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California Welfare Fraud Could Cost $250 Billion, Say Analysts

1/5/2026

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Summary

Story summary

California could lose up to $250 billion due to fraud, waste, and abuse in its welfare system, per a Republican-backed analysis by gubernatorial candidate Steve Hilton and state controller candidate Herb Morgan.
They have called for an FBI investigation and independent audits of state programs.
The CALIFRAUDIA analysis highlights systemic issues in CalFresh and Medi-Cal.
Governor Gavin Newsom's spokesperson counters that he has blocked over $125 billion in fraud since taking office.

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Story summary

California could lose up to $250 billion due to fraud, waste, and abuse in its welfare system, per a Republican-backed analysis by gubernatorial candidate Steve Hilton and state controller candidate Herb Morgan.
They have called for an FBI investigation and independent audits of state programs.
The CALIFRAUDIA analysis highlights systemic issues in CalFresh and Medi-Cal.
Governor Gavin Newsom's spokesperson counters that he has blocked over $125 billion in fraud since taking office.