Trump Announces California’s Time Has Come – ‘Fraud Investigation’ Underway
President Donald Trump said California is the next state to come under federal scrutiny over suspected fraud. (Joe Raedle / Getty Images)
President Donald Trump announced Tuesday that California’s federally funded programs will be placed under increased federal scrutiny, citing concerns about fraud and mismanagement.
In a post on Truth Social, Trump accused California, led by Gov. Gavin Newsom, of corruption and said a federal investigation into the state has begun. He linked the move to recent revelations of large-scale fraud in Minnesota involving housing and social services programs.
Trump’s comments followed a report by The New York Times stating that California is among five states facing a pause in certain federal funding. According to the report, payments through the Temporary Assistance for Needy Families program to Minnesota, New York, California, Illinois, and Colorado will be temporarily frozen, affecting roughly $7 billion in funding.
Why is it so stunningly easy to defraud the State of California? 1.2 million fake community college applications. $32 billion in unemployment fraud. $24 billion in homeless funds lost. $17 billion on a nonexistent High-Speed Rail. $650 million on a cancelled 911 system. We need… pic.twitter.com/e8ZWiD6ffu
— Kevin Kiley (@KevinKileyCA) January 1, 2026
The report also said an additional $2.4 billion from the Child Care Development Fund and approximately $870 million in social services grants will be blocked during the review.
Andrew Nixon, a spokesperson for the Department of Health and Human Services, said the funding freeze was prompted in part by findings in Minnesota.
“Democrat-led states and governors have been complicit in allowing massive amounts of fraud to occur under their watch,” Nixon said. “Under the Trump administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes.”
Earlier this week, Trump criticized Minnesota Gov. Tim Walz after Walz announced he would not seek a third term. Walz was the Democratic vice presidential nominee in 2024. In multiple Truth Social posts, Trump accused Walz and other Democratic leaders of corruption and mismanagement, saying federal investigations would ultimately reveal wrongdoing.
President Trump announces fraud investigation into California under Gavin Newsom, declares it “more corrupt than Minnesota” pic.twitter.com/lp98AaLYE6
— America (@america) January 6, 2026
Trump also named several other Democratic governors, including California’s Newsom, Illinois Gov. J.B. Pritzker, and New York Gov. Kathy Hochul, arguing they have overseen ineffective or dishonest state governments. “No one is above the law,” Trump wrote.
Separately, the Trump administration has launched a major immigration enforcement effort in Minnesota. According to CBS News, roughly 2,000 agents and officers from U.S. Immigration and Customs Enforcement and Homeland Security Investigations have been deployed to the Minneapolis–St. Paul area as part of the crackdown.
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