ICYMI: $180 Billion+ Lost to Fraud Puts California Programs Under Scrutiny

SACRAMENTO —  A new report by City Journal, titled “Gavin Newsom’s Empire of Fraud,” finds California has lost “at least $180 billion to fraud” across major government programs.

For years, warnings about fraud in state programs piled up, audits flagged risks, and investigations exposed gaps, yet Sacramento Democrats kept the system running as-is.

Governor Gavin Newsom has sought to dismiss the report outright, driving even more attention to it.

The report draws on state audits, public records, and prior investigations tied to unemployment insurance, health care, and homelessness spending, showing the same pattern across programs: money moved fast, oversight lagged, and accountability never caught up.

California’s unemployment system paid out billions in fraudulent claims during the pandemic, homelessness spending has faced repeated criticism over a lack of tracking and measurable outcomes, and health care programs continue to raise questions about improper payments and oversight gaps. Where did the money go?