In January 2026, President Trump announced a federal fraud investigation into California, spotlighting significant financial misconduct under Governor Gavin Newsom. The scope of the investigation has sparked comparisons to Minnesota’s notorious budget scandals, thrusting California’s issues into the national spotlight.
Alarming findings from the Department of Labor’s Office of the Inspector General (OIG) revealed that California is responsible for an estimated $305 million in fraudulent unemployment payments since 2020, contributing to a total of $382 million nationwide. Further scrutiny was placed on Highlands Charter Schools, where a $180 million fraud audit raised serious questions about misuse of funds.
The indictment of Dana Williamson, Newsom’s former chief of staff, adds another layer of controversy. Charged with corruption, Williamson’s alleged involvement in improper payouts has prompted criticisms from within the Democratic Party itself. Representative Ro Khanna has called attention to these issues, stating, “It was the governor’s own inspector general who said that there are billions of dollars of fraud and waste.”
In a social media post that stirred considerable discussion, President Trump didn’t hold back in his assessment. He declared California, under Newsom—referred to as “Gavin Newscum”—to be “more corrupt than Minnesota,” amplifying calls for accountability in the state administration. This post resonated with many on social media, as conservatives celebrated Trump’s announcement. One response remarked, “President Trump announces the Fraud Investigation of California has begun. He says California under Governor Gavin Newscum is ‘more corrupt than Minnesota.’ Trump is right.”
Even beyond political circles, figures like golfer Phil Mickelson lent their voices to the growing chorus of discontent over California’s financial mismanagement. He expressed frustration over the state’s tax and fraud policies, stating, “No amount of tax can help CA until the fraud problem gets fixed.” Mickelson argued against new taxes, emphasizing that such measures would only fund existing fraud until significant reforms were implemented.
Mickelson’s critique sharpened as he pointed out a dire political reality. He suggested that addressing fraud, illegal immigration, and voter fraud could shift the political landscape in California, adding, “The dilemma for all Democrats is if you stop the fraud, illegal immigration, and voter fraud in CA, then Republicans win CA and have a huge majority throughout the country.” This stark reflection on the interconnectedness of policies and electoral outcomes resonated strongly with those questioning the state’s governance.
The golfer’s broader message about tax morality also struck a chord. “When we pay our taxes knowing it is directly funding fraudulent entities, does that make us complicit?” he pondered. His words echoed a growing sentiment among taxpayers frustrated by rising taxes without corresponding improvements in governance.
Trump reiterated these grievances, declaring, “There is more FRAUD in California than there is in Minnesota, if that is even possible. When you add in Election Fraud, then they are tied for first. Two Crooked Governors, two Crooked States!”
This fracas around California’s financial integrity has drawn widespread attention, reflecting profound concerns over governance, accountability, and the impact of policy decisions on everyday citizens. As the investigation unfolds, the implications for California’s future and the broader political landscape will continue to draw scrutiny.
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