There’s an old saying that as California goes, so goes the nation. If that’s true, America should be terrified.

For decades, the Golden State has served as a laboratory for progressive governance—and the experiment is failing spectacularly. Regulations strangle small businesses while housing costs push working families toward the exits. The tax burden grows heavier each year, yet somehow the roads crumble and the homeless encampments multiply. But hey, at least the sunsets are nice.

Meanwhile, Governor Gavin Newsom jets around the country, positioning himself for a 2028 presidential run. You’d think he might want to fix a few things at home first, but what do I know? The state’s Democrat-controlled legislature recently pushed through aggressive redistricting measures designed to cement one-party rule for another generation.

But something unexpected is happening: voters aren’t buying it anymore.

The polls tell the story

Two Republicans now lead in early polling for the next gubernatorial race, with former Fox News host Steve Hilton holding a commanding advantage. Color me shocked—after years of watching their state become synonymous with dysfunction, Californians appear ready to try something different.

The question is: what finally broke the camel’s back? We may have just found out.

The U.S. Department of Labor announced it has deployed a “strike team” to California to investigate what officials describe as rampant improper payments and alleged fraud within the state’s unemployment insurance program. The numbers are staggering—California has racked up $21 billion in borrowed federal funds just to keep its depleted unemployment system running.

From Labor Secretary Lori Chavez-DeRemer:
Financial issues and potential fraud in California’s unemployment insurance program will be fully examined. The previous administration turned a blind eye toward failing Labor programs: This ends now. Immediately, we are engaging a specialized strike team to uncover any potential fraud or abuse and quickly moving to protect the American worker and taxpayers.

Finally. Someone’s paying attention.

An 83-page state auditor report had already flagged California’s unemployment system as “high-risk” due to inadequate fraud prevention. The details are damning: at least one state employee was convicted of filing nearly $860,000 in fraudulent claims. Others created fictitious businesses to bilk the system. This wasn’t just pandemic chaos—it was systemic rot that nobody in Sacramento seemed interested in stopping.

A billion dollars at risk

The problem extends far beyond unemployment. Labor Department Inspector General Anthony D’Esposito found $720 million still sitting on prepaid debit cards used for pandemic benefits—money that likely ended up in the wrong hands. California has also been caught claiming phone subsidies for over 94,000 deceased individuals. You can’t make this stuff up.

“This is taxpayer money—and it demands immediate attention,” D’Esposito said.

He’s right. Every dollar stolen is a dollar that can’t help a legitimately struggling family make rent or put food on the table. Fraud isn’t a victimless abstraction—it’s theft from your neighbors.

Time for accountability

This is what single-party rule produces: a system so bloated and unaccountable that billions vanish while bureaucrats shrug. Californians deserve better than leaders who treat public funds like Monopoly money while dreaming of higher office.

Good luck running for president, Gavin. You might want to check on your own house first.

Steve Hilton and California’s awakening electorate represent something this state desperately needs—not just new leadership, but the basic expectation that government should work for the people funding it. That shouldn’t be a partisan concept. It’s simply what honest governance looks like.

Key Takeaways

• The Labor Department deployed a federal “strike team” to investigate billions in suspected California unemployment fraud.
• California owes $21 billion in borrowed federal funds to keep its broken unemployment system running.
• Two Republicans now lead gubernatorial polls, with Steve Hilton in front, as voters reject one-party rule.
• Every fraudulent dollar stolen means less help for families who legitimately need it.

Sources: Fox News, American Enterprise Institute – AEI