Newsom is accused of overseeing up to $280B in fraud in California, the lawsuits state
NEWNow you can listen to Fox News articles!
A reporter who says California lost at least $180 billion to fraud joined “Will Cain Country” to share the results of his exposé titled “Gavin Newsom’s Empire of Fraud.”
City Journal’s Chris Rufo co-wrote this piece. He told host Will Cain on Tuesday that fraud in California comes from three main sources: Medi-Cal fraud, unemployment fraud and general welfare fraud.
Gov. Gavin Newsom speaks at a news conference at San Lorenzo High School as he signs an executive order to increase women’s access to money and opportunities to build wealth March 18, 2026, in San Lorenzo, Calif. (Tayfun Coskun/Anadolu)
“And if you put all this together, under Gavin Newsom, experts and HHS officials estimate that California lost somewhere between $180 and $280 billion. Now that’s like the GDP of New Zealand. It’s a lot of money,” said Rufo.
The scale of the problem is more than the federal government can handle given the resources currently allocated, he added, expressing frustration at the lack of accountability.
HOUSE COMMITTEE LAUNCHES ‘RAMPANT’ INVESTIGATION OF CALIFORNIA HOSPICE
“The sad truth, and this is a criticism, unequivocally, of the federal government under President Trump, is that they are going to have to greatly increase these efforts if they want to prevent fraud in the future,” said Rufo.
He said he hopes to make more strides with his reporting, and that his biggest focus is California’s home care system.
This program is intended to help those who cannot work because they have to fully care for a loved one. But Rufo said it has become a very common activity in the province.
The Vice President, JD Vance, suggested that California could be the next site of a major fraud investigation, while saying that the fraud uncovered in the Minneapolis area could reach at least $19 billion. (Tayfun Coskun/Anadolu/Getty Images Kent Nishimura/Getty Images)
VANCE CALLED ‘FRAUD CZAR’ AS TRUMP CRASHES BLUE STATES FOR STEALING FROM TAXPAYERS
“We’re paying about 800,000 people to stay at home or to stay in nursing homes. And because it’s actually working on the honor system… it’s all done privately,” he said.
Rufo said that thousands of media reports on the matter led to many investigations and ultimately less than 100 prosecutions.
Rufo called it a “shadow welfare program,” but said Californians were getting wise to the scam.
CALIFORNIA BUILDING WITH HEALTH CARE ISSUES, DISEASE PROVIDERS WAKE UP AMID COVERAGE
“I think California voters are starting to look around and say, wait a minute, this is now 10% of our state budget. It’s $30 billion a year,” he added. “What on earth are we doing? Why do we seem to be paying everyone, everything, including the scammers, when the quality of life in California for working middle class people seems to be getting worse?”
California Gov. Gavin Newsom’s office has dismissed the notion that his administration has not been proactive enough in going after fraudsters.
“This is terrible from top to bottom,” Newsom’s spokesperson told the New York Post. “California will continue to do its part to fight fraud, and we’re asking the federal government to work with us to do the same.”
CLICK HERE TO DOWNLOAD THE FOX NEWS PROGRAM
Earlier, the Governor’s office said that it has been taking action for “years” on the issue of fraud on terminally ill patients.
“I’m glad the federal government is finally stepping up to do its part,” they responded to the California anti-fraud group’s actions, according to The Post. “The State has been taking action for years, including suspending 280+ licenses and barring new licenses from 2022. The big question: Will Trump pardon any of them like he has done to so many fraudsters before?”
