Khanna Calls for Audit Amid Fraud Allegations in California
Representative Ro Khanna has expressed his outrage over allegations of massive fraud involving California Governor Gavin Newsom, prompting a call for a comprehensive audit of state expenditures. This move seems to target the governor’s leadership directly.
The Silicon Valley Democrat has intensified his remarks regarding the alleged multibillion-dollar fraud, particularly criticizing California’s costly high-speed rail project—viewed by many as a reckless undertaking.
Interestingly, Khanna is considering a run for president, much like Newsom, who recently indicated he might also be eyeing the 2028 race.
Khanna announced his plans to collaborate with a bipartisan oversight committee in 2026 to request public hearings on high-risk state programs that have led to illegal payments and eligibility issues. He stated his commitment to pursuing legislation that would mandate an independent audit of California’s budget.
This push for oversight followed reports on social media suggesting a staggering $72 billion in fraud within California. This figure appears to be roughly derived from a state audit report highlighting risks associated with programs like the Employment Development Department and cost overruns of the high-speed rail project designed to connect San Francisco and Los Angeles.
Khanna, recognized as a pro-business progressive, faced backlash from tech leaders for backing a proposed wealth tax on billionaires. He conceded that accountability and corruption in Sacramento were valid criticisms, labeling the situation as “absolutely horrifying.”
He emphasized the need for full accountability regarding waste and urged that taxpayers should have clear documentation of how their money is spent. Previous reports from the California State Comptroller have pointed to issues such as up to $31 billion in fraudulent unemployment claims and inadequate anti-fraud controls concerning homelessness funds.
In response to the fraud claims, Mr. Gardon dismissed the $72 billion estimate as a “MAGA made-up number,” arguing that the high-speed rail project has created significant job opportunities. He highlighted that the project, despite delays, has generated 16,000 union jobs and completed over 50 projects.
The high-speed rail initiative was initially sanctioned by voters in 2008, with early cost estimates around $33 billion and an expected 2020 launch. However, costs have surged to over $128 billion, with service now anticipated for 2033.
As of now, while 60 structures have been built over a span of 171 miles, no tracks have been laid. The state recently dropped a lawsuit that sought to challenge the cancellation of $4 billion in federal funding meant to boost private investment for the project, indicating ongoing turbulence and uncertainty in its execution.
A report released by the Federal Railroad Administration in June laid bare significant budget deficits and missed deadlines that have plagued the high-speed rail project.
