Multiple senior HHS officials estimate that, under Gavin Newsom, California’s state Medicaid program has lost 25 percent of its budget to fraud. This would mean it is currently losing $50 billion a year to scammers, fraudsters, and organized crime rings.

The scale is staggering: more lost to fraud than many states spend in total.

City Journal: Gavin Newsom wants California to be a model for the country. City Journal: Californians are beginning to ask: Where is all this money going? On paper, it funds hospitals, universities, schools, prisons, infrastructure, and other public services. But beneath the surface, something else is happening that California Governor Gavin Newsom does not want you to see: massive, systematic, brazen fraud. We conducted interviews with public officials, fraud experts, and political figures, and reviewed hundreds of pages of government reports, state audits, criminal indictments, and other public records on California fraud. From unemployment insurance and Medicaid to failed homeless initiatives and welfare programs, seemingly every state program has been compromised by criminals. The best estimates suggest that, on the governor’s watch, fraudsters, scammers, and organized crime rings have stolen at least $180 billion from taxpayers. Welcome to Gavin Newsom’s empire of fraud.

The scale of the fraud reported here is staggering. California is losing $50 billion a year to Medi-Cal fraud alone.

That’s more than 29 states spend on their entire budgets.

The level of fraud in California is staggering https://t.co/9NbGX3PeaY

— America (@america) March 17, 2026

AUTHOR

Pamela Geller

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