{"id":2530131,"date":"2026-01-05T16:32:01","date_gmt":"2026-01-05T21:32:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/califraudia-report-puts-state-fraud-waste-and-abuse-losses-at-250-billion\/"},"modified":"2026-01-05T16:39:04","modified_gmt":"2026-01-05T21:39:04","slug":"califraudia-report-puts-state-fraud-waste-and-abuse-losses-at-250-billion","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/califraudia-report-puts-state-fraud-waste-and-abuse-losses-at-250-billion\/","title":{"rendered":"\u2018Califraudia\u2019 report puts state fraud, waste, and abuse losses at $250 billion"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcalifraudia-report-puts-state-fraud-waste-and-abuse-losses-at-250-billion%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2530131&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A preliminary report called &#8220;Califraudia,&#8221; commissioned by republican gubernatorial candidate Steve Hilton and state controller candidate Herb Morgan, claims fraud, waste, and abuse in California could total about $250 billion. The estimate is based on hundreds of tips collected via a hotline, Califraud.com, and alleges widespread problems across housing and homelessness programs, Medi\u2011Cal, calfresh, K-12 education (including pay\u2011to\u2011play), community college aid fraud, and pandemic-era unemployment insurance abuse. The pair point to prior state auditor findings and <a href=\"https:\/\/amzn.to\/3YuVZYV\" >acknowledged overpayments &#8211; including roughly  billion tied<\/a> to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/enormous-scale-of-pandemic-relief-fraud-hits-100b-on-joe-bidens-watch\/\" title=\"&#039;Enormous&#039; Scale of Pandemic Relief ... Hits 0b on Joe Biden&#039;s Watch\">pandemic fraud<\/a> and more than $55 billion in improper unemployment claims overall &#8211; as evidence of systemic mismanagement.Hilton and Morgan are calling for top\u2011to\u2011bottom autonomous audits of major programs, referrals to federal investigators, and a joint federal\u2011state task force to recover assets if elected. The report&#8217;s authors acknowledge their source material is tip-based,and critics &#8211; including Gov. Gavin Newsom&#8217;s spokesperson &#8211; dismiss the headline number as exaggerated and defend the governance&#8217;s anti\u2011fraud actions. It remains unclear how much of the report represents new findings versus previously reported issues.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">&lsquo;Califraudia&rsquo; report puts state fraud, waste, and abuse losses at $250 billion<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2423463\" class=\"tpd-featured-video bridtv\"><\/div>\n<p><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/fraud\/\">Fraud<\/a>, waste, and abuse in <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/california\/\">California<\/a> could hit $250 billion, according to a new analysis of hundreds of whistleblower tips commissioned by Republican gubernatorial candidate <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/04\/Steve-Hilton-2026-CA-scaled.webp\">Steve Hilton <\/a>and state controller candidate <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/finance.yahoo.com\/news\/herb-morgan-becomes-first-political-130000629.html\">Herb Morgan<\/a>.<\/p>\n<p>The &ldquo;Califraudia&rdquo; preliminary report alleges a systematic looting from state agencies. The duo claimed Monday that the eye-popping, multibillion-dollar estimate underscores the &ldquo;urgent need for formal investigation and audit&rdquo; as a matter of &ldquo;<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-ny-gov-kathy-hochul-admin-gave-covid-test-contract-to-campaign-donors-company-at-double-the-price\/\" title=\"Report: NY Gov. Kathy Hochul Admin Gave COVID Test Contract To Campaign Donor\u2019s Company At Double The Price\">basic fiscal responsibility<\/a>.&rdquo;<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/state\/4406585\/total-failure-tim-walz-drops-minnesota-reelection-mixed-reaction\/\">&#8216;Total failure&#8217; Tim Walz drops reelection bid to mixed reaction<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/state\/4406828\/amy-klobuchar-weighs-run-minnesota-governor-tim-walz-drops-out\/\">Amy Klobuchar weighs run for Minnesota governor after Tim Walz drops out<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/state\/4406501\/tim-walz-drops-reelection-bid-minnesota-governor\/\">Tim Walz drops reelection bid amid fraud scrutiny: &lsquo;I can&rsquo;t give a political campaign my all&rsquo;<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-large is-resized\"><figcaption class=\"wp-element-caption\">California Republican gubernatorial candidate Steve Hilton attends the Los Angeles premiere of Reagan on Aug. 20, 2024, at TCL Chinese Theatre in Hollywood. (Photo by Robin L Marshall\/FilmMagic)<\/figcaption><\/figure>\n<\/p><\/div>\n<p>Some of the areas they claim are fraught with abuse include housing and homelessness programs, including grant-funded nonprofit and intermediary organizations receiving billions in public funds. They also cited issues at the California Health and Human Services Agency, including Medi-Cal, the state&rsquo;s Medicaid program, and CalFresh, the state&rsquo;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/morning-wire-biden-faces-backlash-over-afghanistan-speech-tropical-storm-hits-haiti-following-massive-earthquake-biden-administration-expands-food-stamp-program\/\" title=\"Morning Wire: Biden Faces Backlash Over Afghanistan Speech, Tropical Storm Hits Haiti Following Massive Earthquake, Biden Administration Expands Food Stamp Program\">food stamp program<\/a>, noting &ldquo;known eligibility, verification, and payment weaknesses.&rdquo;<\/p>\n<p>The California state auditor&rsquo;s recent High Risk Report had already flagged problems across CalFresh, Medi-Cal&rsquo;s eligibility, and financial reporting.