President Donald Trump shared on social media Tuesday that an investigation into alleged fraud in California has commenced, alleging serious corruption under Governor Gavin Newsom. This announcement comes as the state is under increased scrutiny regarding fraudulent activities in welfare, education, and unemployment programs, part of a broader nationwide effort following major fraud cases in other states, like Minnesota.
In a post on Truth Social, Trump remarked, “California is more corrupt than Minnesota under Governor Gavin Newcomb, if that’s possible??? California corruption investigation has begun. Thank you for bringing this matter to your attention! President Donald J. Trump.”
This post follows months of growing concerns about fraud. California’s struggles with a state-run program reflect broader patterns, especially when considering that Minnesota has also ramped up its investigations. Various federal agencies, such as the Department of Homeland Security and Immigration and Customs Enforcement, are probing a welfare fraud scandal in Minnesota that has seen billions in funds misappropriated. These investigations have led to numerous convictions and the freezing of hundreds of millions of dollars in federal aid.
Reports indicate that California has had considerable misuse of public funds, especially in unemployment and welfare initiatives. The Department of Government Efficiency noted that California accounted for a significant portion of the $382 million in fraudulent unemployment benefits since 2020. Specifically, the state reported roughly $305 million in fraudulent claims, with some benefits issued to individuals with improbable birth dates and connections to terrorist watch lists.
On November 13, 2025, Dana Williamson, who previously served as the chief of staff to Governor Newsom, was indicted on 23 federal charges, including conspiracy, fraud against the U.S., and making false statements. The Justice Department claims he used his political consulting firm to bill for unperformed services, diverting the funds to a co-conspirator’s wife. They labeled the charges as a crucial part of an ongoing investigation into political corruption that began over three years ago.
A recent audit from July 2025 accused the Highlands Community Charter School and Technical School in Sacramento of fraudulently acquiring and misusing $180 million in state education funds. The findings revealed that the school enrolled ineligible students, inflated enrollment figures, and circumvented financial transparency. Additionally, instances of nepotism were documented, like the hiring of an executive’s daughter at a hefty salary, alongside the misallocation of funds for personal expenses. Following the audit’s release, the entire board stepped down, with a few resigning after initially voting to expel a trustee for misconduct.
Concerns about California’s welfare programs continue. An independent audit found $1.5 billion in inadequate unemployment benefits and reported immense misuse of welfare resources. There have been accusations of repeated fraud incidents involving EBT cards and FEMA disaster aid, particularly concerning over 270,000 applications filed during the Los Angeles wildfires, while just 13,000 homes were actually destroyed.
Within the Democratic Party, questions about California’s financial situation are being raised. Congressman Ro Khanna stated that the state budget “should be audited,” in light of the billions in reported fraud. He referenced the state’s own inspector general, who asserted there are significant issues of fraud and waste, making a case for bipartisan oversight for taxpayer accountability.
Last year, a legislative proposal in California sparked public discussion after news on Senate Bill 560, introduced by state Senator Laura Smallwood-Cuevas. This bill looks to decriminalize certain types of welfare fraud for amounts under $25,000, especially those arising from administrative errors. Critics worry that this could undermine accountability within a system already facing extensive abuse.
Recently, professional golfer Phil Mickelson criticized California’s approach, saying, “California’s fraud makes Minnesota look like an amateur,” regarding the state’s failures in tax policy and fraud prevention. He suggested halting new tax collections until systemic fraud issues are resolved.
