Where’s the money Gavin?
The Trump administration is expanding its nationwide push to investigate waste, fraud, and abuse involving taxpayer-funded programs, with California emerging as a major focus.
Federal prosecutors are now raising serious concerns about California’s handling of homelessness spending under Governor Gavin Newsom, citing a lack of transparency and oversight over tens of billions of public dollars.
Speaking Thursday on Fox & Friends, First Assistant U.S. Attorney Bill Essayli said California has spent approximately $24 billion on homelessness programs over the last five years, yet officials have struggled to clearly account for how the money was used.
“California has spent $24 billion in the last five years on homelessness, and no one can account for where that money has really gone,” Essayli said.
In April, Essayli announced the creation of a federal task force dedicated to investigating potential corruption connected to California’s homelessness system. According to federal authorities, the task force has already led to criminal charges against two individuals accused of exploiting state-funded housing and real estate programs for personal financial gain.
Prosecutors say the alleged schemes involved millions of dollars and abused programs intended to help vulnerable populations.
Essayli indicated that the cases already filed may represent only a small portion of a much larger problem.
“We’ve already charged millions of dollars in fraud,” he said. “More charges are coming, potentially as soon as this month.”
Federal officials have suggested that weak oversight and limited accountability within large state-run programs have made California vulnerable to abuse. Critics argue that Democratic leadership in the state has prioritized spending without implementing sufficient safeguards to prevent fraud.
California is not the only Democrat-led state under scrutiny. Federal investigators are also examining public benefits programs in Minnesota, where allegations of widespread fraud involving childcare and social services have triggered a separate investigation.
President Donald Trump commented on the California probe in a post on Truth Social earlier this week.
“The Fraud investigation of California has begun,” Trump wrote, suggesting the state’s problems may be even more extensive than those uncovered in Minnesota.
In response, Newsom’s office disputed the claims, stating on X that the governor has blocked more than $125 billion in fraudulent claims, arrested individuals accused of abusing public programs, and strengthened protections for taxpayers.
The governor’s office argues those efforts demonstrate California’s commitment to preventing fraud. However, critics continue to question how billions already spent on homelessness have failed to produce measurable results.
Vice President JD Vance has also criticized California’s broader welfare policies. In a recent interview with Fox News, Vance accused the state of using taxpayer funds to provide benefits, including Medicaid coverage, to individuals living in the country illegally.
“California has been unusually open about providing welfare benefits to illegal aliens,” Vance said. “People are getting rich off the generosity of the American taxpayer, and the political corruption that enables it has to stop.”
As federal investigations continue, California officials may face increasing pressure to explain where taxpayer dollars went—and whether stronger oversight is needed to prevent future abuse.
