A new City Journal article paints a harsh picture of fraud in California under Governor Gavin Newsom. The piece claims the state has lost at least $180 billion through fraud involving unemployment benefits, COVID programs, and hospice care. Recent federal arrests in Southern California uncovered a scheme that allegedly stole more than $50 million from Medicare through fake hospice companies. Newsom’s office says California has already taken action by revoking licenses and tightening rules, but critics argue those efforts came far too late.
California fraud losses may top $180 billion, according to critics of Gov. Gavin Newsom. A federal crackdown uncovered fake hospice companies and $50 million in Medicare fraud, while Newsom says the state has already suspended hundreds of licenses. #GavinNewsom #Fraud pic.twitter.com/oujjmhQ9Ck
— Matthew Brady (@mattbrady775) April 4, 2026
- City Journal argues that California has lost at least $180 billion to fraud under Governor Gavin Newsom’s administration, citing experts and officials. The article focuses heavily on fraud in unemployment benefits, Medicaid, COVID relief, and hospice programs.
- The article highlights a recent federal crackdown on hospice fraud in Southern California, where eight people were arrested for allegedly stealing more than $50 million through fake hospice providers and false Medicare billing.
- According to the piece, investigators found examples such as multiple hospice companies registered to a single address, empty offices, and nonexistent facilities billing Medicare.
- Critics quoted in the article, including federal prosecutor Bill Essayli, accuse Newsom of weak oversight and call him the “fraud king.” They argue California’s licensing system allowed fraudulent operators to flourish.
- Newsom’s office rejects the accusations. A spokesperson called the criticism “utter bullsh**” and said California has suspended more than 280 hospice licenses and blocked new licenses since 2022.
- President Donald Trump, now serving as the 47th president, recently launched a broader anti-fraud initiative led by Vice President JD Vance, targeting Democratic-led states including California. The administration says California’s weak safeguards increased the risk of large-scale fraud.
