President Donald Trump on Thursday shared a Newsmax report on Truth Social highlighting allegations of widespread fraud, waste, and mismanagement in California under Democrat Gov. Gavin Newsom.
Trump reposted a video from Newsmax's "American Agenda" on Tuesday and added commentary to the post that read: "INSANE! New reports allege as much as $76.5 billion more in fraudulent spending in California."
The Newsmax segment featured Rep. Kevin Kiley, R-Calif., who warned that the state has become what he called the "fraud capital of America."
The report cited a newly released 92-page audit from California's state auditor, a nonpartisan office, which placed eight state agencies on a high-risk list for fraud, mismanagement, and waste.
Among the programs flagged was California's food stamp system, known as CalFresh. Auditors warned that if the state does not bring improper payments under control, California could face as much as $2.5 billion in additional costs under federal rules.
The audit also raised concerns about the state's oversight of COVID-19 relief funding and other financial management issues. According to the Newsmax report, critics estimated that tens of billions of dollars in pandemic-related aid distributed by California agencies were taken by fraudsters.
The segment also pointed to long-running concerns over infrastructure spending, including California's high-speed rail project, which critics say has already cost taxpayers about $18 billion without completing a single section of track.
Spending on the homeless was also highlighted. As stated by the Newsmax report, critics have questioned how roughly $24 billion allocated to address homelessness was tracked and spent.
More recently, the segment cited findings related to California's 911 emergency system, which was funded for years through cellphone surcharges. Despite spending about $650 million, the state ultimately scrapped the system and began again.
"After spending $650 million on that system, the state is totally scrapping it and starting over," Kiley said in the Newsmax segment. "Completely wasted the money because the technology doesn't work."
Michael Katz ✉
Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.
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