Steve Hilton Ramps Up Cost-Cutting Pledges in California Ahead of Midterms

With a little more than 14 weeks until the midterm elections, Republican gubernatorial candidate Steve Hilton is touring California with a platform focused on lowering living costs and expanding housing options for young families.

"My plan is very straightforward. $3 gas, cut utility bills in half, your first $150,000 tax-free, starter homes for young families, so our kids and grandkids don't have to move to another state to have what we used to think of as the California dream,"

Hilton told FOX 5/KUSI during an appearance in San Diego.

Hilton framed the Democratic Party as a centralized "machine" and highlighted a new campaign commercial that uses artificial intelligence to produce fabricated videos of Governor Gavin Newsom, Vice President Kamala Harris and Attorney General Xavier Becerra. He used the ad to argue that special interests and unions effectively choose his Democratic opponent.

"Xavier Becerra, my opponent, another puppet of the machine, and it's controlled by unions and lobbyists, and you can see here it's picking him as the candidate,"

Hilton said, accusing the opposition of being guided by influential groups rather than voters.

Hilton described California as paradoxical: the wealthiest state in the nation's wealthiest country, yet burdened by the highest cost of living in the United States. "The highest cost of living by far. So, things aren't going well. It's a big economy, and it's a big state, but it's not working for the people who live here," he said.

Speaking as an immigrant, Hilton urged clearer cooperation with federal immigration authorities. He criticized sanctuary policies, which he said create confrontations with ICE and lead to disorder he described as "ICE riots" in Los Angeles and violent incidents elsewhere. He said his approach would prioritize calm, lawful cooperation between state and federal officials.

Polling published during the campaign shows Attorney General Xavier Becerra leading Hilton by double digits as the race moves toward November.

Why it matters: The contest highlights contrasting approaches to California's rising costs, public safety and immigration management. Hilton's pledges on taxes, energy and housing aim to appeal to voters feeling squeezed by the state's high cost of living, while his critics question the feasibility and funding of those promises.