California Lawmakers Request Investigation into Waste and Fraud
California legislators are urging a federal oversight body to look into allegations that the state is losing billions due to waste, fraud, and abuse.
Representative Kevin Kiley (R-Calif.) sent a letter on Tuesday to the Comptroller General of the United States, which is an independent agency that works for Congress.
In his letter, Kiley expressed his belief that the fraud incidents in Minnesota “paled in comparison” to those occurring in California.
He pointed to serious issues, including billions lost to unemployment fraud and problematic homeless assistance programs that were highlighted during the COVID-19 pandemic by Lexus Nexus.
“During the pandemic, Lexus Nexus estimated California’s unemployment fraud hit an unprecedented level—around $32.6 billion. People who were jobless had their benefits stolen, and taxpayers lost their money too,” he remarked.
Kiley emphasized that homelessness solutions are also plagued by wasteful spending and fraud. He mentioned a state auditor’s review that examined how money was allocated to homelessness programs from 2019 to 2024. Astonishingly, even after spending $24 billion, the homeless population increased by 30,000, with little evidence of progress from grant recipients.
He believes that directing attention to a congressional oversight committee could help address the fraud issue in California. Kiley is calling for a thorough investigation into the scope of fraud since 2016, including how it varies by economic sector and the demographics of those committing it.
“Congress has a key responsibility to make sure taxpayer money is used correctly and protected from criminal misuse,” Kiley remarked.
He also noted that California has consistently failed to safeguard public funds, leading to negative consequences for taxpayers and vulnerable groups.
Los Angeles is not exempt from these issues. The Department of Justice has accused two real estate developers of misappropriating about $50 million meant for homelessness initiatives last fall.
Meanwhile, Governor Gavin Newsom has attempted to shift focus from California’s issues by referencing suspected fraud and misconduct in Republican-led states.
“I recently learned about the fraud happening with Kristi Noem in South Dakota,” he tweeted, referring to an article about state officials allegedly stealing $1.8 million from Child Protective Services and another case involving $71 million in organic fraud.
Last week, an exclusive report discussed a bill by California Representative Young Kim that aims to eliminate waste and abuse at both state and local levels. The proposed No More Fraud Act would mandate the President to set up a federal interagency task force within 90 days of its passage and appoint a task force leader within 180 days.
“Our goal is to have one quarterback on the field, one strategy, and one objective: to halt fraud, simplify processes, and reclaim taxpayer funds,” she stated. “This will require collaboration among various federal agencies to tackle fraud connected to federal money.”
Additionally, President Trump mentioned last month that California is under investigation for fraud-related concerns.
