Investigation Uncovers $180B Fraud in California Programs

A new investigation has uncovered evidence of widespread fraud in California's major government programs, with losses estimated at up to $180 billion since Governor Gavin Newsom took office in 2018. The findings, drawn from audit records, federal prosecutions and state data, highlight vulnerabilities in unemployment benefits, healthcare, homelessness initiatives and in-home care services across the state.

The Employment Development Department faced significant issues during the COVID-19 pandemic, when eligibility rules were relaxed to speed up payments. State officials have acknowledged about $20 billion in fraudulent unemployment claims, though independent analysts estimate the total at $32.6 billion. Records show hundreds of millions went to ineligible recipients, including prison inmates and even those on death row. In one case, a Memphis resident admitted to federal charges after using stolen identities to obtain $700,000 in benefits.

California's Medi-Cal program, which provides healthcare to low-income residents and has grown to a $197 billion annual budget, has been repeatedly flagged by state auditors as high-risk due to weak eligibility verification. Federal estimates...