Republican Steve Hilton announced on September 9, 2026, that if elected governor, he would seek to eliminate the California Department of Motor Vehicles (DMV) and reduce vehicle registration fees for car owners. Hilton expressed confidence that the Democratic-controlled Legislature would support his plan, stating, "My starting expectation would be, they would be with me on things to reduce the cost of living, so let’s work together."
During a news conference outside a DMV office in West Hollywood, Hilton proposed to eliminate the DMV, which has a budget of $1.6 billion, and reduce the annual vehicle registration fee to $73. He stated, "We are going to shut down this bloated, nanny-state bureaucratic agency that treats Californians with complete contempt." Currently, Californians register over 36 million vehicles annually, with an average registration fee of $329.
Hilton noted that the state generates $11 billion to $12 billion per year from vehicle registration fees, and his proposal would reduce this revenue to approximately $2.7 billion. To offset the revenue shortfall, he suggested reducing the state workforce by 10% and agency budgets by 5%.
However, eliminating a state agency requires legislative approval. Assembly Speaker Robert Rivas and Senate President Pro Tem Monique Limón, both Democrats, have endorsed Hilton's opponent, Xavier Becerra. Becerra's campaign criticized Hilton's confidence, with spokesperson Jonathan Underland stating, "You can’t spend a year calling Democrats a failure and then expect two-thirds of both chambers to take your calls."
Hilton referenced a conversation with former Governor Arnold Schwarzenegger, who suggested that Democrats preferred having a Republican governor. Hilton's proposal is reminiscent of Schwarzenegger's campaign during the 2003 recall election, which focused on reducing vehicle registration fees after former Governor Gray Davis increased them.
Rob Stutzman, a former advisor to Schwarzenegger, noted that the vehicle license fee increase contributed to the backlash that fueled the recall campaign against Davis. Schwarzenegger's executive order to reduce the fee resulted in significant losses to the state's general fund, requiring spending cuts and bond issuance to address the shortfall.