Allen J. Schaben / Los Angeles Times via Getty Images
It’s no coincidence that the states with the biggest social-welfare programs also have the weakest systems to detect fraud.
California Gov. Gavin Newsom appears to be leading in the race for the 2028 Democratic presidential nomination, at least in some polls. But if he is to triumph in the general election, the smooth-talking governor has one major obstacle to overcome: his record. After nearly eight years in office, Mr. Newsom presides over a state with some of America’s highest prices, most oppressive taxes, worst homelessness and least opportunity.
Then there’s the fraud. And, wow, what spectacular fraud. Many of California’s most celebrated social-welfare programs are riddled with criminality. For example, the state’s poorly managed unemployment insurance program shoveled tens of billions out the door during the Covid pandemic. Much of that money wound up in the pockets of overseas gangs, inmates in state prisons and a Tennessee hip-hop artist who rapped about, then pleaded guilty to, a $700,000 rip-off.
A City Journal investigation showed how California’s generous programs for homelessness, home healthcare, food stamps and other benefits offer more juicy opportunities to crooks. On Mr. Newsom’s watch, the authors estimated, “fraudsters, scammers, and organized crime rings have stolen at least $180 billion from taxpayers.”
Continue reading the entire piece here at the Wall Street Journal (paywall)
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James B. Meigs is a senior fellow at the Manhattan Institute and a City Journal contributing editor.