&nbsp;Hilton and Morgan also allege widespread pay-to-play abuse within the state&rsquo;s K&ndash;12 education system and noted fake community college applications were created to steal student aid funds.<\/p>\n<p>They also spotlighted unemployment insurance grifting during the pandemic. The state has already admitted to being defrauded of more than $55 billion in recent years by people who may not have been eligible for jobless claims. A state audit painted the California Employment Development Department as chaotic in its handling of overpayments. Most of the money will likely never be recovered. Some of the overpayments were the result of massive pandemic-related fraud, estimated at $20 billion.<\/p>\n<p>It is unclear whether Hilton and Morgan have actually found anything new or are recycling reported issues.&nbsp;The information used for the preliminary report came from tips submitted by whistleblowers, citizens, contractors, and service providers on Califraud.com, a live intake platform Hilton launched a month ago.<\/p>\n<p>Hilton blamed the state&rsquo;s problems on <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/gavin-newsom\/\">Gov. Gavin Newsom<\/a> (D-CA) and Democrats, who he accused of single-handedly destroying the state. Hilton told the <em>Washington Examiner <\/em>that 16 years of one-party rule have led to a culture of corruption and complacency on&nbsp;an &ldquo;epic scale&rdquo; and a tolerance for mismanagement and incompetence.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-large is-resized\"><figcaption class=\"wp-element-caption\">Gov. Gavin Newsom (D-CA) speaks during a rally with Harris County Democrats at the IBEW local 716 union hall on Saturday, Nov. 8, 2025, in Houston. (AP Photo\/Karen Warren)<\/figcaption><\/figure>\n<\/p><\/div>\n<p>&ldquo;Gavin Newsom and the corrupt Democrat machine have stolen our money and handed it out to corrupt cronies and political front groups,&rdquo; Hilton said at an event announcing his report findings. &ldquo;As usual, we see in California this terrible combination of corruption, ideological extremism, and incompetence. It&rsquo;s the worst fraud in America, by far, and Newsom is now, on every possible measure: &lsquo;MUGA&rsquo; &ndash; the Most Useless Governor in America.&rdquo;<\/p>\n<p>Hilton and Morgan have called for a top-to-bottom independent audit of Medi-Cal, CalFresh, and housing and homelessness programs.<\/p>\n<p>&ldquo;Audits in California tend to happen after the money is already gone,&rdquo; Morgan said. &ldquo;That is not accountability. That is a post-mortem. Absent decisive executive leadership, professional financial stewardship, and comprehensive audits, these failures will continue.&rdquo;<\/p>\n<p>The&nbsp;duo has also written a&nbsp;letter to <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/pam-bondi\/\">Attorney General Pam Bondi<\/a> and the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/jim-jordan-rejects-january-6-committees-unprecedented-and-inappropriate-request-for-interview\/\" title=\"Jim Jordan Rejects January 6 Committee\u2019s \u2018Unprecedented And Inappropriate\u2019 Request For Interview\">federal inspectors general<\/a>, demanding that the FBI&rsquo;s Public Corruption and Complex Fraud units investigate their allegations.&nbsp;If elected in November, Hilton and Morgan pledge to create a joint federal-state task force with authority to recover assets.<\/p>\n<p>&ldquo;Who is Steve Hilton? We don&rsquo;t respond to MAGA-made-up numbers,&rdquo; Newsom spokeswoman Izzy Gardon told the&nbsp;<em>Washington&nbsp;Examiner<\/em> in a statement.<\/p>\n<p>&ldquo;In the actual world where adults govern, Governor Newsom&nbsp;has been cleaning house,&rdquo; Gardon said.&nbsp;&ldquo;Since taking office, he&rsquo;s blocked over $125 BILLION in fraud, arrested criminal parasites leaching off of taxpayers, and protected taxpayers from the exact kind of scam artists Trump celebrates, excuses, and pardons.&rdquo;<\/p>\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/\/2026\/01\/localimages\/2463991_sd_695bf0c6aa185_1767633094.jpg\">TIM WALZ DROPS REELECTION BID AMID FRAUD SCRUTINY: &lsquo;I CAN&rsquo;T GIVE A POLITICAL CAMPAIGN MY ALL&rsquo;<\/a><\/strong><\/p>\n<p><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/2026-elections\/\">The race<\/a> to succeed Newsom, who is term-limited, has already&nbsp;attracted a large and diverse field. More than 95 candidates have submitted paperwork indicating their intention to run, though the filing period does not begin until Feb. 9.<\/p>\n<p>Hilton is among the Republican candidates&nbsp;gaining traction. He has spent the past few years touring California and hammering home affordability issues in a state that already has the highest gas prices in the nation, a crippling housing crisis,&nbsp;and widespread economic instability.<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Report: $250B lost to California fraud<\/p>\n","protected":false},"author":2646,"featured_media":2530132,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/07\/GettyImages-2167725106.webp?w=594","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[4045,70185,70187,70188,70186],"class_list":["post-2530131","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-california","tag-califraudia","tag-government-waste-2","tag-public-accountability-2","tag-state-fraud"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/07\/GettyImages-2167725106.webp?w=594","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2530131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2646"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2530131"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2530131\/revisions"}],"predecessor-version":[{"id":2530135,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2530131\/revisions\/2530135"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2530132"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2530131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2530131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2530131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}