California Governor Gavin Newsom has responded to President Donald Trump’s recent claim that California is under investigation for fraud.
On Tuesday, President Trump announced on Truth Social that a “Fraud Investigation of California has begun,” but did not provide specific details about the alleged fraud.
In a statement to ABC News, Newsom’s office dismissed Trump’s claim, describing him as “a deranged, habitual liar.” The statement emphasized Newsom’s efforts in blocking over $125 billion in fraud, arresting criminals, and protecting taxpayers from scams. Newsom’s office also criticized the Trump administration’s decision to freeze $10 billion in federal funds for child care programs in California and four other Democrat-run states: Colorado, Illinois, Minnesota, and New York.
The Department of Health and Human Services cited alleged fraud as the reason for freezing the funds, which could lead to increased childcare costs for families in affected areas, such as Fresno County, where more than 52% of residents rely on social services. Fresno County Supervisor Luis Chavez expressed concern over the impact on families, calling the move “shameful” during a time of high inflation and rising costs.
While some local officials, like Nathan Magsig, welcome federal efforts to address fraud, they urge a more targeted approach, focusing on prosecuting specific offenders rather than broadly accusing entire states. The Trump administration claims that California’s welfare program, CalWORKs, lost over $108 million due to fraud, and accuses the state of “rampant fraud” and “giving money to illegals.”
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