Trump: 'The Fraud Investigation of California Has Begun'

President Donald Trump announced Tuesday on social media that an investigation into alleged fraud in California has begun, pointing to what he described as deep corruption under Governor Gavin Newsom. The statement comes as California faces mounting scrutiny over welfare, education, and unemployment fraud, amid a broader national crackdown following high-profile fraud cases in states like Minnesota.

In a post published to Truth Social, Trump wrote, “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”

Trump’s post follows months of growing attention on fraud allegations involving state-run programs in California. These concerns echo similar developments in Minnesota, where multiple federal agencies, including the Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE), have deployed thousands of agents to investigate a welfare fraud scandal involving billions in misappropriated funds. Investigations there have already led to dozens of convictions and the freezing of hundreds of millions in federal aid.

Federal investigations and reports have linked California to extensive misuse of public funds, particularly in unemployment and welfare programs. According to the Department of Government Efficiency (DOGE), California was responsible for the majority of a reported $382 million in fraudulent unemployment payments made since 2020. In one breakdown, California alone accounted for $305 million in improper claims, including benefits collected by individuals with implausible birthdates—some reportedly born in the future—and others with ties to terrorist watchlists.

On November 13, 2025, Dana Williamson, former chief of staff to Governor Gavin Newsom, was indicted on 23 federal counts, including conspiracy to commit bank and wire fraud, defrauding the United States, obstructing justice, filing false tax returns, and making false statements. According to the Department of Justice, Williamson allegedly used her political consulting company to bill a campaign account for services never performed and diverted the funds to the wife of her co-conspirator, Sean McCluskie — then chief of staff to former Health and Human Services Secretary Xavier Becerra. The DOJ described the charges as a “crucial step in an ongoing political corruption investigation that began more than three years ago.”

A 171-page state audit in July 2025 accused the Highlands Community Charter and Technical Schools in Sacramento of fraudulently acquiring and misusing $180 million in state education funding. The report found the school admitted ineligible students, inflated enrollment numbers to boost funding, and avoided financial transparency requirements. It also documented nepotism — including hiring a board member’s daughter at a $145,860 salary — and misuse of funds on items like personal vehicle repairs and luxury travel. The entire board resigned following the audit’s release, with several members stepping down after first voting to remove one 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.