New Report Alleges $180 Billion Stolen from California Public Programs

A new report by City Journal says that at least $180 billion has been stolen from California taxpayers.

The report from Chris Rufo, Ryan Thorpe, Kenneth Schrupp, and Haley Strack said that unemployment insurance, Medicaid, homeless programs, and welfare programs in California have all been compromised by criminals.

City Journal reported:

In one case, a Romanian-led fraud ring orchestrated a $5 million unemployment-insurance scheme. Members allegedly “recruited potential [EDD-benefit] applicants through Facebook” and met them at “parks throughout Southern California to complete the application process,” according to the U.S. Attorney’s Office for the Southern District of California. “Applicants paid . . . a partial fee up front for assisting with fraudulent applications and another fee after applicants received EDD payments,” the office said. Many of the fraudsters wired the stolen funds to Romania.

In another case, a Memphis rapper allegedly bragged about stealing from California’s unemployment program in the song "EDD."

“Go to the bank with a stack of these,” Baines rapped, holding up Employment Development Department envelopes. Another rapper can be heard saying: “You gotta sell cocaine, I just file a claim.”

EXCLUSIVE: Multiple senior HHS officials estimate that, under Gavin Newsom, California's state Medicaid program has lost 25 percent of its budget to fraud. This would mean it is currently losing $50 billion a year to scammers, fraudsters, and organized crime rings. pic.twitter.com/i442jU4XkE
— Christopher F. Rufo ⚔️ (@christopherrufo) April 1, 2026

I went on Fox Business to discuss Gavin Newsom's empire of fraud. California has lost billions to Romanian fraud rings, neo-Nazi prison gangs, a Memphis rapper, and organized crime syndicates from around the world—all to the benefit of the state's Democratic power structure. pic.twitter.com/mR0LBYpa3H
— Christopher F. Rufo ⚔️ (@christopherrufo) April 1, 2026

The report said that California paid out $20 billion in fraudulent unemployment claims during the COVID-19 pandemic.

SCOOP: Under Gov. Newsom, fraudsters and organized crime rings have stolen at least $180 billion from California's unemployment, healthcare, and welfare programs—the largest financial crime in American history.

Welcome to Gavin Newsom's empire of fraud.https://t.co/6kYBPpLAuH
— Christopher F. Rufo ⚔️ (@christopherrufo) April 1, 2026

I wish this was an April Fool's joke, but it's not. Gavin Newsom and Democrats in Sacramento are allowing criminals to steal billions from taxpayers and not doing a thing about it. I'm working with the Trump Administration to end the fraud and protect taxpayers. https://t.co/qJ3MFUikDY
— Rep. Ken Calvert (@KenCalvert) April 1, 2026

We could probably pay for health insurance for the remaining Americans who don’t have it just by reining in Medicaid and Medicare insurance fraud. https://t.co/s6y4p1UVFE
— Coddled Affluent Professional (@feelsdesperate) April 1, 2026

According to experts, Newsom has lost between $180B and $280B in fraud during his time as governor—equivalent to the GDP of many middle-income nations.
— Christopher F. Rufo ⚔️ (@christopherrufo) April 1, 2026

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