On Tuesday, President Donald Trump took to social media to announce the initiation of an investigation into alleged corruption in California, targeting what he claims is significant fraud under Governor Gavin Newsom’s administration. This announcement arrives amid growing concerns over welfare, education, and unemployment fraud within the state, paralleling a broader national effort to combat similar issues, highlighted by high-profile fraud cases in places like Minnesota.
Trump’s post on Truth Social stated, “California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible??? The Fraud Investigation of California has begun. Thank you for your attention to this matter! President DONALD J. TRUMP.”
This social media declaration follows increasing scrutiny over fraud allegations tied to California’s state-run programs. The situation mirrors developments in Minnesota, where federal agencies like the Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE) have been actively investigating a substantial welfare fraud case involving billions in misappropriated funds, resulting in numerous convictions and the freezing of extensive federal aid.
Federal reports have implicated California in the widespread misuse of public funds, particularly in unemployment and welfare programs. According to the Department of Government Efficiency (DOGE), California accounted for a significant portion of the $382 million in fraudulent unemployment payments identified since 2020. Remarkably, $305 million of these improper claims originated from California, with some claims filed by individuals with suspicious birthdates, including some allegedly born in the future, and others linked to terrorist watchlists.
On November 13, 2025, Dana Williamson, who previously served as chief of staff to Governor Gavin Newsom, was indicted on 23 federal charges, including conspiracy to commit bank and wire fraud, defrauding the United States, obstructing justice, filing false tax returns, and making false statements. The Department of Justice alleges that Williamson used her political consulting firm to bill a campaign for non-existent services, diverting the funds to the wife of her co-conspirator, Sean McCluskie, who was then the chief of staff to former Health and Human Services Secretary Xavier Becerra. The DOJ described this indictment as a “key development in an ongoing political corruption probe that commenced over three years ago.”
A state audit released in July 2025, spanning 171 pages, accused the Highlands Community Charter and Technical Schools in Sacramento of fraudulently obtaining and misusing $180 million in state education funds. The audit revealed that the school admitted ineligible students, inflated enrollment numbers for increased funding, and sidestepped financial transparency obligations. It also uncovered nepotism, such as hiring a board member’s daughter at a salary of $145,860, and misuse of funds on expenses like personal vehicle repairs and luxury travel. The fallout from the audit led to the entire board’s resignation, with some members stepping down after voting to dismiss a trustee for misconduct.
Further allegations involve California’s CalFresh and unemployment systems. An independent audit uncovered $1.5 billion in improper jobless payouts and millions in misused welfare funds. State officials have also flagged repeated instances of fraud involving EBT cards and FEMA disaster aid, including over 270,000 applications for relief after the Los Angeles wildfires—despite only 13,000 homes being destroyed.
Concerns about California’s fiscal integrity have even come from within the Democrat Party. Rep. Ro Khanna (D-CA) stated in December that the state’s budget “should be audited,” citing billions in reported fraud and waste. “It was the governor’s own inspector general who said that there are billions of dollars of fraud and waste,” Khanna told CNN. He emphasized the importance of bipartisan oversight in ensuring taxpayer accountability.
Last year, a California legislative proposal drew public debate after news outlets reported on Senate Bill 560, introduced by State Sen. Lola Smallwood-Cuevas. The bill sought to decriminalize certain instances of welfare fraud under $25,000, particularly those stemming from administrative errors. Opponents argued that the measure could erode accountability in a system already burdened by large-scale misuse.
Professional golfer Phil Mickelson recently criticized California’s tax policies and its failure to prevent fraud, stating on social media that “California fraud makes MN look like amateurs” and calling for a moratorium on new taxes until systemic fraud is addressed.
