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BOMBSHELL: California's $76 BILLION Fraud Scandal Has Gavin Newsom Running for Cover as Federal Investigators Close In

Gary FranchiJanuary 14, 202620 views
BOMBSHELL: California's $76 BILLION Fraud Scandal Has Gavin Newsom Running for Cover as Federal Investigators Close In

You were told Minnesota was an isolated incident. A regional problem. A one-time scandal. That was a lie.

The same federal investigators who just watched Tim Walz's political career implode are now turning their attention westward—and what they're finding in Gavin Newsom's California makes the Land of 10,000 Lakes look like a warm-up act for the main event.

The Numbers Are Staggering

Let's start with the unemployment fraud that California officials knew about and ignored: $32 billion. State auditors flagged it years ago. Nothing was done. Representative Kevin Kiley has called it the biggest fraud scandal in United States history—and that's just one line item in a ledger soaked in red ink.

The total alleged fraudulent spending identified across California state programs? A jaw-dropping $76 billion. That's not a typo, folks. Seventy-six billion dollars of taxpayer money, vanished into a black hole of corruption, incompetence, and what investigators increasingly believe is outright theft.

The Homelessness Money Pit

Remember when Newsom promised to solve California's homelessness crisis? He threw $24 billion at the problem—roughly $170,000 per homeless person. That's enough to literally buy each of them a house.

The result? Homelessness in California increased by 30,000 people. The streets of Los Angeles still look like a third-world country. Drug addiction. Tent cities. Garbage everywhere.

Where did the money actually go? Investigators have discovered that California's Homeless Task Force is packed with NGO leaders who directly benefit from the funding they distribute. The same people handing out the checks are cashing them. It's a money laundering operation hiding in plain sight.

Ghost Daycares and Active Cover-Ups

Just like Minnesota, investigators have uncovered ghost daycares operating in California—licensed on paper but completely nonexistent in reality. A licensed private investigator searching state records found facilities where inspectors arrived to find zero children present in the middle of the day.

Here's where it gets damning: When the investigator started asking questions, Newsom's office issued a directive to shut down public access to the state database. They're actively hiding records from investigators. That's not negligence—that's a cover-up at the highest levels of state government.

The High-Speed Rail to Nowhere

Then there's the bullet train disaster. Newsom promised Californians a high-speed rail system connecting San Francisco to Los Angeles. Seventeen years and $18 billion later, not a single track has been laid. The original deadline passed years ago. Now they're requesting $100 billion more.

Conservative commentator Benny Johnson traveled to California to see what $15 billion looks like. What did he find? Empty concrete and locked gates. The money vanished into thin air.

Corruption From the Top Down

And if you think this is just bureaucratic waste, think again. Newsom's former chief of staff was indicted on 23 counts of bank and wire fraud in November 2025, tied to campaign finance abuses. Former California state representative Bill Essayli—now serving as U.S. Attorney for the Central District of California—has confirmed that Newsom's administration allowed illegal aliens to register to vote through the DMV website.

This isn't just about money. It's about the very foundation of our elections.

The Reckoning Is Coming

Gavin Newsom watched Tim Walz fall. He watched the criminal referrals drop. He watched Treasury Secretary Scott Bessent call Walz a coward. Now he knows he's next in line.

The same federal forces tearing through Minneapolis are preparing to descend on Los Angeles, Sacramento, and San Francisco. The audits are coming. The subpoenas are coming. And no amount of blocking websites or hiding records will stop what's about to be exposed.

Patriots, the Deep State's favorite golden boy is about to learn that fraud is a career killer. The question isn't whether Newsom will face accountability—it's whether California Democrats will go down with him.

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Gary Franchi

Award-winning journalist covering breaking news, politics & culture for Next News Network.

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T
TaxpayerFirstVerifiedjust now
76 BILLION dollars?! That's more than most states' entire budgets. How does something like this even happen without proper oversight?
R
RedStateRealistVerifiedjust now
Finally the feds are stepping in. This guy has been skating by on his recall victory but the chickens are coming home to roost. California taxpayers deserve better than this corruption.
C
ConservativeVoterVerifiedjust now
Couldn't agree more. This is why we can't trust big government with our tax dollars!
P
PatriotMike2024Verifiedjust now
This is what happens when you have zero accountability in government! My business had to jump through hoops just to get a simple PPP loan while these clowns were handing out taxpayer money like candy. Newsom needs to be held accountable for this disaster.
C
CaliforniaExodusVerifiedjust now
Same here - took us 6 months to get approved while criminals were getting checks in days. The system is broken.