Skip to main content
Tags: kevin kiley | covid-19 | funds | fraud | organized crime | mismanagement | california

Rep. Kiley to Newsmax: $32 Billion in COVID Funds Went to Organized Crime

By    |   Wednesday, 31 December 2025 08:17 PM EST

Rep. Kevin Kiley, R-Calif., sharply criticized what he described as widespread fraud and fiscal mismanagement in California during an appearance on Newsmax's "Carl Higbie FRONTLINE," pointing to billions of dollars in taxpayer losses and stalled infrastructure projects.

Kiley cited a June report showing that more than one-third of community college applications in California were fraudulent, a scheme he said siphoned more than $10 million in federal financial aid and millions more in state funds.

He argued the losses go beyond waste, instead fueling organized crime.

"The taxpayers are losing, and the money doesn't vanish, it ends up in the hands of fraudsters," Kiley said, pointing to pandemic-era unemployment fraud he estimated cost at least $32 billion, much of it tied to criminal networks.

The congressman also took aim at California's high taxes, saying residents continue to pay more while receiving fewer public benefits.

He singled out the state's long-delayed high-speed rail project as emblematic of government failure, noting that despite nearly two decades of planning and tens of billions of dollars in spending, no passenger rail line has been completed.

Kiley said costs for the project have ballooned from initial estimates to more than $100 billion, citing media reports questioning whether it will be finished this century.

He also criticized San Francisco officials over discussions of a reparations program, arguing the city faces major budget deficits and cannot afford the proposal.

Kiley said the issues reflect broader governance problems in California, adding that frustration among taxpayers is growing as fraud and cost overruns continue with little accountability.

GET TODAY NEWSMAX+:

NEWSMAX is the fastest-growing cable news channel in America with more than 30 million people watching!

Reuters Institute reports NEWSMAX is one of the top news brands in the U.S.

You need to watch NEWSMAX today.

Get it with great shows from Rob Schmitt, Greta Van Susteren, Greg Kelly, Carl Higbie, Rob Finnerty – and many more!

Find the NEWSMAX channel on your cable system – Go Here Now

BEST OFFER:

Sign up for NEWSMAX+ and get NEWSMAX, our streaming channel NEWSMAX2 and our military channel World at War.

Find hundreds of shows, movies and specials.

Even get Jon Voight's special series and President Trump's comedy programs and much more!

Watch NEWSMAX+ on your smartphone or home TV app.

Watch NEWSMAX anytime, anywhere!

Start your FREE trial now: NewsmaxPlus.com

© 2026 Newsmax. All rights reserved.


Newsmax-Tv
Rep. Kevin Kiley, R-Calif., sharply criticized what he described as widespread fraud and fiscal mismanagement in California during an appearance Wednesday on Newsmax, pointing to billions of dollars in taxpayer losses and stalled infrastructure projects.
kevin kiley, covid-19, funds, fraud, organized crime, mismanagement, california, infrastructure
397
2025-17-31
Wednesday, 31 December 2025 08:17 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
TOP

Interest-Based Advertising | Do not sell or share my personal information

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved
Download the Newsmax App
NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved