MEMORANDUM
TO: Interested Parties
FROM: Tech Oversight California
DATE: November 10, 2026
RE: The Techlash Comes to California: Tech Super PACs Stumble in Their Own Backyard
California’s tech super PACs collectively spent nearly $47 million on state legislative races this cycle, the most visible push by the industry into Sacramento politics to date. As late ballots continue to be counted, the returns from last Tuesday’s election tell a clear story: that money failed and backfired in marquee races.
In tech’s own backyard, their political spending didn’t move the needle in the general election. Seven-figure investments failed to rescue tech’s preferred Democrats in head-to-head races or to shield Republican incumbents from a strong Democratic wave.
California voters, including those in the industry’s home region, are wary of tech’s growing political influence. Future candidates would be wise to do what several beneficiaries of tech spending, like State Senate candidate Sara Hernandez did this cycle, and renounce money coming from an unpopular industry. And legislators weighing tech accountability measures in the next session should take note that siding with the industry carries real political risk, while standing up to it does not.
Tech’s Picks in Democrat-vs-Democrat Races Faltered
The industry’s central strategy was to support business-friendly Democrats in safe seats in Democrat-on-Democrat general election races. Two of its largest investments fell short. Together, these two races accounted for more than $11 million in tech spending, with little to show for it.
- David Penaloza in Assembly District 68 (Orange County) benefited from more tech money than any other candidate in California: $6.92 million across the primary and general from Grow California and California Leads. He has been overtaken by Jessie Lopez in late vote counting.
- Eric Lucan in Assembly District 12 (Marin and Sonoma Counties) benefited from $4.2 million across the primary and general from Grow California and Uber. He trails Jackie Elward by 13 points.
Many of the successes these tech industry PACs now seek to claim came in districts where they spent in noncompetitive races in the general election, a common tactic from the industry to curry favor with legislators who they know are poised to win. Some of that spending included:
- $1.16 million from California Leads and Grow California in the Bakersfield Assembly seat where the Democrat leads by more than a 2-to-1 margin.
- $871k from California Leads in a northern San Diego County race where the incumbent is winning by 20 points.
- $366k from Grow California in a Stockton-based Assembly district where the incumbent is winning 2-to-1.
- $272k from Grow California in an open Ventura County seat where the Democrat is winning by nearly 13 points.
Efforts to Prop Up Republican Incumbents Failed
Tech groups spent heavily – $2.6 million in the general election alone – to protect Republican legislators against a Democratic wave. Those investments are faring poorly:
- Assemblymember Greg Wallis is losing by double digits. California Leads and Uber spent $1.35 million on his behalf in the general election.
- Senator Tony Strickland is narrowly losing, and his deficit is expected to grow as counting continues. California Leads spent $623,000 supporting him in the general election.
- Assemblymember Laurie Davies holds a narrow lead that could evaporate in upcoming ballot updates. California Leads spent $356,000 supporting her in the general election.
- Assemblymember Josh Hoover trails by more than six points. Uber spent $268,000 backing him in the general election.
Voters Were Turned Off by Big Tech Spending – and Accountability Champions Told Them About It
Candidates as well as outside campaigns informed voters about Big Tech’s interference – to great effect. TechEquity Action ran a seven-figure educational campaign to inform voters about the massive spending of tech super PACs in legislative races.
Assembly candidate Brian Pacheco ran multiple TV ads calling out his Republican opponent for his support for AI and data centers: “Mike Murphy isn’t lowering costs for the Central Valley, he’s raising them. Mike Murphy for Silicon Valley, not ours.”
State Senate candidate Sara Hernandez, who received nearly $6 million in tech PAC support between the primary and general election, quickly renounced tech backing, telling Politico, ““If what they stand for is an unregulated industry, absolutely not. I am diametrically opposed to that.” She also posted multiple times on social media reiterating her position.