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CalDOGE Files Federal Complaint Alleging $370 Million Diversion of California Cannabis-Tax Funds

State authorities have not corroborated the allegations.

Overview

  • Steve Hilton’s campaign-linked watchdog asked federal prosecutors to investigate Elevate Youth California’s handling of Proposition 64 revenues, filing with the U.S. Attorney for the Central District of California and the Department of Justice.
  • Governor Gavin Newsom denied the claims on X, noting grant rules that list partisan activities as a prohibited use of funds.
  • CalDOGE alleges a nonprofit intermediary routed cannabis-tax revenue into 517 grants averaging about $716,150 for political organizing, voter registration, and other civic-engagement programs.
  • The group names Young Invincibles ($1 million), the Jakara Movement ($350,000 for Sikh youth empowerment and voter registration), and Asian Refugees United ($800,000 for LGBTQ+ Asian storytelling) as recipients.
  • Attorney General Rob Bonta highlighted the state’s ongoing anti-fraud work and nearly $3 billion in historical recoveries without validating CalDOGE’s specific assertions.