California Is The Fraud Capital of America

Congressman Kevin Kiley (R-CA) reminded America of what the Globe has been reporting for years: California is the Fraud Capital of America.

In a viral post, Kevin Kiley states:

California is the Fraud Capital of America:

$32 billion in unemployment fraud

$24 billion in homeless funds “lost”

$18 billion on nonexistent bullet train

$650 million on scrapped 911 system

A scathing report from the State Auditor just identified 8 separate state agencies as “high-risk.” This means they exhibit serious “waste, fraud, abuse, or mismanagement,” costing taxpayers billions. The number has doubled during Newsom’s tenure.

California is the Fraud Capital of America:

$32 billion in unemployment fraud
$24 billion in homeless funds "lost"
$18 billion on nonexistent bullet train
$650 million on scrapped 911 system.

A scathing report from the State Auditor just identified 8 separate state agencies as…

— Kevin Kiley (@KevinKileyCA) December 21, 2025

Rep. Kiley also took to the House floor and laid bare the findings from the California State Auditor report, noting that “Our government is broken.”

Adding Medi-Cal fraud and CalFresh fraud, Kiley states additional billions were identified in the report.

From crumbling infrastructure to financial malfeasance, Kiley walks through the “clear-eyed, fact finding” findings of the State Auditor and the long history of Newsom’s failures, coupled with the refusal of the state to take any corrective action.

Under Governor Gavin Newsom, the number of state agencies found to be “high risk” have doubled during his tenure.

WATCH:

A scathing report from the California State Auditor identifies 8 separate state agencies as “high-risk.” This means they exhibit serious “waste, fraud, abuse, or mismanagement," costing taxpayers billions. The number has doubled during Newsom's tenure.

Our government is broken. pic.twitter.com/C5pCRST49A

— Rep. Kevin Kiley (@RepKiley) December 20, 2025

Last week, The Globe published the scathing findings of the State Auditor report. Editor in Chief Katy Grimes called Governor Gavin Newsom to the carpet with a warning to Californians:

The California State Auditor published a scalding report Friday that is an unvarnished indictment of Governor Gavin Newsom and his administration. The report should have everyone living in California horrified.

The Auditor’s report finds Gavin Newsom while in his final year as governor, has upended the state’s financial structure, compromised public safety, and left the state’s infrastructure in far worse condition.

The only conclusion is that Gavin Newsom is the most unserious politician to serve as California Governor, interested only in power and control, having performed none of the executive work and actual governing.

The auditor did not pull any punches, warning that the state is headed toward much worse economic and infrastructure trouble. The next governor will be saddled with Gavin Newsom’s statewide catastrophe.

Should Governor Gavin Newsom be elected President, one can also conclude that Americans would be facing a nationwide catastrophe.

Although Minnesota has dominated the  headlines after an ongoing investigation has uncovered at least $9 billion in welfare fraud under the nose of Democratic Governor Tim Walz, California taxpayers have been robbed of at least $80-$100 billion of fraud, waste and abuse, aka “theft”, according to Senator John Kennedy (R-LA).

Chamath Palihapitiya, founder and CEO of Social Capital, understands that the theft in the private sector, would result in the CEO being fired. Californians tried to fire Governor Newsom in a recall but fell short.

If a public company went through an audit like this, the report would show a failing grade along with what is called “material weaknesses”. It would be a five alarm fire.

The result would be a period to cure these weaknesses. Otherwise, the CEO/CFO would be fired, the company… https://t.co/ZaThcW0225

— Chamath Palihapitiya (@chamath) December 21, 2025

If a public company went through an audit like this, the report would show a failing grade along with what is called “material weaknesses”. It would be a five alarm fire. 

The result would be a period to cure these weaknesses. Otherwise, the CEO/CFO would be fired, the company would not be allowed to raise money etc.  

If you’re a government and you run things this shoddily, it should be illegal to keep raises taxes to increase revenues without first passing an audit that shows you have a good handle on the taxes you already collect from residents.

California has the highest taxes in the nation because California is the fraud capital of America.