act and then use state law enforcement resources if they do not remove encampments.

[事实] Hilton says more than 80% of homeless people have drug or alcohol addiction or severe mental health problems.

[事实] He supports a “rehab or jail” approach, sober requirements for state homelessness services, and redirecting money from permanent supportive housing into recovery and mental health care.

[事实] He criticizes California for not using an IMD waiver that would allow Medicaid reimbursement for mental health facilities with more than 16 beds.

[61:37] Path to Victory in 2026

[事实] Hilton says California’s top-two primary system could produce a general election between him and one Democrat, mentioning Tom Steyer, Katie Porter, and Javier Becerra as possible opponents.

[事实] He says he is leading Republican-side polls and expects President Trump’s endorsement to help him reach the top two.

[事实] Hilton frames the general election as “change versus more of the same.”

[事实] He says Democrats outnumber Republicans two to one in registration, but actual voting over the last 20 years has often been closer to a 60-40 split.

[事实] He argues wrong-track polling has moved from the mid-to-high 40s four years ago to the mid-to-high 50s, creating an environment for a change candidate.

[65:00] Electoral Math and Closing Argument

[事实] Hilton estimates 2026 midterm turnout by averaging 2018 and 2022, arriving at about 11.7 million votes cast and roughly 5.9 million needed to win.

[事实] He says Donald Trump received 6.1 million votes in California in 2024 without targeting the state.

[事实] Hilton says voter ID being on the November ballot could increase Republican turnout.

[事实] He says his coalition would target a multiracial working-class electorate hurt by California’s policies.

[事实] He closes by tying his platform to “Cal Affordable”: $3 gas, cutting electric bills in half, the first $100,000 tax-free, no tax on tips, and more affordable homes.

播客点评/总结

This episode is valuable as a long-form policy interview rather than a short campaign soundbite. The hosts press Hilton on implementation constraints, especially the Democratic legislature, while giving him room to lay out detailed arguments on taxes, housing, energy, education, crime, and homelessness.

The strongest parts are the concrete policy mechanics: budget baselines, income tax thresholds, CEQA litigation, permitting agencies, prison capacity, reading instruction, and the IMD waiver. Whether listeners agree with Hilton or not, the conversation makes clear how he connects many California problems to a few recurring causes: union power, litigation, climate mandates, and one-party governance.

The main limitation is that many numerical and causal claims are presented by Hilton and the hosts without outside verification inside the transcript. The episode is therefore best read as a campaign argument and policy case, not as an independently fact-checked audit of California.

[推测] The episode is most useful for listeners following California politics, state-level governance, Republican strategy in blue states, or debates over affordability and institutional reform.