dwarfing other states, including Minnesota. Republican leaders are calling the state under Governor Gavin Newsom the “fraud capital of America.”
Rep. John Kiley confirmed that the latest 92-page report from the nonpartisan California State Auditor placed eight state agencies on a high-risk list for issues including fraud, mismanagement, and waste. Among the agencies flagged:
- California’s food stamp program, which could cost an additional $2.5 billion if improper payments are not corrected.
- Department of Finance, responsible for distributing COVID relief funds, with critics claiming $32 billion was lost to fraud.
- Infrastructure projects, including the $18 billion high-speed rail project, with no sections of track yet completed.
- Homelessness programs, reportedly mismanaged, with $24 billion unaccounted for.
- State 9-1-1 system upgrades, funded through years of surcharges on cell phone users.
Conservative analysts argue this demonstrates systemic corruption and mismanagement under California’s Democratic leadership. President Donald Trump, now serving his second term, has repeatedly emphasized the importance of holding governments accountable, protecting taxpayer dollars, and enforcing strict oversight on spending.
Critics warn that unless immediate corrective action is taken, California taxpayers could continue to lose billions to inefficiency, fraud, and mismanagement.
