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Republican candidate blames Democrats for Skid Row crisis amid federal drug raid

Steve Hilton toured LA's Skid Row, called homelessness a political scandal, while a federal raid arrested 23 drug suspects and a nonprofit founder faces fraud charges.

El Chusmero Newsroom
Newsroom
• Updated Oct 16, 2026
What you need to know

Republican gubernatorial hopeful Steve Hilton toured Los Angeles’ Skid Row and blamed Democratic leaders for a “political scandal” of homelessness. The claim comes as a federal drug raid netted 23 arrests and a nonprofit founder was charged with wire fraud, underscoring the complexity of the crisis.

urban homelessness

Republican gubernatorial candidate Steve Hilton walked the trash‑strewn sidewalks of Los Angeles’ Skid Row on Oct. 9 and declared the city’s homelessness problem a "political scandal" caused by Democratic policies. He said, "No, it is not a crisis. It's actually a scandal," and accused Democratic leaders of spending billions of taxpayer dollars while the streets deteriorated.

What we know

According to Fox News, Hilton’s tour coincided with a sweeping federal drug raid that took place on a Thursday. Federal and local agencies—including the FBI, DEA and LAPD—arrested 23 of 28 defendants charged in a drug‑trafficking investigation targeting fentanyl, methamphetamine and other substances in and around Skid Row.

The same reporting notes that in September federal prosecutors charged the founder of a Los Angeles‑area homelessness nonprofit with wire fraud. The indictment alleges the founder misused taxpayer funds, including nearly $50,000 for a trip to Tahiti, after the organization received more than $118 million in public funding through government contracts.

Hilton also criticized the nonprofit sector, saying, "The point about these nonprofits is that they're part of this philosophy, the ideology of harm reduction, all the things we've talked about, which means that they are not actually trying to solve the problem. Because if they solve the problem, they don't get paid anymore. So they have an incentive to keep it going." He added that a small group of real‑estate developers receive contracts to build apartments that, in his view, do not address drug addiction or other underlying issues.

The governor’s race, in which Hilton challenges Democrat Xavier Becerra, is set for Nov. 3, and homelessness and taxpayer spending have become central campaign topics.

Background

Skid Row is widely recognized as the epicenter of California’s homelessness challenge, featuring sprawling encampments, visible drug use, and public health concerns. The area has been the focus of multiple law‑enforcement actions, including the recent raid that targeted alleged gang‑affiliated dealers.

Hilton’s campaign narrative emphasizes “housing first” as a disaster and argues that enforcement of existing laws and removal of encampments are the proper solutions. He contends that developers and nonprofits benefit financially from the status quo, a claim that aligns with his broader criticism of Democratic governance.

Key figures and numbers

  • Oct. 9 – Hilton’s Skid Row tour.
  • Thursday – Federal drug raid resulting in 23 arrests out of 28 defendants.
  • September – Wire‑fraud charge against nonprofit founder, including nearly $50,000 spent on a Tahiti trip.
  • More than $118 million – Public funding received by the nonprofit before the fraud allegations.
  • Nov. 3 – Date of the California gubernatorial election.

Fox News Digital said it reached out to Becerra's campaign and to Los Angeles Mayor Karen Bass' office for comment.

Sources

Photo: Timur Weber / Pexels (illustrative)

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