Rep. Kiley Requests GAO Report on Staggering Fraud in California

California Governor Newsom, our own International Man of Mystery has been focused on anything but California as he gallivants around the world – first to Davos, and Germany last week where he threatened “climate deniers.”

Today he is in London signing a climate agreement with the UK. I’m sure Californians are relieved that Gov. Newsom is single handedly saving us from climate change.

While he gallivants, California’s climate is normal, but the state of the state is a hot mess. Another $370 million in fraud was uncovered.

Naturally Newsom’s PR kids ran cover for the errant governor putting out a press statement claiming the governor running for President has been “Fighting fraud, saving time, cutting costs: Governor Newsom’s efficiency strategies are improving state government.”

The lies got even more bold in the statement as it appears Newsom’s PR team is running his presidential campaign:

“Through Governor Newsom’s efficiency strategies, California continues to make the state work better for Californians by fighting fraud, building affordable housing faster, streamlining cumbersome state procurement methods, and modernizing workflows using cutting-edge technology.”

CAL DOGE, created by gubernatorial candidate Steve Hilton, which announced the $370 million in fraud, untangled a web of funding from the Prop 64 authorized California Cannabis Tax Fund (CCTF) – supposed to be used for substance abuse prevention – that instead is building the Democrat political machine in California.

Here’s a short list of California’s fraud that the Globe has covered:

• Cannabis tax Fraud
• $450 Million spent on a “Next Generation” 911 system that didn’t work
• $55 billion in unemployment fraud was sent to prison inmates in California’s county jails, and state and federal prisons, out of state, and even out of the country
• $37 billion spent on homelessness with 337,000 homeless now living on California streets
• damning state audits exposing high risk agencies‘ waste, fraud abuse and mismanagement including Newsom’s own Finance department and the California State Controller’s Office
• $16 billion spent on the High Speed Rail train to nowhere
• another $8.6 billion in fraud in COVID-era relief lending in California
• billions of dollars in fraudulent unemployment insurance claims, hospice and home‑health fraud
• millions of crooks and bots using stolen identities to collect fraudulent federal and state financial aid in California Community Colleges

There’s no getting around the fact that California has been a focal point in recent fraud investigations, so much so that a new anti-fraud task force targeting welfare abuse in California and other states has been announced, led by Vice President J.D. Vance, Andrew Ferguson of the Federal Trade Commission (FTC), and Attorney General Pam Bondi.

California Congressman Kevin Kiley has his own strategy to get to the bottom of the fraud – he has requested a full GAO audit of California’s fraud to get a comprehensive picture of just how large the fraud is.

“Newsom is also now saying I shouldn’t criticize him for California’s rampant fraud because he somehow ‘stopped’ $125 billion in fraud,” Kiley posted to X.

“That, of course, is a made-up number. Newsom knows if the true scale of CA fraud comes to light, his presidential campaign is over. That’s why he’s terrified of the full GAO audit I’ve ordered and is surely alarmed I just told AG Bondi to make CA the focus of anti-fraud efforts.”

Every audit of a California program seems to uncover staggering fraud. $32.6 billion in unemployment fraud. Billions with SNAP and Medi-Cal. Millions of fake community college applicants.

This is just the tip of the iceberg. I've asked for a GAO report on all fraud in the state. pic.twitter.com/7QnGWaSca1

— Kevin Kiley (@KevinKileyCA) February 9, 2026

“We’re also about to see a state and federal investigation of Newsom’s ‘Next Generation 911 System’ after I exposed the scandal in a Floor speech,” Kiley said. “Newsom charged us fees on our phone bill for six years, spent $450 million, then scrapped the project because the technology didn’t work.

Kiley included in his request additional fraud:

The state’s homelessness programs have faced similar failures. Between 2019 and 2024, California spent $24 billion on homelessness initiatives, yet the homeless population grew by about 30,000, with state audits finding no meaningful metrics to show results.

Recent prosecutions – including nonprofit fraud in San Francisco, a $50 million homelessness funding scheme in Los Angeles, and the conviction of an Orange County judge for workers’ compensation fraud – underscore the scope of the problem.

Congressman Kiley’s request asks the GAO to examine:

• The total amount of publicly reported waste, fraud, and abuse in California since 2016
• A breakdown of fraud by economic sector, including housing, healthcare, transportation, and law enforcement
• The types of perpetrators involved, including grantees and subgrantees
• How stolen public funds are ultimately used
• Lessons from California that can inform federal efforts to prevent fraud nationwide

Be sure to read California State Auditor: Governor Newsom and 8 Agencies NamNamed ‘High-Risk’