Food Stamp Fraud Crackdown at USDA Could End California’s $20-$25 billion in CalFresh SNAP Fraud

U.S. Department of Agriculture Secretary Brooke Rollins has ramped up efforts to crack down on food stamp fraud nationwide, and in California, that amounts to at least $25 Billion just in the last five years. The USDA is focused on eliminating a “loophole” which has allowed some wealthy individuals to qualify for government benefits.

Rollins posted on X:

In just ONE state, 14,000 individuals receiving SNAP benefits were driving LUXURY VEHICLES! 

In just ONE state, 14,000 individuals receiving SNAP benefits were driving LUXURY VEHICLES!

🚗 3 Bentleys
🚗 3 Ferraris
🚗 11 Lamborghinis
🚗 59 Maseratis
🚗 141 Porsches
🚗 244 Alfa Romeos
🚗 306 Land Rovers
🚗 2,098 Teslas

And this is just in ONE STATE. We need to… pic.twitter.com/6ou5hVAl99

— Secretary Brooke Rollins (@SecRollins) April 28, 2026

“She warned fraudsters the USDA is working to close a loophole under the Broad-Based Categorical Eligibility policy used to qualify for Supplemental Nutrition Assistance Program (SNAP) benefits despite having the financial means to purchase cars for hundreds of thousands of dollars,” Fox reported.

Last Thursday, the USDA Food, Nutrition, and Consumer Services mission announced its intention to introduce the Food and Nutrition Administration. “This shift will include a reorganization and relocation, all to move program leadership and staff from Washington, D.C. to hub and program compliance locations across the U.S. This shift in customer service will not disrupt program execution nor any endeavor to eliminate fraud, waste, and abuse across USDA’s 16 nutrition assistance programs.”

“On my first day leading the People’s Department, I shared several commitments to our state, tribal, territory, and local government partners, including prioritizing customer service and infusing each nutrition program with new energy and vision,” said Secretary Brooke L. Rollins. “This reorganization is designed with those commitments in mind. I look forward to working with our partners as we continue to nourish children and families in need through nutrition programs that not only are provided by America’s farm families, but programs that pave a pathway to better health and economic stability.”

The Globe has been tracking California fraud for many years, and has found that while fraud in nonprofits and NGOs have always been a problem, it really exploded in 2019 when Gov. Gavin Newsom was elected and took over. Then, spending took off.

Recently, California State Controller candidate Herb W. Morgan released a comprehensive white paper analyzing potential exposure to fraud, waste, improper payments, and inefficiencies across major state programs, estimating a range of $312 billion to $425 billion over five years.

Morgan identified $20 to $25 billion in CalFresh SNAP fraud over a five-year period, and $95 to $115 billion in Medi-Cal fraud alone.

“Homelessness and housing funds are the clearest example—California poured something like $24–37 billion into it since 2019, mostly through nonprofits,” Morgan told the Globe. “Audits slammed the lack of tracking and weak fraud controls, especially during the pandemic cash flood. We’ve seen big NGO busts tied to that era, like the Abundant Blessings case with $23M+ allegedly misused.”

“The same pattern is in welfare and Medi-Cal/IHSS: budgets doubled, oversight got sloppy, and losses piled up.”

“On the USDA/SNAP side, EBT skimming and trafficking went nuts starting around 2021–2022, with LA County alone losing over $100M in one stretch before they started fixing the cards.”

Morgan says the bottom line is: “The worst of the nonprofit-linked stuff tracks right with the big spending ramp under Gov. Newsom’s election from 2019 forward. Pre-existing issues got supercharged by the money and chaos.”

Food stamp waste and fraud is out of control,” Republican congressional candidate in Orange County and CAL DOGE Director Jenny Rae Le Roux told Fox News Digital. “California alone loses nearly $14 million every day from SNAP to EBT skimming, out-of-state and country beneficiaries and eligibility lapses at a time when technology exists to close every gap, quickly.”

CAL DOGE reported Morgan’s “detailed white paper examines major spending areas including Medi-Cal ($115B), K-12 Education ($35B), CalFresh ($25B), unemployment insurance, homelessness programs, infrastructure, and public pensions, among others. Notably, many of these programs involve significant federal funding, underscoring the importance of timely reporting and accurate financial oversight.”

“The explosive analysis is additionally significant because today is the fiscal deadline to submit an audited state spending report to the federal government – a deadline Malia Cohen, current California Controller, has missed in three out of three of her three years in office, and Gavin Newsom has missed deadlines six of the years he has been Governor of California.”

“The white paper identifies recurring challenges commonly cited in oversight reports, including documentation gaps, eligibility verification issues, cost overruns in large-scale projects, and delayed reconciliation in emergency spending,” according to Morgan. “It also emphasizes that not all exposure represents intentional fraud, noting that administrative complexity and improper payments are significant contributing factors.”

Morgan found the fraud over a five-year period and explained that this is derived from the program’s approximate $150 billion cumulative spending baseline combined with historical and recent SNAP Payment Error Rates (PER), California State Auditor high-risk findings, documented eligibility lapses, and Electronic Benefits Transfer (EBT) theft.

Morgan explains in his White Paper:

And in California, “This isn’t about politics—it’s about performance,” said Herb Morgan. “The Controller’s office is responsible for tracking, reporting, and safeguarding taxpayer dollars. This analysis highlights where improvements can be made and why experienced financial leadership matters.”

This is why fraudsters need to be rooted out and prosecuted. At least the USDA is following through on prosecutions – something California’s Attorney General Rob Bonta should be doing.

And, there is this:

🚨 HOLY CRAP. Health Sec. Bobby Kennedy says he found a hotel where EVERY HOTEL ROOM was marked as the "headquarters" for a nursing group…

…in Gavin Newsom's California.

It's UNENDING FRAUD.

"They aren't actually doing nursing care. They just collect money! pic.twitter.com/xkZLuRMf1v

— War Correspondent (@warDaniel47) May 2, 2026