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Khanna Accuses Newsom of $72 Billion Fraud in California

1/1/2026

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Summary

Story summary

Congressman Ro Khanna criticized California Governor Gavin Newsom for alleged fraud in state spending, calling for a full audit.
Khanna estimated potential fraud could reach $72 billion, citing issues in the Employment Development Department and the High-Speed Rail project.
Newsom's spokesperson, Izzy Gardon, dismissed the fraud figure as a "MAGA made-up number" and emphasized job creation from the rail project.
The High-Speed Rail project's costs have escalated from an initial $33 billion to over $128 billion, with service now expected in 2033.

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Story summary

Congressman Ro Khanna criticized California Governor Gavin Newsom for alleged fraud in state spending, calling for a full audit.
Khanna estimated potential fraud could reach $72 billion, citing issues in the Employment Development Department and the High-Speed Rail project.
Newsom's spokesperson, Izzy Gardon, dismissed the fraud figure as a "MAGA made-up number" and emphasized job creation from the rail project.
The High-Speed Rail project's costs have escalated from an initial $33 billion to over $128 billion, with service now expected in 2033.