Khanna Critiques Newsom’s Budget Management
California Democratic Representative Ro Khanna is stepping up his criticism regarding Governor Gavin Newsom’s management of taxpayer funds, highlighting what he describes as $72 billion in irregularities in the state budget as “outrageous and appalling.”
Khanna, who represents Silicon Valley, mentioned that many voters have expressed their concerns about “fraud, waste, and abuse” within the state’s government. He plans to initiate a bipartisan effort on the House Oversight Committee aimed at tackling fraud and drafting legislation for an independent audit of California’s budget.
“We need full responsibility for waste and new leadership in Sacramento,” Khanna stated on social media. He emphasized that taxpayers should receive detailed reports on how their money is spent.
In response, Newsom’s campaign accused Khanna of echoing Republican narratives by focusing on California’s spending issues. Currently, Newsom enjoys a lead in recent polls, with both he and Khanna seen as potential candidates for the 2028 Democratic presidential primary.
“It’s interesting that Democrats keep repeating the $72 billion number that MAGA made up,” noted Izzy Gordon, a communications director for Newsom. “That so-called ‘scam’ includes $17 billion allocated for high-speed rail, which created 16,000 union jobs and completed more than 50 projects. Labeling union efforts as a ‘scam’ is certainly a choice.”
California’s high-speed rail project has faced numerous delays and escalating costs. Earlier this year, the Trump administration terminated $4 billion in federal funding for the initiative, criticizing it as “profiteering.”
Khanna recently ignited controversy among tech leaders after advocating for a contentious wealth tax that might appear on California’s ballot in 2026. This initiative, backed by influential Democratic health care unions, proposes a one-time 5% tax on assets exceeding $1 billion owned by Californians. In December, Newsom expressed his opposition to this tax.
“While FDR called for tax increases, he also condemned the ‘tax burden caused by inefficient and extravagant local governments.’ I’ve always taken responsibility and fought against corruption,” Khanna stated on social media. “We believe that those who do well can and must contribute more to ensure that everyone has access to healthcare and education, while we provide an accountable and transparent government in return.”
Khanna’s focus on fraud follows a massive welfare fraud scandal in Minnesota that may have resulted in over $1 billion in stolen taxpayer funds. Over 60 individuals, many from the Somali community, have been convicted in connection to the scandal.
Chairman James Comer of the House Oversight Committee has invited Minnesota’s Democratic Governor Tim Walz and Attorney General Keith Ellison to testify before the committee in February 2026.
