Assembly Republicans Demand Special Session to Combat California’s $180 Billion Fraud Epidemic

On Tax Day, California Assembly Republicans gathered at the State Capitol to demand that Governor Gavin Newsom and the Democrat supermajority immediately convene a special legislative session to confront the state’s exploding fraud crisis.  

Assembly Republican Leader Heath Flora and caucus members delivered a formal letter to the Governor citing fresh estimates that California has lost at least $180 billion — with broader analyses pointing to as much as $435 billion — to fraud, waste, and improper payments across major programs–enough to transform schools, hospitals, and infrastructure if recovered. The staggering figures, drawn from state audits, federal investigations, and independent analysis, underscore years of documented failures in Medi-Cal, EDD, homelessness funding, and beyond.  

“The Governor claims he’s been fighting fraud since day one,” Flora stated. “Yet arrests are only now being announced under public pressure. Californians deserve real accountability, not more press releases.”  

🚨 STOP THE FRAUD 📢

Today, Assembly Republicans demanded a Legislative special session to crack down on widespread fraud across California’s state programs, during a press conference at the State Capitol. pic.twitter.com/WEFez6nblt

— California Assembly Republicans (@AsmRepublicans) April 15, 2026

The timing aligns with Attorney General Rob Bonta’s recent announcement of state-level arrests in a major hospice fraud ring that allegedly defrauded Medi-Cal of hundreds of millions. Republicans welcomed the action but emphasized it is long overdue — and insufficient without systemic reform.

First Assistant U.S. Attorney Bill Essayli, who has led aggressive federal prosecutions including “Operation Never Say Die,” responded pointedly to Bonta’s announcement.

Quoting media coverage of the bust, Essayli wrote: 

“Glad to see California finally starting to tackle the massive amount of fraud we’ve been highlighting. We hope they will start putting better fraud prevention measures in place so fraudsters don’t get the money in the first place. It’s comical to hear AG Bonta and Gov. Newsom complain about partisanship when they expend their entire capital discrediting the work of @TheJusticeDept, filing political lawsuits against the federal government, and maintaining official accounts dedicated to trolling the President and his appointees. Give me a break.” 

Glad to see California finally starting to tackle the massive amount of fraud we’ve been highlighting. We hope they will start putting better fraud prevention measures in place so fraudsters don’t get the money in the first place.

It’s comical to hear AG Bonta and Gov. Newsom… https://t.co/xftaAmUvHN

— F.A. United States Attorney Bill Essayli (@USAttyEssayli) April 10, 2026

Essayli has repeatedly called California the “kingdom of fraud” and criticized Sacramento for failing to implement upfront controls or meaningful prosecutions, forcing federal authorities to step in after billions have already been lost.  

Assemblymember Josh Hoover (R) highlighted the troubling pattern of obstruction: “Not only are we unwilling to investigate fraud, but the legislature is moving in the opposite direction — shielding records, raising barriers to public access, and even criminalizing investigative journalism, such as AB 2624.” Hoover was referring to legislation authored by Attorney General Bonta’s wife, Assemblymember Mia Bonta (D-Oakland), that critics have dubbed the “Stop Nick Shirley Act.”

The bill would extend privacy and anti-doxxing protections to immigration support services providers and similar entities, allowing them to demand removal of video recordings — even those taken in public — and impose financial penalties on those who publish footage exposing potential fraud and abuse in taxpayer-funded programs.  

Republicans noted that public pressure, including investigative work by independent journalist Nick Shirley and legislation from Assemblymember Alexandra Macedo, has finally forced some movement on fraud arrests. Yet they warned that Democrats continue to prioritize protecting government insiders and fraud-enabling networks over protecting taxpayers.

This morning, our own Kay Grimes detailed how the bill would criminalize investigative journalism and violate First Amendment protections by targeting citizen journalists and independent reporters who document waste, fraud, and abuse.  

California’s fraud crisis is well-documented. California Globe reporting has exposed phantom care and outright theft in Medi-Cal, with the state repeatedly ranked among the nation’s worst offenders. Federal and state audits have continually flagged unlawful spending, while the Employment Development Department remains on the state auditor’s high-risk list for chronic failures.  

“Enough announcements while California lags behind and lets the federal government take the lead,” Flora said.  

Assembly Republicans are demanding more than rhetoric. They want a special session to compel every department to the table, fund aggressive enforcement, expose oversight breakdowns, and impose tougher penalties. With Tax Day reminding every Californian of the heavy price already paid, the message from the Capitol steps was unmistakable: taxpayers have waited long enough for Sacramento to treat fraud as the emergency it is — rather than shielding those who enable it.